Investors increasingly are finding the 2018 and 2019 debt maturities to be “easy money”, while the middle and long-range part of the debt curve are relatively untouched from a month and a half ago.
Preferred share yields today for floating rate preferreds (TSX: BBD.PR.B) is roughly 8%, while on the fixed-rate (TSX: BBD.PR.C and BBD.PR.D) they are roughly 9%. Yields have compressed over the last month and in the humblest of my opinions, have room to compress further.