Difference between BCE.PRK and BCE.PRM

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Jul 3rd, 2015 3:28 pm

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Jul 3rd, 2015 10:48 am

chaugh [OP]: Sr. Member; Dec 12, 2010; 887 posts; 520 upvotes

Jul 3rd, 2015 10:48 am

Difference between BCE.PRK and BCE.PRM

Can someone explain to me what the difference between the 2 preferred share classes is other than M having 1% better yield?

These 2 are looking quite attractive given the yield after the big drop in prices. Don't see much risk in a long term hold either.

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Jul 3rd, 2015 3:28 pm

dmitri81: Jr. Member; May 4, 2008; 101 posts; 2 upvotes

Jul 3rd, 2015 3:28 pm

The risk with these two is the rate reset. According to the BCE inc site, A series (BCE.PRM is an A series) will reset on Mar 31, 2016 to the sum of the T-Bill Rate plus 2.09%. A T-Bill currently yields just over half a percent (0.58%) so a total yield of 2.63. Pretty low for preferred shares. Its even less on the K series for a total of 2.46%. It will take many more years of rate hikes for these two to yield something significant.

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