Re: Rate-reset preferreds
Curious if anyone else holds Brookfield Office preferreds - BPO.PR._ or has perspective.
I hold two rate resets with minimum resets at par of 5-6% - BPO.PR.C and BPO.PR.I. Both have been crushed in the last week or two, down 15%+ in very short order and touching COVID lows ($15-$17 range), with current yield now north of 10% and minimum resets around 8-9%.
Commercial/office is certainly a tough place to be right now with slow return to office, increased vacancy and high interest rates. But none of that explains these prefs falling off a cliff suddenly -- curious if anyone has insight on BPO/BPY specific factors? With bpo being owned by BPY, and BOY owned by BN, I confess I don't fully understand what level of assurance/backing these would have from up the ownership chain if things really did get rough in office/BPO, but I'd imagine that's the rub.