Today, I updated the Emera rate reset EMA.PR.H in the Subscriber home page to Buy at $22.46. The last update called it Strong Buy at a somewhat lower price. This preferred share has been quite volatile. It’s been as low as $18.30 in October and was certainly a great buy under $19.
The rate resets have done well in the past year or so. For example, using Friday’s prices the six rate resets that I featured in the Newsletter article sent on July 2, 2023 are up an average of 18.4% – with a range of 3.69 to 36.2%. The TD Bank one rocketed up apparently on the assumption that it will be redeemed this fall although I don’t think that is guaranteed to happen.
In general it’s probably still a good time to hold both rate resets and perpetuals but the perpetuals will have more upside if and when interest rates drop. The Preferred shares in the article linked above are only up an average of 3.2%.