Format of PrefLetter

Useful Articles

Perpetual and Retractible Preferred Shares

Interest-Bearing Preferreds

Are Floating Prefs Money Market Vehicles?

Split Shares

Perpetual Hockey Sticks

Portfolio Construction

Perpetual Misperceptions

Analysis of Perpetual Resets

Overall Purpose

PrefLetter is designed to be an executive summary of the preferred share market for investors with a wide variety of investment objectives. To this end, the various segments of the HIMIPref™ Preferred Market Indices are examined and at least one issue from each of the following categories is selected:

To assist in the visualization of this classification, I have prepared a Taxonomy of Preferred Shares.

Other Technical Terms

PrefLetter is intended to be organized into four sections (originally just pages!), although this format is not inflexible. From time to time, the content may be expanded (perhaps during periods of high market volatility, for example); sometimes a graph of particular interest will be appended to the main reports; and at all times I am responsive to feedback from subscribers who advise that a particular change will enhance the value of PrefLetter. The general content of each page is summarized here; more particular details of each page are explained on dedicated sections of this website.

Page 1

The first page contains an overview of the market and any important news that may impact subscribers' portfolios, such as reorganizations, credit rating changes and taxation changes.

Page 2

The second page is the heart of PrefLetter — the list of recommendations and their most vital statistics. As noted above, there will be at least one issue from each major segment recommended in every edition of PrefLetter.

Page 3

The third page contains more detail regarding the issues recommended on Page 2; a summary of the issues' embedded options is merely the most salient information recorded here. This text explains why the issue has been chosen from amongst its peers for recommendation — in language that does not require specialized knowledge of the preferred share market or the HIMIPref™ analytics.

Page 4

The fourth page continues the third page in its discussion of the recommendations. Changes to the list of recommended issues are also discussed here.


An appendix discussing some aspect of the Canadian preferred share market in detail is also included with PrefLetter; these appendices attempt to be self-contained in terms of vocabulary.