Randy LeClairRoyal Bank of CanadaRY.PR.A.TOCOMMENTSep 08, 2014
Preferred Series AG, perpetual dates in 2016.This series is a perpetual preferred and is the longer term. These come up for redemption after, usually about 5 years. This one is 2016 for the 1st call and is $26. They were originally issued at $25. The bank usually doesn’t call these. Each year following that, the Call price of $26 goes down by $0.25 until it gets to $25 again. Usually at that point they will Call.
The Canadian banking sector is doing well overall but TD and Royal are his two top picks. They have great U.S. exposure, which provides great opportunities for growth.
Preferred Series AG, perpetual dates in 2016. This series is a perpetual preferred and is the longer term. These come up for redemption after, usually about 5 years. This one is 2016 for the 1st call and is $26. They were originally issued at $25. The bank usually doesn’t call these. Each year following that, the Call price of $26 goes down by $0.25 until it gets to $25 again. Usually at that point they will Call.