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Old 09-10-2019, 07:14 PM   #4561
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Wow, very active lately...


As to negative interest rates and a reset... I would bet that there is a floor of zero, so if 5 year goes negative more than the plus amount you get nothing... and do not have to pay anything...


I just do not see a negative 3% on the 5 year... heck, even on the 1 year...



BTW, someone said that if rates do go negative then gold will be an investment of choice... I would prefer a regular bank account... unless they start charging fees to make up the difference...
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Old 09-10-2019, 08:23 PM   #4562
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I would guess? I have never owned foreign stocks before. Schwab is paying it out of my IRA and Canada is receiving it so I can assume it's at least reportable as being paid? Whether or not it's a "deduction"....I don't know at this point.


Aja, Im not familiar with IRA withdrawals. I was just assuming you knew something pertaining to this. Im with Sunset here. Everything I have read is you cant get it back if withheld from taxable. And Im not sure if Schwab is doing this. It could be the “go between” (cant remember formal name) that has it withheld already.
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Old 09-10-2019, 08:26 PM   #4563
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Wow, very active lately...


As to negative interest rates and a reset... I would bet that there is a floor of zero, so if 5 year goes negative more than the plus amount you get nothing... and do not have to pay anything...


I just do not see a negative 3% on the 5 year... heck, even on the 1 year...



BTW, someone said that if rates do go negative then gold will be an investment of choice... I would prefer a regular bank account... unless they start charging fees to make up the difference...


Texas I got confirmation from Enbridge stating it would be deducted from adjustment. The prospectus has no mention of zero as limit. It is simply 5 yr yield added to adjustment. And a negative can be added to a spread in a bad way. This is why newer issues have “fixed minimum floors” that it cant go below.
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Old 09-10-2019, 08:28 PM   #4564
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Wow, very active lately...


As to negative interest rates and a reset... I would bet that there is a floor of zero, so if 5 year goes negative more than the plus amount you get nothing... and do not have to pay anything...


I just do not see a negative 3% on the 5 year... heck, even on the 1 year...



BTW, someone said that if rates do go negative then gold will be an investment of choice... I would prefer a regular bank account... unless they start charging fees to make up the difference...


I forgot to add, I agree, I am not worried about negative yields myself. For now anyways, lol.
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Old 09-10-2019, 08:44 PM   #4565
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Aja, Im not familiar with IRA withdrawals. I was just assuming you knew something pertaining to this. Im with Sunset here. Everything I have read is you cant get it back if withheld from taxable. And Im not sure if Schwab is doing this. It could be the “go between” (cant remember formal name) that has it withheld already.
The tax was shown as a deduction when the dividend was paid to my account. Conceivably, the tax was never actually taken from my account and may have been kept back by Enbridge who paid the dividend. That's my guess now that I think about it. No big deal.
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Old 09-11-2019, 05:34 AM   #4566
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Yeah.... I wonder if it is Fidelity or perhaps the guy who answered the phone at Fidelity was uninformed.

Are those of you who use Fido for your preferred portfolio easily able to do OTC transactions? Just checking in case I do something similar I can push the rep harder.
I have been forced to call the desk for "prohibited" preferred stocks, but they have always given me the internet price of $4.95.
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Old 09-11-2019, 06:04 AM   #4567
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The tax was shown as a deduction when the dividend was paid to my account. Conceivably, the tax was never actually taken from my account and may have been kept back by Enbridge who paid the dividend. That's my guess now that I think about it. No big deal.


Its not Enbridge....There are intermediaries between actual brokerage and the money. Plus investment banks serve as a conduit to get the Canadian shares through to US on OTC. And they dont want to get caught owing the tax also. That is why the finger pointing goes on. But amazingly some brokerages and some issues dont have the problem.
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Old 09-11-2019, 11:37 AM   #4568
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Another US currency based issue trading on TSX through OTC is ALTGF (Altagas Series C). It is a naked reset 3.58% adjustment plus 5 yr USD Tbilll. Resets in 2022. ....
https://www.altagas.ca/sites/default/files/Series-C.pdf
Last trade on TSX was $17.95 and the Altagas preferreds go exD 9/13.
I did pick up some of these so my play money is tapped out for now... but I have a call coming up soon so that will refill the money pot.... so the search goes on.
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Old 09-11-2019, 11:40 AM   #4569
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... But amazingly some brokerages and some issues dont have the problem.
+1 that is really odd.... I have confirmed that there will be no withholding because it is in a IRA with Fidelity two separate times... my first divvie will be the test to see if they are right... but two separate reps from their international desk confirmed it without blinking an eye.
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Old Yesterday, 07:09 AM   #4570
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Interesting, discussion just a couple days ago about the "risk" of going to negative rates, and now we see preferred's taking a bit of a hit due to concerns over rising rates. 10 yr moved from 1.47% to 1.90% over past 2 weeks. Inversion gone too. Just like the weather when I used to live in Chicago, if you don't like what you have now just wait a bit, it will change.
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Old Yesterday, 04:23 PM   #4571
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Yes sir, Bob. Smarter men than me have been humbled on rate predictions. That is why I have perpetuals, term dated, resets, uncallables, and past call par anchored issues. They typjcally all dont move in same manner at same time.
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Old Yesterday, 06:20 PM   #4572
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Yes sir, Bob. Smarter men than me have been humbled on rate predictions. That is why I have perpetuals, term dated, resets, uncallables, and past call par anchored issues. They typjcally all dont move in same manner at same time.
Yeah, I get your approach. But I'll take a bit more risk and for higher yield and liquidity, at least with my "fun fund"... Hopefully .
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Old Today, 06:38 AM   #4573
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Another call. That makes three in the last month and a half.

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This notification is to inform you that a security in your above-referenced portfolio is expected to be called shortly. Please refer to the information below for more details.
CUSIP 74460W602
Security Description PUBLIC STORAGE 5.625 DPRP PFD U ...
Call Type FULL CALL
Call Date 10/14/2019
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Old Today, 07:29 AM   #4574
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Another call. That makes three in the last month and a half.
Shouldn't have been a surprise. PSA just issued new security on 9/5, rate of 4.875%. In the prospectus under use of proceeds it said "including the redemption of our preferred shares." PSA-U was their highest rate preferred (5.625%) that could be called. So PSA gave an indication as to what they would be doing.
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Old Today, 07:33 AM   #4575
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Yeah, I had heard recently that a call of PSA-U would be likely.... but I bought it back in April.
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