Chris Kuflik - ScotiaMcLeod Montreal

Point & Figure Analysis: A disciplined Approach to Buying and Selling Stocks and ETFs, and Managing Risk.

During the month of January the S&P/TSX Preferred Share Index retreated by -0.71%. In comparison, the DEX Universe Corporate Bond Index was up by +2.28% and the S&P/TSX Composite Index declined by -5.35%.

Preferred shares represent ownership in a corporation that have a higher claim on assets and earnings than common stock in the event of bankruptcy, but are subordinate to all outstanding debt obligations. Traditionally the price of preferred shares has been less volatile than common stock. Types of different classes of preferred shares include:

Years ago, Financial Institutions primary source of funding came from client deposits and equity offerings. Since then, capital markets have evolved and banks now have numerous options for funding, including traditional debt and equity, as well as new innovative debt structures that bridge the gap between traditional fixed income and equity securities.