2007 was a rotten year for preferreds. In the January, 2008, edition of Canadian Moneysaver, I attempted to explain why.
Look for the research link!
Update, 2008-2-19: In the article I indicated my amusement at the mention of preferred shares in the BMO annual report:
It is noteworthy that BMO revealed a charge of “$160 million in respect of trading and structured-credit related positions and preferred shares” – surely one of the few times that preferred share trading has been mentioned as a significant element of a Canadian bank’s profitability!
BMO has just announced another writedown including:
Trading and structured credit-related positions, preferred shares, third party Canadian conduits and other mark to market losses, approximately $175 million pre-tax.
Those durn preferred shares, eh?