For what feels like the umpteenth time since the worst of the financial crisis, retail investors are clamouring for yield.
Since the market started its recovery in March 2009, the thirst for yield has gone through fits and starts. At times there has been heavy demand for risky resource stocks, at times there has been hunger for safety.
Right now, investors are jockeying for position in the latter camp – again.
Just look at the recent issuance. In the past four days, preferred share offerings have totalled $870-million, buoyed by strong investor demand.
That $200-million (U.S.) Enbridge offering? Doubled to $400-million. The $75-million (Canadian) Valener deal? Increased by one-third to $100-million. Seeing this, Manulife tried its own lucky Wednesday with a pref deal.
At least for now, the new issue drought is seeing some rain.