For more proof that the yield story never gets boring in choppy markets, look at AltaGas Ltd.'s preferred share issue Tuesday.
In the morning the firm came to market with $150-million of rate reset preferreds. Standard terms, nothing extraordinary about the deal. But it had good pricing. With a 5 per cent coupon, investors got more than double the five-year Canada bond yield.
And they ate it up. There was such strong demand that lead manager TD Securities upsized the offering to $200-million. (RBC Dominion Securities and CIBC World Markets were co-leads.)
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The deal serves as another reminder that retail investors typically can't participate in corporate debt issues, so to them preferred shares and stocks/units with sustainable yields look very attractive right now.