preferential shares

[Jughead]

Can someone please remind me why we are not so interested in preferential shares. I was looking at SHFINV-PREF

[WES]

Interest rates are too low, pref's are linked to interest rate, return on equities are in general much higher than interest rate, should interest rates go up to 9 to 12 %, prefs will become popular again, that's my understanding of it.

[THRESHOLD]

Preference shares behave like bonds to all intents and purposes. If interest rates rise - their value drops. They have run already. Now they will begin to discount future interest rate hikes.