By Andrew Willis (Globe & Mail Streetwise):
The appetite for preferred shares seems insatiable.
Toronto-Dominion Bank tapped the market for $200-million late Wednesday, in the wake of better than expected earnings. The new equity comes with a 6.25 per cent yield, and the deal is being led by TD Securities.
This financing comes on the same day that Manulife Financial boosted the size of its preferred share offering to $350-million, from an initial target of $200-million when the offering was launched on Tuesday. Underwriters RBC Dominion Securities and CIBC World Markets have the option of selling a maximum of $450-million of this issue if there's demand.A great deal of these preferred shares will end up with individual investors – it's RRSP season, after all - and part of the appeal is the relative safety and income of preferred shares and the income they offer.