loerke

Thanks to you both for the careful, informed responses. I just read the series G prospectus, and you're right -- the yield drops sharply after September, and the option to convert to series H doesn't seem to be worth much. Still, I bought a few shares around 18 CAD, which means the yield after September works out to around 4.2%, and possibly higher if Canadian rates go up -- and if rates don't rise, then the price of the preferreds is likely to remain strong as the yield looks more attractive to investors. Strikes me as better than buying most corporate bonds out there, though it comes with somewhat greater risk. I'm just too nervous to buy the Fairfax common shares at the moment, though I've owned them in the past.

The Fairfax preferred offerings are sharply discounted right now, and I'm not sure I understand why. On first glance they seem to me to present a good buying opportunity. I made a good return on Odyssey preferreds in the past and I am considering doing the same here. FFH.PR.G is trading at 18.02 in Toronto, offering a 7% yield. Fairfax has the option to redeem the shares at 25.00 on September 30; at such a discount, it might want to do so, given the very high yield due on the shares. I might be out of my depth in understanding preferreds but from q quick glance it seems like a good opportunity to me.