TC Energy: 7% Yielding Bonds Offer A Safe Return Profile

2025-03-03 06:38:23 ET

Summary

• TC Energy Corporation's new 7% hybrid bonds offer a solid yield position, with a 7.10% yield to call and a 7.03% current yield.
• These bonds are junior to regular debt, rank with preferred shares, and have a 40-year maturity, but are likely to be redeemed in 10 years.
• The reset spread and spread to intermediate-term investment grade bonds are both very attractive.

It has been some time since we have written about TC Energy Corporation ( TRP:CA ). On our last take, we thought the valuation had dropped enough to execute defensive covered calls and that is exactly what we did....

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