Will the term extension affect the fund’s liquidity or trading volume?

Impact on liquidity & trading volume

The five‑year term extension pushes the maturity of both Class A and Preferred shares out to May 29 2031, turning a relatively short‑dated instrument into a long‑dated one. In practice this does two things to market dynamics:

1. Liquidity – modestly tighter in the short run – With a later redemption date, investors have less incentive to sell now to free up cash before a looming maturity. Existing holders are likely to keep the shares on‑balance‑sheet for the extended horizon, which reduces the “forced‑sale” pressure that normally spikes around a maturity date. Consequently, the order‑book depth on the TSX is expected to thin out a bit, meaning the bid‑ask spread could widen slightly and the market may become a touch less “instant‑liquid.” However, the extension is not a taxable event and the fund still offers a 10.2 % distribution, which is relatively attractive for income‑seeking capital. That dividend appeal should continue to attract new buyers, providing a baseline of liquidity even as turnover slows.

2. Trading volume – likely to decline – Because the extension removes the imminent need for position‑rebalancing, the typical pre‑maturity “sell‑off” that temporarily lifts volume will disappear. Investors now have a longer runway to hold the shares, so the average daily turnover is expected to dip modestly until the next dividend‑setting date (the preferred‑share rate will be announced ≥ 60 days before the 2026 maturity). The market will become more “buy‑and‑hold” oriented, with fewer short‑term speculative trades.

Actionable take‑aways

• Short‑term: Anticipate a modest contraction in daily volume and a slightly wider spread. If you are a short‑term trader, the reduced turnover may make it harder to fill large orders without moving the price; consider scaling in/out or using limit orders.
  
• Medium‑term: The 10.2 % distribution and the prospect of capital appreciation keep the demand base solid. Look for price support around the August‑close level, especially if the dividend‑rate announcement aligns with market‑yield expectations.
  
• Positioning: For income‑focused investors, the extension is a net positive – the fund remains a high‑yield, non‑taxable vehicle with a longer horizon, making it a suitable hold. For liquidity‑‑sensitive traders, be prepared for a quieter market and plan trades around the next dividend‑rate reset (likely in early‑2026).
  

Overall, the term extension will soften liquidity and trim trading volume but should not jeopardize the fund’s ability to trade; the attractive yield and longer maturity actually support a stable, lower‑volatility price environment.