 Canada) has favorable tax rates compared to the tax rates that apply to the interest income that is produced by bonds or commercial paper.The preferred shares of a split share corporation can offer greater diversification than the preferred shares of a single conventional corporation.With their fixed maturity date, fixed dividend rate and seniority over common stock, the preferred shares have many of the characteristics of a bond, and thus one might expect their value on the secondary market to vary inversely with the prevailing interest rates, just like a bond.