The Globe and Mail reports in its Saturday edition rate-reset preferred shares such as BCE.PR.K were hammered by the recent drop in bond yields. The Globe's John Heinzl, writing in Investor Clinic, says investors see these instruments as a relatively low-risk option. However, to the surprise and disappointment of many people who bought them, interest rates fell instead, contributing to a hefty drop in the shares. It is anyone's guess as to whether they will rebound. As for BCE.PR.K specifically, the yield will reset in late 2016 at a spread of 1.88 percentage points above the government of Canada five-year bond yield. Suffering a paper loss is unfortunate but it should not play into decisions to hold or sell the shares. However, if you believe a different investment will provide a higher potential return, it might be worth selling BCE.PR.K and buying something else. Investors should also consider the transaction costs, particularly if you are working with a full-service adviser who charges a commission. Two other factors to consider are the time horizon and diversification. If the money will not be needed for 15 years, you might wish to consider investing in something that provides more growth potential.