December 8, 2016

December 9th, 2016
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices

Values are provisional and are finalized monthly
Index Mean
Current
Yield
(at bid)
Median
YTW
Median
Average
Trading
Value
Median
Mod Dur
(YTW)
Issues Day’s Perf. Index Value
Ratchet 0.00 % 0.00 % 0 0.00 0 -0.8535 % 1,750.8
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.8535 % 3,198.3
Floater 4.28 % 4.42 % 52,179 16.48 4 -0.8535 % 1,843.2
OpRet 0.00 % 0.00 % 0 0.00 0 0.0132 % 2,925.1
SplitShare 4.83 % 4.44 % 51,924 4.32 6 0.0132 % 3,493.2
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0132 % 2,725.5
Perpetual-Premium 5.48 % 5.39 % 88,636 14.40 23 -0.4617 % 2,639.8
Perpetual-Discount 5.50 % 5.52 % 95,097 14.57 15 -0.3506 % 2,725.3
FixedReset 4.89 % 4.70 % 213,753 6.78 96 -0.4026 % 2,091.0
Deemed-Retractible 5.22 % 5.26 % 141,099 4.57 32 -0.3679 % 2,723.6
FloatingReset 2.84 % 3.97 % 45,583 4.83 12 -0.6825 % 2,297.7
Performance Highlights
Issue Index Change Notes
TRP.PR.H FloatingReset -3.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 11.01
Evaluated at bid price : 11.01
Bid-YTW : 3.97 %
TRP.PR.A FixedReset -2.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 15.25
Evaluated at bid price : 15.25
Bid-YTW : 4.95 %
TRP.PR.C FixedReset -2.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 12.78
Evaluated at bid price : 12.78
Bid-YTW : 4.97 %
TRP.PR.B FixedReset -2.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 12.00
Evaluated at bid price : 12.00
Bid-YTW : 4.78 %
TRP.PR.F FloatingReset -2.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 14.70
Evaluated at bid price : 14.70
Bid-YTW : 4.06 %
HSE.PR.G FixedReset -1.94 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 21.28
Evaluated at bid price : 21.28
Bid-YTW : 5.38 %
SLF.PR.B Deemed-Retractible -1.92 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.98
Bid-YTW : 6.74 %
BNS.PR.B FloatingReset -1.82 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.64
Bid-YTW : 4.19 %
TD.PF.D FixedReset -1.53 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 20.61
Evaluated at bid price : 20.61
Bid-YTW : 4.65 %
PWF.PR.A Floater -1.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 11.85
Evaluated at bid price : 11.85
Bid-YTW : 4.02 %
FTS.PR.J Perpetual-Discount -1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 21.53
Evaluated at bid price : 21.85
Bid-YTW : 5.46 %
SLF.PR.D Deemed-Retractible -1.20 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.56
Bid-YTW : 7.38 %
IAG.PR.A Deemed-Retractible -1.20 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.41
Bid-YTW : 6.93 %
FTS.PR.G FixedReset -1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 17.44
Evaluated at bid price : 17.44
Bid-YTW : 4.67 %
SLF.PR.C Deemed-Retractible -1.15 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.59
Bid-YTW : 7.36 %
TD.PF.F Perpetual-Premium -1.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 24.11
Evaluated at bid price : 24.50
Bid-YTW : 5.04 %
SLF.PR.E Deemed-Retractible -1.10 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.72
Bid-YTW : 7.32 %
POW.PR.B Perpetual-Premium -1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 24.01
Evaluated at bid price : 24.26
Bid-YTW : 5.59 %
FTS.PR.F Perpetual-Discount -1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 22.21
Evaluated at bid price : 22.48
Bid-YTW : 5.48 %
BMO.PR.Y FixedReset -1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 20.96
Evaluated at bid price : 20.96
Bid-YTW : 4.52 %
BMO.PR.S FixedReset -1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 19.25
Evaluated at bid price : 19.25
Bid-YTW : 4.52 %
MFC.PR.F FixedReset -1.03 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.51
Bid-YTW : 10.97 %
SLF.PR.J FloatingReset -1.01 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.71
Bid-YTW : 10.15 %
BMO.PR.T FixedReset -1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 18.71
Evaluated at bid price : 18.71
Bid-YTW : 4.54 %
ELF.PR.G Perpetual-Discount -1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 21.50
Evaluated at bid price : 21.76
Bid-YTW : 5.53 %
Volume Highlights
Issue Index Shares
Traded
Notes
TRP.PR.K FixedReset 157,565 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 23.10
Evaluated at bid price : 24.90
Bid-YTW : 4.85 %
TD.PF.H FixedReset 97,945 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.58
Bid-YTW : 4.49 %
NA.PR.A FixedReset 81,213 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-08-15
Maturity Price : 25.00
Evaluated at bid price : 26.00
Bid-YTW : 4.56 %
BAM.PF.I FixedReset 80,134 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 23.14
Evaluated at bid price : 24.98
Bid-YTW : 4.80 %
BNS.PR.C FloatingReset 75,967 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.25
Bid-YTW : 3.82 %
BIP.PR.C FixedReset 60,018 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-09-30
Maturity Price : 25.00
Evaluated at bid price : 25.30
Bid-YTW : 5.02 %
There were 84 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
TRP.PR.H FloatingReset Quote: 11.01 – 11.77
Spot Rate : 0.7600
Average : 0.4647

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 11.01
Evaluated at bid price : 11.01
Bid-YTW : 3.97 %

TD.PF.F Perpetual-Premium Quote: 24.50 – 25.00
Spot Rate : 0.5000
Average : 0.3151

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 24.11
Evaluated at bid price : 24.50
Bid-YTW : 5.04 %

PWF.PR.T FixedReset Quote: 19.48 – 19.93
Spot Rate : 0.4500
Average : 0.2765

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 19.48
Evaluated at bid price : 19.48
Bid-YTW : 4.55 %

TD.PR.S FixedReset Quote: 23.86 – 24.25
Spot Rate : 0.3900
Average : 0.2646

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.86
Bid-YTW : 3.96 %

HSE.PR.G FixedReset Quote: 21.28 – 21.59
Spot Rate : 0.3100
Average : 0.1992

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 21.28
Evaluated at bid price : 21.28
Bid-YTW : 5.38 %

POW.PR.B Perpetual-Premium Quote: 24.26 – 24.53
Spot Rate : 0.2700
Average : 0.1817

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-08
Maturity Price : 24.01
Evaluated at bid price : 24.26
Bid-YTW : 5.59 %

December 7, 2016

December 8th, 2016

I mentioned coding schools on August 11, 2016. Here’s a cautionary tale:

It was a calamitous job interview two years ago that prompted Jose Contreras to demand his money back from the coding school he attended. His interviewer, the chief technology officer of a startup, watched as Contreras struggled with basics on JavaScript, a coding language he was supposed to be learning during his courses. “Given you can’t answer this question,” Contreras, now 27, recalls the interviewer saying, “You should ask for a refund.” A few months later, jobless and out $14,400 in tuition and fees, Contreras followed his advice.

He’s one of many students who say they felt duped by Coding House, a Silicon Valley school that advertises an average starting salary of $91,000 for its graduates. On Nov. 7, the Bureau for Private Postsecondary Education, the regulator that oversees coding schools in California, assessed Nicholas James, the founder of Coding House, a $50,000 fine and ordered the school to shut down. (The BPPE had previously denied Coding School’s application to operate, in November 2015, June 2016, and again on Nov. 4, 2016.) The regulators have told the school to give refunds to all students who have attended since it opened its doors in 2014. Coding House has filed an appeal. In the meantime it has suspended its programs, students said.

Coding House’s spectacular fall is an extreme case, but interviews with more than a dozen coding school graduates reveal that when they do land a job, often their engineering education doesn’t cut it. Many admit they lack the big-picture skills that employers say they want. Training them often requires hours of hand-holding by more experienced staff, employers say. The same holds true for graduates holding computer science degrees, but those employees generally have a better grasp of broader concepts and algorithms, recruiters said.

This is the proper way to be in the landlording business!

Jonathan Gray of Blackstone Group LP went on the biggest homebuying spree in history after the U.S. foreclosure crisis, purchasing repossessed properties from the courthouse steps and through online auctions.

Four years, $10 billion and roughly 50,000 homes later, he will find out if his gambit will pay off. Invitation Homes LP, the Dallas-based company Blackstone formed to maintain and rent those homes, has filed confidentially for an initial public offering that could come as soon as January.

Though Blackstone is unlikely to sell much or even any of its stake in an IPO, the stock market debut will test investors’ interest in the idea that the rental-home business can be institutionalized as apartments, shopping centers and office towers were before.

They’re big enough with holdings concentrated enough to get good tradesmen service – perhaps even hire some full-timers.

When you write cheques worth half your electrician’s revenue … he answers your calls same day!

The Bank of Canada stood pat on rates:

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

Economic data suggest that global economic conditions have strengthened, as the Bank anticipated in its October Monetary Policy Report (MPR). However, uncertainty, which has been undermining business confidence and dampening investment in Canada’s major trading partners, remains undiminished. Following the election in the United States, there has been a rapid back-up in global bond yields, partly reflecting market anticipation of fiscal expansion in a US economy that is near full capacity. Canadian yields have risen significantly in this context.

In Canada, the dynamics of growth are largely as the Bank anticipated. Following a very weak first half of 2016, growth in the third quarter rebounded strongly, but more moderate growth is anticipated in the fourth quarter. Consumption growth was robust in the third quarter, supported by the new Canada Child Benefit, while the effects of federal infrastructure spending are not yet evident in the GDP data. Meanwhile, business investment and non-energy goods exports continue to disappoint. There have been ongoing gains in employment, but a significant amount of economic slack remains in Canada, in contrast to the United States. While household imbalances continue to rise, these will be mitigated over time by announced changes to housing finance rules.

Total CPI inflation has picked up in recent months but is slightly below expectations, largely because of lower food prices. Core inflation is close to 2 per cent because the effect of persistent economic slack is still being offset by that of past exchange rate depreciation, although the latter effect is dissipating.

Overall, the Bank’s Governing Council judges that the current stance of monetary policy remains appropriate. Therefore, the target for the overnight rate remains at 1/2 per cent.

It looks like the Banca Monte dei Paschi di Siena bail-out is going to be another brain-dead one, with recoveries based on who you are rather than what you own:

Monte dei Paschi must raise 5 billion euros ($5.4 billion) by the end of this month to avoid being wound down, but private investors are reluctant to provide cash after Renzi lost a referendum on Sunday and announced plans to resign.

The bank is set to raise 1 billion euros from a bond swap with institutional investors and Rome is hoping the 2 billion euros participation from the government could help persuade private investors to fill the 2 billion euros gap.

Italy’s treasury would buy the bonds held by around 40,000 retail investors at face value, the sources said.

That way, the government would ensure retail investors do not suffer any losses in the bank’s bailout, making it politically more palatable and staving off the risk of a run on deposits that could trigger a wider banking crisis.

The retail bail-out has been linked to fears of a run, which makes no sense:

Any state intervention to help Monte dei Paschi would entail losses for the bank’s subordinated bondholders in line with European bank crisis rules – something Renzi’s government had desperately sought to avoid to stave off the risk of a run on deposits and a domino effect engulfing other lenders.

It was not immediately clear to what extent retail investors, who hold 2.1 billion euros of Monte dei Paschi junior debt, could be spared in the event of a state rescue.

PerpetualDiscounts now yield 5.50%, equivalent to 7.15% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 4.05%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 310bp, a significant widening from the 300bp reported November 16.

HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices

Values are provisional and are finalized monthly
Index Mean
Current
Yield
(at bid)
Median
YTW
Median
Average
Trading
Value
Median
Mod Dur
(YTW)
Issues Day’s Perf. Index Value
Ratchet 0.00 % 0.00 % 0 0.00 0 0.1800 % 1,765.8
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.1800 % 3,225.8
Floater 4.25 % 4.39 % 52,432 16.54 4 0.1800 % 1,859.1
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0265 % 2,924.7
SplitShare 4.83 % 4.55 % 52,470 4.32 6 -0.0265 % 3,492.8
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0265 % 2,725.2
Perpetual-Premium 5.45 % 5.26 % 83,834 14.43 23 -0.0017 % 2,652.1
Perpetual-Discount 5.48 % 5.50 % 93,661 14.63 15 -0.3104 % 2,734.9
FixedReset 4.87 % 4.68 % 213,687 6.79 96 -0.2126 % 2,099.4
Deemed-Retractible 5.20 % 5.25 % 135,925 4.57 32 -0.0540 % 2,733.6
FloatingReset 2.82 % 3.80 % 44,472 4.83 12 -0.0762 % 2,313.4
Performance Highlights
Issue Index Change Notes
PWF.PR.T FixedReset -1.95 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-07
Maturity Price : 19.61
Evaluated at bid price : 19.61
Bid-YTW : 4.52 %
HSE.PR.A FixedReset -1.67 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-07
Maturity Price : 12.37
Evaluated at bid price : 12.37
Bid-YTW : 5.43 %
IFC.PR.D FloatingReset -1.52 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.50
Bid-YTW : 6.79 %
MFC.PR.G FixedReset -1.45 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.37
Bid-YTW : 6.98 %
IFC.PR.C FixedReset -1.30 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.80
Bid-YTW : 6.99 %
MFC.PR.I FixedReset -1.12 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.33
Bid-YTW : 7.01 %
TRP.PR.C FixedReset -1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-07
Maturity Price : 13.06
Evaluated at bid price : 13.06
Bid-YTW : 4.86 %
CU.PR.C FixedReset -1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-07
Maturity Price : 19.30
Evaluated at bid price : 19.30
Bid-YTW : 4.50 %
SLF.PR.J FloatingReset 1.02 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.85
Bid-YTW : 10.00 %
Volume Highlights
Issue Index Shares
Traded
Notes
BNS.PR.O Deemed-Retractible 353,500 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2017-01-06
Maturity Price : 25.25
Evaluated at bid price : 25.47
Bid-YTW : 1.77 %
BAM.PF.I FixedReset 119,095 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-07
Maturity Price : 23.14
Evaluated at bid price : 25.00
Bid-YTW : 4.80 %
TRP.PR.K FixedReset 102,891 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-07
Maturity Price : 23.09
Evaluated at bid price : 24.88
Bid-YTW : 4.86 %
RY.PR.J FixedReset 88,315 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-07
Maturity Price : 20.50
Evaluated at bid price : 20.50
Bid-YTW : 4.60 %
MFC.PR.R FixedReset 87,074 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.91
Bid-YTW : 4.97 %
BAM.PR.C Floater 73,936 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-07
Maturity Price : 10.82
Evaluated at bid price : 10.82
Bid-YTW : 4.43 %
There were 61 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
IFC.PR.C FixedReset Quote: 19.80 – 20.24
Spot Rate : 0.4400
Average : 0.3313

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.80
Bid-YTW : 6.99 %

BAM.PF.E FixedReset Quote: 19.97 – 20.24
Spot Rate : 0.2700
Average : 0.1785

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-07
Maturity Price : 19.97
Evaluated at bid price : 19.97
Bid-YTW : 4.77 %

MFC.PR.I FixedReset Quote: 20.33 – 20.50
Spot Rate : 0.1700
Average : 0.1081

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.33
Bid-YTW : 7.01 %

W.PR.K FixedReset Quote: 25.45 – 25.73
Spot Rate : 0.2800
Average : 0.2193

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-01-15
Maturity Price : 25.00
Evaluated at bid price : 25.45
Bid-YTW : 5.00 %

IGM.PR.B Perpetual-Premium Quote: 25.36 – 25.60
Spot Rate : 0.2400
Average : 0.1812

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2018-12-31
Maturity Price : 25.00
Evaluated at bid price : 25.36
Bid-YTW : 5.50 %

ELF.PR.F Perpetual-Discount Quote: 24.06 – 24.28
Spot Rate : 0.2200
Average : 0.1713

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-07
Maturity Price : 23.75
Evaluated at bid price : 24.06
Bid-YTW : 5.58 %

MFC.PR.G: No Conversion to FloatingReset

December 7th, 2016

Manulife Financial Corporation has announced:

that after having taken into account all election notices received by the December 5, 2016 deadline for conversion of its currently outstanding 8,000,000 Non-cumulative Rate Reset Class 1 Shares Series 5 (the “Series 5 Preferred Shares”) (TSX: MFC.PR.G) into Non-cumulative Floating Rate Class 1 Shares Series 6 of Manulife (the “Series 6 Preferred Shares”), the holders of Series 5 Preferred Shares are not entitled to convert their Series 5 Preferred Shares into Series 6 Preferred Shares. There were 818,716 Series 5 Preferred Shares elected for conversion, which is less than the minimum one million shares required to give effect to conversions into Series 6 Preferred Shares.

As announced by Manulife on November 21, 2016, after December 19, 2016, holders of Series 5 Preferred Shares will be entitled to receive fixed rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of Manulife and subject to the provisions of the Insurance Companies Act (Canada). The dividend rate for the five-year period commencing on December 20, 2016, and ending on December 19, 2021, will be 3.89100% per annum or $0.243188 per share per quarter, being equal to the sum of the five-year Government of Canada bond yield as at November 21, 2016, plus 2.90%, as determined in accordance with the terms of the Series 5 Preferred Shares.

Subject to certain conditions described in the prospectus supplement dated November 29, 2011 relating to the issuance of the Series 5 Preferred Shares, Manulife may redeem the Series 5 Preferred Shares, in whole or in part, on December 19, 2021 and on December 19 every five years thereafter.

It was previously reported on PrefBlog that MFC.PR.G would be extended; that the reset rate was 3.891% and that I recommended holders not convert.

December 6, 2016

December 7th, 2016

There was an interesting nugget buried in the discussion of the IAG purchase of Hollis Wealth from Scotia:

Clients with less than $500,000 in investable assets are now often referred to bank branches for investment advice.

The Globe and Mail was the first to report on the sale talks between the two firms. Following the reports, Scotiabank chief financial officer Sean McGuckin was asked about a potential HollisWealth sale on a conference call. The CFO declined to comment, but added that in wealth management, “a lot of the value comes through our branch distribution,” suggesting an independent adviser network is less desirable to the bank.

So, a lot of the value in investment management, as far as the banks are concerned, is having branch level chimpanzees put mom and pop into the banks’ own products … and trailer fees are not an issue because it’s the bank taking a big cut off the top in the first place.

Don’t say I didn’t tell you!

An additional benefit the self-proclaimed investor advocates have brought us is a reduction in investment options:

Peter Moulson, head of wealth management compliance at Canadian Imperial Bank of Commerce, told an OSC roundtable event in Toronto it is unclear how financial firms would be expected to apply a more stringent regulatory standard in practical terms, and said it could even jeopardize the existence of the traditional advice model in which financial advisers work largely on commission and receive fees from companies whose financial products they sell.

Mr. Moulson said big financial firms could end up narrowing their business lines to provide just discount brokerage operations that simply fill orders without providing advice, as well as full-service advice for which clients pay a flat fee. Those are the safest ways to ensure no possible conflicts of interest arise in how advisers are paid, he said.

Mr. Moulson is, of course, talking through his hat. Huge conflicts of interest arise from the treatment of new issues. It is surprisingly difficult nowadays to get statistics on new issue revenue in the brokerage industry, but I can assure you … it’s a lot.

As long as a firm is both advising clients and getting new issue revenue … there’s a conflict. Somebody has to sell these new issues and therefore somebody’s got to get paid.

HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices

Values are provisional and are finalized monthly
Index Mean
Current
Yield
(at bid)
Median
YTW
Median
Average
Trading
Value
Median
Mod Dur
(YTW)
Issues Day’s Perf. Index Value
Ratchet 0.00 % 0.00 % 0 0.00 0 0.2481 % 1,762.7
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.2481 % 3,220.0
Floater 4.25 % 4.39 % 48,512 16.54 4 0.2481 % 1,855.7
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0265 % 2,925.5
SplitShare 4.83 % 4.54 % 52,969 4.32 6 -0.0265 % 3,493.7
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0265 % 2,725.9
Perpetual-Premium 5.45 % 5.25 % 82,731 14.41 23 0.0577 % 2,652.1
Perpetual-Discount 5.46 % 5.47 % 94,198 14.65 15 -0.0993 % 2,743.4
FixedReset 4.86 % 4.65 % 209,418 6.80 96 -0.0773 % 2,103.9
Deemed-Retractible 5.20 % 5.23 % 136,557 4.57 32 -0.1960 % 2,735.1
FloatingReset 2.82 % 3.78 % 44,827 4.83 12 0.3059 % 2,315.2
Performance Highlights
Issue Index Change Notes
BAM.PR.T FixedReset -1.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-06
Maturity Price : 16.92
Evaluated at bid price : 16.92
Bid-YTW : 5.10 %
IFC.PR.A FixedReset -1.44 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 16.37
Bid-YTW : 9.34 %
FTS.PR.K FixedReset -1.37 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-06
Maturity Price : 17.34
Evaluated at bid price : 17.34
Bid-YTW : 4.64 %
CCS.PR.C Deemed-Retractible -1.30 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.75
Bid-YTW : 6.42 %
SLF.PR.I FixedReset -1.28 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.04
Bid-YTW : 7.00 %
MFC.PR.C Deemed-Retractible -1.28 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.82
Bid-YTW : 7.27 %
MFC.PR.B Deemed-Retractible -1.19 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.65
Bid-YTW : 6.84 %
SLF.PR.D Deemed-Retractible -1.05 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.77
Bid-YTW : 7.22 %
IFC.PR.D FloatingReset 1.02 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.80
Bid-YTW : 6.56 %
TD.PR.T FloatingReset 1.27 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.20
Bid-YTW : 3.57 %
Volume Highlights
Issue Index Shares
Traded
Notes
TD.PF.H FixedReset 314,525 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.58
Bid-YTW : 4.48 %
TRP.PR.J FixedReset 149,005 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-31
Maturity Price : 25.00
Evaluated at bid price : 26.00
Bid-YTW : 4.55 %
MFC.PR.R FixedReset 138,275 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.90
Bid-YTW : 4.97 %
TRP.PR.K FixedReset 127,594 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-06
Maturity Price : 23.10
Evaluated at bid price : 24.90
Bid-YTW : 4.85 %
RY.PR.J FixedReset 87,176 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-06
Maturity Price : 20.56
Evaluated at bid price : 20.56
Bid-YTW : 4.59 %
BMO.PR.S FixedReset 60,223 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-06
Maturity Price : 19.49
Evaluated at bid price : 19.49
Bid-YTW : 4.46 %
There were 52 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
IFC.PR.D FloatingReset Quote: 19.80 – 22.50
Spot Rate : 2.7000
Average : 2.1902

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.80
Bid-YTW : 6.56 %

CGI.PR.D SplitShare Quote: 25.08 – 25.35
Spot Rate : 0.2700
Average : 0.1848

YTW SCENARIO
Maturity Type : Soft Maturity
Maturity Date : 2023-06-14
Maturity Price : 25.00
Evaluated at bid price : 25.08
Bid-YTW : 3.70 %

CU.PR.C FixedReset Quote: 19.50 – 19.80
Spot Rate : 0.3000
Average : 0.2149

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-06
Maturity Price : 19.50
Evaluated at bid price : 19.50
Bid-YTW : 4.45 %

TRP.PR.E FixedReset Quote: 18.58 – 18.82
Spot Rate : 0.2400
Average : 0.1627

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-06
Maturity Price : 18.58
Evaluated at bid price : 18.58
Bid-YTW : 4.81 %

BMO.PR.B FixedReset Quote: 25.51 – 25.72
Spot Rate : 0.2100
Average : 0.1437

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-02-25
Maturity Price : 25.00
Evaluated at bid price : 25.51
Bid-YTW : 4.57 %

GWO.PR.H Deemed-Retractible Quote: 22.32 – 22.49
Spot Rate : 0.1700
Average : 0.1076

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.32
Bid-YTW : 6.56 %

December 5, 2016

December 6th, 2016

Canadian provinces are borrowing as fast as they can:

Canadian provinces have rolled out a flurry of bond sales as they scramble to lock in borrowing costs before a global-market rout intensifies.

Five of Canada’s 10 provinces sold bonds last week, raising C$2.55 billion ($1.92 billion). That boosted last month’s total to the largest for a November since 2012, according to data compiled by Bloomberg. The country’s oil-rich province of Alberta followed up its Canadian dollar issue with the sale of $2.25 billion of U.S. dollar bonds on Thursday.

Ontario sold C$750 million of bonds maturing in 2048 on Tuesday, while Quebec found buyers for C$500 million of similar-maturity securities on the same day. On Wednesday, Newfoundland and Labrador followed up with a sale of C$500 million of 2048 notes, while Alberta and Saskatchewan sold C$500 million and C$300 million of 10-year securities respectively. On Thursday, Alberta took to the markets again, selling $2.25 billion of three-year bonds.

Canadian provinces and municipalities sold C$13.1 billion of local-currency debt last month, taking the total for the year to C$121.2 billion, which is C$7.4 billion short of the record 2012, data compiled by Bloomberg show.

HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices

Values are provisional and are finalized monthly
Index Mean
Current
Yield
(at bid)
Median
YTW
Median
Average
Trading
Value
Median
Mod Dur
(YTW)
Issues Day’s Perf. Index Value
Ratchet 0.00 % 0.00 % 0 0.00 0 0.1355 % 1,758.3
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.1355 % 3,212.1
Floater 4.26 % 4.41 % 48,382 16.50 4 0.1355 % 1,851.1
OpRet 0.00 % 0.00 % 0 0.00 0 0.2055 % 2,926.3
SplitShare 4.83 % 4.53 % 52,322 4.33 6 0.2055 % 3,494.6
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.2055 % 2,726.6
Perpetual-Premium 5.46 % 5.21 % 83,837 14.37 23 -0.0769 % 2,650.6
Perpetual-Discount 5.46 % 5.47 % 93,247 14.66 15 -0.0150 % 2,746.1
FixedReset 4.85 % 4.64 % 207,278 6.81 96 -0.0718 % 2,105.5
Deemed-Retractible 5.19 % 5.29 % 137,685 4.58 32 -0.1799 % 2,740.5
FloatingReset 2.83 % 3.83 % 45,159 4.83 12 0.0808 % 2,308.2
Performance Highlights
Issue Index Change Notes
FTS.PR.M FixedReset -1.34 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-05
Maturity Price : 19.14
Evaluated at bid price : 19.14
Bid-YTW : 4.75 %
TD.PR.T FloatingReset -1.29 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.91
Bid-YTW : 3.83 %
MFC.PR.O FixedReset -1.29 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-06-19
Maturity Price : 25.00
Evaluated at bid price : 26.11
Bid-YTW : 4.49 %
GWO.PR.Q Deemed-Retractible -1.26 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.50
Bid-YTW : 6.08 %
GWO.PR.S Deemed-Retractible -1.15 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.13
Bid-YTW : 5.77 %
TRP.PR.D FixedReset -1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-05
Maturity Price : 18.04
Evaluated at bid price : 18.04
Bid-YTW : 4.91 %
HSE.PR.G FixedReset -1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-05
Maturity Price : 21.40
Evaluated at bid price : 21.73
Bid-YTW : 5.24 %
GWO.PR.N FixedReset 1.33 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.70
Bid-YTW : 10.69 %
HSE.PR.A FixedReset 1.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-05
Maturity Price : 12.66
Evaluated at bid price : 12.66
Bid-YTW : 5.31 %
SLF.PR.K FloatingReset 2.51 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 16.75
Bid-YTW : 8.26 %
CCS.PR.C Deemed-Retractible 2.63 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.05
Bid-YTW : 6.22 %
Volume Highlights
Issue Index Shares
Traded
Notes
MFC.PR.R FixedReset 279,705 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.92
Bid-YTW : 4.96 %
TRP.PR.K FixedReset 177,481 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-05
Maturity Price : 23.09
Evaluated at bid price : 24.89
Bid-YTW : 4.85 %
GWO.PR.G Deemed-Retractible 149,990 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.91
Bid-YTW : 5.86 %
FTS.PR.K FixedReset 120,074 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-05
Maturity Price : 17.58
Evaluated at bid price : 17.58
Bid-YTW : 4.57 %
BAM.PF.B FixedReset 92,500 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-05
Maturity Price : 19.05
Evaluated at bid price : 19.05
Bid-YTW : 5.01 %
TRP.PR.H FloatingReset 65,602 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-05
Maturity Price : 11.37
Evaluated at bid price : 11.37
Bid-YTW : 3.84 %
There were 46 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
IFC.PR.D FloatingReset Quote: 19.60 – 22.50
Spot Rate : 2.9000
Average : 1.6313

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.60
Bid-YTW : 6.56 %

SLF.PR.K FloatingReset Quote: 16.75 – 17.99
Spot Rate : 1.2400
Average : 0.8311

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 16.75
Bid-YTW : 8.26 %

MFC.PR.O FixedReset Quote: 26.11 – 26.50
Spot Rate : 0.3900
Average : 0.2775

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-06-19
Maturity Price : 25.00
Evaluated at bid price : 26.11
Bid-YTW : 4.49 %

TD.PR.T FloatingReset Quote: 22.91 – 23.30
Spot Rate : 0.3900
Average : 0.2967

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.91
Bid-YTW : 3.83 %

FTS.PR.G FixedReset Quote: 17.83 – 18.04
Spot Rate : 0.2100
Average : 0.1290

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-05
Maturity Price : 17.83
Evaluated at bid price : 17.83
Bid-YTW : 4.56 %

BAM.PR.T FixedReset Quote: 17.20 – 17.41
Spot Rate : 0.2100
Average : 0.1307

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-05
Maturity Price : 17.20
Evaluated at bid price : 17.20
Bid-YTW : 5.01 %

FBS.PR.C To Mature on Schedule at Par

December 6th, 2016

On October 31, Timbercreek Asset Management announced:

5Banc Split Inc. (the “Company”) (TSX: FBS.B) (TSX: FBS.PR.C) announced today that, in accordance with the expiration of the term and as set out in the short form prospectus of the Company dated December 8, 2011 (the “Prospectus”), the Company will redeem all outstanding Class C Preferred Shares and Class B Capital Shares (collectively, the “Shares”) on December 15, 2016 (the “Redemption Date”) as scheduled and in accordance with their share provisions.

Prior to the Redemption Date, Timbercreek Asset Management Ltd. will sell the Company’s portfolio of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank to fund the redemptions. On the Redemption Date, in accordance with the share provisions for the Shares, holders of Class C Preferred Shares shall be entitled to receive a redemption price per share equal to the lesser of $10.00 and the Company’s unit value. Holders of Class B Capital Shares shall be entitled to receive a redemption price per share equal to the amount by which the unit value exceeds $10.00, or provided the holder tenders to the Company at least 20 business days prior to the Redemption Date a cash amount of $10.00 for each Class B Capital Share redeemed, such holder’s pro rata share of the Company’s portfolio of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank common shares plus (or minus) the pro rata share of the amount by which the value of the other assets of the Company exceed (or are less than) the liabilities of the Company as at the Redemption Date and the redemption value at the Class E Shares.

The Company was established to provide holders of Class C Preferred Shares with fixed cumulative preferential dividends, while providing holders of the Class B Capital Shares with a leveraged opportunity to participate in capital appreciation from a portfolio of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank. In that respect, as of August 15, 2016, the Class C Preferred Shares, since the reorganization on December 15, 2011, have generated a consistent 4.75% annual yield, with no change to the par value, while the Class B Capital Shares have delivered a net capital appreciation of 15.14% annualized, which compares to the underlying stock appreciation of 9.29%.

Information concerning 5Banc Split Inc. is available on our website at
http://www.timbercreek.com/investments/managed-companies/5banc-split-inc/overview

They have now announced (although not yet on their website):

5Banc Split Inc. (the “Company”) (TSX:FBS.B)(TSX:FBS.PR.C) announced today that in connection with the previously announced upcoming maturity of the fund on December 15, 2016, 1,077,529 Class C Preferred Shares and 1,077,529 Class B Capital Shares have been tendered for redemption on December 15, 2016. The redemption price paid for the Class C Preferred Shares will be $10.00 per Class C Preferred Share, and the redemption price for the Class B Capital Shares will be $27.51 per Class B Capital Share.

Holders of Class B Capital Shares tendered 136,043 Class B Capital Shares (representing approximately 12.63% of the outstanding Class B Capital Shares), together with a cash amount of $10.00 per Class B Capital Share tendered (together, a “5Banc Split Unit”), in exchange for the holder’s pro rata share of the Company’s shares of Toronto Dominion Bank, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and Bank of Montreal.

Payments of cash and delivery of the underlying portfolio shares owing to shareholders as a result of the final redemptions will be made by the Company on December 15, 2016.

FBS.PR.C has been tracked by HIMIPref™ but relegated to the Scraps subindex on volume concerns.

The issue was recently upgraded to Pfd-2(high) by DBRS. FBS.PR.C was issued to refund FBS.PR.B; the company sponsorship was sold by TD to Timbercreek in 2014.

Upgrade to PrefBlog Software; Problems with eMail

December 5th, 2016

Assiduous Readers will remember that I had problems with Live.com’s spam filters in February, 2016, which I addressed.

I now have more problems with these spam filters. I have been advised that the likely cause of the problem is registration-spam on PrefBlog; spammers open accounts with fake addresses and try to post comments; they are frustrated by earlier measures I took to eliminated comment-spam so they keep trying; and end up generating eMail sent to their fake addresses to tell them about their input errors.

For instance, late on Saturday evening, I had 143,601 registered users; now, about 38 hours later, I have 143,781 registrants. Canadian preferred shares have a global popularity I had never dreamed of!

So I have had to install another layer of protection around PrefBlog and in order to do this I had to upgrade PrefBlog’s software. I hate doing this because the WordPress organization is crammed full of teenagers who have never done a day’s work in their lives and therefore love to add features … ‘Hey, wouldn’t it be cool if we required all inputs to be in Hungarian and then applied automatic translation to them? Awesome!’ So I’m probably in for another month of frustration as nothing will work the way it has before. Can’t wait.

However, my eMail problem will probably be solved, for a little while, until the industry’s big boys figure out a new way to force independent operators to use their services. All this nonsense could have been avoided twenty years ago by instituting a nominal charge for eMail, with a refund granted for eMail receipts (with various limits) that, for individuals, would almost always net out to zero. But the hippies didn’t like this; they interrupted their dope-smoking free-love vegetarian bead-making orgies for just long enough to whine that the Internet should be free and as a result we have expensive annoying messes like this. Hippies ruined the internet!

If you have any problems registering or signing in, please let me know and I’ll try to figure out how to fix it. I am hopeful that I will again be able to send eMail to live.com addresses in the near future.

MAPF Performance: November 2016

December 4th, 2016

Malachite Aggressive Preferred Fund’s Net Asset Value per Unit as of the close November 30, 2016, was $8.2167.

Returns to November 30, 2016
Period MAPF BMO-CM “50” Index TXPR
Total Return
CPD – according to Blackrock
One Month +0.42% -0.71% -0.65% N/A
Three Months +2.38% +1.27% +1.54% N/A
One Year +7.31% +6.79% +5.64% +5.10%
Two Years (annualized) -7.49% -5.98% -6.42% N/A
Three Years (annualized) -1.82% -2.82% -2.60% -2.99%
Four Years (annualized) -1.75% -1.80% -2.01% N/A
Five Years (annualized) +0.96% -0.27% -0.46% -0.90%
Six Years (annualized) +0.89% +0.78% +0.32%  
Seven Years (annualized) +3.24% +2.35% +1.64%  
Eight Years (annualized) +11.54% +5.96% +5.17%  
Nine Years (annualized) +8.34% +2.57% +1.79%  
Ten Years (annualized) +6.93% +1.62%    
Eleven Years (annualized) +6.90% +1.87%    
Twelve Years (annualized) +6.86% +2.10%    
Thirteen Years (annualized) +7.46% +2.40%    
Fourteen Years (annualized) +8.96% +2.77%    
Fifteen Years (annualized) +8.34% +2.59%    
MAPF returns assume reinvestment of distributions, and are shown after expenses but before fees.
CPD Returns are for the NAV and are after all fees and expenses.
Figures for National Bank Preferred Equity Income Fund (formerly Omega Preferred Equity) (which are after all fees and expenses) for 1-, 3- and 12-months are -0.70%, +1.39% and +3.52%, respectively, according to Morningstar after all fees & expenses. Three year performance is -1.13%; five year is +0.66%
Figures for Manulife Preferred Income Class Adv [into which was merged Manulife Preferred Income Fund (formerly AIC Preferred Income Fund)] (which are after all fees and expenses) for 1-, 3- and 12-months are -0.41%, +2.09% & +6.30%, respectively. It will be noted that AIC Preferred Income Fund was in existence prior to August, 2009, but long term performance figures have been suppressed.
Figures for Horizons Active Preferred Share ETF (which are after all fees and expenses) for 1-, 3- and 12-months are -0.46%, +1.82% & +6.28%, respectively. Three year performance is -1.26%, five-year is +0.91%
Figures for National Bank Preferred Equity Fund (formerly Altamira Preferred Equity Fund) are -0.41%, +1.68% and +5.39% for one-, three- and twelve months, respectively. Three year performance is -2.38%.

According to the fund’s fact sheet as of June 30, 2016, the fund’s inception date was October 30, 2015. I do not know how they justify this nonsensical statement, but will assume that prior performance is being suppressed in some perfectly legal manner that somebody at National considers ethical.

The figure for BMO S&P/TSX Laddered Preferred Share Index ETF is +% for the past twelve months. Two year performance is -%, three year is -%.
Figures for NexGen Canadian Preferred Share Tax Managed Fund (Dividend Tax Credit Class, the best performing) are -%, +% and -% for one-, three- and twelve-months, respectively.
Figures for BMO Preferred Share Fund are +% and +% for the past three- and twelve-months, respectively. Three year performance is -%.
Figures for PowerShares Canadian Preferred Share Index Class, Series F are +7.62% for the past twelve months. The three-year figure is -2.35%; five years is -1.04%
Figures for the First Asset Preferred Share Investment Trust (PSF.UN) are no longer available since the fund has merged with First Asset Preferred Share ETF (FPR)

MAPF returns assume reinvestment of dividends, and are shown after expenses but before fees. Past performance is not a guarantee of future performance. You can lose money investing in Malachite Aggressive Preferred Fund or any other fund. For more information, see the fund’s main page. The fund is available either directly from Hymas Investment Management or through a brokerage account at Odlum Brown Limited.

Calculation of MAPF Sustainable Income Per Unit
Month NAVPU Portfolio
Average
YTW
Leverage
Divisor
Securities
Average
YTW
Capital
Gains
Multiplier
Sustainable
Income
per
current
Unit
June, 2007 9.3114 5.16% 1.03 5.01% 1.3240 0.3524
September 9.1489 5.35% 0.98 5.46% 1.3240 0.3773
December, 2007 9.0070 5.53% 0.942 5.87% 1.3240 0.3993
March, 2008 8.8512 6.17% 1.047 5.89% 1.3240 0.3938
June 8.3419 6.034% 0.952 6.338% 1.3240 $0.3993
September 8.1886 7.108% 0.969 7.335% 1.3240 $0.4537
December, 2008 8.0464 9.24% 1.008 9.166% 1.3240 $0.5571
March 2009 $8.8317 8.60% 0.995 8.802% 1.3240 $0.5872
June 10.9846 7.05% 0.999 7.057% 1.3240 $0.5855
September 12.3462 6.03% 0.998 6.042% 1.3240 $0.5634
December 2009 10.5662 5.74% 0.981 5.851% 1.1141 $0.5549
March 2010 10.2497 6.03% 0.992 6.079% 1.1141 $0.5593
June 10.5770 5.96% 0.996 5.984% 1.1141 $0.5681
September 11.3901 5.43% 0.980 5.540% 1.1141 $0.5664
December 2010 10.7659 5.37% 0.993 5.408% 1.0298 $0.5654
March, 2011 11.0560 6.00% 0.994 5.964% 1.0298 $0.6403
June 11.1194 5.87% 1.018 5.976% 1.0298 $0.6453
September 10.2709 6.10%
Note
1.001 6.106% 1.0298 $0.6090
December, 2011 10.0793 5.63%
Note
1.031 5.805% 1.0000 $0.5851
March, 2012 10.3944 5.13%
Note
0.996 5.109% 1.0000 $0.5310
June 10.2151 5.32%
Note
1.012 5.384% 1.0000 $0.5500
September 10.6703 4.61%
Note
0.997 4.624% 1.0000 $0.4934
December, 2012 10.8307 4.24% 0.989 4.287% 1.0000 $0.4643
March, 2013 10.9033 3.87% 0.996 3.886% 1.0000 $0.4237
June 10.3261 4.81% 0.998 4.80% 1.0000 $0.4957
September 10.0296 5.62% 0.996 5.643% 1.0000 $0.5660
December, 2013 9.8717 6.02% 1.008 5.972% 1.0000 $0.5895
March, 2014 10.2233 5.55% 0.998 5.561% 1.0000 $0.5685
June 10.5877 5.09% 0.998 5.100% 1.0000 $0.5395
September 10.4601 5.28% 0.997 5.296% 1.0000 $0.5540
December, 2014 10.5701 4.83% 1.009 4.787% 1.0000 $0.5060
March, 2015 9.9573 4.99% 1.001 4.985% 1.0000 $0.4964
June, 2015 9.4181 5.55% 1.002 5.539% 1.0000 $0.5217
September, 2015 7.8140 6.98% 0.999 6.987% 1.0000 $0.5460
December, 2015 8.1379 6.85% 0.997 6.871% 1.0000 $0.5592
March, 2016 7.4416 7.79% 0.998 7.805% 1.0000 $0.5808
June 7.6704 7.67% 1.011 7.587% 1.0000 $0.5819
September 8.0590 7.35% 0.993 7.402% 1.0000 $0.5965
November, 2016 8.2167 7.71% 1.001 7.702% 1.0000 $0.6328
NAVPU is shown after quarterly distributions of dividend income and annual distribution of capital gains.
Portfolio YTW includes cash (or margin borrowing), with an assumed interest rate of 0.00%
The Leverage Divisor indicates the level of cash in the account: if the portfolio is 1% in cash, the Leverage Divisor will be 0.99
Securities YTW divides “Portfolio YTW” by the “Leverage Divisor” to show the average YTW on the securities held; this assumes that the cash is invested in (or raised from) all securities held, in proportion to their holdings.
The Capital Gains Multiplier adjusts for the effects of Capital Gains Dividends. On 2009-12-31, there was a capital gains distribution of $1.989262 which is assumed for this purpose to have been reinvested at the final price of $10.5662. Thus, a holder of one unit pre-distribution would have held 1.1883 units post-distribution; the CG Multiplier reflects this to make the time-series comparable. Note that Dividend Distributions are not assumed to be reinvested.
Sustainable Income is the resultant estimate of the fund’s dividend income per current unit, before fees and expenses. Note that a “current unit” includes reinvestment of prior capital gains; a unitholder would have had the calculated sustainable income with only, say, 0.9 units in the past which, with reinvestment of capital gains, would become 1.0 current units.
DeemedRetractibles are comprised of all Straight Perpetuals (both PerpetualDiscount and PerpetualPremium) issued by BMO, BNS, CM, ELF, GWO, HSB, IAG, MFC, NA, RY, SLF and TD, which are not exchangable into common at the option of the company (definition refined in May, 2011). These issues are analyzed as if their prospectuses included a requirement to redeem at par on or prior to 2022-1-31 (banks) or 2025-1-31 (insurers and insurance holding companies), in addition to the call schedule explicitly defined. See OSFI Does Not Grandfather Extant Tier 1 Capital, CM.PR.D, CM.PR.E, CM.PR.G: Seeking NVCC Status and the January, February, March and June, 2011, editions of PrefLetter for the rationale behind this analysis.

The same reasoning is also applied to FixedResets from these issuers, other than explicitly defined NVCC from banks.

Yields for September, 2011, to January, 2012, were calculated by imposing a cap of 10% on the yields of YLO issues held, in order to avoid their extremely high calculated yields distorting the calculation and to reflect the uncertainty in the marketplace that these yields will be realized. From February to September 2012, yields on these issues have been set to zero. All YLO issues held were sold in October 2012.

These calculations were performed assuming constant contemporary GOC-5 and 3-Month Bill rates, as follows:

Canada Yields Assumed in Calculations
Month-end GOC-5 3-Month Bill
September, 2015 0.78% 0.40%
December, 2015 0.71% 0.46%
March, 2016 0.70% 0.44%
June 0.57% 0.47%
September 0.58% 0.53%
November, 2016 0.97% 0.51%

Significant positions were held in NVCC non-compliant regulated FixedReset issues on November 30, 2016; all of these currently have their yields calculated with the presumption that they will be called by the issuers at par prior to 2022-1-31 (banks) or 2025-1-31 (insurers and insurance holding companies) or on a different date (SplitShares) This presents another complication in the calculation of sustainable yield, which also assumes that redemption proceeds will be reinvested at the same rate.

I will also note that the sustainable yield calculated above is not directly comparable with any yield calculation currently reported by any other preferred share fund as far as I am aware. The Sustainable Yield depends on:
i) Calculating Yield-to-Worst for each instrument and using this yield for reporting purposes;
ii) Using the contemporary value of Five-Year Canadas to estimate dividends after reset for FixedResets. The assumption regarding the five-year Canada rate has become more important as the proportion of low-spread FixedResets in the portfolio has increased.
iii) Making the assumption that deeply discounted NVCC non-compliant issues from both banks and insurers, both Straight and FixedResets will be redeemed at par on their DeemedMaturity date as discussed above.

MAPF Portfolio Composition: November 2016

December 4th, 2016

Turnover continued to be extremely low in November, at about 3%.

There is extreme segmentation in the marketplace, with OSFI’s NVCC rule changes in February 2011 having had the effect of splitting the formerly relatively homogeneous Straight Perpetual class of preferreds into three parts:

  • Unaffected Straight Perpetuals
  • DeemedRetractibles explicitly subject to the rules (banks)
  • DeemedRetractibles considered by me, but not (yet!) by the market, to be likely to be explicitly subject to the rules in the future (insurers and insurance holding companies)

This segmentation, and the extreme valuation differences between the segments, has cut down markedly on the opportunities for trading.

To make this more clear, it used to be that there were 70-odd Straight Perpetuals and I was more or less indifferent as to which ones I owned (subject, of course, to issuer concentration concerns and other risk management factors). Thus, if any one of these 70 were to go down in price by – say – $0.25, I would quite often have something in inventory that I’d be willing to swap for it. The segmentation means that I am no longer indifferent; in addition to checking the valuation of a potential buy to other Straights, I also have to check its peer group. This cuts down on the potential for trading.

And, of course, the same segmentation has the same effect on trading opportunities between FixedReset issues.

There is no real hope that this situation will be corrected in the near-term. OSFI has indicated that the long-promised “Draft Definition of Capital” for insurers will not be issued “for public consultation in late 2012 or early 2013”, as they fear that it might encourage speculation in the marketplace. It is not clear why OSFI is so afraid of informed speculation, since the constant speculation in the marketplace is currently less informed than it would be with a little bit of regulatory clarity. While the framework has been updated, the modifications focus on the amount of capital required, not the required characteristics of that capital.

As a result of this delay, I have extended the Deemed Maturity date for insurers and insurance holding companies by three years (to 2025-1-31), in the expectation that when OSFI finally does provide clarity, they will allow the same degree of lead-in time for these companies as they did for banks. This had a major effect on the durations of preferred shares subject to the change but, fortunately, not much on their calculated yields as most of these issues were either trading near par when the change was made or were trading at sufficient premium that a par call was expected on economic grounds. However, with the declines in the market over the past nine months, the expected capital gain on redemption of the insurance-issued DeemedRetractibles has become an important component of the calculated yield.

Due to the footdragging by OSFI, I will be extending the DeemedMaturity date for insurance issues by another two years in the near future.

Sectoral distribution of the MAPF portfolio on November 30 was as follows:

MAPF Sectoral Analysis 2016-11-30
HIMI Indices Sector Weighting YTW ModDur
Ratchet 0% N/A N/A
FixFloat 0% N/A N/A
Floater 0% N/A N/A
OpRet 0% N/A N/A
SplitShare 0% N/A N/A
Interest Rearing 0% N/A N/A
PerpetualPremium 0% N/A N/A
PerpetualDiscount 10.9% 5.40% 14.84
Fixed-Reset 70.6% 7.84% 9.57
Deemed-Retractible 0% N/A N/A
FloatingReset 8.7% 10.38% 7.13
Scraps (Various) 9.9% 6.93% 13.10
Cash -0.1% 0.00% 0.00
Total 100% 7.71% 10.29
Totals and changes will not add precisely due to rounding. Cash is included in totals with duration and yield both equal to zero.
DeemedRetractibles are comprised of all Straight Perpetuals (both PerpetualDiscount and PerpetualPremium) issued by BMO, BNS, CM, ELF, GWO, HSB, IAG, MFC, NA, RY, SLF and TD, which are not exchangable into common at the option of the company. These issues are analyzed as if their prospectuses included a requirement to redeem at par on or prior to 2022-1-31 (banks) or 2025-1-3 (insurers and insurance holding companies), in addition to the call schedule explicitly defined. See OSFI Does Not Grandfather Extant Tier 1 Capital, CM.PR.D, CM.PR.E, CM.PR.G: NVCC Status Confirmed and the January, February, March and June, 2011, editions of PrefLetter for the rationale behind this analysis. (all recent editions have a short summary of the argument included in the “DeemedRetractible” section)

Note that the estimate for the time this will become effective for insurers and insurance holding companies was extended by three years in April 2013, due to the delays in OSFI’s providing clarity on the issue.

Calculations of resettable instruments are performed assuming a constant GOC-5 rate of 0.97% and a constant 3-Month Bill rate of 0.51%

The “total” reflects the un-leveraged total portfolio (i.e., cash is included in the portfolio calculations and is deemed to have a duration and yield of 0.00.). MAPF will often have relatively large cash balances, both credit and debit, to facilitate trading. Figures presented in the table have been rounded to the indicated precision.

Credit distribution is:

MAPF Credit Analysis 2016-11-30
DBRS Rating Weighting
Pfd-1 0 (0)
Pfd-1(low) 0 (0)
Pfd-2(high) 31.0%
Pfd-2 35.2%
Pfd-2(low) 24.0%
Pfd-3(high) 1.0%
Pfd-3 5.5%
Pfd-3(low) 2.7%
Pfd-4(high) 0%
Pfd-4 0%
Pfd-4(low) 0%
Pfd-5(high) 0.7%
Pfd-5 0.0%
Cash -0.1%
Totals will not add precisely due to rounding.
The fund holds a position in AZP.PR.C, which is rated P-5(high) by S&P and is unrated by DBRS
A position held in INE.PR.A is not rated by DBRS, but has been included as “Pfd-3” in the above table on the basis of its S&P rating of P-3.
A position held in BIP.PR.A is not rated by DBRS, but has been included as “Pfd-2(low)” in the above table on the basis of its S&P rating of P-2(low).

Liquidity Distribution is:

MAPF Liquidity Analysis 2016-11-30
Average Daily Trading Weighting
<$50,000 1.4%
$50,000 – $100,000 44.9%
$100,000 – $200,000 37.9%
$200,000 – $300,000 10.7%
>$300,000 5.2%
Cash -0.1%
Totals will not add precisely due to rounding.

MAPF is, of course, Malachite Aggressive Preferred Fund, a “unit trust” managed by Hymas Investment Management Inc. Further information and links to performance, audited financials and subscription information are available the fund’s web page. The fund may be purchased either directly from Hymas Investment Management or through a brokerage account at Odlum Brown Limited. A “unit trust” is like a regular mutual fund, but is sold by offering memorandum rather than prospectus. This is cheaper, but means subscription is restricted to “accredited investors” (as defined by the Ontario Securities Commission). Fund past performances are not a guarantee of future performance. You can lose money investing in MAPF or any other fund.

A similar portfolio composition analysis has been performed on the Claymore Preferred Share ETF (symbol CPD) (and other funds) as of August 31, 2012, and published in the October (mainly methodology), November (most funds), and December (ZPR) 2012, PrefLetter. While direct comparisons are difficult due to the introduction of the DeemedRetractible class of preferred share (see above) it is fair to say:

  • MAPF credit quality is better
  • MAPF liquidity is a bit lower
  • MAPF Yield is higher
  • Weightings
    • MAPF is less exposed to Straight Perpetuals (including DeemedRetractibles)
    • MAPF is less exposed to Operating Retractibles
    • MAPF is more exposed to SplitShares
    • MAPF is less exposed to FixFloat / Floater / Ratchet
    • MAPF is overweighted in FixedResets

December 2, 2016

December 2nd, 2016
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices

Values are provisional and are finalized monthly
Index Mean
Current
Yield
(at bid)
Median
YTW
Median
Average
Trading
Value
Median
Mod Dur
(YTW)
Issues Day’s Perf. Index Value
Ratchet 0.00 % 0.00 % 0 0.00 0 -0.0677 % 1,755.9
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.0677 % 3,207.7
Floater 4.27 % 4.41 % 47,884 16.51 4 -0.0677 % 1,848.6
OpRet 0.00 % 0.00 % 0 0.00 0 0.1128 % 2,920.3
SplitShare 4.84 % 4.45 % 54,093 2.00 6 0.1128 % 3,487.4
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.1128 % 2,721.0
Perpetual-Premium 5.45 % 5.32 % 84,165 14.39 23 -0.1327 % 2,652.6
Perpetual-Discount 5.46 % 5.47 % 94,579 14.67 15 -0.5924 % 2,746.6
FixedReset 4.85 % 4.58 % 208,363 6.85 96 -0.0140 % 2,107.0
Deemed-Retractible 5.18 % 5.26 % 137,154 4.58 32 -0.0971 % 2,745.4
FloatingReset 2.88 % 3.84 % 44,176 4.84 12 -0.0510 % 2,306.3
Performance Highlights
Issue Index Change Notes
CCS.PR.C Deemed-Retractible -2.14 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.46
Bid-YTW : 6.61 %
TD.PF.E FixedReset -1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-02
Maturity Price : 21.44
Evaluated at bid price : 21.44
Bid-YTW : 4.49 %
CU.PR.G Perpetual-Discount -1.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-02
Maturity Price : 20.70
Evaluated at bid price : 20.70
Bid-YTW : 5.47 %
IAG.PR.A Deemed-Retractible -1.05 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.77
Bid-YTW : 6.66 %
BAM.PR.T FixedReset 1.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-02
Maturity Price : 17.30
Evaluated at bid price : 17.30
Bid-YTW : 4.88 %
SLF.PR.G FixedReset 1.33 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 14.51
Bid-YTW : 9.95 %
Volume Highlights
Issue Index Shares
Traded
Notes
BNS.PR.G FixedReset 512,700 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-07-25
Maturity Price : 25.00
Evaluated at bid price : 26.57
Bid-YTW : 4.16 %
NA.PR.X FixedReset 501,882 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-15
Maturity Price : 25.00
Evaluated at bid price : 26.40
Bid-YTW : 4.30 %
MFC.PR.R FixedReset 501,331 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.88
Bid-YTW : 4.95 %
TD.PF.G FixedReset 398,870 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-30
Maturity Price : 25.00
Evaluated at bid price : 26.50
Bid-YTW : 4.14 %
TRP.PR.K FixedReset 380,185 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-02
Maturity Price : 23.10
Evaluated at bid price : 24.91
Bid-YTW : 4.85 %
RY.PR.Q FixedReset 342,387 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-24
Maturity Price : 25.00
Evaluated at bid price : 26.46
Bid-YTW : 4.11 %
TD.PF.H FixedReset 282,650 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.53
Bid-YTW : 4.52 %
FTS.PR.M FixedReset 155,671 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-02
Maturity Price : 19.40
Evaluated at bid price : 19.40
Bid-YTW : 4.61 %
BMO.PR.B FixedReset 139,265 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-02-25
Maturity Price : 25.00
Evaluated at bid price : 25.51
Bid-YTW : 4.56 %
There were 57 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
CCS.PR.C Deemed-Retractible Quote: 22.46 – 23.10
Spot Rate : 0.6400
Average : 0.5035

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.46
Bid-YTW : 6.61 %

ELF.PR.H Perpetual-Premium Quote: 24.59 – 24.90
Spot Rate : 0.3100
Average : 0.1995

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-02
Maturity Price : 24.30
Evaluated at bid price : 24.59
Bid-YTW : 5.66 %

TD.PR.Z FloatingReset Quote: 23.06 – 23.36
Spot Rate : 0.3000
Average : 0.2125

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.06
Bid-YTW : 3.81 %

TD.PF.F Perpetual-Premium Quote: 24.68 – 24.97
Spot Rate : 0.2900
Average : 0.2059

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-02
Maturity Price : 24.28
Evaluated at bid price : 24.68
Bid-YTW : 5.00 %

CU.PR.H Perpetual-Premium Quote: 24.50 – 24.91
Spot Rate : 0.4100
Average : 0.3267

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-12-02
Maturity Price : 24.11
Evaluated at bid price : 24.50
Bid-YTW : 5.37 %

MFC.PR.F FixedReset Quote: 13.60 – 13.86
Spot Rate : 0.2600
Average : 0.1867

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.60
Bid-YTW : 10.81 %