June 14, 2019

June 14th, 2019

… and now it’s PrefLetter weekend!

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 -0.1178 % 1,936.0
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.1178 % 3,552.4
Floater 6.12 % 6.42 % 67,407 13.33 3 -0.1178 % 2,047.3
OpRet 0.00 % 0.00 % 0 0.00 0 0.2559 % 3,323.3
SplitShare 4.69 % 4.63 % 73,125 4.23 7 0.2559 % 3,968.7
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.2559 % 3,096.5
Perpetual-Premium 5.63 % -7.18 % 76,794 0.08 7 0.0957 % 2,938.5
Perpetual-Discount 5.55 % 5.65 % 60,303 14.34 26 -0.0391 % 3,042.9
FixedReset Disc 5.57 % 5.41 % 167,477 14.72 70 -0.3013 % 2,051.4
Deemed-Retractible 5.33 % 6.14 % 87,312 8.03 27 0.2760 % 3,051.6
FloatingReset 4.07 % 4.79 % 50,322 2.52 4 0.1063 % 2,332.0
FixedReset Prem 5.12 % 3.90 % 199,549 1.85 16 0.2192 % 2,575.7
FixedReset Bank Non 1.98 % 4.36 % 161,722 2.54 3 0.3361 % 2,636.5
FixedReset Ins Non 5.39 % 7.58 % 92,561 8.11 22 -0.1988 % 2,118.7
Performance Highlights
Issue Index Change Notes
BAM.PF.E FixedReset Disc -2.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 15.69
Evaluated at bid price : 15.69
Bid-YTW : 6.27 %
MFC.PR.F FixedReset Ins Non -2.04 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 12.98
Bid-YTW : 10.12 %
MFC.PR.L FixedReset Ins Non -1.83 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 16.60
Bid-YTW : 8.36 %
BAM.PF.F FixedReset Disc -1.78 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 16.60
Evaluated at bid price : 16.60
Bid-YTW : 6.35 %
MFC.PR.I FixedReset Ins Non -1.69 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.64
Bid-YTW : 7.86 %
BAM.PR.T FixedReset Disc -1.65 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 14.31
Evaluated at bid price : 14.31
Bid-YTW : 6.35 %
CM.PR.P FixedReset Disc -1.64 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 16.15
Evaluated at bid price : 16.15
Bid-YTW : 5.64 %
BIP.PR.E FixedReset Disc -1.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 20.50
Evaluated at bid price : 20.50
Bid-YTW : 6.12 %
PWF.PR.T FixedReset Disc -1.58 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 18.01
Evaluated at bid price : 18.01
Bid-YTW : 5.43 %
BAM.PF.B FixedReset Disc -1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 16.90
Evaluated at bid price : 16.90
Bid-YTW : 6.11 %
CM.PR.Q FixedReset Disc -1.56 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 18.31
Evaluated at bid price : 18.31
Bid-YTW : 5.67 %
NA.PR.G FixedReset Disc -1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 20.80
Evaluated at bid price : 20.80
Bid-YTW : 5.26 %
BAM.PF.G FixedReset Disc -1.42 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 16.71
Evaluated at bid price : 16.71
Bid-YTW : 6.31 %
HSE.PR.G FixedReset Disc -1.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 18.50
Evaluated at bid price : 18.50
Bid-YTW : 6.58 %
BIP.PR.A FixedReset Disc -1.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 18.25
Evaluated at bid price : 18.25
Bid-YTW : 6.71 %
HSE.PR.E FixedReset Disc -1.34 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 19.14
Evaluated at bid price : 19.14
Bid-YTW : 6.41 %
TD.PF.A FixedReset Disc -1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 17.01
Evaluated at bid price : 17.01
Bid-YTW : 5.36 %
RY.PR.H FixedReset Disc -1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 17.35
Evaluated at bid price : 17.35
Bid-YTW : 5.24 %
RY.PR.Z FixedReset Disc -1.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 17.52
Evaluated at bid price : 17.52
Bid-YTW : 5.12 %
TRP.PR.G FixedReset Disc -1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 17.82
Evaluated at bid price : 17.82
Bid-YTW : 6.03 %
EML.PR.A FixedReset Ins Non 1.05 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-17
Maturity Price : 25.00
Evaluated at bid price : 25.49
Bid-YTW : 4.35 %
IFC.PR.G FixedReset Ins Non 1.13 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.55
Bid-YTW : 6.72 %
PWF.PR.P FixedReset Disc 1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 12.65
Evaluated at bid price : 12.65
Bid-YTW : 5.75 %
SLF.PR.B Deemed-Retractible 1.20 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.90
Bid-YTW : 6.44 %
SLF.PR.G FixedReset Ins Non 1.38 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.25
Bid-YTW : 9.98 %
EMA.PR.F FixedReset Disc 1.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 17.05
Evaluated at bid price : 17.05
Bid-YTW : 5.91 %
IFC.PR.F Deemed-Retractible 1.65 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.00
Bid-YTW : 5.82 %
TRP.PR.C FixedReset Disc 2.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 12.05
Evaluated at bid price : 12.05
Bid-YTW : 5.94 %
Volume Highlights
Issue Index Shares
Traded
Notes
TRP.PR.K FixedReset Disc 113,743 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 23.27
Evaluated at bid price : 24.68
Bid-YTW : 5.17 %
BMO.PR.S FixedReset Disc 72,324 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 17.70
Evaluated at bid price : 17.70
Bid-YTW : 5.24 %
RY.PR.H FixedReset Disc 40,085 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 17.35
Evaluated at bid price : 17.35
Bid-YTW : 5.24 %
RY.PR.Q FixedReset Prem 35,508 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-24
Maturity Price : 25.00
Evaluated at bid price : 25.90
Bid-YTW : 3.74 %
CM.PR.Y FixedReset Disc 26,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 22.97
Evaluated at bid price : 24.50
Bid-YTW : 5.07 %
TD.PF.K FixedReset Disc 20,800 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 20.11
Evaluated at bid price : 20.11
Bid-YTW : 5.23 %
There were 18 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
BIP.PR.F FixedReset Disc Quote: 20.67 – 21.19
Spot Rate : 0.5200
Average : 0.3366

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 20.67
Evaluated at bid price : 20.67
Bid-YTW : 6.20 %

IFC.PR.A FixedReset Ins Non Quote: 14.88 – 15.17
Spot Rate : 0.2900
Average : 0.1833

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 14.88
Bid-YTW : 9.30 %

MFC.PR.L FixedReset Ins Non Quote: 16.60 – 16.97
Spot Rate : 0.3700
Average : 0.2810

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 16.60
Bid-YTW : 8.36 %

CM.PR.T FixedReset Disc Quote: 24.17 – 24.48
Spot Rate : 0.3100
Average : 0.2234

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-14
Maturity Price : 22.86
Evaluated at bid price : 24.17
Bid-YTW : 4.96 %

GWO.PR.S Deemed-Retractible Quote: 23.30 – 23.80
Spot Rate : 0.5000
Average : 0.4135

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.30
Bid-YTW : 6.14 %

SLF.PR.C Deemed-Retractible Quote: 20.28 – 20.56
Spot Rate : 0.2800
Average : 0.2141

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.28
Bid-YTW : 7.01 %

June 13, 2019

June 13th, 2019
explosion_190613
Click for Big

TXPR closed at 595.73, down 0.86% on the day. Volume was 1.90-million, above average in the context of the past thirty days.

CPD closed at 12.00, unchanged on the day. Volume of 47,781 was on the low side in the context of the past thirty days.

ZPR closed at 9.61, down 0.21% on the day. Volume of 121,432 was at about the median of the past thirty days.

Five-year Canada yields were down 5bp to 1.34% today.

There was a boat-load of Market-on-Close sell orders today, which presumably accounts for the disconnect between TXPR and its related ETFs.

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 -0.8908 % 1,938.3
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.8908 % 3,556.6
Floater 6.11 % 6.43 % 68,160 13.33 3 -0.8908 % 2,049.7
OpRet 0.00 % 0.00 % 0 0.00 0 0.1481 % 3,314.8
SplitShare 4.70 % 4.71 % 72,773 4.23 7 0.1481 % 3,958.6
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.1481 % 3,088.6
Perpetual-Premium 5.63 % -5.97 % 78,000 0.08 7 -0.1743 % 2,935.7
Perpetual-Discount 5.54 % 5.68 % 65,129 14.37 26 -0.3802 % 3,044.1
FixedReset Disc 5.55 % 5.46 % 169,629 14.61 70 -0.5417 % 2,057.6
Deemed-Retractible 5.34 % 6.12 % 88,427 8.02 27 -0.2467 % 3,043.2
FloatingReset 4.10 % 4.87 % 52,397 2.52 4 -0.3840 % 2,329.5
FixedReset Prem 5.14 % 4.02 % 202,784 1.86 16 0.0396 % 2,570.1
FixedReset Bank Non 1.99 % 4.46 % 157,940 2.54 3 0.0701 % 2,627.7
FixedReset Ins Non 5.38 % 7.60 % 96,469 8.11 22 -1.1716 % 2,122.9
Performance Highlights
Issue Index Change Notes
EMA.PR.F FixedReset Disc -4.93 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 16.79
Evaluated at bid price : 16.79
Bid-YTW : 6.09 %
SLF.PR.G FixedReset Ins Non -4.46 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.07
Bid-YTW : 10.23 %
TRP.PR.C FixedReset Disc -3.84 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 11.78
Evaluated at bid price : 11.78
Bid-YTW : 6.19 %
RY.PR.M FixedReset Disc -3.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 18.39
Evaluated at bid price : 18.39
Bid-YTW : 5.47 %
HSE.PR.G FixedReset Disc -2.90 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 18.76
Evaluated at bid price : 18.76
Bid-YTW : 6.56 %
SLF.PR.I FixedReset Ins Non -2.84 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.46
Bid-YTW : 7.68 %
IAF.PR.G FixedReset Ins Non -2.78 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.90
Bid-YTW : 6.83 %
MFC.PR.R FixedReset Ins Non -2.76 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.58
Bid-YTW : 5.87 %
CU.PR.C FixedReset Disc -2.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 16.67
Evaluated at bid price : 16.67
Bid-YTW : 5.64 %
PWF.PR.P FixedReset Disc -2.42 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 12.50
Evaluated at bid price : 12.50
Bid-YTW : 5.93 %
SLF.PR.H FixedReset Ins Non -2.35 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.35
Bid-YTW : 9.14 %
NA.PR.C FixedReset Disc -2.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 20.94
Evaluated at bid price : 20.94
Bid-YTW : 5.74 %
CU.PR.E Perpetual-Discount -2.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 21.80
Evaluated at bid price : 21.80
Bid-YTW : 5.67 %
MFC.PR.I FixedReset Ins Non -2.02 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.96
Bid-YTW : 7.69 %
TRP.PR.B FixedReset Disc -1.96 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 11.01
Evaluated at bid price : 11.01
Bid-YTW : 6.04 %
IAF.PR.I FixedReset Ins Non -1.77 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.50
Bid-YTW : 6.86 %
GWO.PR.G Deemed-Retractible -1.73 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.70
Bid-YTW : 6.42 %
MFC.PR.J FixedReset Ins Non -1.73 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.32
Bid-YTW : 7.48 %
MFC.PR.K FixedReset Ins Non -1.71 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.41
Bid-YTW : 7.71 %
CU.PR.D Perpetual-Discount -1.58 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 21.75
Evaluated at bid price : 21.75
Bid-YTW : 5.68 %
TRP.PR.F FloatingReset -1.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 13.33
Evaluated at bid price : 13.33
Bid-YTW : 6.75 %
BAM.PF.F FixedReset Disc -1.54 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 16.90
Evaluated at bid price : 16.90
Bid-YTW : 6.33 %
HSE.PR.E FixedReset Disc -1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 19.40
Evaluated at bid price : 19.40
Bid-YTW : 6.40 %
BMO.PR.T FixedReset Disc -1.49 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 16.52
Evaluated at bid price : 16.52
Bid-YTW : 5.57 %
BIP.PR.D FixedReset Disc -1.38 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 21.50
Evaluated at bid price : 21.50
Bid-YTW : 6.01 %
CIU.PR.A Perpetual-Discount -1.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 20.42
Evaluated at bid price : 20.42
Bid-YTW : 5.68 %
CM.PR.Q FixedReset Disc -1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 18.60
Evaluated at bid price : 18.60
Bid-YTW : 5.65 %
MFC.PR.C Deemed-Retractible -1.32 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.23
Bid-YTW : 7.12 %
SLF.PR.J FloatingReset -1.31 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.52
Bid-YTW : 10.28 %
BMO.PR.W FixedReset Disc -1.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 16.50
Evaluated at bid price : 16.50
Bid-YTW : 5.55 %
BAM.PF.A FixedReset Disc -1.21 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 18.75
Evaluated at bid price : 18.75
Bid-YTW : 6.02 %
TD.PF.E FixedReset Disc -1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 19.77
Evaluated at bid price : 19.77
Bid-YTW : 5.41 %
TRP.PR.E FixedReset Disc -1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 15.82
Evaluated at bid price : 15.82
Bid-YTW : 6.04 %
BAM.PR.R FixedReset Disc -1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 14.35
Evaluated at bid price : 14.35
Bid-YTW : 6.32 %
BAM.PR.X FixedReset Disc -1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 12.61
Evaluated at bid price : 12.61
Bid-YTW : 6.20 %
PWF.PR.F Perpetual-Discount -1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 23.14
Evaluated at bid price : 23.40
Bid-YTW : 5.68 %
MFC.PR.B Deemed-Retractible -1.12 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.21
Bid-YTW : 6.69 %
BMO.PR.C FixedReset Disc -1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 21.94
Evaluated at bid price : 22.25
Bid-YTW : 5.30 %
MFC.PR.M FixedReset Ins Non -1.10 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 17.09
Bid-YTW : 8.34 %
BMO.PR.E FixedReset Disc -1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 20.80
Evaluated at bid price : 20.80
Bid-YTW : 5.19 %
BAM.PR.T FixedReset Disc -1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 14.55
Evaluated at bid price : 14.55
Bid-YTW : 6.32 %
TD.PF.D FixedReset Disc 1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 19.72
Evaluated at bid price : 19.72
Bid-YTW : 5.33 %
IFC.PR.G FixedReset Ins Non 1.11 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.32
Bid-YTW : 6.89 %
TRP.PR.G FixedReset Disc 1.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 18.00
Evaluated at bid price : 18.00
Bid-YTW : 6.05 %
BIP.PR.E FixedReset Disc 1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 20.84
Evaluated at bid price : 20.84
Bid-YTW : 6.02 %
BIK.PR.A FixedReset Prem 1.19 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2024-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.50
Bid-YTW : 5.35 %
BAM.PF.B FixedReset Disc 1.67 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 17.17
Evaluated at bid price : 17.17
Bid-YTW : 6.07 %
Volume Highlights
Issue Index Shares
Traded
Notes
RY.PR.Z FixedReset Disc 68,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 17.71
Evaluated at bid price : 17.71
Bid-YTW : 5.15 %
CM.PR.Y FixedReset Disc 66,640 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 22.96
Evaluated at bid price : 24.47
Bid-YTW : 5.12 %
TD.PF.M FixedReset Disc 57,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 22.98
Evaluated at bid price : 24.51
Bid-YTW : 5.05 %
BAM.PR.X FixedReset Disc 56,500 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 12.61
Evaluated at bid price : 12.61
Bid-YTW : 6.20 %
TD.PF.L FixedReset Disc 56,405 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 22.96
Evaluated at bid price : 24.42
Bid-YTW : 4.91 %
BNS.PR.H FixedReset Prem 56,400 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-01-26
Maturity Price : 25.00
Evaluated at bid price : 25.43
Bid-YTW : 4.42 %
There were 18 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
RY.PR.M FixedReset Disc Quote: 18.39 – 19.05
Spot Rate : 0.6600
Average : 0.4374

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 18.39
Evaluated at bid price : 18.39
Bid-YTW : 5.47 %

TRP.PR.C FixedReset Disc Quote: 11.78 – 12.34
Spot Rate : 0.5600
Average : 0.3694

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-13
Maturity Price : 11.78
Evaluated at bid price : 11.78
Bid-YTW : 6.19 %

GWO.PR.G Deemed-Retractible Quote: 22.70 – 23.20
Spot Rate : 0.5000
Average : 0.3120

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.70
Bid-YTW : 6.42 %

IAF.PR.I FixedReset Ins Non Quote: 20.50 – 20.99
Spot Rate : 0.4900
Average : 0.3085

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.50
Bid-YTW : 6.86 %

MFC.PR.R FixedReset Ins Non Quote: 23.58 – 24.07
Spot Rate : 0.4900
Average : 0.3116

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.58
Bid-YTW : 5.87 %

SLF.PR.I FixedReset Ins Non Quote: 18.46 – 19.00
Spot Rate : 0.5400
Average : 0.3730

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.46
Bid-YTW : 7.68 %

June 12, 2019

June 12th, 2019

PerpetualDiscounts now yield 5.61%, equivalent to 7.29% interest at the standard equivalency factor of 1.3x. Long corporates now yield 3.49%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now an unbelievable 380bp, a sharp widening from the 365bp reported June 5.

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 0.3780 % 1,955.7
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.3780 % 3,588.6
Floater 6.01 % 6.41 % 69,333 13.19 3 0.3780 % 2,068.1
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0228 % 3,309.9
SplitShare 4.71 % 4.71 % 73,853 4.23 7 -0.0228 % 3,952.7
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0228 % 3,084.1
Perpetual-Premium 5.62 % -9.83 % 77,071 0.08 7 0.0562 % 2,940.8
Perpetual-Discount 5.51 % 5.61 % 65,975 14.42 26 0.0118 % 3,055.8
FixedReset Disc 5.51 % 5.44 % 171,229 14.70 70 -0.1075 % 2,068.8
Deemed-Retractible 5.32 % 6.08 % 89,135 8.03 27 -0.1558 % 3,050.7
FloatingReset 4.09 % 4.93 % 53,117 2.52 4 0.3455 % 2,338.5
FixedReset Prem 5.13 % 4.02 % 205,363 1.86 16 -0.0195 % 2,569.1
FixedReset Bank Non 1.99 % 4.45 % 160,172 2.54 3 -0.2516 % 2,625.8
FixedReset Ins Non 5.30 % 7.35 % 94,634 8.15 22 -0.1715 % 2,148.0
Performance Highlights
Issue Index Change Notes
TD.PF.D FixedReset Disc -2.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 19.51
Evaluated at bid price : 19.51
Bid-YTW : 5.38 %
IFC.PR.A FixedReset Ins Non -2.09 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 14.98
Bid-YTW : 9.44 %
MFC.PR.F FixedReset Ins Non -1.78 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.21
Bid-YTW : 9.97 %
PWF.PR.P FixedReset Disc -1.61 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 12.81
Evaluated at bid price : 12.81
Bid-YTW : 5.78 %
IFC.PR.F Deemed-Retractible -1.44 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.91
Bid-YTW : 6.04 %
TRP.PR.D FixedReset Disc -1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 16.28
Evaluated at bid price : 16.28
Bid-YTW : 5.95 %
CU.PR.C FixedReset Disc -1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 17.12
Evaluated at bid price : 17.12
Bid-YTW : 5.50 %
BIP.PR.A FixedReset Disc -1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 18.65
Evaluated at bid price : 18.65
Bid-YTW : 6.64 %
BMO.PR.Y FixedReset Disc -1.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 18.91
Evaluated at bid price : 18.91
Bid-YTW : 5.46 %
MFC.PR.I FixedReset Ins Non -1.12 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.35
Bid-YTW : 7.43 %
MFC.PR.G FixedReset Ins Non -1.10 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.83
Bid-YTW : 7.64 %
GWO.PR.S Deemed-Retractible -1.06 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.40
Bid-YTW : 6.08 %
NA.PR.W FixedReset Disc -1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 16.17
Evaluated at bid price : 16.17
Bid-YTW : 5.73 %
NA.PR.C FixedReset Disc -1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 21.38
Evaluated at bid price : 21.38
Bid-YTW : 5.62 %
MFC.PR.K FixedReset Ins Non 1.02 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.73
Bid-YTW : 7.49 %
BAM.PR.Z FixedReset Disc 1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 18.70
Evaluated at bid price : 18.70
Bid-YTW : 6.07 %
EMA.PR.F FixedReset Disc 1.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 17.66
Evaluated at bid price : 17.66
Bid-YTW : 5.78 %
BAM.PF.J FixedReset Disc 1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 22.61
Evaluated at bid price : 23.40
Bid-YTW : 5.13 %
SLF.PR.J FloatingReset 1.41 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.70
Bid-YTW : 10.11 %
BIP.PR.D FixedReset Disc 1.49 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 21.45
Evaluated at bid price : 21.80
Bid-YTW : 5.90 %
GWO.PR.N FixedReset Ins Non 1.54 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.82
Bid-YTW : 9.31 %
NA.PR.S FixedReset Disc 1.98 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 17.55
Evaluated at bid price : 17.55
Bid-YTW : 5.57 %
Volume Highlights
Issue Index Shares
Traded
Notes
BAM.PR.X FixedReset Disc 51,663 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 12.93
Evaluated at bid price : 12.93
Bid-YTW : 6.14 %
BMO.PR.S FixedReset Disc 49,137 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 17.75
Evaluated at bid price : 17.75
Bid-YTW : 5.31 %
GWO.PR.Q Deemed-Retractible 48,050 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.93
Bid-YTW : 6.23 %
TD.PF.L FixedReset Disc 43,200 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 22.98
Evaluated at bid price : 24.47
Bid-YTW : 4.89 %
TD.PF.K FixedReset Disc 42,825 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 20.24
Evaluated at bid price : 20.24
Bid-YTW : 5.25 %
PWF.PR.R Perpetual-Premium 36,500 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 24.43
Evaluated at bid price : 24.82
Bid-YTW : 5.60 %
There were 25 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
HSE.PR.E FixedReset Disc Quote: 19.70 – 20.60
Spot Rate : 0.9000
Average : 0.6236

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 19.70
Evaluated at bid price : 19.70
Bid-YTW : 6.30 %

BAM.PF.B FixedReset Disc Quote: 17.16 – 17.72
Spot Rate : 0.5600
Average : 0.3733

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 17.16
Evaluated at bid price : 17.16
Bid-YTW : 6.19 %

TD.PF.D FixedReset Disc Quote: 19.51 – 19.98
Spot Rate : 0.4700
Average : 0.3196

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 19.51
Evaluated at bid price : 19.51
Bid-YTW : 5.38 %

HSE.PR.A FixedReset Disc Quote: 12.10 – 12.50
Spot Rate : 0.4000
Average : 0.2636

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 12.10
Evaluated at bid price : 12.10
Bid-YTW : 6.31 %

BMO.PR.Y FixedReset Disc Quote: 18.91 – 19.25
Spot Rate : 0.3400
Average : 0.2106

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 18.91
Evaluated at bid price : 18.91
Bid-YTW : 5.46 %

BIP.PR.E FixedReset Disc Quote: 20.60 – 20.99
Spot Rate : 0.3900
Average : 0.2613

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-12
Maturity Price : 20.60
Evaluated at bid price : 20.60
Bid-YTW : 6.09 %

AIM : DBRS Discontinues Ratings

June 12th, 2019

DBRS has announced:

DBRS Limited (DBRS) discontinued the Issuer Rating, Senior Secured Debt rating and Preferred Shares rating of Aimia Inc. (the Company). The Senior Secured Debt rating is being discontinued because all outstanding debt has been repaid. The Issuer Rating and Preferred Shares rating of BB (low) with a Negative trend and Pfd-5 (high) with a Negative trend, respectively, were Under Review with Developing Implications. DBRS generally tries to resolve Under Review statuses prior to any discontinuation. In this case, however, DBRS does not have sufficient information to resolve the Under Review with Developing Implications status but is nonetheless discontinuing the ratings per the Company’s request.

Affected issues are AIM.PR.A, AIM.PR.B and AIM.PR.C

VNR.PR.A Acquisition Approved by Holders

June 12th, 2019

Valener Inc. has announced (on June 11):

that at its special meeting of shareholders held today, June 11, 2019 (the “Meeting“), shareholders approved the acquisition of Valener by Noverco Inc. (“Noverco“) (the “Announced Transaction“) pursuant to the Arrangement Agreement publicly announced on March 27, 2019 (the “Arrangement“).

As provided for in the Arrangement, two resolutions were submitted to a vote at the Meeting, namely the Arrangement resolution to be approved by the holders of common shares and the preferred shareholder resolution to be approved by the holders of preferred shares (hereinafter, the “Resolutions“).

We refer you to the management information circular, available online at www.sedar.com under Valener’s profile, regarding quorum rules and approval threshold that had to be reached at the Meeting.

The Arrangement resolution was approved by 91.92% of the votes cast by holders of common shares, which represented 36.44% of all issued and outstanding common shares of Valener, and by 91.91% of the votes cast by all holders of common shares, excluding common shares beneficially owned or over which control or direction is exercised by interested parties and certain related parties of such interested parties whose votes are required to be excluded in accordance with applicable securities regulation. The preferred shareholder resolution was approved by 99.62% of the votes cast by the holders of the preferred shares, which represented 36.2% of all issued and outstanding preferred shares.

In light of the approval of the Resolutions, counsel for Valener and Noverco will present the application for a final order to approve the Arrangement to the Superior Court of Québec on Friday, June 14, 2019, at 9:00 a.m. (Montréal time). At the hearing, any shareholder or other interested person may intervene in accordance with the procedure set out in item 8 of the management information circular and the interim order of the Superior Court of Québec dated April 17, 2019.

The Announced Transaction remains subject to regulatory approval by the Vermont Public Utility Commission. A public hearing on this matter is scheduled for July 23, 2019.

The proposed acquisition at par was announced in March.

The issue commenced trading 2012-6-6 as a FixedReset, 4.35%+281, after being announced 2012-5-15. It reset to 4.62% effective 2017-10-15. I recommended against conversion and there was no conversion to FloatingResets. The issue is tracked by HIMIPref™ and has been assigned to the FixedReset subindex.

June 11, 2019

June 11th, 2019
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 -0.0581 % 1,948.3
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.0581 % 3,575.1
Floater 6.03 % 6.44 % 70,193 13.15 3 -0.0581 % 2,060.3
OpRet 0.00 % 0.00 % 0 0.00 0 0.0570 % 3,310.7
SplitShare 4.70 % 4.78 % 76,911 4.24 7 0.0570 % 3,953.6
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0570 % 3,084.8
Perpetual-Premium 5.62 % -10.01 % 77,511 0.09 7 -0.0506 % 2,939.2
Perpetual-Discount 5.51 % 5.63 % 66,656 14.40 26 0.0237 % 3,055.4
FixedReset Disc 5.51 % 5.40 % 172,976 14.72 70 -0.0836 % 2,071.0
Deemed-Retractible 5.31 % 5.94 % 90,520 8.03 27 0.0852 % 3,055.5
FloatingReset 4.10 % 4.96 % 53,236 2.52 4 0.3734 % 2,330.4
FixedReset Prem 5.13 % 3.97 % 207,266 1.86 16 -0.1216 % 2,569.6
FixedReset Bank Non 1.99 % 4.37 % 157,715 2.55 3 -0.1117 % 2,632.4
FixedReset Ins Non 5.29 % 7.33 % 95,910 8.16 22 -0.2409 % 2,151.7
Performance Highlights
Issue Index Change Notes
HSE.PR.G FixedReset Disc -2.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 19.31
Evaluated at bid price : 19.31
Bid-YTW : 6.37 %
PWF.PR.A Floater -1.96 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 12.50
Evaluated at bid price : 12.50
Bid-YTW : 5.59 %
BMO.PR.C FixedReset Disc -1.74 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 22.19
Evaluated at bid price : 22.60
Bid-YTW : 5.21 %
MFC.PR.G FixedReset Ins Non -1.55 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.04
Bid-YTW : 7.50 %
BMO.PR.D FixedReset Disc -1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 21.39
Evaluated at bid price : 21.39
Bid-YTW : 5.36 %
NA.PR.G FixedReset Disc -1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 21.01
Evaluated at bid price : 21.01
Bid-YTW : 5.25 %
BAM.PF.B FixedReset Disc -1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 17.16
Evaluated at bid price : 17.16
Bid-YTW : 6.19 %
BAM.PF.A FixedReset Disc -1.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 19.18
Evaluated at bid price : 19.18
Bid-YTW : 6.00 %
MFC.PR.K FixedReset Ins Non -1.38 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.54
Bid-YTW : 7.61 %
NA.PR.S FixedReset Disc -1.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 17.21
Evaluated at bid price : 17.21
Bid-YTW : 5.68 %
BIP.PR.F FixedReset Disc -1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 20.80
Evaluated at bid price : 20.80
Bid-YTW : 6.15 %
MFC.PR.I FixedReset Ins Non -1.21 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.57
Bid-YTW : 7.29 %
TRP.PR.B FixedReset Disc -1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 11.27
Evaluated at bid price : 11.27
Bid-YTW : 5.90 %
BAM.PF.J FixedReset Disc -1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 22.46
Evaluated at bid price : 23.13
Bid-YTW : 5.19 %
MFC.PR.J FixedReset Ins Non -1.06 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.52
Bid-YTW : 7.35 %
TRP.PR.C FixedReset Disc -1.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 12.31
Evaluated at bid price : 12.31
Bid-YTW : 5.92 %
W.PR.K FixedReset Prem 1.03 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-01-15
Maturity Price : 25.00
Evaluated at bid price : 25.61
Bid-YTW : 4.21 %
IAF.PR.G FixedReset Ins Non 1.03 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.50
Bid-YTW : 6.46 %
GWO.PR.P Deemed-Retractible 1.04 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.25
Bid-YTW : 5.78 %
MFC.PR.F FixedReset Ins Non 1.05 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.45
Bid-YTW : 9.75 %
BNS.PR.I FixedReset Disc 1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 21.32
Evaluated at bid price : 21.60
Bid-YTW : 4.78 %
TRP.PR.F FloatingReset 1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 13.59
Evaluated at bid price : 13.59
Bid-YTW : 6.62 %
RY.PR.M FixedReset Disc 1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 5.30 %
BAM.PR.B Floater 1.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 10.96
Evaluated at bid price : 10.96
Bid-YTW : 6.44 %
CM.PR.Q FixedReset Disc 1.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 18.90
Evaluated at bid price : 18.90
Bid-YTW : 5.56 %
IAF.PR.B Deemed-Retractible 1.40 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.77
Bid-YTW : 6.29 %
CU.PR.C FixedReset Disc 1.40 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 17.35
Evaluated at bid price : 17.35
Bid-YTW : 5.42 %
BIP.PR.A FixedReset Disc 1.61 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 18.90
Evaluated at bid price : 18.90
Bid-YTW : 6.55 %
Volume Highlights
Issue Index Shares
Traded
Notes
CM.PR.O FixedReset Disc 84,400 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 16.90
Evaluated at bid price : 16.90
Bid-YTW : 5.59 %
CM.PR.Y FixedReset Disc 80,400 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 22.90
Evaluated at bid price : 24.32
Bid-YTW : 5.16 %
IAF.PR.G FixedReset Ins Non 39,700 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.50
Bid-YTW : 6.46 %
TD.PF.K FixedReset Disc 30,730 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 20.31
Evaluated at bid price : 20.31
Bid-YTW : 5.23 %
CM.PR.S FixedReset Disc 29,592 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 18.82
Evaluated at bid price : 18.82
Bid-YTW : 5.39 %
BAM.PR.X FixedReset Disc 27,847 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 12.91
Evaluated at bid price : 12.91
Bid-YTW : 6.15 %
There were 11 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
HSE.PR.G FixedReset Disc Quote: 19.31 – 20.00
Spot Rate : 0.6900
Average : 0.5351

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 19.31
Evaluated at bid price : 19.31
Bid-YTW : 6.37 %

IFC.PR.C FixedReset Ins Non Quote: 18.50 – 18.88
Spot Rate : 0.3800
Average : 0.2433

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.50
Bid-YTW : 7.60 %

PWF.PR.Z Perpetual-Discount Quote: 22.96 – 23.34
Spot Rate : 0.3800
Average : 0.2435

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 22.55
Evaluated at bid price : 22.96
Bid-YTW : 5.67 %

PVS.PR.E SplitShare Quote: 25.50 – 25.88
Spot Rate : 0.3800
Average : 0.2532

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.50
Bid-YTW : 4.90 %

BAM.PR.R FixedReset Disc Quote: 14.60 – 15.00
Spot Rate : 0.4000
Average : 0.2796

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 14.60
Evaluated at bid price : 14.60
Bid-YTW : 6.31 %

BMO.PR.T FixedReset Disc Quote: 16.81 – 17.14
Spot Rate : 0.3300
Average : 0.2182

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-11
Maturity Price : 16.81
Evaluated at bid price : 16.81
Bid-YTW : 5.47 %

EFN.PR.C : Convert or Hold?

June 11th, 2019

It will be recalled that EFN.PR.C will reset At 6.210% effective June 30, 2019.

EFN.PR.C was announced 2014-2-26 as a FixedReset, 6.50%+481, but was not added to HIMIPref™ at that time as the company did not have a credit rating. The company received an initial rating from DBRS on 2015-9-24 and HIMIPref™ commenced tracking its four issues then outstanding shortly thereafter. The extension of the issue was announced 2019-5-22. The issue continues to be tracked by HIMIPref™ but is relegated to the Scraps – FixedReset (Discount) subindex on credit concerns.

The most logical way to analyze the question of whether or not to convert is through the theory of Preferred Pairs, for which a calculator is available. Briefly, a Strong Pair is defined as a pair of securities that can be interconverted in the future (e.g., EFN.PR.C and the FloatingReset that will exist if enough holders convert). Since they will be interconvertible on this future date, it may be assumed that they will be priced identically on this date (if they aren’t then holders will simply convert en masse to the higher-priced issue). And since they will be priced identically on a given date in the future, any current difference in price must be offset by expectations of an equal and opposite value of dividends to be received in the interim. And since the dividend rate on one element of the pair is both fixed and known, the implied average rate of the other, floating rate, instrument can be determined. Finally, we say, we may compare these average rates and take a view regarding the actual future course of that rate relative to the implied rate, which will provide us with guidance on which element of the pair is likely to outperform the other until the next interconversion date, at which time the process will be repeated.

We can show the break-even rates for each FixedReset / FloatingReset Strong Pair graphically by plotting the implied average 3-month bill rate against the next Exchange Date (which is the date to which the average will be calculated).

pairs_fr_190610
Click for Big

The market appears to have lost its fleeting interest in floating rate product; the implied rates until the next interconversion are above the current 3-month bill rate as the averages for investment-grade and junk issues are at +0.54% and +1.01%, respectively. Whatever might be the result of the next few Bank of Canada overnight rate decisions, I suggest that it is unlikely that the average rate over the next five years will be lower than current – but if you disagree, of course, you may interpret the data any way you like.

Since credit quality of each element of the pair is equal to the other element, it should not make any difference whether the pair examined is investment-grade or junk, although we might expect greater variation of implied rates between junk issues on grounds of lower liquidity, and this is just what we see.

If we plug in the current bid price of the EFN.PR.C FixedReset, we may construct the following table showing consistent prices for its soon-may-be-issued FloatingReset counterpart given a variety of Implied Breakeven yields consistent with issues currently trading:

Estimate of FloatingReset (received in exchange for EFN.PR.C) Trading Price In Current Conditions
  Assumed FloatingReset
Price if Implied Bill
is equal to
FixedReset Bid Price Spread 1.50% 1.00% 0.50%
EFN.PR.C 21.15 481bp 21.24 20.78 20.32

Based on current market conditions, I suggest that the FloatingResets that will result from conversion are likely to trade below the price of their FixedReset counterparts, EFN.PR.C. Therefore, I recommend that holders of EFN.PR.C continue to hold the issue and not to convert. I will note that once the FloatingResets commence trading (if, in fact, they do) it may be a good trade to swap one issue for the other in the market once both elements of each pair are trading and you can – hopefully – do it with a reasonably good take-out in price, rather than doing it through the company on a 1:1 basis. But that, of course, will depend on the prices at that time and your forecast for the path of policy rates over the next five years. There are no guarantees – my recommendation is based on the assumption that current market conditions with respect to the pairs will continue until the FloatingResets commence trading and that the relative pricing of the two new pairs will reflect these conditions.

Those who wish to convert are advised that the deadline for notifying the company of such a desire is 5:00 p.m. (Toronto time) on June 17, 2019. Brokers and other intermediaries generally set their internal deadlines a day or two in advance of this date, so if you wish to convert there’s no time to waste! Note that brokers will, in general, try to execute the instruction on a ‘best efforts’ basis if received between the two deadlines, provided that the procrastinating shareholder grovels entertainingly enough.

June 10, 2019

June 10th, 2019
rainbow_190610
Click for Big

TXPR closed at 601.79, up 0.88% on the day. Volume was 2.30-million, high but not extraordinary in the context of the past thirty days.

CPD closed at 12.04, up 0.84% on the day. Volume of 106,003 was high but not unusual in the context of the past thirty days.

ZPR closed at 9.68, up 1.15% on the day. Volume of 393,604 was the highest of the past thirty days, well ahead of the 261,690 posted on June 4.

Five-year Canada yields were up 7bp to 1.41% today.

A good day globally was attributed to the accord between Mexico and the US:

Equities around the world rose on Monday while U.S. Treasury prices fell as risk assets were in demand after the United States shelved plans to impose tariffs on Mexico, easing worries the global economy would face another trade war.

The U.S. dollar gained against a basket of major currencies while the Mexican peso was on track for its biggest one-day percentage gain against the dollar since July 2018.

The U.S.-Mexico trade and migration deal also boosted emerging market stocks and sent U.S. government bond yields higher as investors favored riskier assets.

“There’s a nice follow through on last week’s optimism that global growth is likely to continue with trade tensions with Mexico backing off. There’s clearly a growth bias to the tilt of today’s market,” said Carol Schleif, deputy chief investment officer at Abbot Downing in Minneapolis.

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 -1.1775 % 1,949.4
FixedFloater 0.00 % 0.00 % 0 0.00 0 -1.1775 % 3,577.1
Floater 6.03 % 6.50 % 69,582 13.06 3 -1.1775 % 2,061.5
OpRet 0.00 % 0.00 % 0 0.00 0 0.1483 % 3,308.8
SplitShare 4.71 % 4.79 % 77,512 4.24 7 0.1483 % 3,951.4
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.1483 % 3,083.0
Perpetual-Premium 5.62 % -10.19 % 78,064 0.08 7 0.4518 % 2,940.7
Perpetual-Discount 5.51 % 5.62 % 69,146 14.41 26 0.2341 % 3,054.7
FixedReset Disc 5.50 % 5.39 % 174,174 14.66 70 1.5157 % 2,072.7
Deemed-Retractible 5.32 % 5.98 % 87,587 8.04 27 0.2159 % 3,052.9
FloatingReset 4.12 % 4.99 % 55,439 2.53 4 -0.1731 % 2,321.7
FixedReset Prem 5.13 % 4.05 % 210,903 1.86 16 0.4813 % 2,572.7
FixedReset Bank Non 1.99 % 4.29 % 159,743 2.55 3 0.5758 % 2,635.4
FixedReset Ins Non 5.28 % 7.21 % 96,810 8.16 22 1.6157 % 2,156.9
Performance Highlights
Issue Index Change Notes
BAM.PR.B Floater -1.91 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 10.81
Evaluated at bid price : 10.81
Bid-YTW : 6.53 %
BAM.PR.K Floater -1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 10.85
Evaluated at bid price : 10.85
Bid-YTW : 6.50 %
GWO.PR.P Deemed-Retractible -1.23 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.00
Bid-YTW : 5.91 %
BAM.PR.M Perpetual-Discount 1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 20.20
Evaluated at bid price : 20.20
Bid-YTW : 6.01 %
TRP.PR.G FixedReset Disc 1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 17.98
Evaluated at bid price : 17.98
Bid-YTW : 6.05 %
SLF.PR.B Deemed-Retractible 1.02 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.83
Bid-YTW : 6.47 %
PWF.PR.R Perpetual-Premium 1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 24.36
Evaluated at bid price : 24.75
Bid-YTW : 5.62 %
IAF.PR.B Deemed-Retractible 1.04 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.47
Bid-YTW : 6.46 %
IFC.PR.F Deemed-Retractible 1.05 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.10
Bid-YTW : 5.93 %
TD.PF.G FixedReset Prem 1.09 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-30
Maturity Price : 25.00
Evaluated at bid price : 25.98
Bid-YTW : 3.68 %
BMO.PR.W FixedReset Disc 1.10 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 16.60
Evaluated at bid price : 16.60
Bid-YTW : 5.51 %
PWF.PR.L Perpetual-Discount 1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 22.55
Evaluated at bid price : 22.80
Bid-YTW : 5.66 %
BAM.PF.J FixedReset Disc 1.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 22.60
Evaluated at bid price : 23.39
Bid-YTW : 5.13 %
TRP.PR.C FixedReset Disc 1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 12.44
Evaluated at bid price : 12.44
Bid-YTW : 5.86 %
BMO.PR.S FixedReset Disc 1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 17.47
Evaluated at bid price : 17.47
Bid-YTW : 5.39 %
TD.PF.K FixedReset Disc 1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 20.25
Evaluated at bid price : 20.25
Bid-YTW : 5.25 %
MFC.PR.N FixedReset Ins Non 1.22 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 16.66
Bid-YTW : 8.57 %
MFC.PR.F FixedReset Ins Non 1.22 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.31
Bid-YTW : 9.87 %
BIP.PR.C FixedReset Disc 1.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 23.34
Evaluated at bid price : 24.56
Bid-YTW : 6.01 %
IFC.PR.A FixedReset Ins Non 1.33 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.21
Bid-YTW : 9.24 %
CM.PR.Y FixedReset Disc 1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 22.89
Evaluated at bid price : 24.30
Bid-YTW : 5.16 %
BIP.PR.E FixedReset Disc 1.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 20.48
Evaluated at bid price : 20.48
Bid-YTW : 6.13 %
RY.PR.M FixedReset Disc 1.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 18.75
Evaluated at bid price : 18.75
Bid-YTW : 5.37 %
BAM.PR.T FixedReset Disc 1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 14.83
Evaluated at bid price : 14.83
Bid-YTW : 6.31 %
CM.PR.O FixedReset Disc 1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 16.75
Evaluated at bid price : 16.75
Bid-YTW : 5.64 %
GWO.PR.N FixedReset Ins Non 1.57 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.60
Bid-YTW : 9.50 %
SLF.PR.G FixedReset Ins Non 1.64 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.62
Bid-YTW : 9.72 %
BAM.PF.I FixedReset Disc 1.66 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 23.23
Evaluated at bid price : 24.51
Bid-YTW : 5.30 %
RY.PR.Z FixedReset Disc 1.67 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 17.70
Evaluated at bid price : 17.70
Bid-YTW : 5.15 %
MFC.PR.R FixedReset Ins Non 1.72 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.24
Bid-YTW : 5.52 %
PWF.PR.P FixedReset Disc 1.73 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 12.92
Evaluated at bid price : 12.92
Bid-YTW : 5.73 %
MFC.PR.B Deemed-Retractible 1.74 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.58
Bid-YTW : 6.47 %
TD.PF.B FixedReset Disc 1.76 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 17.30
Evaluated at bid price : 17.30
Bid-YTW : 5.38 %
TRP.PR.E FixedReset Disc 1.77 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 16.07
Evaluated at bid price : 16.07
Bid-YTW : 5.94 %
CM.PR.R FixedReset Disc 1.78 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 21.37
Evaluated at bid price : 21.69
Bid-YTW : 5.48 %
BMO.PR.D FixedReset Disc 1.83 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 21.39
Evaluated at bid price : 21.72
Bid-YTW : 5.25 %
CM.PR.Q FixedReset Disc 1.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 18.64
Evaluated at bid price : 18.64
Bid-YTW : 5.64 %
BAM.PF.F FixedReset Disc 1.88 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 17.32
Evaluated at bid price : 17.32
Bid-YTW : 6.29 %
BAM.PF.G FixedReset Disc 1.88 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 17.32
Evaluated at bid price : 17.32
Bid-YTW : 6.28 %
IAF.PR.I FixedReset Ins Non 1.89 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.99
Bid-YTW : 6.56 %
MFC.PR.Q FixedReset Ins Non 1.93 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.53
Bid-YTW : 7.30 %
BAM.PR.R FixedReset Disc 1.94 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 14.68
Evaluated at bid price : 14.68
Bid-YTW : 6.27 %
MFC.PR.K FixedReset Ins Non 1.95 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.80
Bid-YTW : 7.43 %
RY.PR.H FixedReset Disc 1.98 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 17.54
Evaluated at bid price : 17.54
Bid-YTW : 5.27 %
TD.PF.I FixedReset Disc 1.99 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 21.28
Evaluated at bid price : 21.57
Bid-YTW : 5.19 %
BMO.PR.T FixedReset Disc 1.99 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 16.94
Evaluated at bid price : 16.94
Bid-YTW : 5.42 %
SLF.PR.I FixedReset Ins Non 2.02 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.18
Bid-YTW : 7.20 %
BMO.PR.Y FixedReset Disc 2.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 19.14
Evaluated at bid price : 19.14
Bid-YTW : 5.39 %
BAM.PR.Z FixedReset Disc 2.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 18.62
Evaluated at bid price : 18.62
Bid-YTW : 6.09 %
MFC.PR.L FixedReset Ins Non 2.05 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 16.94
Bid-YTW : 8.18 %
IFC.PR.C FixedReset Ins Non 2.14 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.64
Bid-YTW : 7.51 %
CM.PR.P FixedReset Disc 2.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 16.58
Evaluated at bid price : 16.58
Bid-YTW : 5.58 %
BIP.PR.D FixedReset Disc 2.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 21.34
Evaluated at bid price : 21.65
Bid-YTW : 5.95 %
BIP.PR.F FixedReset Disc 2.38 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 21.06
Evaluated at bid price : 21.06
Bid-YTW : 6.08 %
BAM.PF.A FixedReset Disc 2.42 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 19.45
Evaluated at bid price : 19.45
Bid-YTW : 5.91 %
MFC.PR.J FixedReset Ins Non 2.44 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.73
Bid-YTW : 7.21 %
NA.PR.E FixedReset Disc 2.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 19.31
Evaluated at bid price : 19.31
Bid-YTW : 5.40 %
TD.PF.E FixedReset Disc 2.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 20.12
Evaluated at bid price : 20.12
Bid-YTW : 5.31 %
NA.PR.G FixedReset Disc 2.50 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 21.32
Evaluated at bid price : 21.32
Bid-YTW : 5.17 %
NA.PR.W FixedReset Disc 2.50 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 16.39
Evaluated at bid price : 16.39
Bid-YTW : 5.65 %
TD.PF.D FixedReset Disc 2.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 19.94
Evaluated at bid price : 19.94
Bid-YTW : 5.27 %
BAM.PF.E FixedReset Disc 2.53 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 16.20
Evaluated at bid price : 16.20
Bid-YTW : 6.28 %
MFC.PR.H FixedReset Ins Non 2.56 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.40
Bid-YTW : 6.96 %
SLF.PR.H FixedReset Ins Non 2.59 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.85
Bid-YTW : 8.73 %
TD.PF.C FixedReset Disc 2.62 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 17.21
Evaluated at bid price : 17.21
Bid-YTW : 5.39 %
CU.PR.C FixedReset Disc 2.76 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 17.11
Evaluated at bid price : 17.11
Bid-YTW : 5.50 %
TRP.PR.B FixedReset Disc 2.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 11.40
Evaluated at bid price : 11.40
Bid-YTW : 5.83 %
RY.PR.J FixedReset Disc 2.96 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 19.51
Evaluated at bid price : 19.51
Bid-YTW : 5.32 %
BAM.PR.X FixedReset Disc 3.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 13.02
Evaluated at bid price : 13.02
Bid-YTW : 6.09 %
TD.PF.A FixedReset Disc 3.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 17.26
Evaluated at bid price : 17.26
Bid-YTW : 5.36 %
MFC.PR.G FixedReset Ins Non 3.15 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.34
Bid-YTW : 7.30 %
BMO.PR.C FixedReset Disc 3.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 22.44
Evaluated at bid price : 23.00
Bid-YTW : 5.11 %
NA.PR.C FixedReset Disc 3.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 21.30
Evaluated at bid price : 21.59
Bid-YTW : 5.55 %
NA.PR.S FixedReset Disc 3.50 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 17.43
Evaluated at bid price : 17.43
Bid-YTW : 5.61 %
MFC.PR.I FixedReset Ins Non 3.61 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.81
Bid-YTW : 7.13 %
Volume Highlights
Issue Index Shares
Traded
Notes
SLF.PR.J FloatingReset 102,500 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.45
Bid-YTW : 10.34 %
CM.PR.Y FixedReset Disc 101,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 22.89
Evaluated at bid price : 24.30
Bid-YTW : 5.16 %
TD.PF.M FixedReset Disc 48,506 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 22.95
Evaluated at bid price : 24.45
Bid-YTW : 5.06 %
CM.PR.S FixedReset Disc 44,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 18.89
Evaluated at bid price : 18.89
Bid-YTW : 5.37 %
TD.PF.J FixedReset Disc 43,233 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 20.18
Evaluated at bid price : 20.18
Bid-YTW : 5.32 %
BMO.PR.S FixedReset Disc 35,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 17.47
Evaluated at bid price : 17.47
Bid-YTW : 5.39 %
There were 36 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
W.PR.K FixedReset Prem Quote: 25.35 – 26.06
Spot Rate : 0.7100
Average : 0.4530

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-01-15
Maturity Price : 25.00
Evaluated at bid price : 25.35
Bid-YTW : 4.88 %

BMO.PR.B FixedReset Prem Quote: 25.45 – 26.01
Spot Rate : 0.5600
Average : 0.3415

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-02-25
Maturity Price : 25.00
Evaluated at bid price : 25.45
Bid-YTW : 4.24 %

TRP.PR.F FloatingReset Quote: 13.42 – 13.99
Spot Rate : 0.5700
Average : 0.3619

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-10
Maturity Price : 13.42
Evaluated at bid price : 13.42
Bid-YTW : 6.70 %

GWO.PR.P Deemed-Retractible Quote: 24.00 – 24.46
Spot Rate : 0.4600
Average : 0.3187

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.00
Bid-YTW : 5.91 %

SLF.PR.H FixedReset Ins Non Quote: 15.85 – 16.50
Spot Rate : 0.6500
Average : 0.5090

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.85
Bid-YTW : 8.73 %

BNS.PR.F FloatingReset Quote: 23.88 – 24.25
Spot Rate : 0.3700
Average : 0.2404

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.88
Bid-YTW : 4.99 %

June 7, 2019

June 7th, 2019

Jobs, jobs, jobs! The US report was weak:

  • 75,000 jobs were created last month. Analysts had expected a gain of about 175,000 jobs, according to Bloomberg.
  • The unemployment rate was 3.6 percent, the same as in April.
  • Average hourly earnings rose by 0.2 percent, the same rate as in April. Over the last 12 months, earnings have risen by a solid 3.1 percent.


However dramatic the fall off in hiring was in May, it’s part of a larger trend suggesting that the labor market has cooled from last year, when tax cuts provided a short-term lift. In the first five months of 2019, the economy added an average of 164,000 jobs, down from an average gain of 223,000 for all of 2018.

The retail sector, battered by the rise of e-commerce, lost jobs for the fourth month in a row. The sector has given up 50,000 jobs since January.

The share of Americans working or looking for a job was unchanged at 62.8 percent. Some economists had thought that number would rise as people were lured back into the labor market by signs of growth earlier this year.

Friday’s report also revised employment data for April and March downward by a total of 75,000 jobs.

In the financial markets, investors saw the bright side of the disappointing report, with bond markets pricing in a growing likelihood that the Fed would act to cut interest rates. Yields on short- and long-term Treasury securities fell sharply after the report. The yield on the 10-year note dropped to 2.07 percent. Stocks rose, with the S&P 500 up 1.2 percent.

The Canadian report was better:

The Canadian dollar strengthened to a seven-week high against its U.S. counterpart on Friday, boosted by domestic data showing a record low unemployment rate that could give the Bank of Canada some confidence in its rosy outlook for the economy.

Canada added a higher-than-expected 27,700 net new jobs in May, which followed a record gain of 106,500 positions in April, and the unemployment rate dipped to a record low of 5.4 per cent, official data showed.

The Bank of Canada has said that a slowdown in the domestic economy was temporary. But chances of an interest rate cut this year by the central bank stayed high, at about 85 per cent, after the Canadian jobs report, with data from the United States showing a sharp slowdown in U.S. job growth.

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 0.2591 % 1,972.7
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.2591 % 3,619.8
Floater 5.96 % 6.40 % 69,417 13.22 3 0.2591 % 2,086.1
OpRet 0.00 % 0.00 % 0 0.00 0 0.0228 % 3,303.9
SplitShare 4.71 % 4.81 % 77,202 4.25 7 0.0228 % 3,945.5
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0228 % 3,078.5
Perpetual-Premium 5.65 % -6.62 % 74,221 0.08 7 -0.2479 % 2,927.4
Perpetual-Discount 5.53 % 5.65 % 71,465 14.36 26 -0.2488 % 3,047.5
FixedReset Disc 5.58 % 5.45 % 172,016 14.68 70 0.4165 % 2,041.8
Deemed-Retractible 5.33 % 6.06 % 91,240 8.05 27 0.1404 % 3,046.3
FloatingReset 4.12 % 5.00 % 53,147 2.53 4 -0.1197 % 2,325.8
FixedReset Prem 5.15 % 4.26 % 213,755 1.87 16 0.1615 % 2,560.4
FixedReset Bank Non 2.00 % 4.63 % 161,879 2.56 3 0.3099 % 2,620.3
FixedReset Ins Non 5.37 % 7.51 % 100,086 8.15 22 -0.0269 % 2,122.6
Performance Highlights
Issue Index Change Notes
SLF.PR.H FixedReset Ins Non -1.97 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.45
Bid-YTW : 8.99 %
BAM.PF.A FixedReset Disc -1.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 18.99
Evaluated at bid price : 18.99
Bid-YTW : 6.00 %
SLF.PR.J FloatingReset -1.46 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.50
Bid-YTW : 10.29 %
EMA.PR.F FixedReset Disc -1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 17.17
Evaluated at bid price : 17.17
Bid-YTW : 5.87 %
IFC.PR.F Deemed-Retractible -1.24 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.85
Bid-YTW : 6.06 %
MFC.PR.N FixedReset Ins Non -1.08 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 16.46
Bid-YTW : 8.66 %
BIP.PR.D FixedReset Disc -1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 21.15
Evaluated at bid price : 21.15
Bid-YTW : 6.05 %
PWF.PR.R Perpetual-Premium -1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 24.26
Evaluated at bid price : 24.50
Bid-YTW : 5.68 %
ELF.PR.H Perpetual-Discount -1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 24.25
Evaluated at bid price : 24.65
Bid-YTW : 5.65 %
SLF.PR.C Deemed-Retractible 1.04 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.42
Bid-YTW : 6.91 %
CCS.PR.C Deemed-Retractible 1.04 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.31
Bid-YTW : 5.86 %
SLF.PR.I FixedReset Ins Non 1.08 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.80
Bid-YTW : 7.40 %
HSE.PR.E FixedReset Disc 1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 19.80
Evaluated at bid price : 19.80
Bid-YTW : 6.20 %
BAM.PF.J FixedReset Disc 1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 22.45
Evaluated at bid price : 23.13
Bid-YTW : 5.19 %
HSE.PR.C FixedReset Disc 1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 17.89
Evaluated at bid price : 17.89
Bid-YTW : 6.28 %
BAM.PR.Z FixedReset Disc 1.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 18.25
Evaluated at bid price : 18.25
Bid-YTW : 6.15 %
BAM.PF.B FixedReset Disc 1.47 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 17.30
Evaluated at bid price : 17.30
Bid-YTW : 6.08 %
TD.PF.D FixedReset Disc 1.67 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 19.45
Evaluated at bid price : 19.45
Bid-YTW : 5.34 %
RY.PR.S FixedReset Disc 1.70 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 20.95
Evaluated at bid price : 20.95
Bid-YTW : 4.82 %
CM.PR.S FixedReset Disc 1.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 18.90
Evaluated at bid price : 18.90
Bid-YTW : 5.31 %
RY.PR.M FixedReset Disc 2.21 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 18.49
Evaluated at bid price : 18.49
Bid-YTW : 5.38 %
HSE.PR.G FixedReset Disc 5.49 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 19.65
Evaluated at bid price : 19.65
Bid-YTW : 6.20 %
HSE.PR.A FixedReset Disc 6.47 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 12.20
Evaluated at bid price : 12.20
Bid-YTW : 6.16 %
Volume Highlights
Issue Index Shares
Traded
Notes
GWO.PR.Q Deemed-Retractible 100,100 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.92
Bid-YTW : 6.23 %
CM.PR.Y FixedReset Disc 78,975 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 22.76
Evaluated at bid price : 23.98
Bid-YTW : 5.20 %
BAM.PR.K Floater 70,104 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 11.01
Evaluated at bid price : 11.01
Bid-YTW : 6.40 %
CM.PR.S FixedReset Disc 50,700 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 18.90
Evaluated at bid price : 18.90
Bid-YTW : 5.31 %
TD.PF.M FixedReset Disc 46,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 22.95
Evaluated at bid price : 24.44
Bid-YTW : 5.02 %
CU.PR.E Perpetual-Discount 42,534 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 22.01
Evaluated at bid price : 22.25
Bid-YTW : 5.53 %
There were 28 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
GWO.PR.S Deemed-Retractible Quote: 23.50 – 24.46
Spot Rate : 0.9600
Average : 0.5826

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.50
Bid-YTW : 6.02 %

BAM.PF.A FixedReset Disc Quote: 18.99 – 19.36
Spot Rate : 0.3700
Average : 0.2414

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 18.99
Evaluated at bid price : 18.99
Bid-YTW : 6.00 %

GWO.PR.R Deemed-Retractible Quote: 21.83 – 22.47
Spot Rate : 0.6400
Average : 0.5172

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.83
Bid-YTW : 6.46 %

CU.PR.F Perpetual-Discount Quote: 20.61 – 21.00
Spot Rate : 0.3900
Average : 0.2747

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 20.61
Evaluated at bid price : 20.61
Bid-YTW : 5.50 %

BAM.PF.J FixedReset Disc Quote: 23.13 – 23.49
Spot Rate : 0.3600
Average : 0.2494

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 22.45
Evaluated at bid price : 23.13
Bid-YTW : 5.19 %

PWF.PR.S Perpetual-Discount Quote: 21.61 – 21.94
Spot Rate : 0.3300
Average : 0.2263

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-07
Maturity Price : 21.61
Evaluated at bid price : 21.61
Bid-YTW : 5.63 %

MFC.PR.L : No Conversion to FloatingReset

June 7th, 2019

Manulife Financial Corporation has announced (on June 5):

that after having taken into account all election notices received by the June 4, 2019 deadline for conversion of its currently outstanding 8,000,000 Non-cumulative Rate Reset Class 1 Shares Series 15 (the “Series 15 Preferred Shares”) (TSX: MFC.PR.L) into Non-cumulative Floating Rate Class 1 Shares Series 16 of Manulife (the “Series 16 Preferred Shares”), the holders of Series 15 Preferred Shares are not entitled to convert their Series 15 Preferred Shares into Series 16 Preferred Shares. There were 148,979 Series 15 Preferred Shares elected for conversion, which is less than the minimum one million shares required to give effect to conversions into Series 16 Preferred Shares.

As announced by Manulife on May 21, 2019, after June 19, 2019, holders of Series 15 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 June 20, 2019, and ending on June 19, 2024, will be 3.78600% per annum or $0.236625 per share per quarter, being equal to the sum of the five-year Government of Canada bond yield as at May 21, 2019, plus 2.16%, as determined in accordance with the terms of the Series 15 Preferred Shares.

Subject to certain conditions described in the prospectus supplement dated February 18, 2014 relating to the issuance of the Series 15 Preferred Shares, Manulife may redeem the Series 15 Preferred Shares, in whole or in part, on June 19, 2024 and on June 19 every five years thereafter.

MFC.PR.L is a FixedReset, 3.90%+216, that commenced trading 2014-2-25 after being announced 2014-2-18. The extension was announced 2019-5-7. MFC.PR.L will reset At 3.78600% effective June 20, 2019. I made no recommendation regarding conversion.

As it is issued by an Insurance Holding Company and is not compliant with the banks’ NVCC rules, I have added a “Deemed Maturity” entry to the call schedule, which was adjusted in December 2018 to 2030-1-31, at 25.00. MFC.PR.L is tracked by HIMIPref™ and assigned to the FixedReset – Insurance Non-NVCC subindex.