November 23, 2020

November 23rd, 2020

Pace Credit Union (last discussed June 22) is back in the news:

The Financial Services Regulators Authority of Ontario (FSRA) announced late Friday that is has taken over daily oversight of PACE for the second time in two years.

The directors who resigned over a three-day span include board chair George Cooke, a former insurance executive who was hand-picked by FSRA to help turn PACE around after two years of turmoil. Also stepping down are CEO Barbara Dirks and head of risk Terri O’Brien, both of whom joined PACE in April.

More recently, however, regulators have been investigating whether a now-defunct investment dealer started by the previous executives, Pace Securities Corp., improperly sold $46-million in risky investment products to retail investors
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. Those investments plunged in value early this year, and another regulator, the Investment Industry Regulatory Organization of Canada (IIROC), is seeking to discipline the two former executives who led Pace Securities, Joseph Thomson and Gerald McRae.

In August, law firm Paliare Roland Rosenberg Rothstein LLP was appointed to represent investors in negotiating a settlement who say they were misled. Yet even after the deadline for talks was extended, no deal has been announced.

A FSRA investigation recently concluded that the sales of the investment products had breached the act that governs credit unions, and PACE’s management agreed. But “there was not consensus on how best to address those breaches,” said Mark White, FSRA’s CEO, in a statement.

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 1.1173 % 1,796.1
FixedFloater 0.00 % 0.00 % 0 0.00 0 1.1173 % 3,295.7
Floater 4.74 % 4.81 % 37,857 15.78 3 1.1173 % 1,899.3
OpRet 0.00 % 0.00 % 0 0.00 0 0.1144 % 3,583.2
SplitShare 4.83 % 4.40 % 43,824 3.89 9 0.1144 % 4,279.2
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.1144 % 3,338.8
Perpetual-Premium 5.34 % 2.48 % 76,664 0.39 14 -0.0056 % 3,186.7
Perpetual-Discount 5.13 % 5.07 % 80,739 15.14 19 0.3246 % 3,613.6
FixedReset Disc 5.28 % 4.09 % 115,518 16.55 64 0.3016 % 2,193.7
Insurance Straight 5.06 % 4.87 % 99,358 15.13 22 0.1033 % 3,511.8
FloatingReset 1.97 % 2.44 % 46,803 1.17 3 0.1499 % 1,820.1
FixedReset Prem 5.19 % 2.86 % 214,645 0.71 15 -0.1440 % 2,668.1
FixedReset Bank Non 1.94 % 2.06 % 194,240 1.17 2 0.0402 % 2,864.8
FixedReset Ins Non 5.31 % 4.12 % 74,720 16.72 22 0.2305 % 2,291.1
Performance Highlights
Issue Index Change Notes
SLF.PR.E Insurance Straight -1.91 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 23.36
Evaluated at bid price : 23.65
Bid-YTW : 4.81 %
BIK.PR.A FixedReset Prem -1.17 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2024-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.45
Bid-YTW : 5.58 %
BNS.PR.I FixedReset Disc -1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 20.88
Evaluated at bid price : 20.88
Bid-YTW : 3.85 %
GWO.PR.R Insurance Straight 1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 24.29
Evaluated at bid price : 24.80
Bid-YTW : 4.88 %
TRP.PR.E FixedReset Disc 1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 14.26
Evaluated at bid price : 14.26
Bid-YTW : 5.33 %
SLF.PR.H FixedReset Ins Non 1.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 16.10
Evaluated at bid price : 16.10
Bid-YTW : 4.12 %
SLF.PR.G FixedReset Ins Non 1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 11.38
Evaluated at bid price : 11.38
Bid-YTW : 4.11 %
TD.PF.B FixedReset Disc 1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 18.62
Evaluated at bid price : 18.62
Bid-YTW : 3.91 %
BAM.PR.N Perpetual-Discount 1.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 22.60
Evaluated at bid price : 22.85
Bid-YTW : 5.27 %
SLF.PR.I FixedReset Ins Non 1.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 20.10
Evaluated at bid price : 20.10
Bid-YTW : 4.04 %
TRP.PR.C FixedReset Disc 1.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 9.52
Evaluated at bid price : 9.52
Bid-YTW : 5.26 %
SLF.PR.A Insurance Straight 1.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 24.59
Evaluated at bid price : 24.84
Bid-YTW : 4.84 %
TD.PF.I FixedReset Disc 1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 23.50
Evaluated at bid price : 23.84
Bid-YTW : 3.73 %
BAM.PR.B Floater 1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 9.10
Evaluated at bid price : 9.10
Bid-YTW : 4.77 %
TRP.PR.B FixedReset Disc 1.50 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 8.80
Evaluated at bid price : 8.80
Bid-YTW : 4.94 %
TD.PF.A FixedReset Disc 1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 18.71
Evaluated at bid price : 18.71
Bid-YTW : 3.87 %
BAM.PF.C Perpetual-Discount 1.53 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 22.81
Evaluated at bid price : 23.20
Bid-YTW : 5.29 %
BIP.PR.E FixedReset Disc 1.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 22.49
Evaluated at bid price : 22.95
Bid-YTW : 5.51 %
BAM.PR.M Perpetual-Discount 1.77 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 22.71
Evaluated at bid price : 23.00
Bid-YTW : 5.23 %
BAM.PR.K Floater 1.80 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 9.04
Evaluated at bid price : 9.04
Bid-YTW : 4.81 %
TRP.PR.F FloatingReset 1.82 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 10.62
Evaluated at bid price : 10.62
Bid-YTW : 4.84 %
BMO.PR.S FixedReset Disc 1.88 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 18.95
Evaluated at bid price : 18.95
Bid-YTW : 3.92 %
BIP.PR.D FixedReset Disc 2.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 23.29
Evaluated at bid price : 23.75
Bid-YTW : 5.32 %
BAM.PR.R FixedReset Disc 2.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 13.50
Evaluated at bid price : 13.50
Bid-YTW : 5.17 %
Volume Highlights
Issue Index Shares
Traded
Notes
BNS.PR.H FixedReset Prem 56,455 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-01-26
Maturity Price : 25.00
Evaluated at bid price : 25.60
Bid-YTW : 3.09 %
SLF.PR.C Insurance Straight 34,140 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 23.32
Evaluated at bid price : 23.60
Bid-YTW : 4.77 %
TD.PF.A FixedReset Disc 29,721 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 18.71
Evaluated at bid price : 18.71
Bid-YTW : 3.87 %
TRP.PR.K FixedReset Disc 29,351 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 23.65
Evaluated at bid price : 24.81
Bid-YTW : 4.89 %
TD.PF.C FixedReset Disc 21,800 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 3.90 %
NA.PR.C FixedReset Disc 21,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 23.35
Evaluated at bid price : 24.41
Bid-YTW : 3.97 %
There were 17 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
SLF.PR.E Insurance Straight Quote: 23.65 – 24.27
Spot Rate : 0.6200
Average : 0.3494

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 23.36
Evaluated at bid price : 23.65
Bid-YTW : 4.81 %

RY.PR.M FixedReset Disc Quote: 19.15 – 19.85
Spot Rate : 0.7000
Average : 0.5442

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 19.15
Evaluated at bid price : 19.15
Bid-YTW : 4.02 %

SLF.PR.I FixedReset Ins Non Quote: 20.10 – 20.56
Spot Rate : 0.4600
Average : 0.3115

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 20.10
Evaluated at bid price : 20.10
Bid-YTW : 4.04 %

IFC.PR.I Perpetual-Premium Quote: 25.72 – 26.25
Spot Rate : 0.5300
Average : 0.4023

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2029-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.72
Bid-YTW : 5.13 %

MFC.PR.H FixedReset Ins Non Quote: 22.10 – 22.41
Spot Rate : 0.3100
Average : 0.1981

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 21.67
Evaluated at bid price : 22.10
Bid-YTW : 4.06 %

BMO.PR.Y FixedReset Disc Quote: 19.75 – 20.30
Spot Rate : 0.5500
Average : 0.4388

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-23
Maturity Price : 19.75
Evaluated at bid price : 19.75
Bid-YTW : 3.98 %

DFN.PR.A To Get Bigger

November 23rd, 2020

Quadravest has announced:

Dividend 15 Split Corp. (the “Company”) is pleased to announce it will undertake an offering of Preferred Shares of the Company.

The offering will be led by National Bank Financial Inc.

The Preferred Shares will be offered at a price of $10.10 per Preferred Share to yield 5.45%.

The closing price on the TSX of the Preferred Shares on November 20, 2020 was $10.19.

Since inception of the Company, 200 consecutive dividends have been declared for the Preferred Shares. The aggregate dividends paid on the Preferred Shares have been $8.80 per share. All distributions to date have been made in tax advantage eligible Canadian dividends.

The net proceeds of the offering will be used by the Company to invest in an actively managed, high quality portfolio consisting of 15 dividend yielding Canadian companies as follows:

Bank of Montreal Enbridge Inc. TC Energy
The Bank of Nova Scotia Manulife Financial Corp. TELUS Corporation
BCE Inc. National Bank of Canada Thomson Reuters Corp.
Canadian Imperial Bank of Commerce Royal Bank of Canada The Toronto-Dominion Bank
CI Financial Corp. Sun Life Financial Inc. TransAlta Corporation

The Company’s investment objectives are:

  • Preferred Shares:
    • to provide holders of the Preferred Shares with fixed, cumulative preferential monthly cash dividends in the amount of 5.50% annually; and
    • on or about the termination date, currently December 1, 2024 (subject to further 5-year extensions thereafter and it has been extended in the past), to pay the holders of the Preferred Shares $10.00 per Preferred Share.

The sales period of this overnight offering will end at 9:00 a.m. EST on November 24, 2020. The offering is expected to close on or about November 30, 2020 and is subject to certain closing conditions including approval by the TSX.

It’s very unusual to see Split Corporation preferred shares issued without attached Capital Units. Presumably this is being done to offset ATM sales of the Capital Units.

November 20, 2020

November 20th, 2020
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 1.0919 % 1,776.2
FixedFloater 0.00 % 0.00 % 0 0.00 0 1.0919 % 3,259.3
Floater 4.79 % 4.84 % 39,026 15.73 3 1.0919 % 1,878.3
OpRet 0.00 % 0.00 % 0 0.00 0 0.0154 % 3,579.2
SplitShare 4.84 % 4.31 % 45,607 3.90 9 0.0154 % 4,274.3
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0154 % 3,335.0
Perpetual-Premium 5.34 % 2.43 % 76,782 0.39 14 0.1285 % 3,186.9
Perpetual-Discount 5.15 % 5.14 % 79,033 15.16 19 0.0894 % 3,601.9
FixedReset Disc 5.30 % 4.13 % 117,312 16.51 64 0.0998 % 2,187.1
Insurance Straight 5.07 % 4.90 % 99,942 15.14 22 0.0926 % 3,508.2
FloatingReset 1.97 % 2.08 % 47,220 1.18 3 0.0500 % 1,817.3
FixedReset Prem 5.18 % 2.65 % 219,660 0.72 15 0.0681 % 2,671.9
FixedReset Bank Non 1.94 % 2.13 % 195,140 1.18 2 -0.1205 % 2,863.6
FixedReset Ins Non 5.33 % 4.15 % 74,841 16.67 22 0.1006 % 2,285.8
Performance Highlights
Issue Index Change Notes
BAM.PR.R FixedReset Disc -2.80 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 13.20
Evaluated at bid price : 13.20
Bid-YTW : 5.33 %
SLF.PR.G FixedReset Ins Non -2.60 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 11.25
Evaluated at bid price : 11.25
Bid-YTW : 4.19 %
CM.PR.Q FixedReset Disc -1.92 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 19.42
Evaluated at bid price : 19.42
Bid-YTW : 4.18 %
TRP.PR.C FixedReset Disc -1.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 9.40
Evaluated at bid price : 9.40
Bid-YTW : 5.37 %
BMO.PR.Y FixedReset Disc -1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 19.60
Evaluated at bid price : 19.60
Bid-YTW : 4.02 %
TRP.PR.A FixedReset Disc 1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 12.63
Evaluated at bid price : 12.63
Bid-YTW : 5.35 %
BAM.PR.Z FixedReset Disc 1.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 17.60
Evaluated at bid price : 17.60
Bid-YTW : 5.19 %
TRP.PR.B FixedReset Disc 1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 8.67
Evaluated at bid price : 8.67
Bid-YTW : 5.06 %
BAM.PR.C Floater 1.47 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 9.00
Evaluated at bid price : 9.00
Bid-YTW : 4.82 %
BAM.PR.B Floater 1.70 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 8.97
Evaluated at bid price : 8.97
Bid-YTW : 4.84 %
CIU.PR.A Perpetual-Discount 1.71 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 22.93
Evaluated at bid price : 23.20
Bid-YTW : 4.96 %
TRP.PR.D FixedReset Disc 1.98 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 14.40
Evaluated at bid price : 14.40
Bid-YTW : 5.35 %
BAM.PF.B FixedReset Disc 2.47 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 16.60
Evaluated at bid price : 16.60
Bid-YTW : 5.16 %
Volume Highlights
Issue Index Shares
Traded
Notes
RY.PR.S FixedReset Disc 58,010 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 20.86
Evaluated at bid price : 20.86
Bid-YTW : 3.80 %
TRP.PR.K FixedReset Disc 49,800 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-31
Maturity Price : 25.00
Evaluated at bid price : 25.01
Bid-YTW : 4.81 %
BNS.PR.Z FixedReset Bank Non 38,300 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.95
Bid-YTW : 2.13 %
MFC.PR.Q FixedReset Ins Non 30,400 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 19.53
Evaluated at bid price : 19.53
Bid-YTW : 4.13 %
RS.PR.A SplitShare 25,861 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-12-31
Maturity Price : 10.00
Evaluated at bid price : 10.13
Bid-YTW : 4.97 %
TRP.PR.E FixedReset Disc 18,380 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 14.11
Evaluated at bid price : 14.11
Bid-YTW : 5.42 %
There were 6 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: 23.10 – 23.90
Spot Rate : 0.8000
Average : 0.4663

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 22.49
Evaluated at bid price : 23.10
Bid-YTW : 5.58 %

BAM.PR.B Floater Quote: 8.97 – 9.65
Spot Rate : 0.6800
Average : 0.4210

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 8.97
Evaluated at bid price : 8.97
Bid-YTW : 4.84 %

CM.PR.Q FixedReset Disc Quote: 19.42 – 20.08
Spot Rate : 0.6600
Average : 0.4653

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 19.42
Evaluated at bid price : 19.42
Bid-YTW : 4.18 %

BAM.PR.R FixedReset Disc Quote: 13.20 – 13.75
Spot Rate : 0.5500
Average : 0.3660

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 13.20
Evaluated at bid price : 13.20
Bid-YTW : 5.33 %

PWF.PR.E Perpetual-Discount Quote: 25.16 – 25.59
Spot Rate : 0.4300
Average : 0.2691

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-12-20
Maturity Price : 25.00
Evaluated at bid price : 25.16
Bid-YTW : 1.37 %

BAM.PF.C Perpetual-Discount Quote: 22.85 – 23.25
Spot Rate : 0.4000
Average : 0.2756

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-20
Maturity Price : 22.59
Evaluated at bid price : 22.85
Bid-YTW : 5.38 %

FTN.PR.A : Asset Coverage Skyrockets on Reorg

November 19th, 2020

Quadravest has announced:

Financial 15 Split Corp. (the “Company”) is pleased to announce a reorganization that will provide for increased asset coverage and increased dividends for its Preferred shares and anticipated monthly distributions on its Class A shares.

In connection with the extension of the termination date of the Company until December 1, 2025, the Company’s Class A shares will consolidate such that each Class A shareholder will receive 0.40 Class A shares for each Class A share held. As at November 18, 2020, the pro forma NAV per unit of the Company after giving effect to this reorganization will be $17.88 ($13.15 pre-consolidated). The payment of monthly dividends to Class A shareholders at a rate of $1.20 per year are expected post-consolidation (with NAV per unit above $15).

As at the consolidation date, the resultant increase in the net asset value per Class A share will have the impact of increasing the asset coverage ratio for the Preferred shares. Based on the NAV per unit on November 18, 2020, the asset coverage ratio would increase from 132% to 179%. In addition, as previously announced on September 23, 2020, Preferred share dividends will increase from 5.5% to 6.75% annually effective December 1, 2020.

The aggregate intrinsic value of the Class A shareholders’ holdings will remain the same and as a result, the net asset value per Class A share will increase on a proportionate basis for each post-consolidation share on the consolidation date. In the event that the share consolidation would otherwise result in the issuance of fractional shares, no fractional Class A shares will be issued and the number of Class A shares each holder shall receive will be rounded down to the nearest whole number. The consolidation will be a non-taxable event. No action is required to be taken by Class A shareholders in connection with the consolidation.

The reorganization is required in order to maintain an equal number of Class A shares and Preferred Shares outstanding at all material times. More Preferred shares were tendered for retraction than Class A shares pursuant to the special retraction right offered to shareholders in connection with the extension of the termination date of the Company. Retracting shareholders will receive a retraction price based on the November 30, 2020 net asset value per unit.

It is expected that the Class A shares will trade on a post-consolidation basis at the opening of trading on or about December 17, 2020.

The impact of the Class A share consolidation will be reflected in the reported net asset value per unit as at
December 31, 2020.

The Company invests in a high quality portfolio consisting of 15 financial services companies made up of Canadian and U.S. issuers as follows: Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Toronto-Dominion Bank, National Bank of Canada, Manulife Financial Corporation, Sun Life Financial, Great-West Lifeco, CI Financial Corp, Bank of America, Citigroup Inc., Goldman Sachs Group, JP Morgan Chase & Co. and Wells Fargo & Co.

The phrase:

the Company’s Class A shares will consolidate such that each Class A shareholder will receive 0.40 Class A shares for each Class A share held.

… is fascinating. The implication is that, at a minimum, 60% of the outstanding preferred shares were tendered for the special retraction. This is an interesting variant of the prisoners’ dilemma – it was entirely rational to tender to the special retraction due to low asset coverage and the fact that the shares were trading below par … but so many holders retracted that the remaining holders are laughing all the way to the bank, with investment-grade Asset Coverage, a dividend rate that was boosted to reduce redemptions and a market price of greater than par. Investing is a difficult game!

Assiduous Readers may be interested in reading cowboylutrell‘s comments on the issue on the September 17 post. And also read his follow-up prediction:

But instead it will be 6.75% for the first year of the new 5-year term only, and a minimum of 5.50% for years 2 to 5. And because of that, there likely won’t be enough enthusiasm from speculators to move the bid closer to $10.00 in the weeks ahead, so conservative holders likely won’t be able to sell their shares of FTN.PR.A on the market at or above $10.00 in the weeks ahead, and instead will massively surrender them for retraction.

RS.PR.A Strong on Excellent Volume

November 19th, 2020

Middlefield Group has announced:

Middlefield Group, on behalf of Real Estate & E-Commerce Split Corp. (the “Company”), is pleased to announce the Company has completed its initial public offering of 1,613,887 class A shares and 1,613,887 preferred shares for total gross proceeds of $40 million. The class A and preferred shares are listed on the Toronto Stock Exchange under the symbols RS and RS.PR.A, respectively.

The Company will invest in a diversified, actively managed portfolio of dividend-paying securities of issuers operating in the real estate or related sectors, including real estate investment trusts, that the Advisor (as defined below) believes are well-positioned to benefit from low interest rates, the rapid adoption of e-commerce, the growth of data infrastructure as well as attractive valuations in various areas of the real estate sector.

The Company’s investment objectives for the:

  • Class A shares are to provide holders with:
    • non-cumulative monthly cash distributions; and
    • the opportunity for capital appreciation through exposure to the portfolio
  • Preferred shares are to:
    • provide holders with fixed cumulative preferential quarterly cash distributions; and
    • return the original issue price of $10.00 to holders upon maturity

The initial target distribution yield for the class A shares is 8% per annum based on the original subscription price (or $0.10 per month or $1.20 per annum).

The initial target distribution yield for the preferred shares is 5.25% per annum based on the original subscription price (or $0.13125 per quarter or $0.525 per annum).

Middlefield Capital Corporation (the “Advisor”) will provide investment management advice to the Company.

The syndicate of agents was co-led by CIBC Capital Markets and RBC Capital Markets, and includes BMO Capital Markets, Scotiabank, TD Securities Inc., Canaccord Genuity Corp., National Bank Financial Inc., Industrial Alliance Securities, Manulife Securities Incorporated, Raymond James Ltd., Richardson GMP, Middlefield Capital Corporation, Echelon Wealth Partners Inc. and Mackie Research Capital Corporation.

For further information, please visit our website at www.middlefield.com or contact Nancy Tham or Michael Bury in our Sales and Marketing Department at 1.888.890.1868.

Highlights from the prospectus are:

Real Estate & E-Commerce Split Corp. (the “Company”) is a mutual fund established as a corporation under the laws of the Province of Ontario. The Company proposes to offer preferred shares (“Preferred Shares”) and class A shares (“Class A Shares”) at a price of $10.00 per Preferred Share and $15.00 per Class A Share (the “Offering”). Preferred Shares and Class A Shares are issued only on the basis that an equal number of Preferred Shares and Class A Shares will be outstanding at all material times.

The Company will invest in a diversified, actively managed portfolio (the “Portfolio”) of dividend-paying securities of issuers operating in the real estate or related sectors, including real estate investment trusts, that the Advisor (as defined below) believes are well-positioned to benefit from low interest rates, the rapid adoption of e-commerce, the growth of data infrastructure as well as attractive valuations in various areas of the real estate sector (“Real Estate & E-Commerce Issuers”). See “Investment Strategy.”

The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions and to return the original issue price of $10.00 to holders on December 31, 2025 (the “Maturity Date”), subject to extension for successive terms of up to five years as determined by the Company’s board of directors. See “Investment Objectives”. The quarterly cash distribution will be $0.13125 per Preferred Share ($0.525 per annum), representing a yield of 5.25% per annum on the issue price of $10.00 per Preferred Share until December 31, 2025. See “Distribution Policy”

The first distribution will be pro-rated to reflect the period from the Closing Date to December 31, 2020.

No distributions will be paid on the Class A Shares if (i) the distributions payable on the Preferred Shares are in arrears, or (ii) in respect of a cash distribution by the Company, the net asset value (“NAV” or “Net Asset Value”) per “Unit”, comprised of one Preferred Share and one Class A Share, would be less than $15.00 following the payment of such distributions.

The Preferred Shares have been provisionally rated Pfd-2 (low) by DBRS Limited.

The Preferred Shares will be redeemed by the Company on the Maturity Date, subject to extension for successive terms of up to five years as determined by the Board of Directors. The redemption price payable by the Company for a Preferred Share on that date will be equal to the lesser of (i) $10.00 plus any accrued and unpaid distributions thereon and (ii) the NAV of the Company on that date divided by the total number of Preferred Shares then outstanding.

Monthly: Preferred Shares may be surrendered at any time for retraction to Middlefield Capital Corporation (in such capacity, the “Registrar and Transfer Agent”), the Company’s registrar and transfer agent, but will be retracted only on the second last business day of a month (the “Retraction Date”). Preferred Shares surrendered for retraction by 5:00 p.m. (Toronto time) on or before the twentieth business day prior to the Retraction Date will be retracted on such Retraction Date and the holder will be paid on or before the last business day of the following month (the “Retraction Payment Date”).

Holders of Preferred Shares whose Preferred Shares are surrendered for retraction will be entitled to receive a retraction price per Preferred Share equal to 96% of the lesser of (i) the NAV per Unit determined as of such Retraction Date, less the cost to the Company of the purchase of a Class A Share for cancellation; and (ii) $10.00. For this purpose, the cost of the purchase of a Class A Share will include the purchase price of the Class A Share, and commission and such other costs, if any, related to the liquidation of any portion of the Portfolio to fund the purchase of the Class A Share.

On the Maturity Date and upon any subsequent maturity date as determined by the Board of Directors, a holder of Preferred Shares may retract such Preferred Shares. The Company will provide at least 60 days’ notice to holders of Preferred Shares of such right. The retraction price payable by the Company for a Preferred Share pursuant to the non-concurrent retraction right will be equal to the lesser of (i) $10.00 plus any accrued and unpaid distributions thereon and (ii) the NAV of the Company on that date divided by the total number of Preferred Shares then outstanding.

DBRS rates the shares Pfd-2(low):

DBRS Limited (DBRS Morningstar) finalized its provisional rating of Pfd-2 (low) assigned to the Preferred Shares issued by Real Estate & E-Commerce Split Corp. (the Company), managed by Middlefield Limited (the Manager). Middlefield Capital Corporation (the Investment Advisor) will provide investment advice to the Company.

The initial downside protection available to holders of the Preferred Shares is approximately 58% (after offering expenses). Downside protection available to the Preferred Shares consists of the net asset value (NAV) of the Class A Shares. The fixed distributions of dividends on the Preferred Shares will be funded from the dividends received on the securities in the Portfolio, which are expected to cover approximately 1.8 times the annual Preferred Shares distributions.

It’s very nice to see another issue qualifying for the SplitShares index! Vital statistics are:

RS.PR.A SplitShare YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-12-31
Maturity Price : 10.00
Evaluated at bid price : 10.10
Bid-YTW : 5.03 %

November 19, 2020

November 19th, 2020
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 -0.5988 % 1,757.0
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.5988 % 3,224.1
Floater 4.84 % 4.90 % 40,567 15.63 3 -0.5988 % 1,858.0
OpRet 0.00 % 0.00 % 0 0.00 0 0.3358 % 3,578.6
SplitShare 4.84 % 4.31 % 47,465 3.90 9 0.3358 % 4,273.6
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.3358 % 3,334.4
Perpetual-Premium 5.35 % 3.65 % 76,491 0.40 14 -0.0865 % 3,182.8
Perpetual-Discount 5.15 % 5.14 % 79,292 15.16 19 0.2624 % 3,598.7
FixedReset Disc 5.30 % 4.12 % 119,041 16.52 64 0.0008 % 2,184.9
Insurance Straight 5.06 % 4.89 % 103,753 15.14 22 -0.0498 % 3,505.0
FloatingReset 1.98 % 2.07 % 48,611 1.19 3 0.2339 % 1,816.4
FixedReset Prem 5.19 % 2.94 % 221,982 0.72 15 0.0288 % 2,670.1
FixedReset Bank Non 1.94 % 2.06 % 180,665 1.18 2 0.0402 % 2,867.1
FixedReset Ins Non 5.29 % 4.19 % 71,587 16.53 22 0.1659 % 2,283.5
Performance Highlights
Issue Index Change Notes
NA.PR.G FixedReset Disc -1.74 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 20.30
Evaluated at bid price : 20.30
Bid-YTW : 4.33 %
BAM.PR.B Floater -1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 8.82
Evaluated at bid price : 8.82
Bid-YTW : 4.92 %
PWF.PR.T FixedReset Disc -1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 17.27
Evaluated at bid price : 17.27
Bid-YTW : 4.48 %
BAM.PR.T FixedReset Disc -1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 13.79
Evaluated at bid price : 13.79
Bid-YTW : 5.22 %
GWO.PR.N FixedReset Ins Non 1.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 10.28
Evaluated at bid price : 10.28
Bid-YTW : 4.36 %
TRP.PR.G FixedReset Disc 1.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 15.61
Evaluated at bid price : 15.61
Bid-YTW : 5.50 %
TRP.PR.A FixedReset Disc 1.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 12.50
Evaluated at bid price : 12.50
Bid-YTW : 5.41 %
IFC.PR.A FixedReset Ins Non 1.82 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 13.45
Evaluated at bid price : 13.45
Bid-YTW : 4.41 %
IAF.PR.G FixedReset Ins Non 1.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 19.97
Evaluated at bid price : 19.97
Bid-YTW : 4.25 %
BAM.PF.D Perpetual-Discount 2.85 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 23.04
Evaluated at bid price : 23.45
Bid-YTW : 5.28 %
Volume Highlights
Issue Index Shares
Traded
Notes
BMO.PR.Y FixedReset Disc 109,944 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 19.80
Evaluated at bid price : 19.80
Bid-YTW : 3.98 %
SLF.PR.A Insurance Straight 81,591 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 24.25
Evaluated at bid price : 24.55
Bid-YTW : 4.89 %
POW.PR.D Perpetual-Discount 77,617 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 24.50
Evaluated at bid price : 24.75
Bid-YTW : 5.10 %
RS.PR.A SplitShare 64,240 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-12-31
Maturity Price : 10.00
Evaluated at bid price : 10.10
Bid-YTW : 5.03 %
TRP.PR.C FixedReset Disc 60,754 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 9.50
Evaluated at bid price : 9.50
Bid-YTW : 5.32 %
MFC.PR.I FixedReset Ins Non 55,767 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 21.14
Evaluated at bid price : 21.14
Bid-YTW : 4.11 %
There were 27 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
MFC.PR.L FixedReset Ins Non Quote: 17.01 – 18.01
Spot Rate : 1.0000
Average : 0.6492

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 17.01
Evaluated at bid price : 17.01
Bid-YTW : 4.25 %

CU.PR.G Perpetual-Discount Quote: 23.49 – 24.00
Spot Rate : 0.5100
Average : 0.3428

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 23.07
Evaluated at bid price : 23.49
Bid-YTW : 4.78 %

PVS.PR.F SplitShare Quote: 25.40 – 26.00
Spot Rate : 0.6000
Average : 0.4432

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2024-09-30
Maturity Price : 25.00
Evaluated at bid price : 25.40
Bid-YTW : 4.31 %

NA.PR.G FixedReset Disc Quote: 20.30 – 20.70
Spot Rate : 0.4000
Average : 0.2553

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 20.30
Evaluated at bid price : 20.30
Bid-YTW : 4.33 %

BAM.PF.B FixedReset Disc Quote: 16.20 – 16.70
Spot Rate : 0.5000
Average : 0.3780

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 16.20
Evaluated at bid price : 16.20
Bid-YTW : 5.29 %

TRP.PR.F FloatingReset Quote: 10.36 – 10.99
Spot Rate : 0.6300
Average : 0.5145

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-19
Maturity Price : 10.36
Evaluated at bid price : 10.36
Bid-YTW : 4.96 %

November 18, 2020

November 18th, 2020

PerpetualDiscounts now yield 5.14%, equivalent to 6.68% interest at the standard equivalency factor of 1.3x. Long corporates now yield 2.95%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has remained constant at the 375bp reported November 11.

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 0.5267 % 1,767.6
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.5267 % 3,243.5
Floater 4.81 % 4.86 % 40,738 15.69 3 0.5267 % 1,869.2
OpRet 0.00 % 0.00 % 0 0.00 0 0.2806 % 3,566.6
SplitShare 4.75 % 4.42 % 38,385 3.49 8 0.2806 % 4,259.3
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.2806 % 3,323.3
Perpetual-Premium 5.35 % 2.70 % 76,247 0.40 14 0.2097 % 3,185.5
Perpetual-Discount 5.17 % 5.14 % 78,022 15.15 19 -0.0459 % 3,589.2
FixedReset Disc 5.30 % 4.11 % 120,361 16.51 64 0.3021 % 2,184.9
Insurance Straight 5.06 % 4.90 % 101,336 15.14 22 0.0701 % 3,506.7
FloatingReset 1.98 % 2.34 % 49,037 1.19 3 -0.0334 % 1,812.2
FixedReset Prem 5.19 % 2.99 % 220,741 0.72 15 0.1154 % 2,669.4
FixedReset Bank Non 1.94 % 2.09 % 183,517 1.18 2 0.0000 % 2,865.9
FixedReset Ins Non 5.30 % 4.18 % 70,400 16.53 22 0.3599 % 2,279.7
Performance Highlights
Issue Index Change Notes
BAM.PF.D Perpetual-Discount -2.98 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 22.52
Evaluated at bid price : 22.80
Bid-YTW : 5.44 %
TRP.PR.B FixedReset Disc -1.73 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 8.50
Evaluated at bid price : 8.50
Bid-YTW : 5.16 %
BAM.PR.B Floater 1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 8.93
Evaluated at bid price : 8.93
Bid-YTW : 4.86 %
PWF.PR.T FixedReset Disc 1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 17.48
Evaluated at bid price : 17.48
Bid-YTW : 4.42 %
NA.PR.C FixedReset Disc 1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 23.28
Evaluated at bid price : 24.25
Bid-YTW : 4.02 %
BAM.PR.Z FixedReset Disc 1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 17.43
Evaluated at bid price : 17.43
Bid-YTW : 5.24 %
SLF.PR.G FixedReset Ins Non 1.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 11.50
Evaluated at bid price : 11.50
Bid-YTW : 4.09 %
IFC.PR.I Perpetual-Premium 1.10 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2029-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.72
Bid-YTW : 5.12 %
MFC.PR.N FixedReset Ins Non 1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 18.26
Evaluated at bid price : 18.26
Bid-YTW : 4.12 %
IFC.PR.C FixedReset Ins Non 1.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 18.00
Evaluated at bid price : 18.00
Bid-YTW : 4.41 %
BIP.PR.E FixedReset Disc 1.34 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 22.36
Evaluated at bid price : 22.76
Bid-YTW : 5.56 %
PWF.PR.P FixedReset Disc 1.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 11.20
Evaluated at bid price : 11.20
Bid-YTW : 4.64 %
BAM.PR.X FixedReset Disc 1.38 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 11.76
Evaluated at bid price : 11.76
Bid-YTW : 4.97 %
TRP.PR.E FixedReset Disc 1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 14.01
Evaluated at bid price : 14.01
Bid-YTW : 5.46 %
PVS.PR.F SplitShare 1.54 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2024-09-30
Maturity Price : 25.00
Evaluated at bid price : 25.75
Bid-YTW : 4.24 %
BIK.PR.A FixedReset Prem 1.57 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2024-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.80
Bid-YTW : 5.10 %
TD.PF.C FixedReset Disc 2.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 18.85
Evaluated at bid price : 18.85
Bid-YTW : 3.95 %
Volume Highlights
Issue Index Shares
Traded
Notes
TRP.PR.E FixedReset Disc 157,850 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 14.01
Evaluated at bid price : 14.01
Bid-YTW : 5.46 %
TRP.PR.C FixedReset Disc 81,865 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 9.50
Evaluated at bid price : 9.50
Bid-YTW : 5.32 %
TRP.PR.B FixedReset Disc 81,550 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 8.50
Evaluated at bid price : 8.50
Bid-YTW : 5.16 %
BMO.PR.Q FixedReset Bank Non 76,600 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.83
Bid-YTW : 2.28 %
CM.PR.R FixedReset Disc 75,290 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 23.42
Evaluated at bid price : 23.80
Bid-YTW : 4.10 %
CM.PR.O FixedReset Disc 35,310 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 17.94
Evaluated at bid price : 17.94
Bid-YTW : 4.17 %
There were 15 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
TRP.PR.F FloatingReset Quote: 10.36 – 10.99
Spot Rate : 0.6300
Average : 0.3879

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 10.36
Evaluated at bid price : 10.36
Bid-YTW : 4.96 %

BAM.PF.D Perpetual-Discount Quote: 22.80 – 23.54
Spot Rate : 0.7400
Average : 0.5172

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 22.52
Evaluated at bid price : 22.80
Bid-YTW : 5.44 %

BIP.PR.D FixedReset Disc Quote: 23.11 – 23.60
Spot Rate : 0.4900
Average : 0.2918

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 22.67
Evaluated at bid price : 23.11
Bid-YTW : 5.47 %

BAM.PF.E FixedReset Disc Quote: 15.18 – 15.95
Spot Rate : 0.7700
Average : 0.6532

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 15.18
Evaluated at bid price : 15.18
Bid-YTW : 5.28 %

CIU.PR.A Perpetual-Discount Quote: 22.90 – 23.40
Spot Rate : 0.5000
Average : 0.3882

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-18
Maturity Price : 22.66
Evaluated at bid price : 22.90
Bid-YTW : 5.03 %

BIK.PR.A FixedReset Prem Quote: 25.80 – 26.40
Spot Rate : 0.6000
Average : 0.4884

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2024-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.80
Bid-YTW : 5.10 %

November 17, 2020

November 17th, 2020
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 0.0376 % 1,758.4
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.0376 % 3,226.5
Floater 4.84 % 4.90 % 41,267 15.63 3 0.0376 % 1,859.4
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0148 % 3,556.6
SplitShare 4.77 % 4.49 % 38,858 3.48 8 -0.0148 % 4,247.4
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0148 % 3,314.0
Perpetual-Premium 5.36 % 3.63 % 77,280 0.40 14 -0.0754 % 3,178.9
Perpetual-Discount 5.17 % 5.14 % 77,607 15.15 19 0.3817 % 3,590.9
FixedReset Disc 5.32 % 4.12 % 120,942 16.51 64 0.1480 % 2,178.3
Insurance Straight 5.07 % 4.90 % 102,507 15.15 22 0.0923 % 3,504.2
FloatingReset 1.98 % 2.34 % 48,987 1.19 3 0.2511 % 1,812.8
FixedReset Prem 5.19 % 2.98 % 221,254 0.73 15 -0.0603 % 2,666.3
FixedReset Bank Non 1.94 % 2.08 % 185,971 1.19 2 0.0201 % 2,865.9
FixedReset Ins Non 5.32 % 4.19 % 70,628 16.50 22 0.7102 % 2,271.5
Performance Highlights
Issue Index Change Notes
TD.PF.C FixedReset Disc -2.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 18.45
Evaluated at bid price : 18.45
Bid-YTW : 4.04 %
BNS.PR.I FixedReset Disc -1.37 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 20.81
Evaluated at bid price : 20.81
Bid-YTW : 3.88 %
BMO.PR.Y FixedReset Disc -1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 19.67
Evaluated at bid price : 19.67
Bid-YTW : 4.01 %
IFC.PR.I Perpetual-Premium -1.05 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2029-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.44
Bid-YTW : 5.28 %
CM.PR.R FixedReset Disc 1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 23.52
Evaluated at bid price : 23.90
Bid-YTW : 4.08 %
SLF.PR.C Insurance Straight 1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 23.20
Evaluated at bid price : 23.50
Bid-YTW : 4.78 %
MFC.PR.K FixedReset Ins Non 1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 17.85
Evaluated at bid price : 17.85
Bid-YTW : 4.19 %
BAM.PR.Z FixedReset Disc 1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 17.25
Evaluated at bid price : 17.25
Bid-YTW : 5.30 %
GWO.PR.N FixedReset Ins Non 1.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 10.23
Evaluated at bid price : 10.23
Bid-YTW : 4.38 %
CM.PR.Q FixedReset Disc 1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 19.70
Evaluated at bid price : 19.70
Bid-YTW : 4.12 %
PWF.PR.T FixedReset Disc 1.47 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 17.30
Evaluated at bid price : 17.30
Bid-YTW : 4.47 %
BAM.PF.A FixedReset Disc 1.49 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 17.70
Evaluated at bid price : 17.70
Bid-YTW : 5.23 %
MFC.PR.G FixedReset Ins Non 1.51 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 20.80
Evaluated at bid price : 20.80
Bid-YTW : 4.14 %
MFC.PR.H FixedReset Ins Non 1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 21.62
Evaluated at bid price : 22.03
Bid-YTW : 4.16 %
TRP.PR.G FixedReset Disc 1.84 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 15.49
Evaluated at bid price : 15.49
Bid-YTW : 5.55 %
MFC.PR.F FixedReset Ins Non 2.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 11.43
Evaluated at bid price : 11.43
Bid-YTW : 4.17 %
BAM.PR.R FixedReset Disc 3.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 13.60
Evaluated at bid price : 13.60
Bid-YTW : 5.17 %
MFC.PR.R FixedReset Ins Non 3.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 23.88
Evaluated at bid price : 25.25
Bid-YTW : 4.26 %
BAM.PF.D Perpetual-Discount 3.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 23.09
Evaluated at bid price : 23.50
Bid-YTW : 5.27 %
CU.PR.F Perpetual-Discount 7.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 23.13
Evaluated at bid price : 23.60
Bid-YTW : 4.75 %
Volume Highlights
Issue Index Shares
Traded
Notes
BNS.PR.Z FixedReset Bank Non 156,009 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.96
Bid-YTW : 2.08 %
BMO.PR.Q FixedReset Bank Non 44,800 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.83
Bid-YTW : 2.27 %
TRP.PR.A FixedReset Disc 35,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 12.36
Evaluated at bid price : 12.36
Bid-YTW : 5.47 %
CM.PR.R FixedReset Disc 32,900 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 23.52
Evaluated at bid price : 23.90
Bid-YTW : 4.08 %
BMO.PR.C FixedReset Disc 30,050 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 24.16
Evaluated at bid price : 24.50
Bid-YTW : 3.91 %
BIP.PR.A FixedReset Disc 27,046 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 17.15
Evaluated at bid price : 17.15
Bid-YTW : 5.94 %
There were 18 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
IAF.PR.G FixedReset Ins Non Quote: 19.53 – 20.25
Spot Rate : 0.7200
Average : 0.5236

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 19.53
Evaluated at bid price : 19.53
Bid-YTW : 4.35 %

TD.PF.C FixedReset Disc Quote: 18.45 – 18.90
Spot Rate : 0.4500
Average : 0.3227

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 18.45
Evaluated at bid price : 18.45
Bid-YTW : 4.04 %

TRP.PR.J FixedReset Prem Quote: 25.32 – 25.63
Spot Rate : 0.3100
Average : 0.1928

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-31
Maturity Price : 25.00
Evaluated at bid price : 25.32
Bid-YTW : 2.70 %

PVS.PR.I SplitShare Quote: 25.20 – 25.50
Spot Rate : 0.3000
Average : 0.1839

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.20
Bid-YTW : 4.70 %

GWO.PR.N FixedReset Ins Non Quote: 10.23 – 10.73
Spot Rate : 0.5000
Average : 0.3843

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 10.23
Evaluated at bid price : 10.23
Bid-YTW : 4.38 %

GWO.PR.G Insurance Straight Quote: 25.05 – 25.39
Spot Rate : 0.3400
Average : 0.2333

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-17
Maturity Price : 24.83
Evaluated at bid price : 25.05
Bid-YTW : 5.26 %

November 16, 2020

November 16th, 2020

An article in the Globe about drone deliveries led to two source papers. The first, The sky may not be the limit – A case study in Berlin, attempts to estimate the volume of deliveries attainable:

Using the city of Berlin as an example, we consider practical questions such as how will drones be controlled, how many parcels could be delivered and, critically, what are the challenges to implementation. For example, we calculate that the usable air space above Berlin could accommodate 1,200 cargo drones at any one time, enabling the possible delivery of up to four million parcels every year.

Regarding minimum safety distances, we assume a scale factor of 10% compared to commercial air traffic rules. This means minimum horizontal distances for cargo drones would be 550 m and minimum vertical distances 30 m.

So, if drone operations are allowed on 280 days a year (excludes Sundays and 30 other non-operating days due to adverse weather conditions and public holidays), up to 4 million parcels can possibly be delivered by cargo drones in Berlin every year.

And what percentage of a Berlin’s parcel delivery needs will drones be able to cover? Around 135 million parcels were delivered in Berlin in 2018, with about 80% (110 million) weighing less than 2 kg (the assumed maximum load of a parcel drone). Thus, at maximum capacity and based on 2019 figures, drones could handle 3.6% of parcel deliveries under 2 kg.

Over half a click of horizontal safety space? I will readily admit to not being an expert on Drone Air Traffic Control, but that seems excessive. The figure is not justified in the paper, beyond the seemingly arbitrary scaling to 10% of commercial air traffic rules.

The other paper is titled Estimation of traffic density from drone-based delivery in very low level urban airspace:

When considering that the probability for traffic conflicts grows quadratically with traffic density (Hoekstra, 2001), managing airspace complexity will be one of the main challenges of unmanned traffic management concepts such as U-Space.

Each of the U-Space level consists of a set services aimed at supporting and adopting the growth of drone operations for European Union (EU) member states. However, challenges associated with integrating high densities of drone traffic to the urban airspace in a safe and efficient manner, is yet to be tackled by the regulatory and technological apparatus of U-Space.

The question remains what would be the expected volume of drone traffic for a typical urban airspace such as Paris. The study conducted by (Airbus UTM, 2018) estimated an average of 16,667 delivery drones per hour, or a traffic density of 8333 delivery drones, for Paris by 2035. The latter figure is nearly eight-fold lower than the potential scenario of traffic density delivery drones of 63,596 estimated in this study for both express parcel and food deliveries.

I am sorely tempted to imagine a regulatory regime in which the bulk of a drone’s flight is restricted to arterial roads; this will reduce noise complaints from old ladies. When the drone gets sufficiently close to its destination, then it can veer off – still using existing streets – and make its deliveries. Surely such a regime would enable the required horizontal clearance to be reduced to a mere fraction of 550m.

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 1.3349 % 1,757.7
FixedFloater 0.00 % 0.00 % 0 0.00 0 1.3349 % 3,225.3
Floater 4.84 % 4.90 % 41,737 15.62 3 1.3349 % 1,858.7
OpRet 0.00 % 0.00 % 0 0.00 0 0.2912 % 3,557.2
SplitShare 4.77 % 4.46 % 38,982 3.49 8 0.2912 % 4,248.0
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.2912 % 3,314.5
Perpetual-Premium 5.35 % 3.61 % 79,836 0.40 14 -0.0558 % 3,181.3
Perpetual-Discount 5.19 % 5.15 % 77,942 15.13 19 -0.3258 % 3,577.2
FixedReset Disc 5.33 % 4.13 % 121,566 16.52 64 0.3914 % 2,175.1
Insurance Straight 5.07 % 4.87 % 98,713 15.16 22 0.0776 % 3,501.0
FloatingReset 1.98 % 2.44 % 50,996 1.19 3 0.1173 % 1,808.2
FixedReset Prem 5.19 % 2.83 % 226,860 0.73 15 0.1313 % 2,667.9
FixedReset Bank Non 1.94 % 2.11 % 172,172 1.19 2 0.1207 % 2,865.4
FixedReset Ins Non 5.36 % 4.23 % 70,366 16.42 22 0.3291 % 2,255.5
Performance Highlights
Issue Index Change Notes
CU.PR.F Perpetual-Discount -7.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 21.65
Evaluated at bid price : 22.05
Bid-YTW : 5.10 %
MFC.PR.R FixedReset Ins Non -2.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 24.12
Evaluated at bid price : 24.50
Bid-YTW : 4.46 %
BAM.PF.D Perpetual-Discount -2.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 22.52
Evaluated at bid price : 22.80
Bid-YTW : 5.44 %
BAM.PR.R FixedReset Disc -1.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 13.20
Evaluated at bid price : 13.20
Bid-YTW : 5.32 %
BMO.PR.W FixedReset Disc -1.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 18.38
Evaluated at bid price : 18.38
Bid-YTW : 3.98 %
MFC.PR.C Insurance Straight -1.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 23.26
Evaluated at bid price : 23.56
Bid-YTW : 4.83 %
BAM.PR.T FixedReset Disc 1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 13.76
Evaluated at bid price : 13.76
Bid-YTW : 5.23 %
IAF.PR.G FixedReset Ins Non 1.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 19.34
Evaluated at bid price : 19.34
Bid-YTW : 4.39 %
BAM.PR.X FixedReset Disc 1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 11.49
Evaluated at bid price : 11.49
Bid-YTW : 5.09 %
BAM.PR.C Floater 1.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 8.85
Evaluated at bid price : 8.85
Bid-YTW : 4.90 %
BAM.PR.B Floater 1.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 8.84
Evaluated at bid price : 8.84
Bid-YTW : 4.91 %
NA.PR.W FixedReset Disc 1.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 17.30
Evaluated at bid price : 17.30
Bid-YTW : 4.29 %
MFC.PR.Q FixedReset Ins Non 1.30 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 19.55
Evaluated at bid price : 19.55
Bid-YTW : 4.21 %
CM.PR.Q FixedReset Disc 1.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 19.42
Evaluated at bid price : 19.42
Bid-YTW : 4.18 %
CU.PR.E Perpetual-Discount 1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 24.44
Evaluated at bid price : 24.70
Bid-YTW : 4.96 %
TRP.PR.D FixedReset Disc 1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 14.00
Evaluated at bid price : 14.00
Bid-YTW : 5.51 %
TD.PF.E FixedReset Disc 1.47 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 20.70
Evaluated at bid price : 20.70
Bid-YTW : 4.03 %
TRP.PR.E FixedReset Disc 1.48 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 13.75
Evaluated at bid price : 13.75
Bid-YTW : 5.56 %
BAM.PR.K Floater 1.49 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 8.88
Evaluated at bid price : 8.88
Bid-YTW : 4.89 %
PWF.PR.P FixedReset Disc 1.85 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 11.00
Evaluated at bid price : 11.00
Bid-YTW : 4.72 %
BAM.PF.G FixedReset Disc 1.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 15.85
Evaluated at bid price : 15.85
Bid-YTW : 5.26 %
TRP.PR.A FixedReset Disc 2.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 12.27
Evaluated at bid price : 12.27
Bid-YTW : 5.51 %
TRP.PR.C FixedReset Disc 2.82 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 9.47
Evaluated at bid price : 9.47
Bid-YTW : 5.33 %
SLF.PR.G FixedReset Ins Non 3.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 11.45
Evaluated at bid price : 11.45
Bid-YTW : 4.11 %
BAM.PF.E FixedReset Disc 3.34 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 15.15
Evaluated at bid price : 15.15
Bid-YTW : 5.29 %
RY.PR.Z FixedReset Disc 3.60 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 18.70
Evaluated at bid price : 18.70
Bid-YTW : 3.82 %
Volume Highlights
Issue Index Shares
Traded
Notes
TD.PF.H FixedReset Prem 104,700 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.43
Bid-YTW : 3.25 %
TRP.PR.A FixedReset Disc 93,400 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 12.27
Evaluated at bid price : 12.27
Bid-YTW : 5.51 %
MFC.PR.B Insurance Straight 60,288 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 23.96
Evaluated at bid price : 24.21
Bid-YTW : 4.86 %
IFC.PR.I Perpetual-Premium 49,210 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2029-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.71
Bid-YTW : 5.12 %
TRP.PR.E FixedReset Disc 47,242 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 13.75
Evaluated at bid price : 13.75
Bid-YTW : 5.56 %
MFC.PR.M FixedReset Ins Non 45,050 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 18.42
Evaluated at bid price : 18.42
Bid-YTW : 4.18 %
There were 22 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
CU.PR.F Perpetual-Discount Quote: 22.05 – 23.82
Spot Rate : 1.7700
Average : 0.9659

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 21.65
Evaluated at bid price : 22.05
Bid-YTW : 5.10 %

PWF.PR.T FixedReset Disc Quote: 17.05 – 17.98
Spot Rate : 0.9300
Average : 0.5882

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 17.05
Evaluated at bid price : 17.05
Bid-YTW : 4.53 %

MFC.PR.R FixedReset Ins Non Quote: 24.50 – 25.24
Spot Rate : 0.7400
Average : 0.5023

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 24.12
Evaluated at bid price : 24.50
Bid-YTW : 4.46 %

BAM.PF.E FixedReset Disc Quote: 15.15 – 15.95
Spot Rate : 0.8000
Average : 0.6075

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 15.15
Evaluated at bid price : 15.15
Bid-YTW : 5.29 %

BAM.PF.D Perpetual-Discount Quote: 22.80 – 23.50
Spot Rate : 0.7000
Average : 0.5392

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 22.52
Evaluated at bid price : 22.80
Bid-YTW : 5.44 %

BMO.PR.W FixedReset Disc Quote: 18.38 – 18.82
Spot Rate : 0.4400
Average : 0.3000

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-11-16
Maturity Price : 18.38
Evaluated at bid price : 18.38
Bid-YTW : 3.98 %

November PrefLetter Released!

November 16th, 2020

The November, 2020, edition of PrefLetter has been released and is now available for purchase as the “Previous edition”. Those who subscribe for a full year receive the “Previous edition” as a bonus.

I apologize for the lateness of this issue – my typesetter was caught up in the southern Ontario power outages and was shut down at a crucial time.

PrefLetter may now be purchased by all Canadian residents.

Until further notice, the “Previous Edition” will refer to the November, 2020, issue, while the “Next Edition” will be the December, 2020, issue, scheduled to be prepared as of the close December 11, 2020, and eMailed to subscribers prior to market-opening on December 14.

PrefLetter is intended for long term investors seeking issues to buy-and-hold. At least one recommendation from each of the major preferred share sectors is included and discussed.

Note: My verbosity has grown by such leaps and bounds that it is no longer possible to deliver PrefLetter as an eMail attachment – it’s just too big for my software! Instead, I have sent passwords – click on the link in your eMail and your copy will download.

Note: There have been problems lately with corporate eMail protection systems that substitute “safe” links for the links sent in the eMails; the problem being that the “safe” links do not work and an error is generated by my software. To avoid possible problems and delays, please subscribe through an eMail account that is not “protected” by such software.

Note: The PrefLetter website has a Subscriber Download Feature. If you have not received your copy, try it!

Note: PrefLetter eMails sometimes runs afoul of spam filters. If you have not received your copy within fifteen minutes of a release notice such as this one, please double check your (company’s) spam filtering policy and your spam repository – there are some hints in the post Sympatico Spam Filters out of Control. If it’s not there, contact me and I’ll get you your copy … somehow!

Note: There have been scattered complaints regarding inability to open PrefLetter in Acrobat Reader, despite my practice of including myself on the subscription list and immediately checking the copy received. I have had the occasional difficulty reading US Government documents, which I was able to resolve by downloading and installing the latest version of Adobe Reader. Also, note that so far, all complaints have been from users of Yahoo Mail. Try saving it to disk first, before attempting to open it.

Note: There have been other scattered complaints that double-clicking on the links in the “PrefLetter Download” email results in a message that the password has already been used. I have been able to reproduce this problem in my own eMail software … the problem is double-clicking. What happens is the first click opens the link and the second click finds that the password has already been used and refuses to work properly. So the moral of the story is: Don’t be a dick! Single Click!

Note: Assiduous Reader DG informs me:

In case you have any other Apple users: you need to install a free App from the apple store called “FileApp”. It comes with it’s own tutorial and allows you to download and save a PDF file.

However, Assiduous Reader Adrian informs me in the comments to the January 2015 release:

Some nitpicking for DG:
FileApp costs $1.19 in the Apple Store.

But Adrian2 now advises:

Well, as of now, FileApp is free (again?).