Archive for July, 2017

July 27, 2017

Thursday, July 27th, 2017
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 0.4176 % 2,419.1
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.4176 % 4,438.9
Floater 3.58 % 3.61 % 127,597 18.27 3 0.4176 % 2,558.1
OpRet 0.00 % 0.00 % 0 0.00 0 -0.4689 % 3,054.9
SplitShare 4.71 % 4.49 % 52,771 3.79 5 -0.4689 % 3,648.2
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.4689 % 2,846.4
Perpetual-Premium 5.38 % 4.68 % 64,200 5.90 21 0.0982 % 2,778.0
Perpetual-Discount 5.28 % 5.27 % 79,321 15.00 15 0.0636 % 2,924.9
FixedReset 4.32 % 4.33 % 181,584 6.38 98 -0.0981 % 2,408.7
Deemed-Retractible 5.06 % 5.38 % 119,212 6.13 30 0.0028 % 2,864.7
FloatingReset 2.53 % 2.80 % 43,243 4.27 10 0.0898 % 2,646.1
Performance Highlights
Issue Index Change Notes
MFC.PR.J FixedReset -1.37 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.84
Bid-YTW : 4.98 %
BMO.PR.Q FixedReset -1.15 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.40
Bid-YTW : 5.64 %
PVS.PR.E SplitShare -1.06 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-10-31
Maturity Price : 25.00
Evaluated at bid price : 26.17
Bid-YTW : 4.68 %
BAM.PF.F FixedReset -1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-27
Maturity Price : 23.06
Evaluated at bid price : 23.89
Bid-YTW : 4.61 %
CU.PR.G Perpetual-Discount 1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-27
Maturity Price : 21.56
Evaluated at bid price : 21.90
Bid-YTW : 5.20 %
BAM.PR.T FixedReset 1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-27
Maturity Price : 20.92
Evaluated at bid price : 20.92
Bid-YTW : 4.53 %
Volume Highlights
Issue Index Shares
Traded
Notes
TRP.PR.D FixedReset 212,450 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-27
Maturity Price : 22.29
Evaluated at bid price : 22.63
Bid-YTW : 4.33 %
CM.PR.R FixedReset 92,822 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-07-31
Maturity Price : 25.00
Evaluated at bid price : 25.08
Bid-YTW : 4.51 %
TD.PF.B FixedReset 75,289 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-27
Maturity Price : 21.64
Evaluated at bid price : 22.06
Bid-YTW : 4.30 %
TD.PF.C FixedReset 74,160 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-27
Maturity Price : 21.59
Evaluated at bid price : 22.00
Bid-YTW : 4.29 %
CM.PR.O FixedReset 65,925 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-27
Maturity Price : 22.13
Evaluated at bid price : 22.37
Bid-YTW : 4.32 %
BMO.PR.Q FixedReset 57,930 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.40
Bid-YTW : 5.64 %
There were 19 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
BAM.PF.D Perpetual-Discount Quote: 22.59 – 23.44
Spot Rate : 0.8500
Average : 0.5420

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-27
Maturity Price : 22.30
Evaluated at bid price : 22.59
Bid-YTW : 5.47 %

PVS.PR.D SplitShare Quote: 25.28 – 25.65
Spot Rate : 0.3700
Average : 0.2816

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2021-10-08
Maturity Price : 25.00
Evaluated at bid price : 25.28
Bid-YTW : 4.39 %

MFC.PR.J FixedReset Quote: 23.84 – 24.12
Spot Rate : 0.2800
Average : 0.1926

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.84
Bid-YTW : 4.98 %

BAM.PF.F FixedReset Quote: 23.89 – 24.20
Spot Rate : 0.3100
Average : 0.2265

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-27
Maturity Price : 23.06
Evaluated at bid price : 23.89
Bid-YTW : 4.61 %

MFC.PR.M FixedReset Quote: 22.41 – 22.69
Spot Rate : 0.2800
Average : 0.2038

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.41
Bid-YTW : 5.71 %

MFC.PR.H FixedReset Quote: 24.66 – 24.93
Spot Rate : 0.2700
Average : 0.2052

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.66
Bid-YTW : 4.99 %

New Issue: CPX FixedReset, 5.75%+412M575

Thursday, July 27th, 2017

Capital Power Corporation has announced:

that it will issue 5,000,000 Cumulative Minimum Rate Reset Preference Shares, Series 9 (the “Series 9 Shares”) at a price of $25.00 per Series 9 Share (the “Offering”) for aggregate gross proceeds of $125 million on a bought deal basis with a syndicate of underwriters, co-led by TD Securities Inc. and National Bank Financial Inc. In addition, Capital Power has granted the underwriters an option, exercisable in whole or in part anytime up to two business days prior to closing, to purchase up to an additional 1,000,000 Series 9 Shares on the same terms, for additional gross proceeds of up to $25 million.

The Series 9 Shares will pay fixed cumulative dividends of $1.4375 per share per annum, yielding 5.75% per annum, payable on the last business day of March, June, September and December of each year, as and when declared by the board of directors of Capital Power, for the initial period ending September 30, 2022. Assuming an issue date of August 9, 2017, the first quarterly dividend of $0.2048 per share is expected to be paid on September 29, 2017. The dividend rate will be reset on September 30, 2022 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield and 4.12%, provided that, in any event, such rate shall not be less than 5.75%. The Series 9 Shares are redeemable by Capital Power, at its option, on September 30, 2022 and on September 30 of every fifth year thereafter.

Holders of Series 9 Shares will have the right to convert all or any part of their shares into Cumulative Floating Rate Preference Shares, Series 10 (the “Series 10 Shares”), subject to certain conditions, on September 30, 2022 and every five years thereafter. Holders of Series 10 Shares will be entitled to receive a cumulative quarterly floating dividend at a rate equal to the sum of the then 90-day Government of Canada Treasury Bill yield plus 4.12%, as and when declared by the Board of Directors of Capital Power.

Net proceeds of the offering will be used to reduce indebtedness under Capital Power’s credit facilities.

Standard & Poor’s Ratings Services, a business unit of S&P Global Canada Corp., has assigned a provisional rating of P-3 for the Series 9 Shares and DBRS Limited has assigned a preliminary rating of Pfd-3 (low) for the Series 9 Shares.

The Series 9 Shares will be issued pursuant to a prospectus supplement to Capital Power’s short form base shelf prospectus dated May 3, 2016. The prospectus supplement will be filed with securities regulatory authorities in all provinces and territories in Canada. The Offering is subject to receipt of all necessary regulatory and stock exchange approvals.

They have also announced:

On July 25, 2017, the Company’s Board of Directors approved an increase of 7.1% in the annual dividend for holders of its common shares, from $1.56 per common share to $1.67 per common share. This increased common dividend will commence with the third quarter 2017 quarterly dividend payment on October 31, 2017 to shareholders of record at the close of business on September 29, 2017.

The new issue is extraordinarily expensive, according to Implied Volatility analysis:

impvol_cpx_170727
Click for Big

It’s a standard trick, but it never gets old! Set the yield of your new issue in accordance with the yield of lower-priced instruments … which will almost always have lower yields due to their lower call risk. The theoretical price of the new issue, according to this analysis, is 23.65.

July 26, 2017

Wednesday, July 26th, 2017

Some timely commentary from Pew Research:

Manufacturing jobs in the United States have declined considerably over the past several decades, even as manufacturing output – the value of goods and products manufactured in the U.S. – has grown strongly. But while most Americans are aware of the decline in employment, relatively few know about the increase in output, according to a new Pew Research Center survey.

Four of every five Americans (81%) know that the total number of manufacturing jobs in the U.S. has decreased over the past three decades, according to the survey of 4,135 adults from Pew Research Center’s nationally representative American Trends Panel. But just 35% know that the nation’s manufacturing output has risen over the same time span, versus 47% who say output has decreased and 17% who say it’s stayed about the same. Only 26% of those surveyed got both questions right.

ft_17_07_18_manufacturing_decline
Click for Big

But the news of the day was the FOMC statement:

Information received since the Federal Open Market Committee met in June indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year. Job gains have been solid, on average, since the beginning of the year, and the unemployment rate has declined. Household spending and business fixed investment have continued to expand. On a 12-month basis, overall inflation and the measure excluding food and energy prices have declined and are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.

In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1 to 1-1/4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.

For the time being, the Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee expects to begin implementing its balance sheet normalization program relatively soon, provided that the economy evolves broadly as anticipated; this program is described in the June 2017 Addendum to the Committee’s Policy Normalization Principles and Plans.

Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L. Evans; Stanley Fischer; Patrick Harker; Robert S. Kaplan; Neel Kashkari; and Jerome H. Powell.

No dissent! And in the States that means something – not like in Canada, where the very idea of two people disagreeing is considered to be too embarrassing for words.

There was an immediate reaction on the FX markets:

The Bloomberg Dollar Spot Index fell to the lowest in more than a year, while the 10-year Treasury yield slipped back below 2.3 percent after the Fed held rates steady and indicated it would start unwinding its balance sheet “relatively soon.”

fx_170726
Click for Big

… but Treasuries regained most of the ground lost yesterday:

  • •The yield on 10-year Treasuries fell five basis points to 2.29 percent.

PerpetualDiscounts now yield 5.28%, equivalent to 6.86% interest at the standard equivalency factor of 1.3x. Long corporates now yield a little under 3.95%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 295bp, a significant narrowing from the 305bp reported July 19.

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 -0.4619 % 2,409.0
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.4619 % 4,420.4
Floater 3.59 % 3.62 % 128,200 18.25 3 -0.4619 % 2,547.5
OpRet 0.00 % 0.00 % 0 0.00 0 0.2272 % 3,069.3
SplitShare 4.69 % 4.28 % 51,929 1.40 5 0.2272 % 3,665.3
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.2272 % 2,859.8
Perpetual-Premium 5.39 % 4.71 % 64,755 6.10 21 0.0718 % 2,775.2
Perpetual-Discount 5.29 % 5.28 % 80,525 14.97 15 0.2639 % 2,923.0
FixedReset 4.32 % 4.32 % 183,535 6.37 98 0.0756 % 2,411.1
Deemed-Retractible 5.06 % 5.34 % 119,627 6.13 30 0.3193 % 2,864.7
FloatingReset 2.53 % 2.77 % 43,767 4.27 10 0.2881 % 2,643.7
Performance Highlights
Issue Index Change Notes
PVS.PR.E SplitShare 1.07 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2017-08-25
Maturity Price : 26.00
Evaluated at bid price : 26.45
Bid-YTW : -6.92 %
TD.PR.T FloatingReset 1.07 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.52
Bid-YTW : 2.57 %
BAM.PF.D Perpetual-Discount 1.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-26
Maturity Price : 22.27
Evaluated at bid price : 22.55
Bid-YTW : 5.48 %
TRP.PR.E FixedReset 1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-26
Maturity Price : 22.85
Evaluated at bid price : 23.15
Bid-YTW : 4.24 %
GWO.PR.I Deemed-Retractible 1.15 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.92
Bid-YTW : 6.70 %
MFC.PR.L FixedReset 1.17 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.70
Bid-YTW : 6.06 %
BAM.PR.M Perpetual-Discount 1.21 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-26
Maturity Price : 21.46
Evaluated at bid price : 21.72
Bid-YTW : 5.51 %
IFC.PR.A FixedReset 2.27 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.28
Bid-YTW : 6.64 %
Volume Highlights
Issue Index Shares
Traded
Notes
CM.PR.R FixedReset 1,228,464 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-07-31
Maturity Price : 25.00
Evaluated at bid price : 25.10
Bid-YTW : 4.49 %
TRP.PR.D FixedReset 192,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-26
Maturity Price : 22.35
Evaluated at bid price : 22.69
Bid-YTW : 4.32 %
TD.PF.I FixedReset 151,905 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-26
Maturity Price : 23.17
Evaluated at bid price : 25.07
Bid-YTW : 4.43 %
TRP.PR.K FixedReset 134,207 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-31
Maturity Price : 25.00
Evaluated at bid price : 26.04
Bid-YTW : 4.14 %
TD.PF.D FixedReset 127,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-26
Maturity Price : 22.91
Evaluated at bid price : 23.86
Bid-YTW : 4.37 %
CU.PR.C FixedReset 122,429 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-26
Maturity Price : 21.72
Evaluated at bid price : 22.10
Bid-YTW : 4.49 %
BNS.PR.Z FixedReset 101,300 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.42
Bid-YTW : 4.81 %
There were 26 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
MFC.PR.K FixedReset Quote: 21.81 – 22.27
Spot Rate : 0.4600
Average : 0.3055

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.81
Bid-YTW : 5.99 %

EIT.PR.A SplitShare Quote: 25.76 – 26.20
Spot Rate : 0.4400
Average : 0.3104

YTW SCENARIO
Maturity Type : Soft Maturity
Maturity Date : 2024-03-14
Maturity Price : 25.00
Evaluated at bid price : 25.76
Bid-YTW : 4.39 %

VNR.PR.A FixedReset Quote: 22.55 – 22.88
Spot Rate : 0.3300
Average : 0.2393

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-26
Maturity Price : 22.00
Evaluated at bid price : 22.55
Bid-YTW : 4.82 %

TRP.PR.G FixedReset Quote: 24.70 – 25.00
Spot Rate : 0.3000
Average : 0.2130

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-11-30
Maturity Price : 25.00
Evaluated at bid price : 24.70
Bid-YTW : 4.39 %

SLF.PR.J FloatingReset Quote: 17.12 – 17.40
Spot Rate : 0.2800
Average : 0.1979

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 17.12
Bid-YTW : 7.67 %

BAM.PR.T FixedReset Quote: 20.70 – 20.98
Spot Rate : 0.2800
Average : 0.2035

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-26
Maturity Price : 20.70
Evaluated at bid price : 20.70
Bid-YTW : 4.58 %

DGS.PR.A To Get Bigger

Wednesday, July 26th, 2017

Brompton Funds has announced:

Dividend Growth Split Corp. (the “Company”) is pleased to announce it is undertaking an overnight treasury offering of class A and preferred shares.

The sales period for this overnight offering will end at 9:00 a.m. (ET) tomorrow, July 27, 2017. The offering is expected to close on or about August 3, 2017 and is subject to certain closing conditions including approval by the TSX.

The class A shares will be offered at a price of $8.00 for a distribution rate of 15.0% on the issue price, and the preferred shares will be offered at a price of $10.00 for a yield to maturity of 5.7%. The closing price on the Toronto Stock Exchange (“TSX”) for each of the class A and preferred shares on July 25, 2017 was $8.32 and $10.22, respectively. The class A and preferred share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of the Company (calculated as at July 24, 2017), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.

The Company invests in a portfolio of common shares of high quality, large capitalization companies, which have among the highest dividend growth rates of those companies included in the S&P/TSX Composite Index. Currently, the portfolio consists of common shares of the following 20 companies:

Great-West Lifeco Inc. The Bank of Nova Scotia CI Financial Corp. Shaw Communications Inc.
Industrial Alliance Insurance and Financial Services Inc. Canadian Imperial Bank of Commerce IGM Financial Inc. TELUS Corporation
Manulife Financial Corporation National Bank of Canada Power Corporation of Canada Canadian Utilities Limited
Sun Life Financial Inc. Royal Bank of Canada BCE Inc. Enbridge Inc.
Bank of Montreal The Toronto-Dominion Bank Rogers Communications Inc. TransCanada Corporation

The investment objectives for the class A shares are to provide holders with regular monthly cash distributions targeted to be $0.10 per class A share and to provide the opportunity for growth in the net asset value per class A share.

The investment objectives for the preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions, currently in the amount of $0.13125 per preferred share, and to return the original issue price to holders of preferred shares on the Company’s maturity date (November 28, 2019).

The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC and Scotiabank

The fund’s NAVPU at July 24 was 17.10, so the whole unit offering price of 18.00 is quite anti-dilutive! When the Split Share model works, it really works!

At their last offering, only four months ago they brought in $86-million, and the fund had total assets of $484-million as of June 30, so it’s getting to be quite the size!

I cannot wait, simply cannot wait, until the stock market crashes again and all those myriad holders panic.

Update, 2017-7-27: The offering was a success!

Dividend Growth Split Corp. (the “Company”) is pleased to announce a successful overnight treasury offering of class A and preferred shares. Gross proceeds of the offering are expected to be approximately $74.25 million. The offering is expected to close on or about August 3, 2017 and is subject to certain closing conditions including approval by the Toronto Stock Exchange (the “TSX”). The Company has granted the Agents (as defined below) an over-allotment option, exercisable for 30 days following the closing date of the offering, to purchase up to an additional 15% of the number of class A and preferred shares issued at the closing of the offering.

BCE.PR.A / BCE.PR.B Conversion Notice Sent

Wednesday, July 26th, 2017

BCE Inc. has released the conversion notice for BCE.PR.A and a matching notice for BCE.PR.B.

These issues constitute a Strong Pair.

The effective date of the interconversion is 2017-9-1. The deadline for instructing the company to convert shares is 2017-8-22 – but note that brokers serving the public will probably have internal deadlines a day or two in advance of this. The new dividend rate on BCE.PR.A will be published 2017-8-9.

At the last conversion opportunity in 2012 there was minimal net conversion and the shares outstanding were split almost evenly between BCE.PR.A and BCE.PR.B. The outstanding shares of BCE.PR.A have paid 3.45% since then. Prime was at 3.00% when the last conversion was effective … just 5bp higher than the current rate!

These shares are trading at very nearly the same price … alas, there isn’t much of an arbitrage possibility here!

S&P Downgrades CU and CIU

Tuesday, July 25th, 2017

Standard & Poor’s has announced:

  • •We are lowering our long-term corporate credit and senior unsecured debt ratings on Calgary, Alta.-based ATCO Ltd., and its core subsidiaries Canadian Utilities Ltd. (CU Ltd.) and CU Inc., to ‘A-‘ from ‘A’.
  • •As well, we are downgrading the company’s preferred shares to ‘BBB’ from ‘BBB+’.
  • •Because we consider CU Ltd. and CU Inc. core to ATCO under our group rating methodology, we have equalized the ratings on the subsidiaries with those on the parent.
  • •The stable outlook reflects our view that the company’s credit metrics are forecast to be within the thresholds for the ‘A-‘ rating.


The downgrade reflects credit metrics that we forecast will continue to be weak in the medium term. Historically, ATCO’s credit metrics have been quite robust with funds from operations (FFO)-to-debt in the high teens. Over the past few years, these metrics have declined as the company embarked on a significant capital program. While the large capital program is abating, we forecast continued weakness as ATCO embarks on further capital spending. Overall, we believe that management will continue to operate the company in line with its conservative corporate strategy and consistent track record. However, we continue to forecast credit metrics at the mid-to-lower end of the significant financial risk category, with FFO-to-debt of 13%-14% for both 2017 and 2018. A significant contributor to the stressed credit metrics is construction of the Edmonton to Fort McMurray transmission line, which will continue to pressure credit metrics in the medium term. In addition, a continued weak Alberta operating environment is affecting metrics. While the conversion to a capacity market may present some opportunities for the company, the ultimate impact of these changes is unknown. Accordingly, we do not believe there is a continued rationale for the one-notch uplift that we historically linked to strong credit metrics.

The stable outlook on ATCO continues to reflect S&P Global Ratings’ view of a stable and consistent cash flow from predominately regulated utilities as well as good operating performance. Although credit metrics will be weak during the outlook period with AFFO-to-debt forecast of about 13% in 2017, we believe that once the Edmonton to Fort McMurray transmission line is finished in 2019, credit metrics will improve to about 15%.

All affected instruments were downgraded from P-2(high) to P-2.

Affected instruments are:

CIU.PR.A, CIU.PR.C

CU.PR.C, CU.PR.D, CU.PR.E, CU.PR.F, CU.PR.G, CU.PR.H and CU.PR.I.

EFN Seeks to Prune Business

Tuesday, July 25th, 2017

Element Fleet Management Corp. has announced:

its intention to segment its financial reporting of core and non-core assets, optimize its capital structure and enhance governance.

Element Fleet is firmly committed to expanding its position as the leading business-services provider focused on fleet management services. Core Fleet operations currently consist of approximately 92% of Element Fleet’s assets and include our global vehicle fleet management services in more than 50 countries around the world through the Element-Arval Global Alliance. The remaining assets are non-core.

Non-core assets represent approximately 8% of Element Fleet assets and include a 49.99% interest in 19th Capital Group LLC and a 32.5% interest in ECAF I Holdings Ltd. that remained with Element Fleet as part of the separation transaction when Element Financial Corp. was reorganized into Element Fleet and ECN Capital on October 3, 2016.

The Company will review and engage in opportunities to optimize the value of its non-core assets and expects to opportunistically use the proceeds from any monetization of such assets in a manner that will best create value for shareholders, including retiring debt and/or share buybacks.

Element Fleet has achieved one of the lowest costs of financing in the fleet industry with the issuance in May 2017 of US$1.2 billion rated term notes through Chesapeake Funding II LLC. The offering marked the largest Asset Backed Security issuance to date in the fleet lease sector. By further refining Element Fleet’s business model to focus exclusively on Core Fleet operations, the Company expects to further lower its overall funding spreads and increase balance sheet efficiency.

So, it appears that there are some changes on the horizon, with an unknown effect on credit quality.

Affected issues are EFN.PR.A, EFN.PR.C, EFN.PR.E, EFN.PR.G and EFN.PR.I.

July 25, 2017

Tuesday, July 25th, 2017

The SEC says cryptocurrencies are securities (link to full report added):

The Securities and Exchange Commission issued an investigative report today cautioning market participants that offers and sales of digital assets by “virtual” organizations are subject to the requirements of the federal securities laws. Such offers and sales, conducted by organizations using distributed ledger or blockchain technology, have been referred to, among other things, as “Initial Coin Offerings” or “Token Sales.” Whether a particular investment transaction involves the offer or sale of a security – regardless of the terminology or technology used – will depend on the facts and circumstances, including the economic realities of the transaction.

The SEC’s Report of Investigation found that tokens offered and sold by a “virtual” organization known as “The DAO” were securities and therefore subject to the federal securities laws. The Report confirms that issuers of distributed ledger or blockchain technology-based securities must register offers and sales of such securities unless a valid exemption applies. Those participating in unregistered offerings also may be liable for violations of the securities laws. Additionally, securities exchanges providing for trading in these securities must register unless they are exempt. The purpose of the registration provisions of the federal securities laws is to ensure that investors are sold investments that include all the proper disclosures and are subject to regulatory scrutiny for investors’ protection.

The SEC’s Office of Investor Education and Advocacy today issued an investor bulletin educating investors about ICOs.

The Ontario government’s pension fund manager has opened for business:

Toronto-based Investment Management Corporation of Ontario (IMCO) begins managing the $60-billion on behalf of its first two clients, Workplace Safety and Insurance Board (WSIB) and the Ontario Pension Board (OPB), on Monday after a lengthy integration process. IMCO hopes to add other small public-sector plans over time by offering them access to a broader range of asset classes at lower fees.

IMCO has roots in a 2012 report on what might be gained by pooling Ontario’s fragmented public-sector pension funds. It was penned by Bill Morneau, who was then president of Morneau Shepell and a pension investment adviser to Ontario’s Minister of Finance. His review suggested that size does matter in investing, that grouping these funds together would be a more efficient investment method and that plans might collectively save more than $75-million each year.

When the initial build out of IMCO’s investment teams is completed more than a year from now, he will need to be able to make a compelling argument to potential future clients that the improved returns and lower costs will lead to better results than what they would be able to source on their own. Otherwise, there’s no incentive for a prospective client to join the voluntary IMCO group.

But the model already has a strong track record in Western Canada. Alberta Investment Management Corp., known as AIMCo, manages more than $90-billion of assets for 26 pension, endowment and government funds in its province. British Columbia Investment Management Corp., or BCIMC, is even larger, managing $135-billion for more than 30 institutional clients.

Like its Western cousins, IMCO will also look to manage more of its money in house, rather than buying investments in asset through other fund managers.

It will not have escaped the intelligent and assiduous reader that, in the context of a $60-billion portfolio, $75-million in projected fee savings is only slightly greater than the square root of fuck-all. I don’t want to issue any doom-filled forecasts here, but as I have pointed out in the past:

I don’t think there’s anything wrong with the Yale model, but there are definitely problems with the implementation – as I told one guy recently, just because I believe the “Warren Buffet style” of investment CAN work, doesn’t mean I think YOU can do it.

The field is filled with ignoramuses and charlatans and institutional boards aren’t any better at picking winners than any other retail investor who handles his investments as a part-time job. Hiring a small group of specialists to farm out the work to third party firms just makes matters worse, because then allocations are made on the basis of two salesmen talking to each other.

For an institution to outperform, I believe that you have to have most, if not all, of the investment expertise in-house. ‘You don’t need to sell anything, guys, you just have to outperform on a rolling four year basis or you’re fired.’ This is the Teachers/OMERS model – and it works.

So, I will direct readers’ attention to the assertion in today’s Globe article: he will need to be able to make a compelling argument to potential future clients that the improved returns and lower costs will lead to better results. That is to say, sales. It must be remembered that, in government as in business, the guys in charge of pension plans are not professional investors and don’t have any more expertise in investing than any other accountant with a $200,000 RRSP. So they’re susceptible to just as much stockbroker flim-flam as any other member of the gullible investing public.

So you get investment decisions being made on the basis of how well it can be explained to an uninformed client and that view becomes pervasive throughout the organization; with people’s bonuses being paid not for performance, but for Assets Under Management. In the worst case scenario, people start brown-nosing the government of the day instead of asking themselves how, exactly, do I put more actual money into my actual clients’ actual pockets:

It’s a black day for the professionalism of the Canadian investment management industry, such as it is. It looks like the OTPP’s foray into politics (sneered at on October 7) comes straight from the top:
Ontario’s proposal to create a voluntary disclosure rule to boost women on boards is unlikely to cause much improvement and will likely have to be turned into a quota, warns the head of Ontario Teachers’ Pension Plan.

Speaking at a public forum Wednesday hosted by the Ontario Securities Commission, Jim Leech said Canada has a smaller proportion of women on corporate boards than countries like Turkey and Poland. He said voluntary disclosure rules can be tried for three or four years, but will probably end up being rejected as inadequate.

“Let’s skip this intermediate step we don’t think is going to work,” Mr. Leech proposed.

Teachers has urged regulators to instead require all public company boards to have at least three women directors.

Maybe Leech is sucking political arse in hopes of a position with the proposed Ontario Pension Plan.

So, let’s hope. And particularly, let us hope that the new entity looks more like HOOPP, one of the best organizations I know of and not so much like Honest Jimmy’s Best Mutual Funds:

Never let it be said that I never say anything nice on this blog! For instance, on March 25, 2009 and again on April 17, 2012, I said nice things about the Hospitals of Ontario Pension Plan (HOOPP). And now there are more nice things to say:
The Healthcare of Ontario Pension Plan (HOOPP) has posted returns for 2012 of 17.1 per cent, which boosted the pension plan for Ontario healthcare workers to a record $47.4 billion in assets, compared to $40.3 billion at the end of 2011. This strong double-digit return increased HOOPP’s 10-year average rate of return to more than 10 per cent, one of the best long-term records among pension plans worldwide.

At the end of 2012, HOOPP was 104 per cent funded – this fully funded status means the Plan has sufficient assets to pay for every promised member’s pension benefit, with no shortfall.

“HOOPP had a very strong year in 2012 – with our best investment results in more than a decade,” says HOOPP President & CEO Jim Keohane. “This was a year when all of our investment strategies worked. We were firing on all cylinders, with positive returns from every type of investment,” he said. HOOPP’s liability driven investment (LDI) strategy continues to contribute to HOOPP’s success, Keohane added.

“Liability Driven Investment” is the cool way of saying “paying attention to your client’s needs”. HOOPP is in a good position to do this, because they have exactly one client and aren’t looking for new ones, despite idiotic initiatives from Premier Dad’s office that would encourage large plans to stock up on salesmen and get rid of those dreary nerds. That’s the real secret – a focus on return made possible by a complete absence of pressure for sales. Then you can fire the moron whose sole useful attribute is being buddies with a large client; then you can do all kinds of things. In an interview with the Star, though, president and CEO Jim Keohane emphasized scale, which is probably more diplomatic.

It was a tough day for global bonds:

Markets took a risk-on tone Tuesday as generally positive earnings and economic data bolstered confidence in the strength of the global economy. The data come as the Fed will weigh robust global growth against feeble inflation and mixed U.S. economic data. Expectations are for policy makers to keep rates on hold; clues to the fate of its balance sheet will be key.
  • •The yield on 10-year Treasuries rose seven basis points to 2.33 percent, the most in a month.
  • •Germany’s 10-year yield rose six basis points to 0.566 percent.
  • •Britain’s 10-year yield rose seven basis points to 1.258 percent, the highest in more than a week.
  • •France’s 10-year yield rose seven basis points to 0.812 percent, the first advance in more than a week.

In Canada the five-year yield popped up to 1.63% and the ten-year rose to 2.02%.

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 0.5340 % 2,420.2
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.5340 % 4,440.9
Floater 3.58 % 3.60 % 129,741 18.29 3 0.5340 % 2,559.3
OpRet 0.00 % 0.00 % 0 0.00 0 0.0078 % 3,062.3
SplitShare 4.70 % 4.39 % 52,631 3.79 5 0.0078 % 3,657.0
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0078 % 2,853.4
Perpetual-Premium 5.39 % 4.73 % 64,752 6.10 21 0.0889 % 2,773.3
Perpetual-Discount 5.30 % 5.28 % 83,527 14.99 15 0.1103 % 2,915.3
FixedReset 4.32 % 4.32 % 184,384 6.38 98 0.3488 % 2,409.3
Deemed-Retractible 5.08 % 5.46 % 118,919 6.13 30 0.0014 % 2,855.6
FloatingReset 2.54 % 2.88 % 43,653 4.27 10 0.0225 % 2,636.1
Performance Highlights
Issue Index Change Notes
BNS.PR.Y FixedReset -1.07 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.29
Bid-YTW : 4.78 %
TD.PR.T FloatingReset -1.06 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.26
Bid-YTW : 2.82 %
MFC.PR.K FixedReset 1.02 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.89
Bid-YTW : 5.93 %
VNR.PR.A FixedReset 1.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 22.06
Evaluated at bid price : 22.65
Bid-YTW : 4.80 %
MFC.PR.N FixedReset 1.13 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.34
Bid-YTW : 5.67 %
TRP.PR.H FloatingReset 1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 15.59
Evaluated at bid price : 15.59
Bid-YTW : 3.10 %
IFC.PR.A FixedReset 1.17 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.83
Bid-YTW : 7.00 %
BAM.PR.K Floater 1.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 14.48
Evaluated at bid price : 14.48
Bid-YTW : 3.59 %
SLF.PR.I FixedReset 1.28 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.70
Bid-YTW : 4.87 %
SLF.PR.G FixedReset 1.39 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 17.50
Bid-YTW : 8.12 %
BAM.PF.B FixedReset 1.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 22.62
Evaluated at bid price : 23.00
Bid-YTW : 4.55 %
PWF.PR.P FixedReset 1.42 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 17.12
Evaluated at bid price : 17.12
Bid-YTW : 4.38 %
MFC.PR.M FixedReset 1.45 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.44
Bid-YTW : 5.68 %
MFC.PR.F FixedReset 1.62 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 16.98
Bid-YTW : 8.41 %
Volume Highlights
Issue Index Shares
Traded
Notes
TD.PF.B FixedReset 355,950 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 21.64
Evaluated at bid price : 22.07
Bid-YTW : 4.30 %
TD.PR.S FixedReset 193,425 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.80
Bid-YTW : 3.38 %
NA.PR.W FixedReset 158,300 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 21.41
Evaluated at bid price : 21.75
Bid-YTW : 4.36 %
TD.PF.C FixedReset 130,850 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 21.57
Evaluated at bid price : 21.97
Bid-YTW : 4.30 %
TD.PF.H FixedReset 128,625 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-31
Maturity Price : 25.00
Evaluated at bid price : 26.19
Bid-YTW : 3.63 %
RY.PR.Z FixedReset 124,300 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 21.69
Evaluated at bid price : 22.13
Bid-YTW : 4.23 %
RY.PR.H FixedReset 123,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 21.74
Evaluated at bid price : 22.21
Bid-YTW : 4.25 %
PWF.PR.P FixedReset 116,500 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 17.12
Evaluated at bid price : 17.12
Bid-YTW : 4.38 %
There were 31 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
SLF.PR.H FixedReset Quote: 20.63 – 20.95
Spot Rate : 0.3200
Average : 0.2125

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.63
Bid-YTW : 6.20 %

TD.PR.T FloatingReset Quote: 24.26 – 24.60
Spot Rate : 0.3400
Average : 0.2396

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.26
Bid-YTW : 2.82 %

IFC.PR.C FixedReset Quote: 22.42 – 22.75
Spot Rate : 0.3300
Average : 0.2379

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.42
Bid-YTW : 5.45 %

BAM.PR.N Perpetual-Discount Quote: 21.50 – 21.84
Spot Rate : 0.3400
Average : 0.2504

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 21.50
Evaluated at bid price : 21.50
Bid-YTW : 5.59 %

MFC.PR.I FixedReset Quote: 24.17 – 24.43
Spot Rate : 0.2600
Average : 0.1719

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.17
Bid-YTW : 5.03 %

BAM.PR.M Perpetual-Discount Quote: 21.46 – 21.83
Spot Rate : 0.3700
Average : 0.2841

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-25
Maturity Price : 21.46
Evaluated at bid price : 21.46
Bid-YTW : 5.60 %

July 24, 2017

Monday, July 24th, 2017

The Tembec Empty Voting controversy, discussed on July 20, now looks like a fizzle:

Shares in Tembec Inc. rose the most since May after Rayonier Advanced Materials Inc. won support from two key shareholders for its increased bid for the Canadian lumber and paper producer.

Rayonier Advanced is now offering Tembec investors the choice of receiving C$4.75 a share in cash — valuing the company at about C$475 million ($379 million) — or 0.2542 Rayonier Advanced shares for each Tembec share.

Paul Boynton, chief executive officer of Rayonier Advanced, said in an interview Sunday that the companies have entered into an irrevocable agreement with Tembec’s two biggest shareholders, Oaktree Capital Group LLC and Restructuring Capital Associates to support the deal. The pair collectively hold about 37 percent of the target’s shares.

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 0.3963 % 2,407.3
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.3963 % 4,417.3
Floater 3.60 % 3.62 % 128,413 18.25 3 0.3963 % 2,545.7
OpRet 0.00 % 0.00 % 0 0.00 0 -0.1799 % 3,062.1
SplitShare 4.70 % 4.33 % 52,316 3.80 5 -0.1799 % 3,656.8
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.1799 % 2,853.1
Perpetual-Premium 5.39 % 4.74 % 65,793 6.10 21 0.0977 % 2,770.8
Perpetual-Discount 5.31 % 5.27 % 84,045 14.99 15 0.2211 % 2,912.1
FixedReset 4.33 % 4.35 % 185,099 6.38 98 0.1692 % 2,400.9
Deemed-Retractible 5.08 % 5.44 % 121,990 6.13 30 0.0861 % 2,855.5
FloatingReset 2.54 % 2.84 % 43,306 4.28 10 0.0315 % 2,635.5
Performance Highlights
Issue Index Change Notes
VNR.PR.A FixedReset -1.50 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 21.90
Evaluated at bid price : 22.40
Bid-YTW : 4.86 %
SLF.PR.G FixedReset -1.37 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 17.26
Bid-YTW : 8.33 %
PWF.PR.S Perpetual-Discount 1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 22.47
Evaluated at bid price : 22.80
Bid-YTW : 5.27 %
TRP.PR.E FixedReset 1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 22.54
Evaluated at bid price : 23.01
Bid-YTW : 4.26 %
BAM.PR.N Perpetual-Discount 1.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 21.50
Evaluated at bid price : 21.50
Bid-YTW : 5.59 %
TRP.PR.C FixedReset 1.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 17.06
Evaluated at bid price : 17.06
Bid-YTW : 4.31 %
TRP.PR.B FixedReset 1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 15.89
Evaluated at bid price : 15.89
Bid-YTW : 4.31 %
BAM.PF.C Perpetual-Discount 1.53 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 21.55
Evaluated at bid price : 21.86
Bid-YTW : 5.59 %
MFC.PR.K FixedReset 2.17 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.67
Bid-YTW : 6.09 %
Volume Highlights
Issue Index Shares
Traded
Notes
CM.PR.R FixedReset 516,248 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-07-31
Maturity Price : 25.00
Evaluated at bid price : 25.08
Bid-YTW : 4.50 %
NA.PR.S FixedReset 51,084 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 21.86
Evaluated at bid price : 22.39
Bid-YTW : 4.38 %
BMO.PR.C FixedReset 49,100 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-25
Maturity Price : 25.00
Evaluated at bid price : 25.72
Bid-YTW : 4.24 %
TD.PF.I FixedReset 34,405 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 23.15
Evaluated at bid price : 25.03
Bid-YTW : 4.44 %
RY.PR.R FixedReset 29,338 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-08-24
Maturity Price : 25.00
Evaluated at bid price : 26.77
Bid-YTW : 3.53 %
CM.PR.P FixedReset 27,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 21.48
Evaluated at bid price : 21.84
Bid-YTW : 4.31 %
There were 23 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
EIT.PR.A SplitShare Quote: 25.84 – 26.20
Spot Rate : 0.3600
Average : 0.2321

YTW SCENARIO
Maturity Type : Soft Maturity
Maturity Date : 2024-03-14
Maturity Price : 25.00
Evaluated at bid price : 25.84
Bid-YTW : 4.33 %

PVS.PR.E SplitShare Quote: 26.10 – 26.40
Spot Rate : 0.3000
Average : 0.1997

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-10-31
Maturity Price : 25.00
Evaluated at bid price : 26.10
Bid-YTW : 4.73 %

TRP.PR.F FloatingReset Quote: 20.12 – 20.50
Spot Rate : 0.3800
Average : 0.2940

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 20.12
Evaluated at bid price : 20.12
Bid-YTW : 3.20 %

NA.PR.S FixedReset Quote: 22.39 – 22.65
Spot Rate : 0.2600
Average : 0.1867

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 21.86
Evaluated at bid price : 22.39
Bid-YTW : 4.38 %

POW.PR.D Perpetual-Discount Quote: 23.98 – 24.29
Spot Rate : 0.3100
Average : 0.2506

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-24
Maturity Price : 23.71
Evaluated at bid price : 23.98
Bid-YTW : 5.24 %

SLF.PR.J FloatingReset Quote: 17.00 – 17.18
Spot Rate : 0.1800
Average : 0.1276

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 17.00
Bid-YTW : 7.77 %

MAPF 17H1 Semi-Annual Financials Published

Monday, July 24th, 2017

Malachite Aggressive Preferred Fund has published its:

All materials are accessable via the fund’s main web-page.