June 21, 2017

June 21st, 2017

Change and confusion all ’round! Last Friday, Quebec was upgraded. Today Saskatchewan is downgraded:

  • •Weaker commodity prices and elevated capital spending are negatively affecting the Province of Saskatchewan’s budgetary performance and debt burden.
  • •As a result, we are lowering our long-term issuer credit and senior unsecured debt ratings on Saskatchewan to ‘AA’ from ‘AA+’ and affirming our ‘A-1+’ global scale and ‘A-1(High)’ Canada scale short-term ratings.
  • •The stable outlook reflects our expectation that, in the next two years, as Saskatchewan realizes positive results from its revenue measures and cost efficiencies, its budgetary performance will continue to stabilize, leading to near-balanced operating balances and declining after-capital deficits of less than 10% of total revenues


The downgrade reflects the province’s weakened budget performance and growing debt burden, which are symptoms of low commodity prices in two of
Saskatchewan’s key economic sectors: oil and gas, and potash. Low commodity prices have prompted the province to implement tax reforms and cost control targets, which are expected to support an improvement in budget outcomes. However, despite these efforts, Saskatchewan’s budget trajectory is now weaker than it was last year, due to slower economic growth and higher near-term capital spending intentions under its Saskatchewan Builds Capital Program. We now expect Saskatchewan’s after-capital balances to remain negative over the next two years. We also expect new borrowing requirements tied to SaskBuilds and government-related entities (GREs) to cause its tax-supported debt burden to approach 150% of consolidated operating revenues, which is high compared with similarly rated international peers’.

We expect Saskatchewan will record, on average, a modest operating deficit of about 2% of operating revenues and an after-capital deficit of 10% of total revenues for fiscal years 2016-2020. We expect that new revenue measures, such as eliminating certain exemptions and increasing the provincial sales tax, will help to mitigate the negative influence of weak commodity prices, leading to a steady improvement in budget outcomes over the next two years. Saskatchewan is forecasting operating revenue growth of 3.7% per year, on average, between fiscal years 2018 and 2020. On the expense side, considering continued spending control and a projected return to more moderate levels of capital spending in the outer years of our forecast, we expect that the province’s after-capital budgetary performance will moderately improve. Saskatchewan is projecting an operating expenditure decline of 1.2% in fiscal 2018, followed by expenditure growth of 1.2% per year, on average, between fiscal years 2019 and 2020.

PerpetualDiscounts now yield 5.08%, equivalent to 6.60% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 3.60% (maybe a little over) and so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 300bp, a widening from the 290bp reported June 14.

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 -0.5230 % 2,126.2
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.5230 % 3,901.4
Floater 3.73 % 3.72 % 78,544 18.04 3 -0.5230 % 2,248.4
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0941 % 3,054.6
SplitShare 4.71 % 4.36 % 64,023 3.89 5 -0.0941 % 3,647.9
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0941 % 2,846.2
Perpetual-Premium 5.30 % 4.57 % 69,574 3.44 25 -0.1256 % 2,786.9
Perpetual-Discount 5.11 % 5.08 % 87,674 15.25 12 -0.0913 % 3,003.4
FixedReset 4.42 % 4.11 % 201,246 6.52 96 0.1528 % 2,353.8
Deemed-Retractible 4.99 % 5.10 % 123,308 6.23 30 -0.0463 % 2,899.8
FloatingReset 2.47 % 3.06 % 52,068 4.36 10 -0.2218 % 2,551.5
Performance Highlights
Issue Index Change Notes
BAM.PF.H FixedReset -1.25 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-12-31
Maturity Price : 25.00
Evaluated at bid price : 26.08
Bid-YTW : 3.67 %
MFC.PR.G FixedReset 1.01 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.98
Bid-YTW : 4.62 %
SLF.PR.H FixedReset 1.09 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.45
Bid-YTW : 6.83 %
SLF.PR.G FixedReset 1.28 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 16.61
Bid-YTW : 8.53 %
IFC.PR.A FixedReset 1.92 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.07
Bid-YTW : 7.93 %
Volume Highlights
Issue Index Shares
Traded
Notes
CM.PR.R FixedReset 306,648 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-21
Maturity Price : 23.17
Evaluated at bid price : 25.04
Bid-YTW : 4.41 %
NA.PR.C FixedReset 174,865 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-21
Maturity Price : 23.12
Evaluated at bid price : 24.94
Bid-YTW : 4.47 %
IFC.PR.E Deemed-Retractible 87,400 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.02
Bid-YTW : 5.28 %
BAM.PR.T FixedReset 69,500 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-21
Maturity Price : 19.67
Evaluated at bid price : 19.67
Bid-YTW : 4.42 %
RY.PR.A Deemed-Retractible 66,404 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2017-07-21
Maturity Price : 25.00
Evaluated at bid price : 25.22
Bid-YTW : -2.08 %
BMO.PR.W FixedReset 64,800 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-21
Maturity Price : 21.24
Evaluated at bid price : 21.24
Bid-YTW : 4.07 %
There were 44 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
PWF.PR.R Perpetual-Premium Quote: 25.57 – 25.75
Spot Rate : 0.1800
Average : 0.1176

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-04-30
Maturity Price : 25.25
Evaluated at bid price : 25.57
Bid-YTW : 5.29 %

BAM.PF.I FixedReset Quote: 25.90 – 26.14
Spot Rate : 0.2400
Average : 0.1808

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.90
Bid-YTW : 3.96 %

MFC.PR.L FixedReset Quote: 20.55 – 20.77
Spot Rate : 0.2200
Average : 0.1667

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.55
Bid-YTW : 6.51 %

PVS.PR.E SplitShare Quote: 26.06 – 26.50
Spot Rate : 0.4400
Average : 0.3885

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-10-31
Maturity Price : 25.00
Evaluated at bid price : 26.06
Bid-YTW : 4.67 %

BMO.PR.R FloatingReset Quote: 24.05 – 24.20
Spot Rate : 0.1500
Average : 0.0988

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.05
Bid-YTW : 3.02 %

NA.PR.Q FixedReset Quote: 24.85 – 25.00
Spot Rate : 0.1500
Average : 0.1014

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.85
Bid-YTW : 3.85 %

June 20, 2017

June 21st, 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 -0.2608 % 2,137.4
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.2608 % 3,922.0
Floater 3.71 % 3.71 % 78,507 18.06 3 -0.2608 % 2,260.2
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0157 % 3,057.5
SplitShare 4.71 % 4.15 % 64,920 1.50 5 -0.0157 % 3,651.3
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0157 % 2,848.9
Perpetual-Premium 5.29 % 4.47 % 69,890 3.40 25 -0.0734 % 2,790.4
Perpetual-Discount 5.10 % 5.08 % 87,104 15.26 12 -0.2193 % 3,006.1
FixedReset 4.42 % 4.12 % 200,641 6.51 96 0.0122 % 2,350.2
Deemed-Retractible 4.99 % 5.10 % 120,675 6.23 30 -0.0695 % 2,901.2
FloatingReset 2.47 % 3.00 % 53,913 4.36 10 0.0370 % 2,557.2
Performance Highlights
Issue Index Change Notes
SLF.PR.H FixedReset -1.54 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.24
Bid-YTW : 7.00 %
VNR.PR.A FixedReset 1.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-20
Maturity Price : 21.25
Evaluated at bid price : 21.25
Bid-YTW : 4.75 %
EML.PR.A FixedReset 1.15 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-17
Maturity Price : 25.00
Evaluated at bid price : 26.35
Bid-YTW : 4.11 %
CU.PR.C FixedReset 1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-20
Maturity Price : 21.61
Evaluated at bid price : 21.61
Bid-YTW : 4.14 %
GWO.PR.N FixedReset 1.72 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 16.54
Bid-YTW : 8.42 %
Volume Highlights
Issue Index Shares
Traded
Notes
PWF.PR.Z Perpetual-Premium 411,177 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-20
Maturity Price : 24.60
Evaluated at bid price : 24.99
Bid-YTW : 5.19 %
NA.PR.C FixedReset 307,155 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-20
Maturity Price : 23.12
Evaluated at bid price : 24.94
Bid-YTW : 4.47 %
CM.PR.R FixedReset 199,977 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-20
Maturity Price : 23.17
Evaluated at bid price : 25.05
Bid-YTW : 4.40 %
BMO.PR.C FixedReset 136,661 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-25
Maturity Price : 25.00
Evaluated at bid price : 25.55
Bid-YTW : 4.31 %
BNS.PR.H FixedReset 95,268 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-01-26
Maturity Price : 25.00
Evaluated at bid price : 26.33
Bid-YTW : 3.77 %
RY.PR.Q FixedReset 77,968 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-24
Maturity Price : 25.00
Evaluated at bid price : 26.94
Bid-YTW : 3.49 %
There were 45 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
PVS.PR.E SplitShare Quote: 26.11 – 26.65
Spot Rate : 0.5400
Average : 0.3321

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2017-07-20
Maturity Price : 26.00
Evaluated at bid price : 26.11
Bid-YTW : 2.43 %

SLF.PR.H FixedReset Quote: 19.24 – 19.79
Spot Rate : 0.5500
Average : 0.3467

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.24
Bid-YTW : 7.00 %

MFC.PR.G FixedReset Quote: 23.74 – 24.17
Spot Rate : 0.4300
Average : 0.2494

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.74
Bid-YTW : 4.77 %

HSE.PR.G FixedReset Quote: 24.17 – 24.49
Spot Rate : 0.3200
Average : 0.1905

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-20
Maturity Price : 23.05
Evaluated at bid price : 24.17
Bid-YTW : 4.77 %

CU.PR.F Perpetual-Discount Quote: 22.50 – 22.83
Spot Rate : 0.3300
Average : 0.2192

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-20
Maturity Price : 22.22
Evaluated at bid price : 22.50
Bid-YTW : 5.03 %

TD.PF.G FixedReset Quote: 26.82 – 27.10
Spot Rate : 0.2800
Average : 0.1746

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-30
Maturity Price : 25.00
Evaluated at bid price : 26.82
Bid-YTW : 3.69 %

New Issue: BMO FixedReset, 4.40%+317, NVCC

June 21st, 2017

Bank of Montreal has announced:

a domestic public offering of $400 million of Non-Cumulative 5-Year Rate Reset Class B Preferred Shares Series 42 (Non-Viability Contingent Capital (NVCC)) (the “Preferred Shares Series 42”). The offering will be underwritten on a bought-deal basis by a syndicate of underwriters led by BMO Capital Markets.

The Preferred Shares Series 42 will be issued to the public at a price of $25.00 per share. Holders will be entitled to receive non-cumulative preferential fixed quarterly dividends for the initial period to August 25, 2022, as and when declared by the Board of Directors of the Bank, payable in the amount of $0.275 per share, to yield 4.40 per cent annually.

Subject to regulatory approval, on August 25, 2022 and on August 25 of every fifth year thereafter, the Bank may redeem the Preferred Shares Series 42 in whole or in part at par. On August 25, 2022, the dividend rate will reset and will reset thereafter every five years to be equal to the 5-Year Government of Canada Bond Yield plus 3.17 per cent. Subject to certain conditions, holders may elect to convert any or all of their Preferred Shares Series 42 into an equal number of Non-Cumulative Floating Rate Class B Preferred Shares Series 43 (Non-Viability Contingent Capital (NVCC)) (“Preferred Shares Series 43”) on August 25, 2022, and on August 25 of every fifth year thereafter. Holders of the Preferred Shares Series 43 will be entitled to receive non-cumulative preferential floating rate quarterly dividends, as and when declared by the Board of Directors of the Bank, equal to the then 3-month Government of Canada Treasury Bill Yield plus 3.17 per cent. Subject to certain conditions, holders may elect to convert any or all of their Preferred Shares Series 43 into an equal number of Preferred Shares Series 42 on August 25, 2027, and on August 25 of every fifth year thereafter.

The anticipated closing date is June 29, 2017. The net proceeds from the offering will be used by the Bank for general banking purposes.

This isn’t a badly priced new issue, as new issues go, but can’t be called cheap – at least, not according to Implied Volatility for FixedResets analysis:

impvol_bmo_170620
Click for Big

According to this, the fair bid price for the new issue, given the closing bids of BMO’s other NVCC-compliant issues, is 24.84.

CF.PR.C : No Conversion to FloatingReset

June 20th, 2017

Canaccord Genuity Group Inc. has announced:

that after having taken into account all election notices received by the June 15, 2017 conversion deadline in respect of the Cumulative 5-Year Rate Reset First Preferred Shares, Series C (the “Series C Preferred Shares”) tendered for conversion into Cumulative Floating Rate First Preferred Shares, Series D (the “Series D Preferred Shares”), the holders of the Series C Preferred Shares are not entitled to convert their shares. There were 136,467 Series C Preferred Shares tendered for conversion, which is less than the 1,000,000 shares required for the ability to proceed with the conversion into Series D Preferred Shares, in accordance with the terms of the Series C Preferred Shares.

As outlined in a press release on June 1, 2017, holders of Series C Preferred Shares will be entitled to receive quarterly fixed, cumulative, preferential cash dividends, if, as and when declared by the Board of Directors of the Company, subject to the provisions of the Business Corporations Act (British Columbia). The dividend rate for the five-year period commencing on July 1, 2017 and ending on and including June 30, 2022 will be 4.993% per annum, being equal to the sum of the five year Government of Canada bond yield determined as of June 1, plus 4.03%, in accordance with the terms of the Series C Preferred Shares. This new dividend rate is expected to deliver approximately $750,000 in annual savings for common shareholders.

There are currently 4,000,000 Series C Preferred Shares listed on the Toronto Stock Exchange under the symbol CF.PR.C.

Assiduous Readers will recall that CF.PR.C will reset at 4.993% and should now be referred to as a FixedReset, 4.993%+403. I recommended against conversion.

The issue commenced trading 2012-4-10 after being announced 2012-3-22. It has been relegated to the Scraps subindex since inception on credit concerns.

TA.PR.F : No Conversion to FloatingReset

June 20th, 2017

TransAlta Corporation has announced:

that after having taken into account all election notices received by the June 15, 2017 deadline for the conversion of the Cumulative Redeemable Rate Reset Preferred Shares, Series C (the “Series C Shares”) into Cumulative Redeemable Floating Rate Preferred Shares, Series D (the “Series D Shares”), there were 827,628 Series C Shares tendered for conversion, which is less than the one million shares required to give effect to conversions into Series D Shares. As a result, none of the Series C Shares will be converted into Series D Shares on June 30, 2017.

Assiduous Readers will recall that TA.PR.F will reset at 4.027% and should now be referred to as a FixedReset, 4.027%+310. I recommended against conversion.

The issue commenced trading 2011-11-30 after being announced 2011-11-22. It has been relegated to the Scraps subindex since inception on credit concerns.

BAM.PR.X : No Conversion to FloatingReset

June 20th, 2017

Brookfield Asset Management Inc. has announced:

that after having taken into account all election notices received by the June 15, 2017 deadline for the conversion of the Cumulative Class A Preference Shares, Series 28 (the “Series 28 Shares”) (TSX: BAM.PR.X) into Cumulative Class A Preference Shares, Series 29 (the “Series 29 Shares”), the holders of Series 28 Shares are not entitled to convert their Series 28 Shares into Series 29 Shares. There were 398,894 Series 28 Shares tendered for conversion, which is less than the one million shares required to give effect to conversions into Series 29 Shares.

Assiduous Readers will recall that BAM.PR.X will reset at 2.727% and should now be referred to as a FixedReset, 2.727%+180. I recommended against conversion.

The issue commenced trading 2011-2-8 after being announced 2011-1-19. It has been a member of the FixedReset subindex since inception.

June 19, 2017

June 19th, 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 -1.2110 % 2,142.9
FixedFloater 0.00 % 0.00 % 0 0.00 0 -1.2110 % 3,932.2
Floater 3.70 % 3.69 % 76,942 18.09 3 -1.2110 % 2,266.1
OpRet 0.00 % 0.00 % 0 0.00 0 0.0942 % 3,058.0
SplitShare 4.71 % 4.30 % 65,783 1.50 5 0.0942 % 3,651.9
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0942 % 2,849.3
Perpetual-Premium 5.28 % 4.45 % 70,042 3.40 25 -0.0687 % 2,792.4
Perpetual-Discount 5.09 % 5.07 % 87,935 15.28 12 0.0566 % 3,012.7
FixedReset 4.42 % 4.13 % 199,099 6.52 96 -0.0698 % 2,349.9
Deemed-Retractible 4.98 % 5.00 % 116,173 6.23 30 0.0300 % 2,903.2
FloatingReset 2.47 % 2.99 % 53,144 4.36 10 -0.0277 % 2,556.3
Performance Highlights
Issue Index Change Notes
IFC.PR.A FixedReset -1.83 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 17.73
Bid-YTW : 8.22 %
BAM.PR.B Floater -1.69 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-19
Maturity Price : 12.78
Evaluated at bid price : 12.78
Bid-YTW : 3.69 %
EML.PR.A FixedReset -1.51 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-17
Maturity Price : 25.00
Evaluated at bid price : 26.05
Bid-YTW : 4.44 %
TRP.PR.B FixedReset -1.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-19
Maturity Price : 14.54
Evaluated at bid price : 14.54
Bid-YTW : 4.12 %
BAM.PR.K Floater -1.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-19
Maturity Price : 12.76
Evaluated at bid price : 12.76
Bid-YTW : 3.70 %
HSE.PR.A FixedReset 1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-19
Maturity Price : 15.97
Evaluated at bid price : 15.97
Bid-YTW : 4.37 %
BAM.PR.X FixedReset 1.59 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-19
Maturity Price : 16.59
Evaluated at bid price : 16.59
Bid-YTW : 4.47 %
Volume Highlights
Issue Index Shares
Traded
Notes
CM.PR.R FixedReset 414,455 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-19
Maturity Price : 23.17
Evaluated at bid price : 25.05
Bid-YTW : 4.40 %
BMO.PR.C FixedReset 229,960 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-25
Maturity Price : 25.00
Evaluated at bid price : 25.59
Bid-YTW : 4.27 %
NA.PR.C FixedReset 206,235 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-19
Maturity Price : 23.11
Evaluated at bid price : 24.92
Bid-YTW : 4.47 %
PWF.PR.Z Perpetual-Premium 183,990 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-19
Maturity Price : 24.64
Evaluated at bid price : 25.04
Bid-YTW : 5.17 %
CU.PR.C FixedReset 144,023 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-19
Maturity Price : 21.35
Evaluated at bid price : 21.35
Bid-YTW : 4.19 %
RY.PR.R FixedReset 105,100 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-08-24
Maturity Price : 25.00
Evaluated at bid price : 27.01
Bid-YTW : 3.54 %
There were 33 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
EML.PR.A FixedReset Quote: 26.05 – 26.45
Spot Rate : 0.4000
Average : 0.2353

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-17
Maturity Price : 25.00
Evaluated at bid price : 26.05
Bid-YTW : 4.44 %

PWF.PR.P FixedReset Quote: 16.33 – 16.58
Spot Rate : 0.2500
Average : 0.1729

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-19
Maturity Price : 16.33
Evaluated at bid price : 16.33
Bid-YTW : 4.13 %

BNS.PR.Z FixedReset Quote: 22.17 – 22.39
Spot Rate : 0.2200
Average : 0.1467

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.17
Bid-YTW : 5.01 %

CU.PR.E Perpetual-Discount Quote: 24.36 – 24.58
Spot Rate : 0.2200
Average : 0.1499

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-19
Maturity Price : 24.07
Evaluated at bid price : 24.36
Bid-YTW : 5.06 %

EIT.PR.A SplitShare Quote: 25.77 – 26.00
Spot Rate : 0.2300
Average : 0.1615

YTW SCENARIO
Maturity Type : Soft Maturity
Maturity Date : 2024-03-14
Maturity Price : 25.00
Evaluated at bid price : 25.77
Bid-YTW : 4.30 %

TD.PF.F Perpetual-Premium Quote: 25.71 – 25.94
Spot Rate : 0.2300
Average : 0.1656

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2024-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.71
Bid-YTW : 4.58 %

June 16, 2017

June 16th, 2017

It was quite a day today … I saw a flying pig, a cat with horns, and S&P upgrading Quebec:

  • •We expect the Province of Quebec to extend its record of prudent fiscal policies, with strict cost controls and growing tax revenues keeping its budget in surplus and causing its debt ratios to further shrink over the next couple of years.
  • •As a result, we are raising our long-term issuer credit and senior unsecured debt ratings on Quebec to ‘AA-‘ from ‘A+’, and affirming our short-term issuer credit rating at ‘A-1+’.
  • •The stable outlook reflects our expectation that, in the next two years, Quebec will generate modest after-capital surpluses and reduce its tax-supported debt ratio.


We expect Quebec to continue benefiting from moderate economic momentum and strict cost controls, enabling it to achieve operating and after-capital surpluses of 8.7% and 1.2%, respectively, from fiscal years 2016-2020. This outlook is better than we foresaw last year, despite the government’s recent decision to hasten the elimination of the health premium tax and boost its program and infrastructure spending before the October 2018 election. While the government’s fiscal framework could change post-election, regardless of the party elected, our base-case assumption is for general continuity in fiscal policies, given the high visibility in undoing some of the fiscal checks, such as the requirement for balanced budgets and the Generations Fund that are enshrined in legislation. The province also has contingencies available within its 2017 budget, should its economic picture moderate or other spending priorities arise.

Positive operating results are allowing Quebec to deposit more than C$2 billion yearly into its Generations Fund, which we treat analytically as a sinking fund. We expect the balance in this fund to reach C$15.9 billion by fiscal 2019, up significantly from C$8.5 billion in fiscal 2016. This, alongside increasing revenues, will lower Quebec’s tax-supported debt to 211% of consolidated operating revenues by fiscal 2019. This is a major reduction from its peak of 235% in fiscal 2015. Nevertheless, even at the lower level, Quebec’s debt burden would remain high by domestic and international standards and, if it doesn’t materially decline below this projected level, would likely remain a barrier to further upgrades. We also anticipate the province’s interest expense to decrease slowly, averaging 9.3% of adjusted operating revenues from fiscal years 2017-2019.

Andrew Willis of the Globe had some very good commentary on the Home Capital settlement:

Part of the solution, announced Wednesday, is a regulatory settlement that sees Home Capital absolve the OSC of any blame for the whole mess. In a news release, Home Capital chair Brenda Eprile said the company “acknowledges that the Commission is not to blame for the events of recent months involving its liquidity position.”

I’m guessing Ms. Eprile grit her teeth while signing off on that line. But her goal is to get Home Capital moving forward, and that meant resolving regulatory issues and potential class-action lawsuits. As part of a settlement that’s going to set back Home Capital – or its insurance company – approximately $30-million, it doesn’t cost Ms. Eprile anything to give the OSC a little political coverage.

I’m also guessing that Ontario’s Premier was thrilled to see that statement, as the provincial Liberals wouldn’t want to be fighting an election next year as the party that nearly vaporized the largest lender to homeowners who can’t borrow from the big banks.

From the OSC’s point of view, sources say there is an equally strongly-held view that Home Capital and its legal advisers dug in their heels on the terms of the settlement and that led to the public showdown.

This view is bolstered by the fact that many lawyers believe Home Capital and its executives would have been cleared if the OSC allegations had ever been taken to a hearing. Disclosure decisions that Home Capital made back in 2015 were approved by one former OSC chair – lawyer Jim Baillie from law firm Torys, and are now being defended by another former head of OSC, Stikeman Elliott’s Ed Waitzer.

I expect that the next company announcement of a big, well-publicized negotiated settlement will include a phrase along the lines of ‘I am a running-dog lackey of the anti-investor deviationist line! I have been an unwitting dupe of the pro-inadequate disclosure camp!’ Give bureaucrats power that can be countered only by the superior political connections of the Big Banks and Big Insurers and what else do you expect?

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 0.3361 % 2,169.2
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.3361 % 3,980.4
Floater 3.65 % 3.65 % 78,082 18.19 3 0.3361 % 2,293.9
OpRet 0.00 % 0.00 % 0 0.00 0 0.0550 % 3,055.1
SplitShare 4.71 % 4.30 % 66,717 1.51 5 0.0550 % 3,648.4
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0550 % 2,846.7
Perpetual-Premium 5.28 % 3.71 % 71,432 0.09 25 -0.0250 % 2,794.3
Perpetual-Discount 5.09 % 5.07 % 89,278 15.29 12 0.1844 % 3,011.0
FixedReset 4.42 % 3.95 % 198,678 6.57 96 0.0603 % 2,351.6
Deemed-Retractible 4.98 % 5.01 % 116,683 6.24 30 -0.0123 % 2,902.3
FloatingReset 2.48 % 3.01 % 53,045 4.37 10 -0.2627 % 2,557.0
Performance Highlights
Issue Index Change Notes
BAM.PR.X FixedReset -1.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-16
Maturity Price : 16.33
Evaluated at bid price : 16.33
Bid-YTW : 4.25 %
BAM.PR.Z FixedReset 1.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-16
Maturity Price : 22.13
Evaluated at bid price : 22.78
Bid-YTW : 4.30 %
Volume Highlights
Issue Index Shares
Traded
Notes
CM.PR.R FixedReset 469,366 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-16
Maturity Price : 23.17
Evaluated at bid price : 25.06
Bid-YTW : 4.25 %
TD.PF.H FixedReset 130,327 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-31
Maturity Price : 25.00
Evaluated at bid price : 26.26
Bid-YTW : 3.77 %
NA.PR.C FixedReset 79,847 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-16
Maturity Price : 23.11
Evaluated at bid price : 24.91
Bid-YTW : 4.33 %
NA.PR.S FixedReset 77,060 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-16
Maturity Price : 21.34
Evaluated at bid price : 21.65
Bid-YTW : 3.98 %
BMO.PR.S FixedReset 70,469 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-16
Maturity Price : 21.50
Evaluated at bid price : 21.86
Bid-YTW : 3.84 %
CM.PR.Q FixedReset 54,635 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-16
Maturity Price : 22.72
Evaluated at bid price : 23.52
Bid-YTW : 3.95 %
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.I FixedReset Quote: 25.91 – 26.14
Spot Rate : 0.2300
Average : 0.1494

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.91
Bid-YTW : 3.94 %

IFC.PR.C FixedReset Quote: 21.70 – 21.94
Spot Rate : 0.2400
Average : 0.1734

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.70
Bid-YTW : 5.60 %

SLF.PR.J FloatingReset Quote: 15.75 – 16.00
Spot Rate : 0.2500
Average : 0.1902

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.75
Bid-YTW : 8.66 %

BAM.PF.E FixedReset Quote: 21.78 – 22.03
Spot Rate : 0.2500
Average : 0.1939

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-16
Maturity Price : 21.44
Evaluated at bid price : 21.78
Bid-YTW : 4.17 %

BAM.PF.B FixedReset Quote: 21.96 – 22.15
Spot Rate : 0.1900
Average : 0.1381

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-16
Maturity Price : 21.57
Evaluated at bid price : 21.96
Bid-YTW : 4.14 %

BAM.PF.G FixedReset Quote: 23.32 – 23.49
Spot Rate : 0.1700
Average : 0.1206

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-16
Maturity Price : 22.62
Evaluated at bid price : 23.32
Bid-YTW : 4.15 %

Are these preferreds a 5-per-cent solution?

June 16th, 2017

Rob Carrick was kind enough to quote me in his piece Are these preferreds a 5-per-cent solution?:

James Hymas, president of Hymas Investment Management and a preferred-share specialist, said there are roughly a dozen blue-chip perpetual issues that combine a straightforward structure with a share price below their $25 issue price. These shares, issued by Brookfield Asset Management, Canadian Utilities, E-L Financial, Power Corp. of Canada and Power Financial, had an average yield of 5.1 per cent as of earlier this week.

Mr. Hymas said perpetuals could be an attractive option for investors who are looking at long-term corporate bonds, which mature in 10 years or more. These bonds have a yield of roughly 3.6 per cent on average today compared with perpetuals in the range of 5 per cent.

You’d need about 6.6 per cent from a bond to give you the same after-tax yield as a perpetual preferred share. Multiply a dividend yield by 1.3 to get the rough equivalent from a bond after paying taxes, Mr. Hymas said.

The drawback with perpetuals is that they are highly sensitive to rising interest rates. Mr. Hymas sees five-year Government of Canada bonds eventually rising from current levels just above 1 per cent to the 3-per-cent to 3.5-per-cent range. If that happens, expect perpetuals to plunge in price. “It could be quite traumatic,” he said.

Much less of a concern is the security of the dividends paid by perpetuals. The dozen perpetuals highlighted by Mr. Hymas are all rated Pfd-2 by the rating agency DBRS, which means satisfactory credit quality. Pfd-1 is superior quality, while Pfd-5 is highly speculative.

Companies that issue perpetuals have an option to redeem the shares based on terms set out in the prospectus (you can find prospectuses on Sedar.com). While you shouldn’t buy these shares based on the potential for a future redemption at the $25 issue price, there are some perpetuals that might actually be in line for this at some point in the next several years.

Mr. Hymas believes that regulations covering the banking sector and its capital structure could, in the next few years, be applied to life insurance companies. Some preferred shares would then become disadvantageous for insurers and, in turn, be candidates for redemption in the years ahead. A redemption would turn a perpetual preferred share into a maturing investment similar to a bond.

Mr. Hymas said he likes three issues of insurance-company perpetuals with redemption potential: Sun Life Financial Series 5 (SLF.PR.E), Manulife Financial Series 3 (MFC.PR.C) and Great-West Lifeco Series I (GWO.PR.I). All have yields at or just below 5 per cent based on recent share prices and dividends. If the shares were redeemed in the next eight to 12 years at $25, that yield would work out to be a bit higher (the shares all currently trade below $25).

For argument regarding my belief “that regulations covering the banking sector and its capital structure could, in the next few years, be applied to life insurance companies”, see the posts DeemedRetractible Review: September, 2016 and OSFI Dovish on Insurance Tier 1 Eligibility Rule.

June 15, 2017

June 15th, 2017

What a difference a week makes!

Investors and economists are recalibrating rate forecasts after the central bank’s surprise talk of tightening this week signaled a policy move could come sooner rather than later.

A Bloomberg survey of 17 economists found the majority now project a rate increase this year. Six predict higher rates in October and two suggest a September hike. That’s an about face from a week ago, when only two forecasters were projecting rates would rise in 2017.

Traders are also pricing in a full 25 basis point increase to the central bank’s 0.5 percent benchmark interest rate by the December meeting, according to Bloomberg calculations on overnight index swaps.

Swaps trading on Thursday showed a 46 percent chance of an increase in July, and a 75 percent chance of one by December. A week ago the odds were 5 percent and 27 percent.

The Canada five-year bounced upwards today, closing at 1.14%.

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 -0.2321 % 2,162.0
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.2321 % 3,967.1
Floater 3.66 % 3.66 % 78,835 18.17 3 -0.2321 % 2,286.2
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0157 % 3,053.4
SplitShare 4.71 % 4.34 % 69,467 1.51 5 -0.0157 % 3,646.4
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0157 % 2,845.1
Perpetual-Premium 5.28 % 4.35 % 72,474 3.41 25 -0.0187 % 2,795.0
Perpetual-Discount 5.10 % 5.08 % 92,557 15.27 12 0.0000 % 3,005.5
FixedReset 4.42 % 3.96 % 201,657 6.56 96 0.5350 % 2,350.2
Deemed-Retractible 4.98 % 5.02 % 119,678 6.24 30 -0.0027 % 2,902.7
FloatingReset 2.47 % 2.92 % 55,183 4.37 10 0.3747 % 2,563.7
Performance Highlights
Issue Index Change Notes
HSE.PR.E FixedReset 1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 23.10
Evaluated at bid price : 24.21
Bid-YTW : 4.62 %
SLF.PR.G FixedReset 1.04 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 16.47
Bid-YTW : 8.50 %
BNS.PR.Z FixedReset 1.09 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.34
Bid-YTW : 4.78 %
SLF.PR.H FixedReset 1.09 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.51
Bid-YTW : 6.68 %
TRP.PR.C FixedReset 1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 15.94
Evaluated at bid price : 15.94
Bid-YTW : 3.90 %
BAM.PF.A FixedReset 1.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 22.51
Evaluated at bid price : 22.95
Bid-YTW : 4.23 %
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 : 18.15
Bid-YTW : 7.63 %
BMO.PR.S FixedReset 1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 21.63
Evaluated at bid price : 22.05
Bid-YTW : 3.80 %
HSE.PR.A FixedReset 1.21 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 15.89
Evaluated at bid price : 15.89
Bid-YTW : 4.15 %
SLF.PR.J FloatingReset 1.28 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.80
Bid-YTW : 8.61 %
MFC.PR.J FixedReset 1.29 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.84
Bid-YTW : 5.00 %
MFC.PR.L FixedReset 1.33 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.61
Bid-YTW : 6.30 %
TRP.PR.G FixedReset 1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 22.81
Evaluated at bid price : 23.78
Bid-YTW : 4.06 %
PWF.PR.P FixedReset 1.48 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 16.51
Evaluated at bid price : 16.51
Bid-YTW : 3.85 %
MFC.PR.G FixedReset 1.58 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.86
Bid-YTW : 4.61 %
TRP.PR.B FixedReset 1.58 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 14.78
Evaluated at bid price : 14.78
Bid-YTW : 3.78 %
MFC.PR.N FixedReset 1.71 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.37
Bid-YTW : 5.88 %
MFC.PR.K FixedReset 1.76 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.84
Bid-YTW : 6.06 %
MFC.PR.M FixedReset 2.05 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.37
Bid-YTW : 5.94 %
Volume Highlights
Issue Index Shares
Traded
Notes
RY.PR.R FixedReset 168,665 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-08-24
Maturity Price : 25.00
Evaluated at bid price : 26.97
Bid-YTW : 3.57 %
RY.PR.Q FixedReset 123,008 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-24
Maturity Price : 25.00
Evaluated at bid price : 26.97
Bid-YTW : 3.45 %
TD.PF.B FixedReset 110,550 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 21.26
Evaluated at bid price : 21.54
Bid-YTW : 3.85 %
CM.PR.Q FixedReset 109,300 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 22.70
Evaluated at bid price : 23.49
Bid-YTW : 3.95 %
CM.PR.O FixedReset 109,039 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 21.31
Evaluated at bid price : 21.61
Bid-YTW : 3.91 %
TD.PF.C FixedReset 98,500 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 21.43
Evaluated at bid price : 21.43
Bid-YTW : 3.88 %
There were 45 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
CU.PR.C FixedReset Quote: 21.43 – 21.85
Spot Rate : 0.4200
Average : 0.3351

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 21.43
Evaluated at bid price : 21.43
Bid-YTW : 3.95 %

BAM.PF.H FixedReset Quote: 26.13 – 26.40
Spot Rate : 0.2700
Average : 0.1904

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-12-31
Maturity Price : 25.00
Evaluated at bid price : 26.13
Bid-YTW : 3.59 %

RY.PR.M FixedReset Quote: 22.88 – 23.10
Spot Rate : 0.2200
Average : 0.1438

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-15
Maturity Price : 22.32
Evaluated at bid price : 22.88
Bid-YTW : 3.90 %

IAG.PR.G FixedReset Quote: 22.42 – 22.67
Spot Rate : 0.2500
Average : 0.1749

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.42
Bid-YTW : 5.49 %

BMO.PR.Q FixedReset Quote: 21.37 – 21.67
Spot Rate : 0.3000
Average : 0.2285

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.37
Bid-YTW : 5.46 %

NA.PR.A FixedReset Quote: 26.75 – 26.92
Spot Rate : 0.1700
Average : 0.1102

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-08-15
Maturity Price : 25.00
Evaluated at bid price : 26.75
Bid-YTW : 3.72 %