It has been a long time coming – and the fund invested too early, as I can now tell with benefit of hindsight – but as of noonish today, 80,669 shares of BAM.PR.N have traded; it’s currently quoted at 19.46-60, 3×81.
It’s either a blow-out sale or a panic-stricken margin call!
BAM.PR.M has traded 1,700 and is quoted at 20.85-86, 5×18 … so investors can now swap virtually identical instruments and take out $1.25 … although, admittedly, the potential volume that could be done on the M side at these levels is probably extremely limited.
[…] A position in BAM.PR.M / BAM.PR.N underperformed. What can I say? The fund bought them when they were cheap (according to me!) and they promptly declined to a level where they’re stupid-cheap (according to me!). It happens. Volume in these issues has picked up substantially since the mid-month price collapse and the price has recovered somewhat. […]
[…] It seems to me that retail is nibbling away at these things since the price collapse. Now with a pre-tax bid-YTW of 5.96% based on a bid of 20.02 and a limitMaturity. Closed at 20.02-10, 6×45; the almost identical BAM.PR.M closed at 20.50-59, 1×1, on volume of 8,500. Which is one of my conundrums! Why pay fifty cents when you can pay ten? […]