BNS.PR.Z has been listed for trading on Pure and the TMX, although there were no trades today.
This is kind of interesting, because these preferred shares have a “Regulatory Event” clause, whereby they become redeemable immediately following advice from OSFI that they are no longer Tier 1 Capital. This clause has caused great grief and consternation amongst those who bought Innovative Tier 1 Capital at a fat premium in the past year or two, given the new BIS loss absorbancy rules and the possibility that just such a regulatory event is in the offing. This is a new feature in preferred share land: BMO.PR.L has no such feature and neither does Scotia’s most recent normal FixedReset, BNS.PR.Y.
Another damn thing to worry about! Still, at 3.70%+134, these things are unlikely to trade at much, if any, premium.
There’s a good whack of these things out: 15,946,085 shares, according to TMXMoney.com.
This issue will be tracked by HIMIPref™, but I am delaying incorporation of it into the analytics until there is actually some activity.
Update, 2011-2-8: A better description of the issue, which provides details of dates left undefined in the takeover agreement noted earlier, is the “Security holders documents – English”, dated 2011-2-1. The “Initial Fixed Rate Period” ends 2016-2-1.