ELF.PR.G Holds its Own!

Somewhat to my surprise, the E-L Financial new issue was able to show some strength on its opening day, closing at 25.15-22 on volume of 135,325 shares.

Curve Price Analysis of ELF.PR.G
Component Taxable Curve Non-taxable Curve
Base-Rate 23.87 23.71
Short-Term 0.10 0.92
Long-Term 0.54 0.02
Credit Spread (2) -0.52 -0.68
Credit Spread (Low) -0.52 -0.68
Error 0.06 0.08
Intrinsic Price 23.53 23.37
Liquidity 1.51 1.50
Total Curve Price 25.04 24.87

This one looks fully priced – and that’s fully priced at best, because there’s a big chunk of liquidity value in the analysis. I suspect that as liquidity goes away, the market value of the shares will decrease, as the market comes to realize that a Pfd-2(low) [DBRS] issue should not be trading a mere 7bp yield higher than, for example, POW.PR.D.

This issue has been added to the HIMIPref™ database with a security code of A43087, replacing the Pre-Issue code of P25002. It has also been added to the PerpetualPremium Index.

2 Responses to “ELF.PR.G Holds its Own!”

  1. […] PrefBlog Canadian Preferred Shares – Data and Discussion « ELF.PR.G Holds its Own! […]

  2. […] Recent new issue that continues to amaze me with a closing quotation of $25.60-65, pre-tax bid-YTW of 4.53% based on a call 2015-11-16 at $25.00. DBRS rates this as Pfd-2(low), so you sure aren’t getting much yield increment for the credit spread! […]

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