RY.PR.H commenced trading today after being announced last week and did better than I had expected, trading 587,260 shares in a range of 24.65-78, closing at 24.69-74, 10×12.
|RY Perps 4/29|
Note that “Curve Price” is a static calculation – it assumes that the yield curve will not change in the future. Convexity effects decrease the value of near-par-by-curve-price issues
Those comparing prices with those on announcement date should recall that RY went ex-dividend on April 22, the day after announcement. Cynics might speculate that the announcement of the new issue was actually timed in this manner, to make the calculated current yields of the extant issues lower than otherwise, which would make the calculated current yield of the new issue at issue price look relatively better … so it’s a good thing that PrefBlog readers aren’t cynics, isn’t it?