The first one came in March at +205bp. Then Fortis at +213. Today BNS came again at +170. If this keeps up much longer, I’ll be forced to add them to the HIMIPref™ universe … particularly if the index definers pull the old Innovative Tier 1 Capital so-called bond trick and add them to the index!
My conclusion in this article was:
My disdain has not been shared by the market in general. The issue, trading as BNS.PR.P on the Toronto Stock Exchange, had a very successful underwriting and strong secondary demand. But I worry that many investors will have bought this with the assumption, probably valid in most cases but not certain, that the issue will be called in five years. It is the pretense that borrowers can access long term funds from borrowers assuming short-term risks that, after all, caused the credit crisis in the first place.
But … look for the research link!