BCE announced after the markets closed that it would skip its common dividend for the second quarter, following reports the bank/purchaser negotiations are “grinding” and deal might not close – if, in fact, it does close – until December. The ClearChannel story, by the way, continues:
Citigroup Inc. and Deutsche Bank AG are leading banks offering the debt to investors in the mid-80 cent range, down from 90 cents to 91 cents last week, said the people, who declined to be identified before the loans are sold.
The price cut reflects a decline in average actively traded loans. Prices fell to 89.9 cents on the dollar from 92.1 on June 19, the first time it dipped below 90 cents since April, according to data compiled by Standard & Poor’s LCD. The discounting indicates that a rally in loan prices in April and May has ended.
Another horrible day to end a horrible month. CPD is down about 4.26% on the month; MAPF is down between 6.25% and 6.50% – I will have precise figures tomorrow.
| Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version. In this version, index values are based at 1,000.0 on 2006-6-30 | |||||||
| Index | Mean Current Yield (at bid) | Mean YTW | Mean Average Trading Value | Mean Mod Dur (YTW) | Issues | Day’s Perf. | Index Value |
| Ratchet | 4.25% | 3.86% | 47,247 | 0.08 | 1 | -0.0786% | 1,118.4 |
| Fixed-Floater | 4.89% | 4.64% | 60,867 | 16.05 | 7 | -1.3351% | 1,029.1 |
| Floater | 4.24% | 4.24% | 70,790 | 16.91 | 2 | -0.7533% | 903.8 |
| Op. Retract | 4.88% | 2.93% | 202,484 | 2.80 | 16 | -0.1206% | 1,052.9 |
| Split-Share | 5.39% | 6.04% | 65,282 | 4.11 | 15 | -0.0894% | 1,036.4 |
| Interest Bearing | 6.13% | 3.53% | 46,393 | 2.00 | 3 | -0.1656% | 1,122.7 |
| Perpetual-Premium | 5.94% | 4.70% | 319,249 | 11.09 | 13 | -0.1721% | 1,011.4 |
| Perpetual-Discount | 6.02% | 6.07% | 218,423 | 13.82 | 59 | -0.3707% | 877.2 |
| Major Price Changes | |||
| Issue | Index | Change | Notes |
| BNA.PR.C | SplitShare | -4.7425% | On zero volume, as the bids just disappeared and it closed at 18.05-00, 7×5 (great market making!). Asset coverage of just under 3.6:1 as of May 30 according to the company. Now with a pre-tax bid-YTW of 8.48% based on a bid of 18.05 and a hardMaturity 2019-1-10 at 25.00. Compare with BNA.PR.A (6.00% to 2010-9-30) and BNA.PR.B (8.63% to 2016-3-25). |
| BCE.PR.C | FixFloat | -4.4613% | |
| NA.PR.K | PerpetualDiscount | -3.3319% | Now with a pre-tax bid-YTW of 6.40% based on a bid of 23.21 and a limitMaturity. |
| BCE.PR.A | FixFloat | -3.0833% | |
| WFS.PR.A | SplitShare | -2.9819% | Asset coverage of just under 1.7:1 as of June 19, according to Mulvihill. Now with a pre-tax bid-YTW of 8.75% based on a bid of 9.11 and a hardMaturity 2011-6-30 at 10.00. |
| BCE.PR.R | FixFloat | -2.0851% | |
| BCE.PR.G | FixFloat | -2.0888% | |
| CM.PR.P | PerpetualDiscount | -1.8936% | Now with a pre-tax bid-YTW of 6.32% based on a bid of 21.76 and a limitMaturity. |
| BAM.PR.K | Floater | -1.5377% | |
| GWO.PR.H | PerpetualDiscount | -1.4464% | Now with a pre-tax bid-YTW of 6.18% based on a bid of 19.76 and a limitMaturity. |
| ELF.PR.G | PerpetualDiscount | -1.4428% | Now with a pre-tax bid-YTW of 6.72% based on a bid of 17.76 and a limitMaturity. |
| HSB.PR.C | PerpetualDiscount | -1.3744% | Now with a pre-tax bid-YTW of 6.17% based on a bid of 20.81 and a limitMaturity. |
| CM.PR.E | PerpetualDiscount | -1.3010% | Now with a pre-tax bid-YTW of 6.15% based on a bid of 22.76 and a limitMaturity. |
| HSB.PR.D | PerpetualDiscount | -1.2255% | Now with a pre-tax bid-YTW of 6.25% based on a bid of 20.15 and a limitMaturity. |
| PWF.PR.K | PerpetualDiscount | -1.2136% | Now with a pre-tax bid-YTW of 6.20% based on a bid of 20.35 and a limitMaturity. |
| PWF.PR.L | PerpetualDiscount | -1.0849% | Now with a pre-tax bid-YTW of 6.20% based on a bid of 20.97 and a limitMaturity. |
| BAM.PR.O | OpRet | -1.0417% | Now with a pre-tax bid-YTW of 6.24% based on a bid of 23.75 and optionCertainty 2013-6-30. Compare with BAM.PR.H (5.06% to 2012-3-30), BAM.PR.I (5.47% to 2013-12-30) and BAM.PR.J (5.92% to 2018-3-30). |
| BCE.PR.G | FixFloat | +1.1111% | |
| RY.PR.F | PerpetualDiscount | +1.1206% | Now with a pre-tax bid-YTW of 5.96% based on a bid of 18.95 and a limitMaturity. |
| SBN.PR.A | SplitShare | +1.6162% | Asset coverage of 2.2+:1 as of June 19, according to Mulvihill. Now with a pre-tax bid-YTW of 5.19% based on a bid of 10.06 and a hardMaturity 2014-12-1 at 10.00. |
| Volume Highlights | |||
| Issue | Index | Volume | Notes |
| TD.PR.P | PerpetualDiscount | 105,399 | Nesbitt sold 64,000 to National Bank in two tranches at 23.05, then another 37,900 to “anonymous” in another two tranches at the same price. Now with a pre-tax bid-YTW of 5.80% based on a bid of 23.01 and a limitMaturity. |
| TD.PR.Q | PerpetualDiscount | 55,505 | Nesbitt crossed 50,000 at 24.80. Now with a pre-tax bid-YTW of 5.74% based on a bid of 24.80 and a limitMaturity. |
| BMO.PR.J | PerpetualDiscount | 37,000 | CIBC crossed 30,000 at 19.26. Now with a pre-tax bid-YTW of 5.93% based on a bid of 19.25 and a limitMaturity. |
| SLF.PR.A | PerpetualDiscount | 20,600 | Nesbitt crossed 17,000 at 20.10. Now with a pre-tax bid-YTW of 5.97% based on a bid of 20.05 and a limitMaturity. |
| NA.PR.K | PerpetualDiscount | 13,200 | Now with a pre-tax bid-YTW of 6.40% based on a bid of 23.21 and a limitMaturity. |
There were five other index-included $25-pv-equivalent issues trading over 10,000 shares today.
Hardly kosher, no? What are they going to do with the dividends? Give it to Teachers? Give it to the lenders? Give it to themselves for a “job well done”?
As a bondholder, I think they should give it to me to make up for the drubbing I’ve taken.
Well … anything they do to make the LBO debt more attractive – like having more cash in the company and therefore borrowing less – will necessarily make the bonds more attractive. A microscopic consolation, but you have to take what you can get!