BNS.PR.B, a FloatingReset +170 just converted from BNS.PR.Q, reached only a very small premium over BNS.PR.Q on its debut today.
The issue traded 17,400 shares in a range of 24.70-15 before settling at 24.85-05, 1×11.
BNS.PR.B will be tracked by HIMIPref™ and is temporarily assigned to the FixedReset subindex. When TD.PR.Z settles on October 31 all FloatingResets will be transferred from the FixedReset subindex to a new FloatingReset subindex.
We can examine the comparables with the help of the Pairs Equivalency Calculator:
| FixedReset / FloatingReset Strong Pairs | |||
| FixedReset | FloatingReset | Next Exchange Date |
Implied 3-Month Bill Rate |
| BNS.PR.P | BNS.PR.A | 2018-4-26 | 2.53% |
| TD.PR.S | TD.PR.T | 2018-7-31 | 2.37% |
| BMO.PR.M | BMO.PR.R | 2018-8-25 | 2.13% |
| BNS.PR.Q | BNS.PR.B | 2018-10-25 | 1.98% |
So BNS.PR.B has the smallest premium of the lot. It will be most interesting to see whether the bloom is off the rose as far as FloatingResets are concerned!
Vital Statistics are:
| BNS.PR.B | FixedReset | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.85 Bid-YTW : 2.62 % |