Strangeness is Perpetual

There are some surprising strangenesses in prices as of the close today. For instance, remember the RY.PR.W / RY.PR.F inversion? At today’s closing bid of 20.27, RY.PR.W yields 6.16% while RY.PR.F yields 6.21% at $18.26. The price difference of almost exactly $2 can be compared with the difference of about $3.50 (= 22.23 – 18.74) on June 27 when I wrote that post.

And remember the CM issues from June 26?

CM Perpetuals
Issue Dividend Quote
6/26
Pre-Tax
Bid-YTW
6/26
Bid
7/18
Pre-Tax
Bid-YTW
7/18
CM.PR.J 1.125 17.63-83 6.39% 16.23 6.98%
CM.PR.I 1.175 18.70-79 6.29% 16.67 7.09%
CM.PR.H 1.200 19.07-19 6.30% 16.85 7.17%
CM.PR.G 1.350 21.51-73 6.28% 19.03 7.14%
CM.PR.P 1.375 22.22-43 6.17% 19.35 7.15%
CM.PR.E 1.400 23.01-48 6.08% 19.70 7.15%
CM.PR.D 1.4375 23.40-62 6.14% 20.25 7.15%

The CM curve is extraordinarily flat … one would expect relative flatness, given that all the issues have a long way to go before calls become a concern, but one expects a lot of things in this world that don’t happen.

How about the PWF Perpetuals from July 8?:

PWF Perpetuals
Issue Dividend Quote
7/8
Pre-Tax
Bid-YTW
7/8
Bid
7/18
Yield
7/18
PWF.PR.K 1.2375 19.51-99 6.36% 18.52 6.72%
PWF.PR.L 1.275 20.00-28 6.39% 19.00 6.75%
PWF.PR.F 1.3125 20.25-49 6.50% 19.53 6.76%
PWF.PR.E 1.375 21.64-75 6.37% 20.30 6.81%
PWF.PR.H 1.4375 23.05-49 6.53% 22.20 6.49%
PWF.PR.G 1.475 24.15-18 6.11% 23.26 6.36%
PWF.PR.I 1.50 24.62-88 6.10% 24.25 6.20%

… which isn’t quite exactly 100% as well behaved as the CM curve.

Do with it what you will! My brain hurts.

2 Responses to “Strangeness is Perpetual”

  1. prefhound says:

    I’ve been away in a place with no phone and no internet, so came back to review stuff on the 21st. The RY prefs go ex-dividend tomorrow. Today’s attempt to close out my RY.PR.W/F arbitrage position did not work, but I am closing in on a nice 3-week profit there.

    As to POW and PWF, I didn’t get an chance to run an arb trade there, but I did switch out of an expensive issue into a cheaper issue, so am really pleased with the quality of ideas Prefblog brings up….

    Blog On!

  2. […] another strangeness in which unitholders in the fund have an interest:How about the PWF Perpetuals from July […]

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