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.
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!
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