ENB.PR.A

This member of the premiumPerpetual index slid into negative YTW territory, so let’s have a look at it.

The listing date was 1998-12-01 and it pays $1.375 annually on a par value of $25: 5.5%. The option schedule (as shown on the embeddedOptionsBox) is:

  • Redemption      2003-12-02      2004-12-01  26.000000
  • Redemption      2004-12-02      2005-12-01  25.750000
  • Redemption      2005-12-02      2006-12-01  25.500000
  • Redemption      2006-12-02      2007-12-01  25.250000
  • Redemption      2007-12-02   INFINITE DATE  25.000000

which at the 2006-11-09 quotation of $25.72-95 leads to the following call scenarios, reported on the pseudoPortfolioReportBox:

  • Call  2006-12-09 YTM: 7.42 % [Restricted: 0.61 %] (Prob: 25.91 %)
  • Call  2007-01-01 YTM: -0.26 % [Restricted: -0.04 %] (Prob: 13.07 %)
  • Call  2007-10-05 YTM: 4.53 % [Restricted: 4.09 %] (Prob: 5.00 %)
  • Call  2008-01-01 YTM: 3.87 % [Restricted: 3.87 %] (Prob: 5.43 %)
  • Limit Maturity  2036-11-09 YTM: 5.44 % [Restricted: 5.44 %] (Prob: 50.59 %)

One feature of the calculations is the fact that the issue goes ex-Dividend TODAY, November 10, and at time of writing is quoted at 25.46-57 on volume of 2,100 shares. It doesn’t look as if anybody got caught on the ex-Dividend, with the odd skip-day of November 13 (odd because the TSX is open, but banks are closed): the day’s range is 25.46-55. So it’s lost $0.26 (bid/bid) on the day, having gone ex a dividend of $0.34375. Which means it’s actually up!

I’ve attached some graphs, prepared by the graphDocument:

 

2 Responses to “ENB.PR.A”

  1. […] It now remains to be seen whether they will also redeem ENB.PR.A, a perpetual that is currently part of the PerpetualPremium index. This issue has been mentioned as occasionally drifting into negative YTW territory; it’s currently redeemable at $25.25, but will be redeemable at par in December. […]

  2. […] Update: ENB.PR.A has been previously noted as an issue occasionally trading at a negative Yield-to-Worst. At its current quote of 24.96-08, this isn’t a major concern – but it is callable at par commencing December 2, so there’s not much upside to the issue. […]

Leave a Reply

You must be logged in to post a comment.