OK, so the new issue was very badly received and the underwriters didn’t try to catch the falling knife and support the issue during the distribution phase.
But these relative prices are crazy! RY.PR.A started trading just a few months ago (and I didn’t like them either) and the terms of these two issues are virtually identical: the redemption schedule is simply shifted three months along, the ‘A’ issue pays a dividend of $1.1125 annually and the ‘B’ issue pays $1.1750.
So basically, you get 6.25-cents more per share in annual dividend with the B.
Closing Quotation of A : 24.40-45
Closing Quotation of B : 24.30-45
Let’s not ever call the pref market efficient!