American shoppers are loading up on the blue-light special:
The Canadian dollar — the loonie — has fallen about 18 percent against its U.S. counterpart over the past two years after flirting with parity several times in the last decade. At the same time, spending by U.S. shoppers using PayPal on Canadian websites jumped 20 percent in 2015 from the year before.
“The recent drop in the Canadian dollar presents an exciting export opportunity for Canadian businesses selling to American buyers,” Cameron Schmidt, PayPal Inc.’s Canadian general manager, said in an e-mail.
As the energy and mining industries struggle under the collapse of a decade-long bull market for commodities, Canada is turning to exports and tourism for growth. The expansion of online shopping allows that to happen without requiring Americans to dig out their passports.
…
“Across our customer base, Canadian businesses saw strong growth among U.S. shoppers in 2015,” Brent Bellm, chief executive officer of Austin, Texas-based Bigcommerce, said in an e-mail. Sales at Canadian Bigcommerce stores during the holiday shopping season rose 39 percent from the same period a year earlier, while the number of actual stores only went up 2.9 percent, he said.
Not just retail, but retailers:
U.S. health-care-services giant McKesson Corp. is taking on the heavyweights of Canada’s drugstore industry with a $3-billion deal for the Rexall pharmacy chain and related companies.
McKesson of San Francisco, which already owns smaller drugstores in Canada and supplies drugs to Rexall and other pharmacies, is adding to its size and buying power by acquiring the 470 Rexall stores. It gives Rexall more heft in its fight with industry leader Shoppers Drug Mart, which was acquired by grocery titan Loblaw Cos. Ltd. for $12.4-billion two years ago.
Zachary Tracer of Bloomberg adds:
The deal is the drug distributor’s latest in a series of efforts to expand geographically and deepen its offerings. In 2014, it announced it would buy 10 drugstores from Loblaw Cos., and last year it announced an agreement to buy a drug distribution business in Belgium. Its biggest recent deal was a $1.2 billion acquisition of two oncology businesses, Vantage Oncology LLC and Biologics Inc., which included 50 cancer treatment centers in 13 states.
There will, of course, be the usual whining from the usual crowd who don’t realize that the capital doesn’t just disappear:
Famously publicity shy, Mr. Katz gave little in the way of specifics Wednesday about what he will do with the proceeds of the sale of Rexall Health to the United States-based McKesson Corp.
In a news release on Wednesday, the billionaire said going forward, his privately held Katz Group will continue to invest in its three other lines of business – real estate, sports and entertainment, and private and public investments.
But Mr. Katz, 54, has made no secret that his current focus is far away from the world of neighbourhood drugstores and Medicentres, and is laser-trained on the building of Canada’s largest mixed-use sports and entertainment district.
…
The price tag will be hefty, even for someone of Mr. Katz’s considerable means. The development is a joint project with WAM Development Group, but Mr. Katz holds a 90-per-cent stake. The first 25-acre phases of the project will cost $2.5-billion, but the final tally, once the planned second phase is built, could reach $6-billion. The budget for the steel-topped arena itself – being jointly funded by the city, and set to open this fall – is $606.5-million.
There are other, more modest, sales – probably also given something of a boost by an influx of foreign capital:
Her strata council’s sale of their 21-unit building to Concert Properties for $5-million – about 65 per cent more than the assessed value of all the units – will close this May, as well as a recent sale of a group of owners in the West End to Bosa Properties, are the first two major deals such as this in the Lower Mainland.
Until now, strata buyouts have mainly been duplexes, triplexes or very small complexes with a handful of owners, said Tony Gioventu, president of the Condominium Home Owners Association.
But condo experts such as Mr. Gioventu, real estate lawyers, and residents say it’s just the beginning.
More than a million people in British Columbia live in strata-titled housing in the hundreds of buildings that have been constructed since the province’s first strata act in 1966 made them legally possible.
Buildings are getting old. Developers are hungry for any new site in the land-squeezed Lower Mainland.
And city governments have been identifying new areas of density, which is fresh bait for redevelopment.
The wave is especially likely to grow because British Columbia is about to enact a new piece of legislation this spring so that strata councils no longer have to get 100-per-cent agreement among owners to sell, but only 80 per cent.
That will open the door for many more strata councils to force a sale on holdout owners, of which there is generally at least one in any building.
Geez, it seems like only yesterday that I was talking about squeeze-outs and eminent domain laws! So here’s another attempt at a Solomonic decision regarding minority ownership rights!
It looks like the Fairfax underwriters bit off more than they chew:
Fairfax Financial Holdings Ltd.’s latest financing didn’t sell as planned, forcing the underwriters to absorb millions of dollars in potential losses from unsold shares.
The $735-million financing was sold by way of a bought deal, which means the underwriters paid Fairfax the money up front and absorbed the risk of re-selling the shares to the market. Many investors balked at the terms, with only about 50 per cent of the transaction sold, according to people familiar with it, so advisers are currently holding the remaining portion. The deal was originally priced at $735 a share, a 3.9-per-cent discount to the market price. Fairfax’s shares currently trade for $709 apiece, having fallen 7 per cent since the deal was announced.
At the moment, the underwriters are collectively breaking even on the deal – after accounting for the 4-per-cent, or $29-million, commission, they earn. However, they are expected to launch what is known as a “clean-up” trade, in which the unsold shares will be unloaded at a bigger discount. Depending on this final price, there is a chance the underwriters eke out a small profit on the deal – but they could also be on the hook for millions of dollars.
Looks like the OSC will soon be publishing mutual fund research:
Regulators are taking a closer look at actively managed funds to determine if portfolio managers are fulfilling their duty – or simply hugging an index.
The Ontario Securities Commission wants to know whether funds that are advertised as actively managed are in fact living up to their name, or whether they are exhibiting a close tracking of their benchmark index, such as the S&P 500 or the S&P/TSX composite index.
…
About 37 per cent of the assets in equity mutual funds sold in this country are in closet indexers, according to research by Martijn Cremers of the University of Notre Dame, Miguel Ferreira of the Nova School of Business and Economics, Pedro Matos of the University of Virginia and Laura Starks of the University of Texas.By comparison, only 15 per cent of the net assets in equity mutual funds sold in the United States are in closet indexers. The level of closet indexing in Canada is the highest among the 20 countries covered in the paper when it is calculated as a percentage of equity funds sold in each country.
A recent report by the OSC stated that it had “commenced a targeted review of conventional mutual funds that disclose in their prospectus and marketing materials that they pursue active management strategies … Among other data, we considered the funds’ active share (a measure of the percentage of a fund’s portfolio holdings that differs from the composition of its benchmark index) to assess the extent of active management.”
The OSC is currently seeking additional information from portfolio managers, including how the securities are selected for their funds.
This story comes from the 2015 – Summary Report for Investment Fund and Structured Product Issuers.
Forbes published two pretty compelling charts about American universities:
Click for Big
Click for Big
RONA has filed its management circular for the proposed dual Plans of Arrangement with Lowe’s. I have updated the post regarding the announcement of the proposed Arrangement.
It was a superb day for the Canadian preferred share market, with PerpetualDiscounts gaining 41bp, FixedResets winning 160bp and DeemedRetractibles up 63bp. There is not a single loser in the Performance Highlights table, which is suitably dominated by winning FixedResets. Floaters did very well. Volume was above average.
PerpetualDiscounts now yield 5.79%, equivalent to 7.53% interest at the standard equivalency factor of 1.3x. Long Corporates now yield about 4.3%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 325bp, a significant narrowing from the 340bp reported February 24.
For as long as the FixedReset market is so violently unsettled, I’ll keep publishing updates of the more interesting and meaningful series of FixedResets’ Implied Volatilities. This doesn’t include Enbridge because although Enbridge has a large number of issues outstanding, all of which are quite liquid, the range of Issue Reset Spreads is too small for decent conclusions. The low is 212bp (ENB.PR.H; second-lowest is ENB.PR.D at 237bp) and the high is a mere 268 for ENB.PF.G.
Remember that all rich /cheap assessments are:
» based on Implied Volatility Theory only
» are relative only to other FixedResets from the same issuer
» assume constant GOC-5 yield
» assume constant Implied Volatility
» assume constant spread
Here’s TRP:
Click for Big
TRP.PR.E, which resets 2019-10-30 at +235, is bid at 17.32 to be $1.51 rich, while TRP.PR.C, resetting 2021-1-30 at +296, is $0.93 cheap at its bid price of 10.85.
Click for Big
Most expensive is MFC.PR.O, resetting at +497bp on 2021-6-19, bid at 25.18 to be 1.28 rich, while MFC.PR.G, resetting at +290bp on 2016-12-19, is bid at 16.49 to be 1.71 cheap.
Click for Big
The cheapest issue relative to its peers is BAM.PR.T, resetting at +231bp on 2017-3-31, bid at 14.00 to be $0.72 cheap. BAM.PF.E, resetting at +255 on 2020-3-31 is bid at 16.90 and appears to be $1.04 rich.
Click for Big
FTS.PR.K, with a spread of +205bp, and bid at 14.90, looks $0.57 expensive and resets 2019-3-1. FTS.PR.G, with a spread of +213bp and resetting 2018-9-1, is bid at 14.47 and is $0.26 cheap.
Click for Big
Investment-grade pairs predict an average three-month bill yield over the next five-odd years of -0.90%, with three outliers below -1.50%. Note that the range of the y-axis has changed today. There are two junk outliers below -1.50%.
Click for Big
Shall we just say that this exhibits a high level of confidence in the continued rapacity of Canadian banks?
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 5.41 % | 6.57 % | 12,782 | 16.00 | 1 | 2.4590 % | 1,447.6 |
| FixedFloater | 7.60 % | 6.66 % | 22,025 | 15.55 | 1 | 2.8807 % | 2,615.9 |
| Floater | 4.67 % | 4.87 % | 79,560 | 15.66 | 4 | 4.2257 % | 1,641.0 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1610 % | 2,736.5 |
| SplitShare | 4.86 % | 5.90 % | 79,272 | 2.66 | 7 | 0.1610 % | 3,202.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1610 % | 2,498.5 |
| Perpetual-Premium | 5.82 % | -0.37 % | 79,836 | 0.08 | 6 | 0.1061 % | 2,534.7 |
| Perpetual-Discount | 5.76 % | 5.79 % | 102,804 | 14.11 | 33 | 0.4081 % | 2,510.6 |
| FixedReset | 5.70 % | 5.17 % | 200,099 | 14.27 | 85 | 1.6000 % | 1,784.0 |
| Deemed-Retractible | 5.33 % | 5.94 % | 117,576 | 5.14 | 34 | 0.6252 % | 2,550.0 |
| FloatingReset | 3.13 % | 5.46 % | 44,355 | 5.46 | 16 | 1.6693 % | 1,946.2 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| ELF.PR.G | Perpetual-Discount | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 6.04 % |
| BAM.PF.C | Perpetual-Discount | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 19.67 Evaluated at bid price : 19.67 Bid-YTW : 6.29 % |
| BNS.PR.A | FloatingReset | 1.05 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.04 Bid-YTW : 3.94 % |
| GWO.PR.Q | Deemed-Retractible | 1.10 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.95 Bid-YTW : 6.35 % |
| SLF.PR.I | FixedReset | 1.16 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 16.55 Bid-YTW : 9.06 % |
| GWO.PR.M | Deemed-Retractible | 1.20 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2018-03-31 Maturity Price : 25.25 Evaluated at bid price : 25.25 Bid-YTW : 5.54 % |
| RY.PR.I | FixedReset | 1.21 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.67 Bid-YTW : 4.95 % |
| BAM.PR.T | FixedReset | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 13.97 Evaluated at bid price : 13.97 Bid-YTW : 5.61 % |
| ELF.PR.F | Perpetual-Discount | 1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 21.91 Evaluated at bid price : 22.15 Bid-YTW : 6.07 % |
| HSE.PR.A | FixedReset | 1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 8.58 Evaluated at bid price : 8.58 Bid-YTW : 7.13 % |
| BMO.PR.W | FixedReset | 1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 16.51 Evaluated at bid price : 16.51 Bid-YTW : 4.67 % |
| PWF.PR.P | FixedReset | 1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 12.15 Evaluated at bid price : 12.15 Bid-YTW : 4.73 % |
| GWO.PR.O | FloatingReset | 1.44 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 11.26 Bid-YTW : 11.88 % |
| GWO.PR.I | Deemed-Retractible | 1.58 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.52 Bid-YTW : 7.25 % |
| FTS.PR.I | FloatingReset | 1.65 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 9.25 Evaluated at bid price : 9.25 Bid-YTW : 5.11 % |
| BNS.PR.Y | FixedReset | 1.66 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.99 Bid-YTW : 6.83 % |
| BMO.PR.Q | FixedReset | 1.69 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.05 Bid-YTW : 7.98 % |
| CM.PR.Q | FixedReset | 1.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 17.75 Evaluated at bid price : 17.75 Bid-YTW : 4.97 % |
| CCS.PR.C | Deemed-Retractible | 1.74 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.06 Bid-YTW : 7.43 % |
| SLF.PR.H | FixedReset | 1.75 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.50 Bid-YTW : 10.15 % |
| TD.PF.A | FixedReset | 1.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 16.70 Evaluated at bid price : 16.70 Bid-YTW : 4.69 % |
| CM.PR.P | FixedReset | 1.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 16.40 Evaluated at bid price : 16.40 Bid-YTW : 4.77 % |
| BMO.PR.Y | FixedReset | 1.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 17.84 Evaluated at bid price : 17.84 Bid-YTW : 4.90 % |
| CU.PR.C | FixedReset | 1.98 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 15.45 Evaluated at bid price : 15.45 Bid-YTW : 5.08 % |
| RY.PR.Z | FixedReset | 2.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 16.75 Evaluated at bid price : 16.75 Bid-YTW : 4.61 % |
| IAG.PR.G | FixedReset | 2.11 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 16.95 Bid-YTW : 8.95 % |
| TD.PF.E | FixedReset | 2.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 18.32 Evaluated at bid price : 18.32 Bid-YTW : 4.93 % |
| FTS.PR.G | FixedReset | 2.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 14.47 Evaluated at bid price : 14.47 Bid-YTW : 5.11 % |
| BNS.PR.D | FloatingReset | 2.20 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.63 Bid-YTW : 7.72 % |
| SLF.PR.J | FloatingReset | 2.22 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 11.50 Bid-YTW : 11.77 % |
| FTS.PR.M | FixedReset | 2.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 16.31 Evaluated at bid price : 16.31 Bid-YTW : 5.15 % |
| MFC.PR.K | FixedReset | 2.44 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.11 Bid-YTW : 10.03 % |
| BAM.PR.E | Ratchet | 2.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 25.00 Evaluated at bid price : 12.50 Bid-YTW : 6.57 % |
| NA.PR.W | FixedReset | 2.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 15.27 Evaluated at bid price : 15.27 Bid-YTW : 5.17 % |
| BAM.PF.G | FixedReset | 2.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 17.65 Evaluated at bid price : 17.65 Bid-YTW : 5.42 % |
| BAM.PF.F | FixedReset | 2.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 17.25 Evaluated at bid price : 17.25 Bid-YTW : 5.51 % |
| BAM.PF.B | FixedReset | 2.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 16.05 Evaluated at bid price : 16.05 Bid-YTW : 5.49 % |
| TD.PR.Y | FixedReset | 2.80 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.13 Bid-YTW : 4.45 % |
| BAM.PR.G | FixedFloater | 2.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 25.00 Evaluated at bid price : 12.50 Bid-YTW : 6.66 % |
| TRP.PR.F | FloatingReset | 3.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 10.82 Evaluated at bid price : 10.82 Bid-YTW : 5.42 % |
| BAM.PF.E | FixedReset | 3.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 16.90 Evaluated at bid price : 16.90 Bid-YTW : 5.26 % |
| HSE.PR.G | FixedReset | 3.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 16.55 Evaluated at bid price : 16.55 Bid-YTW : 6.63 % |
| BAM.PR.K | Floater | 3.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 9.75 Evaluated at bid price : 9.75 Bid-YTW : 4.92 % |
| RY.PR.J | FixedReset | 3.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 17.56 Evaluated at bid price : 17.56 Bid-YTW : 4.94 % |
| RY.PR.M | FixedReset | 3.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 17.40 Evaluated at bid price : 17.40 Bid-YTW : 4.87 % |
| TD.PF.D | FixedReset | 3.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 17.93 Evaluated at bid price : 17.93 Bid-YTW : 4.92 % |
| BAM.PR.R | FixedReset | 3.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 14.06 Evaluated at bid price : 14.06 Bid-YTW : 5.44 % |
| MFC.PR.L | FixedReset | 3.32 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.58 Bid-YTW : 9.73 % |
| NA.PR.S | FixedReset | 3.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 16.19 Evaluated at bid price : 16.19 Bid-YTW : 5.06 % |
| FTS.PR.K | FixedReset | 3.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 14.90 Evaluated at bid price : 14.90 Bid-YTW : 4.93 % |
| CIU.PR.C | FixedReset | 3.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 10.23 Evaluated at bid price : 10.23 Bid-YTW : 4.97 % |
| BAM.PR.X | FixedReset | 3.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 12.76 Evaluated at bid price : 12.76 Bid-YTW : 5.25 % |
| HSE.PR.C | FixedReset | 3.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 14.67 Evaluated at bid price : 14.67 Bid-YTW : 6.92 % |
| MFC.PR.N | FixedReset | 3.69 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 16.85 Bid-YTW : 8.75 % |
| MFC.PR.M | FixedReset | 3.72 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.00 Bid-YTW : 8.70 % |
| BAM.PR.Z | FixedReset | 3.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 17.17 Evaluated at bid price : 17.17 Bid-YTW : 5.57 % |
| TRP.PR.G | FixedReset | 4.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 17.70 Evaluated at bid price : 17.70 Bid-YTW : 5.22 % |
| BAM.PR.C | Floater | 4.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 9.75 Evaluated at bid price : 9.75 Bid-YTW : 4.92 % |
| TRP.PR.H | FloatingReset | 4.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 9.00 Evaluated at bid price : 9.00 Bid-YTW : 4.74 % |
| TRP.PR.C | FixedReset | 4.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 10.85 Evaluated at bid price : 10.85 Bid-YTW : 5.17 % |
| TD.PR.T | FloatingReset | 4.37 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.25 Bid-YTW : 4.96 % |
| TRP.PR.B | FixedReset | 4.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 10.40 Evaluated at bid price : 10.40 Bid-YTW : 4.78 % |
| HSE.PR.E | FixedReset | 4.59 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 16.42 Evaluated at bid price : 16.42 Bid-YTW : 6.69 % |
| PWF.PR.A | Floater | 4.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 11.10 Evaluated at bid price : 11.10 Bid-YTW : 4.29 % |
| BAM.PR.B | Floater | 4.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 9.85 Evaluated at bid price : 9.85 Bid-YTW : 4.87 % |
| TRP.PR.D | FixedReset | 5.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 16.20 Evaluated at bid price : 16.20 Bid-YTW : 5.02 % |
| TRP.PR.A | FixedReset | 5.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 13.70 Evaluated at bid price : 13.70 Bid-YTW : 4.97 % |
| TRP.PR.E | FixedReset | 5.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 17.32 Evaluated at bid price : 17.32 Bid-YTW : 4.76 % |
| PWF.PR.Q | FloatingReset | 6.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 10.85 Evaluated at bid price : 10.85 Bid-YTW : 4.73 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| NA.PR.Q | FixedReset | 116,330 | GMC sold 20,700 to Scotia, 15,200 to TD and crossed 40,000, all at 23.00. Scotia bought 24,100 from TD at the same price. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.90 Bid-YTW : 5.02 % |
| FTS.PR.M | FixedReset | 106,660 | Nesbitt crossed 100,000 at 16.50. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 16.31 Evaluated at bid price : 16.31 Bid-YTW : 5.15 % |
| BAM.PR.Z | FixedReset | 75,746 | Scotia crossed blocks of 40,000 and 25,000, both at 17.20. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-03-02 Maturity Price : 17.17 Evaluated at bid price : 17.17 Bid-YTW : 5.57 % |
| POW.PR.C | Perpetual-Premium | 72,300 | Nesbitt crossed 68,900 at 25.32. YTW SCENARIO Maturity Type : Call Maturity Date : 2016-04-01 Maturity Price : 25.00 Evaluated at bid price : 25.32 Bid-YTW : -0.69 % |
| MFC.PR.O | FixedReset | 63,534 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2021-06-19 Maturity Price : 25.00 Evaluated at bid price : 25.18 Bid-YTW : 5.50 % |
| IAG.PR.G | FixedReset | 62,495 | RBC crossed 25,000 at 16.55, then another 28,400 at 16.65. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 16.95 Bid-YTW : 8.95 % |
| There were 40 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| TD.PR.Z | FloatingReset | Quote: 20.78 – 22.75 Spot Rate : 1.9700 Average : 1.3020 YTW SCENARIO |
| HSE.PR.E | FixedReset | Quote: 16.42 – 17.40 Spot Rate : 0.9800 Average : 0.6866 YTW SCENARIO |
| BAM.PF.A | FixedReset | Quote: 16.95 – 17.61 Spot Rate : 0.6600 Average : 0.3940 YTW SCENARIO |
| BAM.PF.F | FixedReset | Quote: 17.25 – 17.92 Spot Rate : 0.6700 Average : 0.4523 YTW SCENARIO |
| PWF.PR.T | FixedReset | Quote: 19.16 – 19.80 Spot Rate : 0.6400 Average : 0.4418 YTW SCENARIO |
| BNS.PR.R | FixedReset | Quote: 22.83 – 23.40 Spot Rate : 0.5700 Average : 0.3943 YTW SCENARIO |
Grrr…. I can wait the thread on the other new NVCC compliant bank issue at 5.50% (BNS for a second time) to vent some steam… Just as the secondary prefmarket was recovering a bit (with the other earlier bank issues up at around $25.50), BNS hit again with these Weapons of Secondary Pref Market Mass Destruction…
fwiw, I think the market action off the most recent RY and BNS offerings is positive. The secondary market had already moved to yields beyond these offerings. It is coming off the bottom with rates and hasn’t been stopped by the BNS issue.