There has been no announcement by Brookfield Property, but BPO.PR.S commenced trading today and data from the TMX website indicates a conversion rate of 11%.
It will be recalled the FixedReset BPO.PR.R has reset at 4.155% and will reset 2021-9-30 at GOC5+348bp, while BPO.PR.S will pay three-month bills +348bp, reset quarterly. They will be interconvertible again at the next Exchange Date, 2021-9-30.
Both issues are followed by HIMIPref™ but both are relegated to the Scraps subindex due to credit concerns.
Vital statistics are:
| BPO.PR.R | FixedReset | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-03 Maturity Price : 18.15 Evaluated at bid price : 18.15 Bid-YTW : 5.70 % |
| BPO.PR.S | FloatingReset | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-03 Maturity Price : 17.25 Evaluated at bid price : 17.25 Bid-YTW : 5.85 % |
At the current bid prices, the implied average three-month bill rate until the next Exchange date is -0.50%, slightly below the average implied rate for junk issues of -0.35%.
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