There was no announcement from Intact Financial Corporation, but IFC.PR.D, a FloatingReset that has resulted from a 16% exchange from IFC.PR.C has commenced trading. IFC.PR.C has reset at 3.332% and will reset again 2021-9-30 (or be called on that date) at GOC-5 +266, while IFC.PR.D will pay three month bills +266bp, reset quarterly; in both cases, the dividends will be calculated on the $25 par value of the stocks. The two issues are interconvertible every Exchange Date, making them a Strong Pair.
Vital Statistics as of September 30 are:
| IFC.PR.D |
FloatingReset |
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 17.25
Bid-YTW : 8.46 % |
| IFC.PR.C |
FixedReset |
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.10
Bid-YTW : 7.92 % |
It will be noted in the above that I assume a Hard Maturity as of 2025-01-31 for both issues.
As this issue is from an insurer and there is no provision for conversion into common shares at the option of the issuer, I consider this to be subject to my Deemed Retraction policy; accordingly I have placed a maturity entry dated 2025-1-31 at par in the call schedule of this instrument for analytical purposes. Note that this approach is due to analysis and there is no contractual provision in the terms of issue for any such maturity.
At the close 2016-10-3, the Strong Pair was trading with an implied average three-month bill rate to the next Exchange Date of -1.96%; IFC.PR.D has a very weak bid!
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This entry was posted on Tuesday, October 4th, 2016 at 1:57 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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IFC.PR.D FloatingReset Commences Trading
There was no announcement from Intact Financial Corporation, but IFC.PR.D, a FloatingReset that has resulted from a 16% exchange from IFC.PR.C has commenced trading. IFC.PR.C has reset at 3.332% and will reset again 2021-9-30 (or be called on that date) at GOC-5 +266, while IFC.PR.D will pay three month bills +266bp, reset quarterly; in both cases, the dividends will be calculated on the $25 par value of the stocks. The two issues are interconvertible every Exchange Date, making them a Strong Pair.
Vital Statistics as of September 30 are:
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 17.25
Bid-YTW : 8.46 %
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.10
Bid-YTW : 7.92 %
It will be noted in the above that I assume a Hard Maturity as of 2025-01-31 for both issues.
As this issue is from an insurer and there is no provision for conversion into common shares at the option of the issuer, I consider this to be subject to my Deemed Retraction policy; accordingly I have placed a maturity entry dated 2025-1-31 at par in the call schedule of this instrument for analytical purposes. Note that this approach is due to analysis and there is no contractual provision in the terms of issue for any such maturity.
At the close 2016-10-3, the Strong Pair was trading with an implied average three-month bill rate to the next Exchange Date of -1.96%; IFC.PR.D has a very weak bid!
Click for Big
This entry was posted on Tuesday, October 4th, 2016 at 1:57 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.