April 20, 2018

Amidst all the nastiness about pipelines and deep, meaningful debate regarding whether Trudeau is photographed too often, it’s nice to know that some things are going right in our country:

No one tracks exactly how many ditch their skilled visas for the permanent residency Canada offers, but during the first year of Trump’s presidency, the number of tech professionals globally who got permanent residency in Canada ticked up almost 40 percent from 2016, to more than 11,000.

In 1967, Canada became the first country to adopt a points-based immigration system. The country regularly tweaks how it rates applicants based on national goals and research into what makes for successful integration: A job offer used to come with 600 points, but now it’s worth just 200. Other factors like speaking fluent English or French—or, even better, both—have been given more weight over the years. Country of origin is irrelevant.

In 2016, Canada increased national immigration levels to 300,000 new permanent residents annually. Last year, in consultation with trade groups, it created a program called the Global Skills Strategy to issue temporary work permits to people with job offers in certain categories, including senior software engineers, in as little as two weeks. Since the program started in June, more than 5,600 people have been granted permits, from the U.S., India, Pakistan, Brazil, and elsewhere.

There was a chaotic close for preferreds today, with TXPR going from 705.02 at 3:58pm to a closing level of 701.28. I presume this is due to MOC imbalances driven by pseudo-portfolio-managers saving valuable time on the TXPR index rebalancing by using the “Market on Close” feature at the Toronto Exchange – after all, it wasn’t merely Friday, it was Friday 4/20 and they urgently needed to get out of the office!

Look at CU.PR.G, for instance … volume of 262,607 on the day with, as far as I can tell from the TMX free web page (damned if I’m going to spend any money on this nonsense) only 100 shares trading at 21.45 prior to the close and then … wham! A closing quote of 21.12-57 and a closing price of 21.14 compared to the virtually identical CU.PR.F at 21.49-62, closing price of 21.53.

I’ll be paying more attention to this in the future … there might be an opportunity to make a few bucks with a few stink-bids and stink-offers, but it’s pretty chancy stuff.

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 0.00 % 0.00 % 0 0.00 0 -0.6544 % 2,950.3
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.6544 % 5,413.7
Floater 3.38 % 3.57 % 95,289 18.37 4 -0.6544 % 3,120.0
OpRet 0.00 % 0.00 % 0 0.00 0 -0.2301 % 3,144.0
SplitShare 4.62 % 4.59 % 77,316 5.10 5 -0.2301 % 3,754.6
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.2301 % 2,929.4
Perpetual-Premium 5.56 % -7.85 % 78,092 0.09 11 -0.1003 % 2,870.5
Perpetual-Discount 5.40 % 5.46 % 65,947 14.72 24 -0.2302 % 2,942.4
FixedReset 4.32 % 4.75 % 171,796 5.74 104 -0.2936 % 2,503.3
Deemed-Retractible 5.15 % 5.74 % 91,316 5.64 28 -0.3913 % 2,933.5
FloatingReset 3.03 % 3.13 % 32,941 3.58 11 -0.2012 % 2,757.3
Performance Highlights
Issue Index Change Notes
BAM.PR.K Floater -2.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 16.60
Evaluated at bid price : 16.60
Bid-YTW : 3.66 %
BIP.PR.B FixedReset -1.57 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-12-31
Maturity Price : 25.00
Evaluated at bid price : 25.15
Bid-YTW : 5.41 %
BAM.PR.X FixedReset -1.56 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 17.62
Evaluated at bid price : 17.62
Bid-YTW : 5.19 %
CU.PR.G Perpetual-Discount -1.54 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 21.12
Evaluated at bid price : 21.12
Bid-YTW : 5.41 %
TRP.PR.C FixedReset -1.54 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 17.28
Evaluated at bid price : 17.28
Bid-YTW : 4.98 %
PWF.PR.P FixedReset -1.53 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 19.31
Evaluated at bid price : 19.31
Bid-YTW : 4.52 %
CCS.PR.C Deemed-Retractible -1.42 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.97
Bid-YTW : 6.59 %
PWF.PR.Z Perpetual-Discount -1.38 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 23.24
Evaluated at bid price : 23.55
Bid-YTW : 5.48 %
TD.PF.H FixedReset -1.31 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.71
Bid-YTW : 3.96 %
MFC.PR.C Deemed-Retractible -1.27 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.00
Bid-YTW : 7.69 %
BAM.PF.G FixedReset -1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 23.30
Evaluated at bid price : 23.61
Bid-YTW : 5.21 %
TRP.PR.A FixedReset -1.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 19.50
Evaluated at bid price : 19.50
Bid-YTW : 5.11 %
SLF.PR.J FloatingReset -1.04 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.02
Bid-YTW : 7.08 %
TRP.PR.B FixedReset -1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 16.32
Evaluated at bid price : 16.32
Bid-YTW : 4.99 %
BAM.PR.Z FixedReset -1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 22.82
Evaluated at bid price : 24.05
Bid-YTW : 5.13 %
BAM.PF.D Perpetual-Discount -1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 21.33
Evaluated at bid price : 21.33
Bid-YTW : 5.81 %
HSE.PR.A FixedReset -1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 17.46
Evaluated at bid price : 17.46
Bid-YTW : 5.19 %
IFC.PR.A FixedReset -1.01 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.60
Bid-YTW : 7.73 %
BAM.PR.B Floater -1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 16.73
Evaluated at bid price : 16.73
Bid-YTW : 3.63 %
TRP.PR.F FloatingReset 1.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 19.74
Evaluated at bid price : 19.74
Bid-YTW : 3.91 %
Volume Highlights
Issue Index Shares
Traded
Notes
CM.PR.S FixedReset 533,079 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 23.00
Evaluated at bid price : 24.52
Bid-YTW : 4.55 %
TD.PF.J FixedReset 450,054 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2023-04-30
Maturity Price : 25.00
Evaluated at bid price : 25.18
Bid-YTW : 4.67 %
CU.PR.G Perpetual-Discount 262,607 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 21.12
Evaluated at bid price : 21.12
Bid-YTW : 5.41 %
NA.PR.E FixedReset 236,498 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 23.02
Evaluated at bid price : 24.60
Bid-YTW : 4.64 %
BAM.PF.D Perpetual-Discount 217,800 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 21.33
Evaluated at bid price : 21.33
Bid-YTW : 5.81 %
GWO.PR.L Deemed-Retractible 177,739 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2018-05-20
Maturity Price : 25.25
Evaluated at bid price : 25.86
Bid-YTW : -19.00 %
GWO.PR.S Deemed-Retractible 163,575 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.87
Bid-YTW : 5.42 %
TRP.PR.E FixedReset 157,697 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 21.63
Evaluated at bid price : 22.05
Bid-YTW : 5.02 %
IAG.PR.I FixedReset 157,355 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2023-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.26
Bid-YTW : 4.74 %
MFC.PR.Q FixedReset 153,297 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.18
Bid-YTW : 4.72 %
GWO.PR.M Deemed-Retractible 148,834 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2018-05-20
Maturity Price : 25.25
Evaluated at bid price : 26.28
Bid-YTW : -35.71 %
TRP.PR.J FixedReset 148,387 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-31
Maturity Price : 25.00
Evaluated at bid price : 26.35
Bid-YTW : 3.94 %
BMO.PR.T FixedReset 146,550 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 22.25
Evaluated at bid price : 22.65
Bid-YTW : 4.80 %
RY.PR.Q FixedReset 137,168 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-24
Maturity Price : 25.00
Evaluated at bid price : 26.50
Bid-YTW : 3.74 %
NA.PR.X FixedReset 126,463 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-15
Maturity Price : 25.00
Evaluated at bid price : 26.07
Bid-YTW : 3.99 %
BAM.PR.X FixedReset 116,320 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 17.62
Evaluated at bid price : 17.62
Bid-YTW : 5.19 %
W.PR.K FixedReset 110,140 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-01-15
Maturity Price : 25.00
Evaluated at bid price : 25.91
Bid-YTW : 3.89 %
BMO.PR.S FixedReset 110,041 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 22.74
Evaluated at bid price : 23.25
Bid-YTW : 4.77 %
MFC.PR.O FixedReset 104,184 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-06-19
Maturity Price : 25.00
Evaluated at bid price : 26.45
Bid-YTW : 3.83 %
BIP.PR.E FixedReset 104,028 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2023-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.21
Bid-YTW : 4.89 %
There were 87 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
GWO.PR.L Deemed-Retractible Quote: 25.86 – 26.39
Spot Rate : 0.5300
Average : 0.3046

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2018-05-20
Maturity Price : 25.25
Evaluated at bid price : 25.86
Bid-YTW : -19.00 %

TD.PF.J FixedReset Quote: 25.18 – 25.70
Spot Rate : 0.5200
Average : 0.3113

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2023-04-30
Maturity Price : 25.00
Evaluated at bid price : 25.18
Bid-YTW : 4.67 %

CCS.PR.C Deemed-Retractible Quote: 22.97 – 23.58
Spot Rate : 0.6100
Average : 0.4082

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.97
Bid-YTW : 6.59 %

BIP.PR.B FixedReset Quote: 25.15 – 25.70
Spot Rate : 0.5500
Average : 0.3489

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-12-31
Maturity Price : 25.00
Evaluated at bid price : 25.15
Bid-YTW : 5.41 %

PWF.PR.P FixedReset Quote: 19.31 – 19.77
Spot Rate : 0.4600
Average : 0.2685

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 19.31
Evaluated at bid price : 19.31
Bid-YTW : 4.52 %

BAM.PR.X FixedReset Quote: 17.62 – 18.23
Spot Rate : 0.6100
Average : 0.4226

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-04-20
Maturity Price : 17.62
Evaluated at bid price : 17.62
Bid-YTW : 5.19 %

3 Responses to “April 20, 2018”

  1. mbarbon says:

    I saw the same thing… on several of the preferreds I own, there were much lower trades in the last hour for only a few blocks…

    My concern with trying to make some money at it is that the commissions may outweigh the gain (ie as you mentioned, only 100 shares traded).

  2. mbarbon says:

    Take note of FTS.PR.H and ALA.PR.A and BAM.PR.X

    From the website quoted above, closing price recorded as 17.46.
    However, no trades show as crossing at that price (and only 1200 shares) for prices between 17.84 and 17.91.. But if you go into the details of the trades for that day, you’ll note that almost 10,000 shares traded at 4:00pm at 17.46.

    The same applies to ALA.PR.A. Shares dropped in value by 24c with trades all happening at 4:00pm

    The same applies to BAM.PR.X. Shares dropped in value by 31c with trades all happening at 4:00pm

    The seller was TD for one, and CIBC for the second, and ScotiaCapital for the third. Whats interesting is the buyer is “ananymous” for all of them….

    And yes, more than enough shares to make a trade worthwhile. Just never seen anything like this with so many different shares….

    Weird!!!!

  3. jiHymas says:

    My concern with trying to make some money at it is that the commissions may outweigh the gain (ie as you mentioned, only 100 shares traded).

    What I’m thinking is that those with a speculative bent could have put in a stink-bid for CU.PR.G at, say, 21.20 shortly prior to the close. In this particular instance they would have been filled during the Market-on-Close process (for thousands of shares, if they had bid for sufficient size) and then have planned to slowly liquidate the position next week.

    I mean, that’s what dealers do as a matter of course.

    It’s a bit harder for funds with a fetish for being ‘fully invested at all times’! One must also have a conviction that any such large changes at the close will be ‘technical’ as opposed to ‘fundamental’!

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