Amidst all the gloom, it was interesting to see the details of a recent Scotia covered bond issue:
Bank of Nova Scotia (BNS) became the first bank outside Europe to issue a deeply negative yielding covered bond in a good size on Wednesday. The transaction provided a beacon for other issuers and was perfectly timed to benefit from a window of market stability between Monday’s and Thursday’s shocking volatility.
It’s Series CBL26, with details available on the Scotiabank covered bond page. The term sheet specifies:
Specified Currency or Currencies: €, EUR or EURO
…
Issue Price: 101.198% of the Aggregate Nominal Amount
…
Final Maturity Date: 18 March 2025
…
Rate(s) of Interest: 0.01% per annum payable annually in arrears on each Interest Payment Date
…
Indication of yield: -0.228% per annum
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| 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 | -4.2670 % | 1,408.4 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -4.2670 % | 2,584.3 |
| Floater | 5.46 % | 5.67 % | 42,377 | 14.41 | 4 | -4.2670 % | 1,489.4 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2090 % | 3,262.3 |
| SplitShare | 5.09 % | 6.28 % | 86,727 | 3.95 | 7 | -0.2090 % | 3,895.9 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2090 % | 3,039.7 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2689 % | 2,756.4 |
| Perpetual-Discount | 6.08 % | 6.32 % | 90,181 | 13.47 | 35 | 0.2689 % | 2,956.6 |
| FixedReset Disc | 6.67 % | 5.75 % | 199,915 | 13.99 | 83 | 0.1867 % | 1,699.9 |
| Deemed-Retractible | 5.81 % | 6.18 % | 102,168 | 13.46 | 27 | -0.3886 % | 2,907.9 |
| FloatingReset | 3.22 % | 4.78 % | 31,613 | 14.44 | 4 | -1.2768 % | 1,694.6 |
| FixedReset Prem | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1867 % | 2,350.9 |
| FixedReset Bank Non | 1.97 % | 4.88 % | 113,178 | 1.75 | 3 | -0.4003 % | 2,704.0 |
| FixedReset Ins Non | 7.07 % | 6.13 % | 125,076 | 13.43 | 22 | 0.7310 % | 1,680.3 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRP.PR.G | FixedReset Disc | -11.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 12.45 Evaluated at bid price : 12.45 Bid-YTW : 7.28 % |
| TRP.PR.H | FloatingReset | -10.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 7.72 Evaluated at bid price : 7.72 Bid-YTW : 4.96 % |
| BAM.PR.K | Floater | -6.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 7.52 Evaluated at bid price : 7.52 Bid-YTW : 5.75 % |
| HSE.PR.E | FixedReset Disc | -5.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 9.25 Evaluated at bid price : 9.25 Bid-YTW : 11.99 % |
| BAM.PR.C | Floater | -4.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 7.56 Evaluated at bid price : 7.56 Bid-YTW : 5.72 % |
| BAM.PR.B | Floater | -4.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 7.63 Evaluated at bid price : 7.63 Bid-YTW : 5.67 % |
| BAM.PR.Z | FixedReset Disc | -4.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 14.60 Evaluated at bid price : 14.60 Bid-YTW : 6.47 % |
| TRP.PR.B | FixedReset Disc | -3.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 8.25 Evaluated at bid price : 8.25 Bid-YTW : 5.69 % |
| MFC.PR.C | Deemed-Retractible | -3.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 18.00 Evaluated at bid price : 18.00 Bid-YTW : 6.33 % |
| GWO.PR.N | FixedReset Ins Non | -3.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 8.76 Evaluated at bid price : 8.76 Bid-YTW : 5.44 % |
| BIP.PR.E | FixedReset Disc | -3.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 19.40 Evaluated at bid price : 19.40 Bid-YTW : 6.51 % |
| SLF.PR.G | FixedReset Ins Non | -2.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 8.80 Evaluated at bid price : 8.80 Bid-YTW : 5.71 % |
| TRP.PR.A | FixedReset Disc | -2.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 11.60 Evaluated at bid price : 11.60 Bid-YTW : 6.04 % |
| TRP.PR.C | FixedReset Disc | -2.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 8.60 Evaluated at bid price : 8.60 Bid-YTW : 6.21 % |
| BIP.PR.D | FixedReset Disc | -2.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 19.50 Evaluated at bid price : 19.50 Bid-YTW : 6.48 % |
| IFC.PR.A | FixedReset Ins Non | -2.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 10.24 Evaluated at bid price : 10.24 Bid-YTW : 6.13 % |
| BIP.PR.F | FixedReset Disc | -2.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 20.01 Evaluated at bid price : 20.01 Bid-YTW : 6.44 % |
| HSE.PR.G | FixedReset Disc | -2.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 8.65 Evaluated at bid price : 8.65 Bid-YTW : 12.08 % |
| PWF.PR.A | Floater | -2.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 8.70 Evaluated at bid price : 8.70 Bid-YTW : 5.00 % |
| TRP.PR.K | FixedReset Disc | -2.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 21.05 Evaluated at bid price : 21.05 Bid-YTW : 5.91 % |
| CM.PR.R | FixedReset Disc | -2.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 6.13 % |
| SLF.PR.C | Deemed-Retractible | -1.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 18.41 Evaluated at bid price : 18.41 Bid-YTW : 6.10 % |
| CU.PR.C | FixedReset Disc | -1.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 14.37 Evaluated at bid price : 14.37 Bid-YTW : 5.35 % |
| BAM.PF.E | FixedReset Disc | -1.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 13.01 Evaluated at bid price : 13.01 Bid-YTW : 6.35 % |
| BNS.PR.H | FixedReset Disc | -1.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 5.58 % |
| IFC.PR.G | FixedReset Ins Non | -1.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 14.25 Evaluated at bid price : 14.25 Bid-YTW : 6.17 % |
| EIT.PR.B | SplitShare | -1.67 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2025-03-14 Maturity Price : 25.00 Evaluated at bid price : 23.50 Bid-YTW : 6.37 % |
| TRP.PR.D | FixedReset Disc | -1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 13.05 Evaluated at bid price : 13.05 Bid-YTW : 6.14 % |
| IFC.PR.C | FixedReset Ins Non | -1.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 13.31 Evaluated at bid price : 13.31 Bid-YTW : 6.16 % |
| RY.PR.W | Perpetual-Discount | -1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 21.98 Evaluated at bid price : 22.21 Bid-YTW : 5.59 % |
| SLF.PR.E | Deemed-Retractible | -1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 18.65 Evaluated at bid price : 18.65 Bid-YTW : 6.09 % |
| EML.PR.A | FixedReset Ins Non | -1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 21.75 Evaluated at bid price : 22.20 Bid-YTW : 6.30 % |
| SLF.PR.D | Deemed-Retractible | -1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 18.52 Evaluated at bid price : 18.52 Bid-YTW : 6.07 % |
| NA.PR.A | FixedReset Disc | -1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 22.34 Evaluated at bid price : 22.75 Bid-YTW : 5.75 % |
| SLF.PR.A | Deemed-Retractible | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 19.65 Evaluated at bid price : 19.65 Bid-YTW : 6.10 % |
| IAF.PR.B | Deemed-Retractible | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 19.06 Evaluated at bid price : 19.06 Bid-YTW : 6.09 % |
| BNS.PR.Z | FixedReset Bank Non | -1.08 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.75 Bid-YTW : 4.88 % |
| BMO.PR.Y | FixedReset Disc | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 14.00 Evaluated at bid price : 14.00 Bid-YTW : 5.99 % |
| POW.PR.G | Perpetual-Discount | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 21.75 Evaluated at bid price : 22.07 Bid-YTW : 6.37 % |
| IAF.PR.I | FixedReset Ins Non | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 14.75 Evaluated at bid price : 14.75 Bid-YTW : 6.16 % |
| SLF.PR.J | FloatingReset | 1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 8.70 Evaluated at bid price : 8.70 Bid-YTW : 4.78 % |
| PWF.PR.E | Perpetual-Discount | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 21.53 Evaluated at bid price : 21.79 Bid-YTW : 6.32 % |
| RY.PR.H | FixedReset Disc | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 14.15 Evaluated at bid price : 14.15 Bid-YTW : 5.47 % |
| TD.PF.G | FixedReset Disc | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 22.73 Evaluated at bid price : 23.26 Bid-YTW : 5.64 % |
| CU.PR.D | Perpetual-Discount | 1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 20.98 Evaluated at bid price : 20.98 Bid-YTW : 5.93 % |
| PWF.PR.K | Perpetual-Discount | 1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 19.58 Evaluated at bid price : 19.58 Bid-YTW : 6.35 % |
| POW.PR.A | Perpetual-Discount | 1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 21.87 Evaluated at bid price : 22.11 Bid-YTW : 6.37 % |
| MFC.PR.H | FixedReset Ins Non | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 15.48 Evaluated at bid price : 15.48 Bid-YTW : 6.19 % |
| TRP.PR.F | FloatingReset | 1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 9.64 Evaluated at bid price : 9.64 Bid-YTW : 5.65 % |
| TRP.PR.J | FixedReset Disc | 1.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 23.44 Evaluated at bid price : 23.95 Bid-YTW : 5.81 % |
| BMO.PR.W | FixedReset Disc | 1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 13.80 Evaluated at bid price : 13.80 Bid-YTW : 5.69 % |
| CU.PR.G | Perpetual-Discount | 1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 19.39 Evaluated at bid price : 19.39 Bid-YTW : 5.89 % |
| BMO.PR.T | FixedReset Disc | 1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 13.55 Evaluated at bid price : 13.55 Bid-YTW : 5.68 % |
| PWF.PR.S | Perpetual-Discount | 1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 19.25 Evaluated at bid price : 19.25 Bid-YTW : 6.26 % |
| IAF.PR.G | FixedReset Ins Non | 1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 13.80 Evaluated at bid price : 13.80 Bid-YTW : 6.37 % |
| MFC.PR.K | FixedReset Ins Non | 1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 13.54 Evaluated at bid price : 13.54 Bid-YTW : 5.86 % |
| ELF.PR.H | Perpetual-Discount | 1.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 21.63 Evaluated at bid price : 21.95 Bid-YTW : 6.29 % |
| HSE.PR.C | FixedReset Disc | 1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 9.18 Evaluated at bid price : 9.18 Bid-YTW : 11.39 % |
| BIP.PR.C | FixedReset Disc | 1.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 21.41 Evaluated at bid price : 21.41 Bid-YTW : 6.31 % |
| BIP.PR.A | FixedReset Disc | 1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 14.25 Evaluated at bid price : 14.25 Bid-YTW : 7.35 % |
| BAM.PF.I | FixedReset Disc | 1.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 22.09 Evaluated at bid price : 22.38 Bid-YTW : 5.39 % |
| BAM.PF.H | FixedReset Disc | 1.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 22.71 Evaluated at bid price : 23.35 Bid-YTW : 5.36 % |
| W.PR.M | FixedReset Disc | 1.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 22.59 Evaluated at bid price : 23.00 Bid-YTW : 5.67 % |
| PWF.PR.L | Perpetual-Discount | 1.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 20.25 Evaluated at bid price : 20.25 Bid-YTW : 6.32 % |
| MFC.PR.O | FixedReset Ins Non | 2.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 23.51 Evaluated at bid price : 24.00 Bid-YTW : 5.83 % |
| NA.PR.X | FixedReset Disc | 2.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 23.54 Evaluated at bid price : 24.05 Bid-YTW : 5.68 % |
| BAM.PR.R | FixedReset Disc | 2.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 11.50 Evaluated at bid price : 11.50 Bid-YTW : 6.35 % |
| MFC.PR.R | FixedReset Ins Non | 2.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 18.50 Evaluated at bid price : 18.50 Bid-YTW : 6.11 % |
| RY.PR.J | FixedReset Disc | 3.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 15.41 Evaluated at bid price : 15.41 Bid-YTW : 5.47 % |
| CU.PR.F | Perpetual-Discount | 3.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 5.71 % |
| MFC.PR.F | FixedReset Ins Non | 3.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 8.57 Evaluated at bid price : 8.57 Bid-YTW : 5.91 % |
| MFC.PR.G | FixedReset Ins Non | 3.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 14.30 Evaluated at bid price : 14.30 Bid-YTW : 6.24 % |
| MFC.PR.L | FixedReset Ins Non | 3.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 12.93 Evaluated at bid price : 12.93 Bid-YTW : 5.88 % |
| NA.PR.C | FixedReset Disc | 4.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 16.85 Evaluated at bid price : 16.85 Bid-YTW : 6.06 % |
| HSE.PR.A | FixedReset Disc | 4.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 5.91 Evaluated at bid price : 5.91 Bid-YTW : 9.96 % |
| MFC.PR.I | FixedReset Ins Non | 5.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 14.79 Evaluated at bid price : 14.79 Bid-YTW : 6.13 % |
| CM.PR.P | FixedReset Disc | 5.90 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 13.29 Evaluated at bid price : 13.29 Bid-YTW : 5.93 % |
| TRP.PR.E | FixedReset Disc | 7.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 12.90 Evaluated at bid price : 12.90 Bid-YTW : 6.15 % |
| RY.PR.M | FixedReset Disc | 20.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 14.46 Evaluated at bid price : 14.46 Bid-YTW : 5.65 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| CM.PR.R | FixedReset Disc | 312,511 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 6.13 % |
| BNS.PR.H | FixedReset Disc | 297,922 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 5.58 % |
| TD.PF.J | FixedReset Disc | 103,846 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 16.71 Evaluated at bid price : 16.71 Bid-YTW : 5.29 % |
| TD.PF.A | FixedReset Disc | 79,417 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 13.76 Evaluated at bid price : 13.76 Bid-YTW : 5.56 % |
| RY.PR.Q | FixedReset Disc | 55,839 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 23.33 Evaluated at bid price : 23.85 Bid-YTW : 5.44 % |
| MFC.PR.G | FixedReset Ins Non | 45,799 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-04-13 Maturity Price : 14.30 Evaluated at bid price : 14.30 Bid-YTW : 6.24 % |
| There were 32 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| TD.PF.M | FixedReset Disc | Quote: 19.65 – 24.83 Spot Rate : 5.1800 Average : 2.7902 YTW SCENARIO |
| BAM.PF.A | FixedReset Disc | Quote: 15.75 – 21.00 Spot Rate : 5.2500 Average : 3.4390 YTW SCENARIO |
| TRP.PR.G | FixedReset Disc | Quote: 12.45 – 15.29 Spot Rate : 2.8400 Average : 2.1144 YTW SCENARIO |
| TD.PF.E | FixedReset Disc | Quote: 15.35 – 17.30 Spot Rate : 1.9500 Average : 1.4169 YTW SCENARIO |
| BAM.PF.I | FixedReset Disc | Quote: 22.38 – 23.84 Spot Rate : 1.4600 Average : 0.9772 YTW SCENARIO |
| TRP.PR.K | FixedReset Disc | Quote: 21.05 – 22.24 Spot Rate : 1.1900 Average : 0.8757 YTW SCENARIO |
Thats absolutely crazy that people would buy these 5yr bonds at a premium !! Must be locked in money that has rules where x% have to be in bonds. Otherwise, why would you lock in a loss ?
The Covered Bonds are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area (EEA) or in the United Kingdom (the UK)
Not sure about Canada/US but they are not meant to be sold to a regular investor. Probably they are sold to investment/pension funds. Why they are buying them? Probably there are some regulations or it costs more to keep money in regular accounts. Maybe James would know.
Pension funds, Insurance companies are the players here. They have to match their liabilities to their obligations and stay within the credit profiles mandated.
These covered bonds are backed by very high quality real estate collateral that has AAA ratings and an LTV of about 55%. 99.95% of these loans are performing. It’s as good as it gets in terms of getting real collateral. The links provided by James are excellent and worthwhile reading, especially the ones on Scotia site.