I wonder if any of the perpetuals listed today will last as long as this long bond:
YaleNews revealed that a water bond dating as far back as 1648 still contractually binds the obligated parties to pay annual interest today. Upon its discovery and subsequent analysis of its terms and agreements, reports indicate that at the time of its execution, the bond operated as a perpetual bond.
The original clauses of the agreement bound the payer to “5 percent interest in perpetuity,” a rate which was later lowered to 3.5 percent and then 2.5 percent respectively in the 1600s. At the time, physical notations of interest payments were inscribed on the bond as they were made as a means of recording them. Being of Dutch-origin and made out of goatskin, when the bond was issued, it was apparently made out to Mr. Niclaes de Meijer, a man who was ordered to pay the “sum of 1000 Carolus Guilders of 20 Stuivers a piece.”
The manuscript was filed at Yale’s Beinecke Rare Book & Manuscript Library in 2003 after Yale managed to come into possession of it. After Timothy Young, the curator of Modern Books and Manuscripts at the library, conferred with a Dutch water authority named Stichtse Rijnlanden, not only did he discover that this bond was only one of five ever found, all five of them were administered by the Hoogheemraadschap Lekdijk Bovendams.
…
In 2015, when Timothy Young returned from meeting with the relevant Dutch authority, he also brought back with him 12 years of back interest which was owed on the bond, a total which amounted to approximately 136.20 euros. Prior to 2015, the last time that the bond payments were collected was in 2003 when Yale first acquired it. At that time, as the reports states, “Geert Rouwenhorst, professor of corporate finance and deputy director of the International Center for Finance, took the bond back to the Netherlands to collect 26 years of back interest.”
Here’s a bit more sleaze from the Pace Credit Union Scandal discussed on June 18, from the extracts from the Pace Financial Offering Memorandum included in the First Report of the Liquidator obtained via the Receiver’s website:
The Issuer expects to pay fees to the Manager at standard rates common in the industry for those services – namely, asset management fees of 0.25% per month (3.0% per annum) calculated on the value of the Portfolio from time to time plus performance fees equal to 50% of profits earned provided that, in the event that the Issuer has a deficit (i.e. no profits or inadequate profits to provide for base dividends on the Preference Shares) for any particular quarter-yearly period, the asset management fees or performance fees will be reduced to the extent necessary to enable the Issuer to meet its dividend obligations, if possible, or, if not possible, waived for such period and, to those extents, will be payable in such reduced amount or will not be payable, as the case may be.
An extortionate (not “standard”!) 3% management fee per annum (the Manager is Pace Securities Corp), plus a 50% cut of profits, plus full ownership at no cost of all the common. It’s nice work, if you can get it.
It is regrettable that the Offering Memorandum is not published in its entirety; page 10 of the OM ends with:
3.1 Compensation and Securities Held
The following table provides specified information about each director, officer and promoter of the Issuer and each person who
… and pages 11 and 12 are missing. What a pity! It would have given me great pleasure to prominently display the names of the officers, directors and promoters of an issue such as this.
And finally, I cannot resist republishing the following comic SMBC Comics:
Click for Big
| 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 | 0.3780 % | 1,456.5 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3780 % | 2,672.5 |
| Floater | 5.38 % | 5.69 % | 48,122 | 14.39 | 4 | 0.3780 % | 1,540.2 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.5515 % | 3,421.5 |
| SplitShare | 4.91 % | 5.14 % | 67,109 | 3.83 | 7 | -0.5515 % | 4,086.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.5515 % | 3,188.1 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1882 % | 3,045.0 |
| Perpetual-Discount | 5.54 % | 5.71 % | 76,956 | 14.26 | 35 | 0.1882 % | 3,266.1 |
| FixedReset Disc | 6.22 % | 5.11 % | 153,187 | 14.96 | 83 | 0.1785 % | 1,836.3 |
| Deemed-Retractible | 5.31 % | 5.40 % | 86,573 | 14.42 | 27 | -0.1266 % | 3,226.2 |
| FloatingReset | 4.91 % | 4.94 % | 46,281 | 15.62 | 3 | 0.6444 % | 1,795.5 |
| FixedReset Prem | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1785 % | 2,539.6 |
| FixedReset Bank Non | 1.98 % | 3.31 % | 121,849 | 1.57 | 2 | 0.1023 % | 2,787.9 |
| FixedReset Ins Non | 6.43 % | 5.07 % | 118,758 | 14.92 | 22 | 0.7622 % | 1,862.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRP.PR.G | FixedReset Disc | -8.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 13.35 Evaluated at bid price : 13.35 Bid-YTW : 6.31 % |
| BIK.PR.A | FixedReset Disc | -7.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 22.11 Evaluated at bid price : 22.60 Bid-YTW : 6.49 % |
| BAM.PF.F | FixedReset Disc | -6.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 14.50 Evaluated at bid price : 14.50 Bid-YTW : 5.94 % |
| TD.PF.D | FixedReset Disc | -5.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.51 Evaluated at bid price : 15.51 Bid-YTW : 5.17 % |
| TRP.PR.B | FixedReset Disc | -3.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 7.55 Evaluated at bid price : 7.55 Bid-YTW : 5.46 % |
| PVS.PR.G | SplitShare | -2.20 % | YTW SCENARIO Maturity Type : Option Certainty Maturity Date : 2026-02-28 Maturity Price : 25.00 Evaluated at bid price : 24.01 Bid-YTW : 5.80 % |
| HSE.PR.G | FixedReset Disc | -1.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 10.80 Evaluated at bid price : 10.80 Bid-YTW : 9.06 % |
| IAF.PR.B | Deemed-Retractible | -1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 21.40 Evaluated at bid price : 21.40 Bid-YTW : 5.40 % |
| PVS.PR.F | SplitShare | -1.59 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2024-09-30 Maturity Price : 25.00 Evaluated at bid price : 24.75 Bid-YTW : 5.14 % |
| TD.PF.E | FixedReset Disc | -1.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 16.60 Evaluated at bid price : 16.60 Bid-YTW : 4.96 % |
| CU.PR.C | FixedReset Disc | -1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 14.40 Evaluated at bid price : 14.40 Bid-YTW : 4.96 % |
| HSE.PR.E | FixedReset Disc | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 11.75 Evaluated at bid price : 11.75 Bid-YTW : 8.96 % |
| PVS.PR.E | SplitShare | -1.11 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.02 Bid-YTW : 5.60 % |
| BAM.PF.G | FixedReset Disc | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 14.00 Evaluated at bid price : 14.00 Bid-YTW : 5.75 % |
| RY.PR.Z | FixedReset Disc | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.31 Evaluated at bid price : 15.31 Bid-YTW : 4.64 % |
| BIP.PR.B | FixedReset Disc | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 23.00 Evaluated at bid price : 23.75 Bid-YTW : 5.78 % |
| IFC.PR.C | FixedReset Ins Non | 1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 14.19 Evaluated at bid price : 14.19 Bid-YTW : 5.39 % |
| TD.PF.B | FixedReset Disc | 1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.30 Evaluated at bid price : 15.30 Bid-YTW : 4.78 % |
| SLF.PR.G | FixedReset Ins Non | 1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 9.16 Evaluated at bid price : 9.16 Bid-YTW : 4.86 % |
| CM.PR.Q | FixedReset Disc | 1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.25 Evaluated at bid price : 15.25 Bid-YTW : 5.26 % |
| CM.PR.O | FixedReset Disc | 1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 14.25 Evaluated at bid price : 14.25 Bid-YTW : 5.24 % |
| RY.PR.H | FixedReset Disc | 1.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.63 Evaluated at bid price : 15.63 Bid-YTW : 4.61 % |
| NA.PR.W | FixedReset Disc | 1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 14.82 Evaluated at bid price : 14.82 Bid-YTW : 5.00 % |
| TRP.PR.K | FixedReset Disc | 1.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 22.76 Evaluated at bid price : 23.10 Bid-YTW : 5.34 % |
| TD.PF.C | FixedReset Disc | 1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.48 Evaluated at bid price : 15.48 Bid-YTW : 4.84 % |
| BMO.PR.C | FixedReset Disc | 1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 18.75 Evaluated at bid price : 18.75 Bid-YTW : 5.09 % |
| TD.PF.I | FixedReset Disc | 1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 18.55 Evaluated at bid price : 18.55 Bid-YTW : 4.84 % |
| PWF.PR.T | FixedReset Disc | 1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 14.96 Evaluated at bid price : 14.96 Bid-YTW : 5.20 % |
| MFC.PR.N | FixedReset Ins Non | 1.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 14.72 Evaluated at bid price : 14.72 Bid-YTW : 5.00 % |
| BMO.PR.T | FixedReset Disc | 1.95 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 14.63 Evaluated at bid price : 14.63 Bid-YTW : 4.90 % |
| BMO.PR.D | FixedReset Disc | 1.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 18.25 Evaluated at bid price : 18.25 Bid-YTW : 5.04 % |
| NA.PR.G | FixedReset Disc | 2.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 17.52 Evaluated at bid price : 17.52 Bid-YTW : 5.03 % |
| TD.PF.M | FixedReset Disc | 2.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 21.64 Evaluated at bid price : 21.95 Bid-YTW : 4.84 % |
| RY.PR.M | FixedReset Disc | 2.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.98 Evaluated at bid price : 15.98 Bid-YTW : 4.73 % |
| SLF.PR.J | FloatingReset | 2.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 9.20 Evaluated at bid price : 9.20 Bid-YTW : 4.38 % |
| BMO.PR.W | FixedReset Disc | 2.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.03 Evaluated at bid price : 15.03 Bid-YTW : 4.86 % |
| CM.PR.R | FixedReset Disc | 2.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 18.77 Evaluated at bid price : 18.77 Bid-YTW : 5.19 % |
| NA.PR.S | FixedReset Disc | 2.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.25 Evaluated at bid price : 15.25 Bid-YTW : 5.05 % |
| TD.PF.L | FixedReset Disc | 2.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 4.92 % |
| PWF.PR.P | FixedReset Disc | 2.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 9.65 Evaluated at bid price : 9.65 Bid-YTW : 5.21 % |
| BIP.PR.A | FixedReset Disc | 2.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.11 Evaluated at bid price : 15.11 Bid-YTW : 6.53 % |
| NA.PR.C | FixedReset Disc | 3.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 18.90 Evaluated at bid price : 18.90 Bid-YTW : 5.20 % |
| MFC.PR.R | FixedReset Ins Non | 3.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 21.12 Evaluated at bid price : 21.12 Bid-YTW : 5.07 % |
| MFC.PR.G | FixedReset Ins Non | 3.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 16.25 Evaluated at bid price : 16.25 Bid-YTW : 5.13 % |
| BMO.PR.S | FixedReset Disc | 3.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.24 Evaluated at bid price : 15.24 Bid-YTW : 4.88 % |
| SLF.PR.I | FixedReset Ins Non | 3.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 4.96 % |
| CM.PR.P | FixedReset Disc | 3.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 14.98 Evaluated at bid price : 14.98 Bid-YTW : 5.01 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BMO.PR.S | FixedReset Disc | 69,256 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.24 Evaluated at bid price : 15.24 Bid-YTW : 4.88 % |
| TD.PF.E | FixedReset Disc | 67,813 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 16.60 Evaluated at bid price : 16.60 Bid-YTW : 4.96 % |
| TRP.PR.K | FixedReset Disc | 55,724 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 22.76 Evaluated at bid price : 23.10 Bid-YTW : 5.34 % |
| CU.PR.C | FixedReset Disc | 46,621 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 14.40 Evaluated at bid price : 14.40 Bid-YTW : 4.96 % |
| TRP.PR.G | FixedReset Disc | 44,616 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 13.35 Evaluated at bid price : 13.35 Bid-YTW : 6.31 % |
| TD.PF.B | FixedReset Disc | 40,423 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-22 Maturity Price : 15.30 Evaluated at bid price : 15.30 Bid-YTW : 4.78 % |
| There were 30 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BAM.PR.X | FixedReset Disc | Quote: 9.86 – 17.27 Spot Rate : 7.4100 Average : 4.2190 YTW SCENARIO |
| RY.PR.M | FixedReset Disc | Quote: 15.98 – 25.50 Spot Rate : 9.5200 Average : 7.4821 YTW SCENARIO |
| TRP.PR.G | FixedReset Disc | Quote: 13.35 – 14.60 Spot Rate : 1.2500 Average : 0.8507 YTW SCENARIO |
| TD.PF.D | FixedReset Disc | Quote: 15.51 – 16.60 Spot Rate : 1.0900 Average : 0.6930 YTW SCENARIO |
| BAM.PF.F | FixedReset Disc | Quote: 14.50 – 15.55 Spot Rate : 1.0500 Average : 0.7217 YTW SCENARIO |
| MFC.PR.I | FixedReset Ins Non | Quote: 15.40 – 16.96 Spot Rate : 1.5600 Average : 1.2450 YTW SCENARIO |