| 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 | -0.1228 % | 1,584.8 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1228 % | 2,908.1 |
| Floater | 5.27 % | 5.33 % | 56,817 | 14.90 | 3 | -0.1228 % | 1,675.9 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0644 % | 3,493.6 |
| SplitShare | 4.67 % | 4.63 % | 44,656 | 3.27 | 8 | 0.0644 % | 4,172.1 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0644 % | 3,255.2 |
| Perpetual-Premium | 5.56 % | 4.71 % | 78,918 | 4.05 | 4 | 0.2488 % | 3,094.2 |
| Perpetual-Discount | 5.47 % | 5.66 % | 75,251 | 14.39 | 31 | 0.2019 % | 3,336.2 |
| FixedReset Disc | 5.71 % | 4.37 % | 136,766 | 16.05 | 67 | 0.4336 % | 2,005.7 |
| Deemed-Retractible | 5.23 % | 5.30 % | 90,436 | 14.56 | 27 | 0.1932 % | 3,282.5 |
| FloatingReset | 2.94 % | 2.08 % | 37,989 | 1.46 | 3 | 0.5708 % | 1,759.8 |
| FixedReset Prem | 5.28 % | 4.40 % | 230,024 | 0.99 | 11 | -0.0612 % | 2,604.6 |
| FixedReset Bank Non | 1.95 % | 2.24 % | 106,800 | 1.46 | 2 | 0.0202 % | 2,837.2 |
| FixedReset Ins Non | 5.79 % | 4.53 % | 94,376 | 16.08 | 22 | 0.2939 % | 2,057.6 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IFC.PR.A | FixedReset Ins Non | -1.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 12.06 Evaluated at bid price : 12.06 Bid-YTW : 4.68 % |
| NA.PR.S | FixedReset Disc | -1.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 16.51 Evaluated at bid price : 16.51 Bid-YTW : 4.52 % |
| IFC.PR.G | FixedReset Ins Non | -1.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 17.75 Evaluated at bid price : 17.75 Bid-YTW : 4.54 % |
| PWF.PR.T | FixedReset Disc | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 15.98 Evaluated at bid price : 15.98 Bid-YTW : 4.67 % |
| BMO.PR.T | FixedReset Disc | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 16.12 Evaluated at bid price : 16.12 Bid-YTW : 4.31 % |
| IAF.PR.I | FixedReset Ins Non | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 19.65 Evaluated at bid price : 19.65 Bid-YTW : 4.28 % |
| TRP.PR.E | FixedReset Disc | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 13.75 Evaluated at bid price : 13.75 Bid-YTW : 5.36 % |
| TRP.PR.C | FixedReset Disc | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 8.74 Evaluated at bid price : 8.74 Bid-YTW : 5.35 % |
| MFC.PR.M | FixedReset Ins Non | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 16.12 Evaluated at bid price : 16.12 Bid-YTW : 4.62 % |
| GWO.PR.Q | Deemed-Retractible | 1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 23.20 Evaluated at bid price : 23.45 Bid-YTW : 5.55 % |
| MFC.PR.I | FixedReset Ins Non | 1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 18.70 Evaluated at bid price : 18.70 Bid-YTW : 4.48 % |
| CM.PR.Q | FixedReset Disc | 1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 17.80 Evaluated at bid price : 17.80 Bid-YTW : 4.40 % |
| MFC.PR.J | FixedReset Ins Non | 1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 17.80 Evaluated at bid price : 17.80 Bid-YTW : 4.53 % |
| NA.PR.W | FixedReset Disc | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 16.45 Evaluated at bid price : 16.45 Bid-YTW : 4.36 % |
| BAM.PR.R | FixedReset Disc | 1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 12.46 Evaluated at bid price : 12.46 Bid-YTW : 5.35 % |
| MFC.PR.F | FixedReset Ins Non | 1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 9.83 Evaluated at bid price : 9.83 Bid-YTW : 4.49 % |
| BAM.PF.D | Perpetual-Discount | 1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 22.21 Evaluated at bid price : 22.21 Bid-YTW : 5.59 % |
| SLF.PR.J | FloatingReset | 2.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 9.20 Evaluated at bid price : 9.20 Bid-YTW : 4.34 % |
| BAM.PR.T | FixedReset Disc | 2.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 12.90 Evaluated at bid price : 12.90 Bid-YTW : 5.33 % |
| MFC.PR.L | FixedReset Ins Non | 3.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 15.00 Evaluated at bid price : 15.00 Bid-YTW : 4.65 % |
| BAM.PR.X | FixedReset Disc | 3.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 10.70 Evaluated at bid price : 10.70 Bid-YTW : 5.16 % |
| BMO.PR.F | FixedReset Disc | 14.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 22.85 Evaluated at bid price : 23.95 Bid-YTW : 4.18 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| SLF.PR.C | Deemed-Retractible | 191,950 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 21.28 Evaluated at bid price : 21.28 Bid-YTW : 5.30 % |
| SLF.PR.B | Deemed-Retractible | 53,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 22.72 Evaluated at bid price : 23.01 Bid-YTW : 5.27 % |
| CU.PR.C | FixedReset Disc | 49,200 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 15.43 Evaluated at bid price : 15.43 Bid-YTW : 4.50 % |
| CU.PR.I | FixedReset Disc | 35,686 | YTW SCENARIO Maturity Type : Call Maturity Date : 2020-12-01 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 3.54 % |
| SLF.PR.D | Deemed-Retractible | 34,735 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 21.35 Evaluated at bid price : 21.35 Bid-YTW : 5.28 % |
| BAM.PR.X | FixedReset Disc | 33,258 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-08-07 Maturity Price : 10.70 Evaluated at bid price : 10.70 Bid-YTW : 5.16 % |
| There were 15 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| EIT.PR.B | SplitShare | Quote: 25.35 – 26.35 Spot Rate : 1.0000 Average : 0.6464 YTW SCENARIO |
| MFC.PR.K | FixedReset Ins Non | Quote: 16.20 – 16.95 Spot Rate : 0.7500 Average : 0.4532 YTW SCENARIO |
| TD.PF.I | FixedReset Disc | Quote: 20.98 – 21.70 Spot Rate : 0.7200 Average : 0.5137 YTW SCENARIO |
| MFC.PR.M | FixedReset Ins Non | Quote: 16.12 – 16.67 Spot Rate : 0.5500 Average : 0.3748 YTW SCENARIO |
| MFC.PR.H | FixedReset Ins Non | Quote: 19.62 – 20.18 Spot Rate : 0.5600 Average : 0.3907 YTW SCENARIO |
| RY.PR.S | FixedReset Disc | Quote: 18.85 – 19.25 Spot Rate : 0.4000 Average : 0.2708 YTW SCENARIO |
Today there were rumours of canaccord genuity hiring an adviser to explore a sale of all or part of it’s business.
Hypothetically speaking, if they are acquired by a bank, could that lead to the prefs being redeemed due to NVCC non-compliance?
Canaccord Genuity Hires Advisers to Explore Sale
Hypothetically speaking, if they are acquired by a bank, could that lead to the prefs being redeemed due to NVCC non-compliance?
Yes.
Note, however, that this would probably require a further improvement in market conditions. CF.PR.A has an Issue Reset Spread of 321bp and trades at 12.50 to yield 7.22%; but BMO.PR.D has an Issue Reset Spread of 317bp and trades at 21.56 to yield 4.13%.
CF.PR.C has an Issue Reset Spread of 403bp and trades at 15.75 to yield 7.15%; but BMO.PR.B has an Issue Reset Spread of 406bp and trades at 25.10 to yield 4.31%.
So lots of potential gains there, but mostly due to improved credit. And it would all depend on Canaccord being wholly acquired by a bank; if they just sold off a part of the business, they would almost certainly retain the preferreds in their continuing operation.
Hypothetically speaking, if they are acquired by a bank, could that lead to the prefs being redeemed due to NVCC non-compliance?
Yes …
I have trouble following the above. Even if Canaccord gets wholly acquired by a Bank, that wouldn’t make Canaccord or any new iteration of same a “financial institution” subject to the NVCC regime. Presumably any purchaser would be buying Canaccord for what it does now, ie investment banking and wealth management. If the pref shares get redeemed, it would be for other reasons.
Or am I missing something here?
Hypothetically speaking, if they are acquired by a bank, could that lead to the prefs being redeemed due to NVCC non-compliance?
Yes …
I have trouble following the above. Even if Canaccord gets wholly acquired by a Bank, that wouldn’t make Canaccord or any new iteration of same a “financial institution” subject to the NVCC regime.
If a bank buys Canaccord in its entirety, then it will still be paying preferred share prices (as after-tax dividends) for issues that they cannot claim as Tier 1 Capital. Therefore, from the bank’s perspective, these preferred shares will not be ‘cheap equity’, they will be ‘expensive debt’; therefore, by the same reasoning as applies to bank non-compliant issues, they will be redeemed.
James, thank you.