In a dismal opening session even by recent standards, CCS.PR.C, announced May 23, commenced trading today.
Four hundred shares.
Closed at 23.00-99, 2×5.
So, I suspect the underwriters still have most of this on their books. This issue wasn’t priced too horribly to begin with, but arrived when the market was in a downturn. It may even have contributed to the downturn, if the underwriters were frantically shorting tradable shares to hedge their position (which would tie in with the observation that more liquid issues got hurt most in May), but that’s merely speculation.
If the underwriters do, in fact, have a lot on their books, there might well be an inventory blow-out sale on the horizon … but I keep looking for a sale on BAM.PR.N that hasn’t arrived yet, so don’t go by what I say!
The curve price for this issue of $22.63 is derived as follows:
Price due to base-rate : 22.80
Price due to short-term : -0.50
Price due to long-term : 1.90
Price due to Interest Income : 0.00
Price to to Cumulative Dividends : 0.00
Price due to SplitShareCorp : 0.00
Price due to Retractibility : 0.00
Price due to Credit Spread (2) : 0.00
Price due to Liquidity : 0.00
Price due to Floating Rate : 0.00
Price due to Credit Spread (3) : -1.75
Price due to error : 0.18
Price due to Credit Spread (High) : 0.00
Price due to Credit Spread (Low) : 0.00