January 8, 2021

January 8th, 2021

And now it’s time for me to prepare PrefLetter!

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 0.6039 % 1,903.7
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.6039 % 3,493.2
Floater 4.54 % 4.58 % 48,923 16.30 3 0.6039 % 2,013.2
OpRet 0.00 % 0.00 % 0 0.00 0 -0.1836 % 3,614.9
SplitShare 4.72 % 4.53 % 39,313 3.77 8 -0.1836 % 4,316.9
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.1836 % 3,368.2
Perpetual-Premium 5.35 % -4.06 % 64,765 0.09 18 -0.0804 % 3,227.1
Perpetual-Discount 5.01 % 5.04 % 68,245 15.39 13 -0.2372 % 3,687.6
FixedReset Disc 4.97 % 3.82 % 134,370 17.46 57 0.4028 % 2,364.1
Insurance Straight 5.04 % 4.79 % 84,241 15.34 22 -0.1630 % 3,568.5
FloatingReset 2.55 % 0.80 % 31,902 0.15 3 -0.4394 % 1,875.3
FixedReset Prem 5.14 % 3.27 % 195,064 1.02 20 0.0729 % 2,692.0
FixedReset Bank Non 1.94 % 1.78 % 144,670 1.05 2 0.0000 % 2,881.4
FixedReset Ins Non 4.88 % 3.78 % 86,752 17.61 22 0.2080 % 2,497.5
Performance Highlights
Issue Index Change Notes
MFC.PR.I FixedReset Ins Non -3.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 21.67
Evaluated at bid price : 22.10
Bid-YTW : 3.83 %
SLF.PR.J FloatingReset -2.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 11.07
Evaluated at bid price : 11.07
Bid-YTW : 3.34 %
TRP.PR.B FixedReset Disc -1.60 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 9.25
Evaluated at bid price : 9.25
Bid-YTW : 4.67 %
IFC.PR.E Insurance Straight -1.55 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-06-30
Maturity Price : 25.25
Evaluated at bid price : 25.40
Bid-YTW : 5.06 %
RS.PR.A SplitShare -1.45 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-12-31
Maturity Price : 10.00
Evaluated at bid price : 10.16
Bid-YTW : 4.94 %
MFC.PR.G FixedReset Ins Non -1.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 21.71
Evaluated at bid price : 22.15
Bid-YTW : 3.79 %
MFC.PR.C Insurance Straight -1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 23.74
Evaluated at bid price : 24.05
Bid-YTW : 4.70 %
BIP.PR.E FixedReset Disc 1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 23.29
Evaluated at bid price : 24.40
Bid-YTW : 5.10 %
BMO.PR.S FixedReset Disc 1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 20.60
Evaluated at bid price : 20.60
Bid-YTW : 3.62 %
MFC.PR.M FixedReset Ins Non 1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 19.98
Evaluated at bid price : 19.98
Bid-YTW : 3.78 %
BMO.PR.Y FixedReset Disc 1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 21.35
Evaluated at bid price : 21.65
Bid-YTW : 3.63 %
BAM.PR.Z FixedReset Disc 1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 18.90
Evaluated at bid price : 18.90
Bid-YTW : 4.71 %
PWF.PR.T FixedReset Disc 1.47 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 18.60
Evaluated at bid price : 18.60
Bid-YTW : 4.07 %
SLF.PR.G FixedReset Ins Non 1.49 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 12.28
Evaluated at bid price : 12.28
Bid-YTW : 3.78 %
BAM.PF.E FixedReset Disc 1.60 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 16.50
Evaluated at bid price : 16.50
Bid-YTW : 4.76 %
BAM.PF.B FixedReset Disc 1.61 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 17.70
Evaluated at bid price : 17.70
Bid-YTW : 4.71 %
BAM.PF.A FixedReset Disc 1.83 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 19.50
Evaluated at bid price : 19.50
Bid-YTW : 4.64 %
TRP.PR.E FixedReset Disc 1.99 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 15.35
Evaluated at bid price : 15.35
Bid-YTW : 4.88 %
NA.PR.E FixedReset Disc 2.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 21.20
Evaluated at bid price : 21.20
Bid-YTW : 3.76 %
IAF.PR.G FixedReset Ins Non 3.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 21.52
Evaluated at bid price : 21.89
Bid-YTW : 3.79 %
BAM.PR.T FixedReset Disc 5.61 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 15.05
Evaluated at bid price : 15.05
Bid-YTW : 4.67 %
GWO.PR.N FixedReset Ins Non 5.95 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 11.93
Evaluated at bid price : 11.93
Bid-YTW : 3.67 %
Volume Highlights
Issue Index Shares
Traded
Notes
BAM.PF.B FixedReset Disc 163,800 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 17.70
Evaluated at bid price : 17.70
Bid-YTW : 4.71 %
BMO.PR.S FixedReset Disc 114,425 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 20.60
Evaluated at bid price : 20.60
Bid-YTW : 3.62 %
NA.PR.A FixedReset Prem 100,077 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-08-15
Maturity Price : 25.00
Evaluated at bid price : 25.32
Bid-YTW : 2.37 %
TRP.PR.K FixedReset Disc 82,200 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 23.75
Evaluated at bid price : 24.95
Bid-YTW : 4.90 %
BMO.PR.T FixedReset Disc 72,153 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 19.77
Evaluated at bid price : 19.77
Bid-YTW : 3.65 %
TD.PF.A FixedReset Disc 49,375 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 20.41
Evaluated at bid price : 20.41
Bid-YTW : 3.50 %
There were 18 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
CU.PR.H Perpetual-Premium Quote: 25.60 – 26.60
Spot Rate : 1.0000
Average : 0.6000

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2023-09-01
Maturity Price : 25.25
Evaluated at bid price : 25.60
Bid-YTW : 4.89 %

MFC.PR.I FixedReset Ins Non Quote: 22.10 – 22.86
Spot Rate : 0.7600
Average : 0.4970

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 21.67
Evaluated at bid price : 22.10
Bid-YTW : 3.83 %

TD.PF.A FixedReset Disc Quote: 20.41 – 20.98
Spot Rate : 0.5700
Average : 0.3511

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 20.41
Evaluated at bid price : 20.41
Bid-YTW : 3.50 %

MFC.PR.G FixedReset Ins Non Quote: 22.15 – 22.90
Spot Rate : 0.7500
Average : 0.5338

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 21.71
Evaluated at bid price : 22.15
Bid-YTW : 3.79 %

GWO.PR.I Insurance Straight Quote: 23.73 – 24.10
Spot Rate : 0.3700
Average : 0.2386

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 23.44
Evaluated at bid price : 23.73
Bid-YTW : 4.76 %

MFC.PR.C Insurance Straight Quote: 24.05 – 24.53
Spot Rate : 0.4800
Average : 0.3536

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-08
Maturity Price : 23.74
Evaluated at bid price : 24.05
Bid-YTW : 4.70 %

January 7, 2021

January 7th, 2021
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 -0.2834 % 1,892.3
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.2834 % 3,472.2
Floater 4.57 % 4.60 % 48,629 16.26 3 -0.2834 % 2,001.1
OpRet 0.00 % 0.00 % 0 0.00 0 0.0392 % 3,621.5
SplitShare 4.71 % 4.48 % 39,746 3.77 8 0.0392 % 4,324.9
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0392 % 3,374.4
Perpetual-Premium 5.35 % -6.01 % 64,671 0.09 18 0.2585 % 3,229.7
Perpetual-Discount 5.00 % 5.04 % 68,055 15.41 13 0.3285 % 3,696.3
FixedReset Disc 4.99 % 3.79 % 136,024 17.55 57 -0.0156 % 2,354.6
Insurance Straight 5.03 % 4.72 % 84,269 15.36 22 0.1982 % 3,574.3
FloatingReset 2.52 % 0.78 % 31,736 0.15 3 0.3359 % 1,883.6
FixedReset Prem 5.15 % 2.98 % 198,167 1.03 20 -0.1530 % 2,690.1
FixedReset Bank Non 1.94 % 1.72 % 150,620 1.05 2 -0.0400 % 2,881.4
FixedReset Ins Non 4.89 % 3.68 % 88,047 17.72 22 1.4079 % 2,492.3
Performance Highlights
Issue Index Change Notes
BAM.PR.T FixedReset Disc -4.68 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 14.25
Evaluated at bid price : 14.25
Bid-YTW : 4.86 %
GWO.PR.N FixedReset Ins Non -4.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 11.26
Evaluated at bid price : 11.26
Bid-YTW : 3.81 %
TRP.PR.B FixedReset Disc -1.88 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 9.40
Evaluated at bid price : 9.40
Bid-YTW : 4.49 %
PWF.PR.T FixedReset Disc -1.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 18.33
Evaluated at bid price : 18.33
Bid-YTW : 4.07 %
CU.PR.C FixedReset Disc -1.30 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 18.17
Evaluated at bid price : 18.17
Bid-YTW : 3.94 %
BAM.PF.I FixedReset Prem -1.22 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.11
Bid-YTW : 4.52 %
MFC.PR.K FixedReset Ins Non 1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 19.58
Evaluated at bid price : 19.58
Bid-YTW : 3.66 %
SLF.PR.B Insurance Straight 1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 24.64
Evaluated at bid price : 24.89
Bid-YTW : 4.84 %
SLF.PR.C Insurance Straight 1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 23.92
Evaluated at bid price : 24.18
Bid-YTW : 4.62 %
EIT.PR.A SplitShare 1.18 % YTW SCENARIO
Maturity Type : Soft Maturity
Maturity Date : 2024-03-14
Maturity Price : 25.00
Evaluated at bid price : 25.80
Bid-YTW : 3.85 %
IAF.PR.I FixedReset Ins Non 1.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 21.70
Evaluated at bid price : 22.15
Bid-YTW : 3.73 %
NA.PR.W FixedReset Disc 1.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 19.27
Evaluated at bid price : 19.27
Bid-YTW : 3.73 %
BIK.PR.A FixedReset Prem 1.38 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2024-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.75
Bid-YTW : 4.91 %
MFC.PR.J FixedReset Ins Non 1.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 21.52
Evaluated at bid price : 21.90
Bid-YTW : 3.63 %
TRP.PR.C FixedReset Disc 1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 10.50
Evaluated at bid price : 10.50
Bid-YTW : 4.61 %
MFC.PR.I FixedReset Ins Non 1.51 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 22.52
Evaluated at bid price : 22.89
Bid-YTW : 3.64 %
PWF.PR.P FixedReset Disc 1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 11.80
Evaluated at bid price : 11.80
Bid-YTW : 4.22 %
MFC.PR.F FixedReset Ins Non 1.88 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 12.44
Evaluated at bid price : 12.44
Bid-YTW : 3.66 %
BAM.PR.X FixedReset Disc 2.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 12.70
Evaluated at bid price : 12.70
Bid-YTW : 4.42 %
MFC.PR.N FixedReset Ins Non 31.68 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 19.95
Evaluated at bid price : 19.95
Bid-YTW : 3.65 %
Volume Highlights
Issue Index Shares
Traded
Notes
BMO.PR.D FixedReset Disc 160,800 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 24.11
Evaluated at bid price : 24.44
Bid-YTW : 3.73 %
BNS.PR.E FixedReset Prem 124,330 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-25
Maturity Price : 25.00
Evaluated at bid price : 25.15
Bid-YTW : 2.44 %
TD.PF.G FixedReset Prem 87,000 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-30
Maturity Price : 25.00
Evaluated at bid price : 25.18
Bid-YTW : 1.94 %
BAM.PF.F FixedReset Disc 67,233 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 18.10
Evaluated at bid price : 18.10
Bid-YTW : 4.74 %
NA.PR.X FixedReset Prem 66,463 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-15
Maturity Price : 25.00
Evaluated at bid price : 25.17
Bid-YTW : 1.94 %
IFC.PR.A FixedReset Ins Non 55,560 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 15.39
Evaluated at bid price : 15.39
Bid-YTW : 3.64 %
There were 23 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: 12.70 – 14.75
Spot Rate : 2.0500
Average : 1.1906

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 12.70
Evaluated at bid price : 12.70
Bid-YTW : 4.42 %

SLF.PR.I FixedReset Ins Non Quote: 21.38 – 23.00
Spot Rate : 1.6200
Average : 0.9116

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 21.38
Evaluated at bid price : 21.38
Bid-YTW : 3.70 %

BIP.PR.C FixedReset Disc Quote: 24.75 – 25.74
Spot Rate : 0.9900
Average : 0.5835

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 24.25
Evaluated at bid price : 24.75
Bid-YTW : 5.42 %

BAM.PR.T FixedReset Disc Quote: 14.25 – 15.17
Spot Rate : 0.9200
Average : 0.5392

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 14.25
Evaluated at bid price : 14.25
Bid-YTW : 4.86 %

GWO.PR.N FixedReset Ins Non Quote: 11.26 – 12.20
Spot Rate : 0.9400
Average : 0.5827

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 11.26
Evaluated at bid price : 11.26
Bid-YTW : 3.81 %

TRP.PR.E FixedReset Disc Quote: 15.05 – 15.70
Spot Rate : 0.6500
Average : 0.4117

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-07
Maturity Price : 15.05
Evaluated at bid price : 15.05
Bid-YTW : 4.91 %

BEP.PR.G To Reset at 5.50% (Minimum Guaranteed Rate)

January 6th, 2021

Brookfield Renewable Partners L.P. has announced:

that it has determined the fixed distribution rate on its Class A Preferred Limited Partnership Units, Series 7 (“Series 7 Units”) (TSX: BEP.PR.G) for the five years commencing February 1, 2021 and ending January 31, 2026.

Series 7 Units and Series 8 Units

If declared, the fixed quarterly distributions on the Series 7 Units during the five years commencing February 1, 2021 will be paid at an annual rate of 5.50% ($0.343750 per unit per quarter).

Holders of Series 7 Units have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on January 18, 2021, to reclassify all or part of their Series 7 Units, on a one-for-one basis, into Class A Preferred Limited Partnership Units, Series 8 (“Series 8 Units”), effective January 31, 2021.

The quarterly floating rate distributions on the Series 8 Units will be paid at an annual rate, calculated for each quarter, of 4.47% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly distribution rate in respect of the February 1, 2021 to April 30, 2021 distribution period for the Series 8 Units will be 1.11799% (4.585% on an annualized basis) and the distribution, if declared, for such distribution period will be $0.279498 per unit, payable on April 30, 2021.

Holders of Series 7 Units are not required to elect to reclassify all or any part of their Series 7 Units into Series 8 Units.

As provided in the unit conditions of the Series 7 Units, (i) if Brookfield Renewable determines that there would be fewer than 1,000,000 Series 7 Units outstanding after January 31, 2021, all remaining Series 7 Units will be automatically reclassified into Series 8 Units on a one-for-one basis effective January 31, 2021; or (ii) if Brookfield Renewable determines that there would be fewer than 1,000,000 Series 8 Units outstanding after January 31, 2021, no Series 7 Units will be reclassified into Series 8 Units. There are currently 7,000,000 Series 7 Units outstanding.

The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series 8 Units effective upon reclassification. Listing of the Series 8 Units is subject to Brookfield Renewable fulfilling all the listing requirements of the TSX and, upon approval, the Series 8 Units will be listed on the TSX under the trading symbol “BEP.PR.H”.

BEP.PR.G was issued as a Preferred Units FixedReset 5.50%+447M550, that commenced trading 2015-11-25 after being announced 2015-11-17. It must be remembered that the taxation status of the distributions is complex and – what’s more – can vary wildly from year to year.

PWF.PR.P To Reset at 1.998%

January 6th, 2021

Power Financial Corporation has announced (on January 4):

the applicable dividend rates for its Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series P (the “Series P shares”) and Non-Cumulative Floating Rate First Preferred Shares, Series Q (the “Series Q shares”).

With respect to any Series P shares that remain outstanding after February 1, 2021, holders thereof will be entitled to receive quarterly fixed non-cumulative preferential cash dividends, if, as and when declared by the Board of Directors of Power Financial. The dividend rate for the 5-year period from and including January 31, 2021 to but excluding January 31, 2026 will be 1.998%, being equal to the 5-year Government of Canada bond yield determined as of today plus 1.60%, in accordance with the terms of the Series P shares.

With respect to any Series Q shares that remain outstanding after February 1, 2021, holders thereof will be entitled to receive quarterly floating rate non-cumulative preferential cash dividends, if, as and when declared by the Board of Directors of Power Financial. The dividend rate for the 3-month floating rate period from and including January 31, 2021 to but excluding April 30, 2021 will be 1.715%, being equal to the 3-month Government of Canada Treasury Bill yield determined as of today plus 1.60%, calculated on the basis of the actual number of days in such quarterly period divided by 365, in accordance with the terms of the Series Q shares.

Beneficial owners of Series P shares or Series Q shares who wish to exercise their conversion right should communicate with their broker or other nominee to ensure their instructions are followed so that the registered holders of Series P shares or Series Q shares can meet the deadline to exercise such conversion right, which is 5:00 p.m. (Eastern Time) on January 18, 2021.

PWF.PR.P was issued as a a FixedReset, 4.40%+160 that commenced trading 2010-6-29 after being announced 2010-6-17. It reset to 2.306% in 2016; I recommended against conversion but there was a 20% conversion to PWF.PR.Q anyway.

PWF.PR.Q is a FloatingReset, Bills+160, that arose via a partial conversion from PWF.PR.P in 2016.

FTN.PR.A To Get Bigger

January 6th, 2021

Well, it didn’t take long for Quadravest to take advantage of the post-consolidation price of FTN.PR.A. A new overnight deal is being marketted:

Financial 15 Split Corp. (the “Company”) is pleased to announce it will undertake an offering of Preferred Shares and Class A Shares of the Company. The offering will be co-led by National Bank Financial Inc., CIBC World Markets Inc., Scotia Capital Inc. and RBC Capital Markets, and will also include BMO Capital Markets, Canaccord Genuity Corp., Industrial Alliance Securities Inc., Richardson Wealth Limited, Raymond James Ltd., Desjardins Securities Inc., Hampton Securities, Mackie Research Capital Corporation, and Manulife Securities Incorporated.

The Preferred Shares will be offered at a price of $10.15 per Preferred Share to yield 6.7% and the Class A Shares will be offered at a price of $9.80 per Class A Share to yield 15.4%.

The closing price on the TSX of each of the Preferred Shares and the Class A Shares on January 5, 2021 was $10.45 and $9.66, respectively.

Since inception of the Company, the aggregate dividends declared on the Preferred Shares have been $9.08 per share and the aggregate dividends declared on the Class A Shares have been $20.53 per share, for a combined total of $29.61. All distributions to date have been made in tax advantage eligible Canadian dividends or capital gains dividends.

The net proceeds of the offering will be used by the Company to invest in an actively managed, high quality portfolio consisting of 15 financial services companies made up of Canadian and U.S. issuers as follows:

Bank of Montreal National Bank of Canada Bank of America Corp.
The Bank of Nova Scotia Manulife Financial Corporation Citigroup Inc.
Canadian Imperial Bank of Commerce Sun Life Financial Services of Canada Inc. Goldman Sachs Group Inc.
Royal Bank of Canada Great-West Lifeco Inc. JP Morgan Chase & Co.
The Toronto-Dominion Bank CI Financial Corp. Wells Fargo & Co.

The Company’s investment objectives are:

Preferred Shares:

  • to provide holders of the Preferred Shares with fixed, cumulative preferential monthly cash dividends currently in the amount of 6.75% annually, to be set by the Board of Directors annually subject to a minimum of 5.50% until 2025; and
  • on or about the termination date, currently December 1, 2025 (subject to further 5-year extensions thereafter), to pay the holders of the Preferred Shares $10.00 per Preferred Share.

Class A Shares:

  • to provide holders of the Class A Shares with regular monthly cash dividends in an amount to be determined by the Board of the Directors; and
  • to permit holders to participate in all growth in the net asset value of the Company above $10 per Unit, by paying holders on or about the termination date of December 1, 2025 (subject to further 5-year extensions thereafter) such amounts as remain in the Company after paying $10 per Preferred Share.

The sales period of this overnight offering will end at 9:00 a.m. EST on January 7, 2021. The offering is expected to close on or about January 14, 2021 and is subject to certain closing conditions including approval by the TSX.

So the Whole Units are being offered at 19.95, while the December 31, 2020, NAVPU was 18.60, a premium of 7.26%. What a great business this is!

HSE : Ticker Change to CVE

January 6th, 2021

Cenovus Energy Inc. has announced (on January 4):

that its strategic combination with Husky Energy Inc. has closed. The transaction creates a resilient integrated energy leader that is well positioned to provide superior returns for investors over the long term, as well as strong environmental, social and governance (ESG) performance.

Husky preferred shareholders exchanged each Husky preferred share for one Cenovus preferred share with substantially identical terms.

The Cenovus preferred shares Series 1, Series 2, Series 3, Series 5 and Series 7 have been listed on the TSX under the ticker symbols CVE.PR.A, CVE.PR.B, CVE.PR.C, CVE.PR.E and CVE.PR.G. The Cenovus warrants and Cenovus preferred shares are expected to commence trading on the TSX at the opening of market on January 6, 2021

With the close of the transaction, Husky has become a wholly owned subsidiary of Cenovus and will remain as such until completion of a planned amalgamation among the two entities. Upon amalgamation, Cenovus will become the obligor under Husky’s existing long-term notes and other direct obligations.

So the table of changes is pretty simple:

HSE to CVE ticker change
Old Ticker New Ticker
HSE.PR.A CVE.PR.A
HSE.PR.B CVE.PR.B
HSE.PR.C CVE.PR.C
HSE.PR.E CVE.PR.E
HSE.PR.G CVE.PR.G

January 6, 2021

January 6th, 2021

Assiduous Readers will recall that in the MAPF December 2021 Performance Report I suggested that:

While one can only rarely point to a single mechanism explaining a change in relative prices and say, with any credibility whatsoever, that A caused B, I have to admit I’m more dubious than usual about this claim. I believe that the continued rally is due to continued interest rate anticipation, which is now (for some investors) considered to be on the way up rather than continuing the downward staggering of the past ten years; this in turn is derived from Central Bank ‘easy money’ policies and very loose government fiscal policies; which is considered to be on the verge of driving inflation upwards.

Who’s right? Well, we’ll know in ten years, at a time when half of the investing world will graciously explain at length how their uncanny ability to read global market forces allowed them to time the market and make enormous profits, while the other half will tell you the question is irrelevant because investing is about the future, not the past. My advice is, as always, to make asset allocation decisions based on the long-term characteristics of each asset class and how these characteristics interact with your long-term portfolio objectives.

So here’s some interest rate anticipation from George Athanassakos:

It’s undoubtedly a contrarian viewpoint for many investors, but based on underlying trends, it’s my belief that higher interest rates are on the way. COVID-19 has only stalled these long-term forces. When the pandemic ends we will see the trend of higher rates to begin to establish itself.

Demographic developments are pushing the real interest rate trend higher. Baby boomers have been retiring and have stopped saving; in fact, they are in their “decumulation” years, which reduces the supply of funds.
This happens in the face of increased demand for capital by corporations that need to embed innovation and new technologies into their production processes, as well as by governments that need to borrow to fund structural deficits.

To clear the demand-supply imbalance, the real interest rate trend is pushed up, not unlike what had happened in the late 1970s.

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 0.4269 % 1,897.7
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.4269 % 3,482.1
Floater 4.56 % 4.58 % 46,720 16.30 3 0.4269 % 2,006.8
OpRet 0.00 % 0.00 % 0 0.00 0 -0.1638 % 3,620.1
SplitShare 4.72 % 4.47 % 39,395 4.24 8 -0.1638 % 4,323.2
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.1638 % 3,373.1
Perpetual-Premium 5.33 % -1.97 % 66,231 0.09 18 0.0043 % 3,221.4
Perpetual-Discount 5.00 % 5.06 % 68,587 15.35 13 0.0095 % 3,684.2
FixedReset Disc 4.98 % 3.79 % 135,462 17.54 57 0.2675 % 2,354.9
Insurance Straight 5.04 % 4.75 % 85,230 15.37 22 0.0992 % 3,567.2
FloatingReset 2.53 % 0.51 % 33,040 0.16 3 0.8256 % 1,877.2
FixedReset Prem 5.13 % 2.67 % 211,651 1.03 20 0.1336 % 2,694.2
FixedReset Bank Non 1.94 % 1.56 % 155,787 0.16 2 -0.0800 % 2,882.6
FixedReset Ins Non 4.96 % 3.71 % 88,388 17.57 22 0.0482 % 2,457.7
Performance Highlights
Issue Index Change Notes
MFC.PR.N FixedReset Ins Non -21.79 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 15.15
Evaluated at bid price : 15.15
Bid-YTW : 4.86 %
TRP.PR.D FixedReset Disc -2.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 15.20
Evaluated at bid price : 15.20
Bid-YTW : 4.90 %
TRP.PR.C FixedReset Disc -1.71 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 10.35
Evaluated at bid price : 10.35
Bid-YTW : 4.67 %
EIT.PR.A SplitShare -1.24 % YTW SCENARIO
Maturity Type : Soft Maturity
Maturity Date : 2024-03-14
Maturity Price : 25.00
Evaluated at bid price : 25.50
Bid-YTW : 4.25 %
BAM.PR.R FixedReset Disc -1.21 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 14.75
Evaluated at bid price : 14.75
Bid-YTW : 4.60 %
BAM.PR.T FixedReset Disc -1.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 14.95
Evaluated at bid price : 14.95
Bid-YTW : 4.62 %
BAM.PR.Z FixedReset Disc 1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 18.50
Evaluated at bid price : 18.50
Bid-YTW : 4.75 %
BAM.PF.B FixedReset Disc 1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 17.42
Evaluated at bid price : 17.42
Bid-YTW : 4.72 %
NA.PR.S FixedReset Disc 1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 19.67
Evaluated at bid price : 19.67
Bid-YTW : 3.79 %
RY.PR.M FixedReset Disc 1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 21.38
Evaluated at bid price : 21.38
Bid-YTW : 3.55 %
BIP.PR.F FixedReset Disc 1.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 23.02
Evaluated at bid price : 24.09
Bid-YTW : 5.27 %
TD.PF.K FixedReset Disc 1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 22.26
Evaluated at bid price : 22.68
Bid-YTW : 3.58 %
BNS.PR.I FixedReset Disc 1.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 21.99
Evaluated at bid price : 22.33
Bid-YTW : 3.46 %
MFC.PR.F FixedReset Ins Non 1.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 12.21
Evaluated at bid price : 12.21
Bid-YTW : 3.72 %
TD.PF.J FixedReset Disc 1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 22.75
Evaluated at bid price : 23.36
Bid-YTW : 3.51 %
MFC.PR.H FixedReset Ins Non 1.71 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 23.25
Evaluated at bid price : 23.75
Bid-YTW : 3.74 %
SLF.PR.G FixedReset Ins Non 1.85 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 12.09
Evaluated at bid price : 12.09
Bid-YTW : 3.75 %
CU.PR.F Perpetual-Discount 1.90 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 23.38
Evaluated at bid price : 23.65
Bid-YTW : 4.80 %
MFC.PR.Q FixedReset Ins Non 2.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 21.37
Evaluated at bid price : 21.37
Bid-YTW : 3.71 %
BAM.PF.F FixedReset Disc 2.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 18.14
Evaluated at bid price : 18.14
Bid-YTW : 4.73 %
IAF.PR.G FixedReset Ins Non 2.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 21.06
Evaluated at bid price : 21.06
Bid-YTW : 3.91 %
IAF.PR.I FixedReset Ins Non 2.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 21.50
Evaluated at bid price : 21.87
Bid-YTW : 3.78 %
SLF.PR.J FloatingReset 3.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 11.20
Evaluated at bid price : 11.20
Bid-YTW : 3.27 %
IFC.PR.G FixedReset Ins Non 3.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 20.94
Evaluated at bid price : 20.94
Bid-YTW : 3.81 %
GWO.PR.N FixedReset Ins Non 4.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 11.74
Evaluated at bid price : 11.74
Bid-YTW : 3.65 %
Volume Highlights
Issue Index Shares
Traded
Notes
TRP.PR.A FixedReset Disc 157,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 13.39
Evaluated at bid price : 13.39
Bid-YTW : 4.82 %
TD.PF.G FixedReset Prem 129,589 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-30
Maturity Price : 25.00
Evaluated at bid price : 25.58
Bid-YTW : 1.20 %
RY.PR.Q FixedReset Prem 114,632 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-24
Maturity Price : 25.00
Evaluated at bid price : 25.47
Bid-YTW : 2.19 %
BNS.PR.E FixedReset Prem 83,355 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-25
Maturity Price : 25.00
Evaluated at bid price : 25.21
Bid-YTW : 1.61 %
TRP.PR.C FixedReset Disc 61,675 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 10.35
Evaluated at bid price : 10.35
Bid-YTW : 4.67 %
TRP.PR.B FixedReset Disc 45,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 9.58
Evaluated at bid price : 9.58
Bid-YTW : 4.40 %
There were 23 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
MFC.PR.N FixedReset Ins Non Quote: 15.15 – 19.84
Spot Rate : 4.6900
Average : 2.6682

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 15.15
Evaluated at bid price : 15.15
Bid-YTW : 4.86 %

BAM.PF.F FixedReset Disc Quote: 18.14 – 19.59
Spot Rate : 1.4500
Average : 0.8812

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 18.14
Evaluated at bid price : 18.14
Bid-YTW : 4.73 %

MFC.PR.M FixedReset Ins Non Quote: 19.69 – 20.69
Spot Rate : 1.0000
Average : 0.6647

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 19.69
Evaluated at bid price : 19.69
Bid-YTW : 3.78 %

BMO.PR.Y FixedReset Disc Quote: 21.45 – 22.00
Spot Rate : 0.5500
Average : 0.3701

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 21.45
Evaluated at bid price : 21.45
Bid-YTW : 3.64 %

PWF.PR.P FixedReset Disc Quote: 11.76 – 12.20
Spot Rate : 0.4400
Average : 0.3114

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-06
Maturity Price : 11.76
Evaluated at bid price : 11.76
Bid-YTW : 4.30 %

EIT.PR.A SplitShare Quote: 25.50 – 26.10
Spot Rate : 0.6000
Average : 0.4736

YTW SCENARIO
Maturity Type : Soft Maturity
Maturity Date : 2024-03-14
Maturity Price : 25.00
Evaluated at bid price : 25.50
Bid-YTW : 4.25 %

January 5, 2020

January 5th, 2021
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 0.2496 % 1,889.6
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.2496 % 3,467.3
Floater 4.58 % 4.61 % 46,516 16.24 3 0.2496 % 1,998.2
OpRet 0.00 % 0.00 % 0 0.00 0 0.0489 % 3,626.0
SplitShare 4.71 % 4.35 % 38,705 3.77 8 0.0489 % 4,330.3
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0489 % 3,378.7
Perpetual-Premium 5.33 % -2.69 % 65,831 0.09 18 0.1389 % 3,221.3
Perpetual-Discount 5.00 % 5.06 % 68,252 15.36 13 -0.0885 % 3,683.9
FixedReset Disc 4.99 % 3.83 % 132,738 17.50 57 0.5193 % 2,348.7
Insurance Straight 5.04 % 4.80 % 85,800 15.35 22 0.1969 % 3,563.7
FloatingReset 2.55 % 0.50 % 34,249 0.16 3 0.1272 % 1,861.9
FixedReset Prem 5.13 % 2.98 % 213,574 1.03 20 0.2671 % 2,690.6
FixedReset Bank Non 1.93 % 1.88 % 194,802 1.06 2 0.2607 % 2,884.9
FixedReset Ins Non 4.96 % 3.76 % 89,066 17.47 22 0.7675 % 2,456.5
Performance Highlights
Issue Index Change Notes
CU.PR.F Perpetual-Discount -2.68 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 22.82
Evaluated at bid price : 23.21
Bid-YTW : 4.88 %
MFC.PR.H FixedReset Ins Non -1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 22.86
Evaluated at bid price : 23.35
Bid-YTW : 3.81 %
SLF.PR.G FixedReset Ins Non 1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 11.87
Evaluated at bid price : 11.87
Bid-YTW : 3.82 %
NA.PR.G FixedReset Disc 1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 22.42
Evaluated at bid price : 22.94
Bid-YTW : 3.66 %
CU.PR.C FixedReset Disc 1.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 18.41
Evaluated at bid price : 18.41
Bid-YTW : 3.89 %
BAM.PF.I FixedReset Prem 1.27 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.42
Bid-YTW : 3.46 %
IFC.PR.G FixedReset Ins Non 1.40 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 20.28
Evaluated at bid price : 20.28
Bid-YTW : 3.94 %
RY.PR.J FixedReset Disc 1.40 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 21.96
Evaluated at bid price : 22.43
Bid-YTW : 3.50 %
BAM.PF.E FixedReset Disc 1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 16.24
Evaluated at bid price : 16.24
Bid-YTW : 4.78 %
TD.PF.J FixedReset Disc 1.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 22.53
Evaluated at bid price : 23.00
Bid-YTW : 3.58 %
MFC.PR.M FixedReset Ins Non 1.66 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 19.57
Evaluated at bid price : 19.57
Bid-YTW : 3.80 %
MFC.PR.N FixedReset Ins Non 1.68 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 19.37
Evaluated at bid price : 19.37
Bid-YTW : 3.76 %
CM.PR.Q FixedReset Disc 1.85 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 21.44
Evaluated at bid price : 21.44
Bid-YTW : 3.70 %
SLF.PR.I FixedReset Ins Non 2.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 21.35
Evaluated at bid price : 21.35
Bid-YTW : 3.71 %
BAM.PF.A FixedReset Disc 2.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 19.20
Evaluated at bid price : 19.20
Bid-YTW : 4.65 %
TRP.PR.E FixedReset Disc 2.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 14.96
Evaluated at bid price : 14.96
Bid-YTW : 4.94 %
SLF.PR.H FixedReset Ins Non 2.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 18.50
Evaluated at bid price : 18.50
Bid-YTW : 3.49 %
TRP.PR.B FixedReset Disc 3.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 9.62
Evaluated at bid price : 9.62
Bid-YTW : 4.38 %
TRP.PR.C FixedReset Disc 3.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 10.53
Evaluated at bid price : 10.53
Bid-YTW : 4.59 %
MFC.PR.J FixedReset Ins Non 3.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 21.27
Evaluated at bid price : 21.55
Bid-YTW : 3.70 %
TRP.PR.D FixedReset Disc 4.77 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 15.61
Evaluated at bid price : 15.61
Bid-YTW : 4.77 %
Volume Highlights
Issue Index Shares
Traded
Notes
TD.PF.H FixedReset Prem 363,700 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.62
Bid-YTW : 2.87 %
TD.PF.L FixedReset Prem 306,472 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 23.37
Evaluated at bid price : 25.11
Bid-YTW : 3.84 %
BMO.PR.B FixedReset Prem 207,400 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-02-25
Maturity Price : 25.00
Evaluated at bid price : 25.66
Bid-YTW : 2.98 %
CM.PR.R FixedReset Disc 69,680 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 23.99
Evaluated at bid price : 24.35
Bid-YTW : 3.91 %
NA.PR.W FixedReset Disc 54,720 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 19.03
Evaluated at bid price : 19.03
Bid-YTW : 3.77 %
MFC.PR.O FixedReset Ins Non 54,100 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-06-19
Maturity Price : 25.00
Evaluated at bid price : 25.34
Bid-YTW : 3.20 %
There were 16 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
RS.PR.A SplitShare Quote: 10.32 – 11.69
Spot Rate : 1.3700
Average : 0.9067

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-12-31
Maturity Price : 10.00
Evaluated at bid price : 10.32
Bid-YTW : 4.57 %

BAM.PF.J FixedReset Disc Quote: 25.01 – 26.01
Spot Rate : 1.0000
Average : 0.6012

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 23.59
Evaluated at bid price : 25.01
Bid-YTW : 4.69 %

CU.PR.F Perpetual-Discount Quote: 23.21 – 24.07
Spot Rate : 0.8600
Average : 0.5200

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 22.82
Evaluated at bid price : 23.21
Bid-YTW : 4.88 %

IAF.PR.B Insurance Straight Quote: 24.01 – 24.79
Spot Rate : 0.7800
Average : 0.6329

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 23.70
Evaluated at bid price : 24.01
Bid-YTW : 4.80 %

MFC.PR.Q FixedReset Ins Non Quote: 20.95 – 21.50
Spot Rate : 0.5500
Average : 0.4137

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 20.95
Evaluated at bid price : 20.95
Bid-YTW : 3.79 %

BNS.PR.I FixedReset Disc Quote: 22.03 – 22.41
Spot Rate : 0.3800
Average : 0.2810

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-05
Maturity Price : 21.77
Evaluated at bid price : 22.03
Bid-YTW : 3.52 %

BPO Preferreds Skyrocket On Takeover Proposal

January 4th, 2021

Brookfield Asset Management Inc. has announced:

that it has made a proposal to Brookfield Property Partners L.P. (“BPY”) (NASDAQ: BPY; TSX: BPY.UN) to acquire all of the limited partnership units of BPY that it does not already own (“BPY units”) at a value of $16.50 per BPY unit, or $5.9 billion in total value.

Brookfield will ensure that holders of the Class A stock of Brookfield Property REIT Inc. (NASDAQ: BPYU) will be entitled to receive the same per share consideration as BPY unitholders under the proposal upon exchange of their shares into BPY units. It is also expected that the BPYU 6.375% Series A Cumulative Redeemable Preferred stock would be redeemed at its par value of $25.00 per share in connection with the proposed transaction. Brookfield is not proposing to acquire other securities of BPY and its subsidiaries, which are expected to remain outstanding.

Brookfield Property Partners L.P. has responded:

As outlined in Brookfield’s press release, the proposal provides that each unitholder can elect to receive consideration per Unit of a combination of (i) 0.4 Brookfield Shares, (ii) $16.50 in cash, and/or (iii) 0.66 BPY Class A Cumulative Redeemable Perpetual Preferred Units with a liquidation preference of $25.00 per Unit (“BPY Prefs”), subject in each case to pro-ration based on a maximum of 59.5 million Brookfield Shares (42% of the total value of Units), maximum cash consideration of $2.95 billion (50% of the total value of Units), and a maximum value of $500 million in BPY Prefs (8% of the total value of the Units). If unitholders collectively elect to receive in excess of $500 million in BPY Prefs, the amount of BPY Prefs can increase to a maximum of $1 billion, offset against the maximum amount of Brookfield Shares. The maximum amount of cash consideration would not be affected.

As outlined in Brookfield’s press release, Brookfield is not proposing to acquire other securities of BPY and its subsidiaries, including existing preferred units of BPY and preferred shares of wholly owned subsidiary Brookfield Office Properties Inc., which are expected to remain outstanding. However, it is expected that holders of the Class A Stock, par value $0.01 per share, of BPYU would receive the same per share consideration as BPY unitholders under the proposal upon exchange of their shares into BPY units. It is also expected that the BPYU 6.375% Series A Cumulative Redeemable Preferred Stock would be redeemed at its par value of $25.00 per share in connection with the proposed transaction.

BPO preferreds responded …:

BPO Preferred Share Issues
Ticker Closing
Quote
2021-1-4
Day’s
Price
Change
(bid/bid)
BPO.PR.A 16.58-90 +13.48%
BPO.PR.C 24.00-05 +10.85%
BPO.PR.E 20.20-21.25 +14.45%
BPO.PR.G 19.00-20.00 +17.00%
BPO.PR.I 19.00-05 +18.82%
BPO.PR.N 13.47-65 +14.64%
BPO.PR.P 13.75-27 +15.55%
BPO.PR.R 14.92-30 +12.94%
BPO.PR.S 14.38-15.50 +13.05%
BPO.PR.T 16.00-17.15 +7.60%
BPO.PR.W 8.27-00 +8.82%
BPO.PR.X 8.30-40 +9.21%
BPO.PR.Y 8.05-9.50 +5.92%

BPY.UN had its 52-week high of a little over $26 in January, 2020, and closed today at $21.80, up $3.39 (+18.41%) on the day.

Similarly, BPO.PR.A (to choose an issue at random) remains significantly below its 52-week high, as investors speculate whether anybody, anywhere, will want to occupy a piece of property ever again.

It’s odd that many of the preferred shares performed comparably to the Capital Units today after both parties stressed that they were “expected to remain outstanding”, but that’s show business! The preferreds still yield considerably more than equally rated (Pfd-3) issues, so if one has a firm belief that people will resume shuttling between the office, the mall and the rental apartment, the shares might be of continuing interest! However, a lot will depend on just how the privatized company is financed …

January 4, 2021

January 4th, 2021

Incidents like this give preferred shares a bad name:

Last summer, 27 individuals from 12 families filed two separate multi-plaintiff court cases against Yujie (Jared) Liu, a financial adviser and portfolio manager with BMO Nesbitt Burns Inc. The group is asking for $50-million in damages for losses they allege they suffered as a result of Mr. Liu’s negligence in managing their investment accounts.

Last year, the group of clients filed two lawsuits alleging that during 2017 and half of 2018, Mr. Liu recommended a new investment strategy that would provide “reasonable” investment returns that was “risk-free” to their principle. The groups’ statements of claim say many of them had low-risk investment objectives and chose Mr. Liu because he could speak Mandarin and they were not proficient in English.

The claims say that instead, investors were placed in a high-risk strategy that involved short-selling bonds – particularly Canadian government bonds – to purchase long positions in preferred shares, many of which had rates that were variable or that reset based on interest rate movement. Some clients were advised to begin trading on margin – investing with borrowed money – in order to purchase more preferred shares.

The value of some clients’ investments declined between 50 per cent and 80 per cent, with losses ranging from $600,000 to $16-million, the claims say.

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 -0.2135 % 1,884.9
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.2135 % 3,458.7
Floater 4.59 % 4.61 % 47,047 16.24 3 -0.2135 % 1,993.2
OpRet 0.00 % 0.00 % 0 0.00 0 -0.1075 % 3,624.3
SplitShare 4.71 % 4.35 % 38,759 3.78 8 -0.1075 % 4,328.2
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.1075 % 3,377.0
Perpetual-Premium 5.34 % -1.38 % 65,806 0.08 18 0.1761 % 3,216.8
Perpetual-Discount 5.00 % 5.06 % 70,449 15.39 13 0.0443 % 3,687.1
FixedReset Disc 5.01 % 3.86 % 134,198 17.33 57 0.0275 % 2,336.5
Insurance Straight 5.05 % 4.83 % 87,057 15.34 22 -0.1250 % 3,556.7
FloatingReset 2.55 % 0.74 % 35,655 0.16 3 0.1372 % 1,859.5
FixedReset Prem 5.14 % 3.02 % 207,792 0.80 20 0.0217 % 2,683.4
FixedReset Bank Non 1.94 % 1.79 % 158,671 1.06 2 -0.2018 % 2,877.4
FixedReset Ins Non 5.00 % 3.81 % 88,834 17.33 22 0.2317 % 2,437.8
Performance Highlights
Issue Index Change Notes
TRP.PR.B FixedReset Disc -1.79 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 9.33
Evaluated at bid price : 9.33
Bid-YTW : 4.52 %
BIP.PR.D FixedReset Disc -1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 23.53
Evaluated at bid price : 24.00
Bid-YTW : 5.22 %
TRP.PR.D FixedReset Disc -1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 14.90
Evaluated at bid price : 14.90
Bid-YTW : 5.00 %
CU.PR.C FixedReset Disc -1.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 18.20
Evaluated at bid price : 18.20
Bid-YTW : 3.93 %
BAM.PR.C Floater -1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 9.36
Evaluated at bid price : 9.36
Bid-YTW : 4.61 %
BAM.PR.T FixedReset Disc 1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 15.00
Evaluated at bid price : 15.00
Bid-YTW : 4.61 %
MFC.PR.J FixedReset Ins Non 1.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 20.85
Evaluated at bid price : 20.85
Bid-YTW : 3.85 %
GWO.PR.N FixedReset Ins Non 1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 11.24
Evaluated at bid price : 11.24
Bid-YTW : 3.81 %
IFC.PR.A FixedReset Ins Non 1.10 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 15.61
Evaluated at bid price : 15.61
Bid-YTW : 3.59 %
NA.PR.G FixedReset Disc 1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 22.45
Evaluated at bid price : 23.00
Bid-YTW : 3.72 %
SLF.PR.H FixedReset Ins Non 1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 18.06
Evaluated at bid price : 18.06
Bid-YTW : 3.57 %
BAM.PR.K Floater 1.30 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 9.33
Evaluated at bid price : 9.33
Bid-YTW : 4.62 %
CM.PR.Q FixedReset Disc 1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 21.05
Evaluated at bid price : 21.05
Bid-YTW : 3.77 %
TD.PF.D FixedReset Disc 1.81 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 22.00
Evaluated at bid price : 22.51
Bid-YTW : 3.54 %
MFC.PR.K FixedReset Ins Non 2.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 19.20
Evaluated at bid price : 19.20
Bid-YTW : 3.74 %
Volume Highlights
Issue Index Shares
Traded
Notes
CM.PR.R FixedReset Disc 118,300 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 23.94
Evaluated at bid price : 24.30
Bid-YTW : 3.91 %
IFC.PR.I Perpetual-Premium 96,082 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2029-03-31
Maturity Price : 25.00
Evaluated at bid price : 26.00
Bid-YTW : 4.85 %
BMO.PR.C FixedReset Disc 81,904 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 24.19
Evaluated at bid price : 24.55
Bid-YTW : 3.86 %
RY.PR.J FixedReset Disc 64,800 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 21.75
Evaluated at bid price : 22.12
Bid-YTW : 3.56 %
MFC.PR.G FixedReset Ins Non 41,400 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 21.81
Evaluated at bid price : 22.30
Bid-YTW : 3.70 %
SLF.PR.G FixedReset Ins Non 28,895 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 11.75
Evaluated at bid price : 11.75
Bid-YTW : 3.86 %
There were 11 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
CU.PR.H Perpetual-Premium Quote: 25.66 – 26.66
Spot Rate : 1.0000
Average : 0.6081

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2023-09-01
Maturity Price : 25.25
Evaluated at bid price : 25.66
Bid-YTW : 4.77 %

BAM.PF.D Perpetual-Discount Quote: 24.21 – 25.00
Spot Rate : 0.7900
Average : 0.4935

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 23.69
Evaluated at bid price : 24.21
Bid-YTW : 5.06 %

BAM.PF.H FixedReset Prem Quote: 25.35 – 25.98
Spot Rate : 0.6300
Average : 0.3820

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-12-31
Maturity Price : 25.00
Evaluated at bid price : 25.35
Bid-YTW : 4.72 %

IAF.PR.B Insurance Straight Quote: 24.10 – 24.80
Spot Rate : 0.7000
Average : 0.4716

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 23.85
Evaluated at bid price : 24.10
Bid-YTW : 4.79 %

CU.PR.D Perpetual-Discount Quote: 24.87 – 25.50
Spot Rate : 0.6300
Average : 0.4413

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-01-04
Maturity Price : 24.62
Evaluated at bid price : 24.87
Bid-YTW : 4.97 %

BAM.PF.I FixedReset Prem Quote: 25.10 – 25.56
Spot Rate : 0.4600
Average : 0.2897

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.10
Bid-YTW : 4.53 %