March 30, 2012

Sino-Forest is for sale! Who wants to buy … er … something?

Sino-Forest Corp., the embattled timber firm facing fraud allegations is filing for court protection from creditors as it tries to find a buyer for what was once the largest publicly traded forestry firm on the Toronto Stock Exchange.

While under court protection from its creditors, Sino-Forest hopes to sell its assets to a third party. It has launched a process to consider offers. If the company is unable to find a buyer its assets will be transferred to its debtholders, Sino-Forest said in a statement.

The Canadian preferred share market had a strong day to close the quarter, with PerpetualPremiums up 14bp, FixedResets winning 20bp and DeemedRetractibles gaining 12bp. Volatility was low. Volume was very light.

PerpetualDiscounts now yield 5.26%, equivalent to 6.84% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 4.5% (maybe just a little bit over) so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 230bp, a significant narrowing over two days from the 240bp reported March 28.

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 0.1914 % 2,399.3
FixedFloater 4.52 % 3.92 % 38,636 17.39 1 -1.4085 % 3,447.0
Floater 3.01 % 3.01 % 44,259 19.68 3 0.1914 % 2,590.6
OpRet 4.93 % 3.17 % 46,398 1.21 6 0.0129 % 2,496.9
SplitShare 5.26 % -4.59 % 88,092 0.71 4 0.2589 % 2,684.8
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0129 % 2,283.2
Perpetual-Premium 5.45 % 2.65 % 93,138 0.78 25 0.1378 % 2,207.6
Perpetual-Discount 5.22 % 5.26 % 189,316 15.04 7 0.1148 % 2,381.8
FixedReset 5.05 % 3.16 % 193,024 2.23 68 0.2044 % 2,382.1
Deemed-Retractible 4.98 % 4.01 % 207,671 3.09 46 0.1157 % 2,295.0
Performance Highlights
Issue Index Change Notes
BAM.PR.G FixedFloater -1.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-03-30
Maturity Price : 21.80
Evaluated at bid price : 21.00
Bid-YTW : 3.92 %
SLF.PR.G FixedReset 1.48 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.61
Bid-YTW : 3.70 %
BAM.PR.X FixedReset 1.65 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-03-30
Maturity Price : 23.04
Evaluated at bid price : 24.70
Bid-YTW : 3.66 %
Volume Highlights
Issue Index Shares
Traded
Notes
ENB.PR.H FixedReset 80,667 Recent new issue.
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-03-30
Maturity Price : 23.09
Evaluated at bid price : 25.00
Bid-YTW : 3.70 %
GWO.PR.P Deemed-Retractible 36,922 TD bought 10,000 from Scotia at 25.55.
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.52
Bid-YTW : 5.23 %
RY.PR.E Deemed-Retractible 31,397 TD crossed 30,000 at 25.54.
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2016-02-24
Maturity Price : 25.00
Evaluated at bid price : 25.55
Bid-YTW : 4.03 %
BNS.PR.Z FixedReset 28,718 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.08
Bid-YTW : 3.22 %
HSE.PR.A FixedReset 27,388 Desjardins crossed 25,000 at 25.83.
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-03-30
Maturity Price : 23.50
Evaluated at bid price : 25.83
Bid-YTW : 3.28 %
FTS.PR.E OpRet 26,603 Desjardins crossed 25,000 at 26.35.
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2013-06-01
Maturity Price : 25.75
Evaluated at bid price : 26.32
Bid-YTW : 3.17 %
There were 16 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
GWO.PR.M Deemed-Retractible Quote: 26.00 – 26.50
Spot Rate : 0.5000
Average : 0.3200

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 26.00
Bid-YTW : 5.31 %

BAM.PR.G FixedFloater Quote: 21.00 – 21.50
Spot Rate : 0.5000
Average : 0.3409

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-03-30
Maturity Price : 21.80
Evaluated at bid price : 21.00
Bid-YTW : 3.92 %

BMO.PR.Q FixedReset Quote: 25.42 – 25.76
Spot Rate : 0.3400
Average : 0.1840

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.42
Bid-YTW : 3.16 %

BAM.PR.X FixedReset Quote: 24.70 – 25.15
Spot Rate : 0.4500
Average : 0.3083

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-03-30
Maturity Price : 23.04
Evaluated at bid price : 24.70
Bid-YTW : 3.66 %

PWF.PR.O Perpetual-Premium Quote: 26.20 – 26.55
Spot Rate : 0.3500
Average : 0.2339

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2018-10-31
Maturity Price : 25.00
Evaluated at bid price : 26.20
Bid-YTW : 5.14 %

NA.PR.M Deemed-Retractible Quote: 26.76 – 27.12
Spot Rate : 0.3600
Average : 0.2533

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2013-05-15
Maturity Price : 26.00
Evaluated at bid price : 26.76
Bid-YTW : 3.74 %

One Response to “March 30, 2012”

  1. […] PerpetualDiscounts now yield 5.17%, equivalent to 6.72% interest at the current conversion factor of 1.3x. Long corporates now yield about 4.6%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 215bp, a dramatic drop from the 230bp reported March 30. […]

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