| 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 | 0.8906 % | 2,053.7 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.8906 % | 3,768.4 |
| Floater | 5.72 % | 6.07 % | 47,292 | 13.73 | 3 | 0.8906 % | 2,171.8 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1473 % | 3,284.0 |
| SplitShare | 4.69 % | 4.96 % | 78,238 | 4.25 | 7 | -0.1473 % | 3,921.8 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1473 % | 3,059.9 |
| Perpetual-Premium | 5.53 % | 3.62 % | 87,723 | 0.09 | 12 | -0.0066 % | 2,951.4 |
| Perpetual-Discount | 5.45 % | 5.46 % | 71,860 | 14.59 | 20 | -0.0066 % | 3,097.7 |
| FixedReset Disc | 5.29 % | 5.41 % | 150,309 | 14.90 | 63 | 0.0957 % | 2,169.5 |
| Deemed-Retractible | 5.24 % | 5.92 % | 97,232 | 8.03 | 27 | 0.1730 % | 3,070.4 |
| FloatingReset | 3.97 % | 4.28 % | 47,077 | 2.60 | 4 | 0.2697 % | 2,407.1 |
| FixedReset Prem | 5.11 % | 3.81 % | 250,081 | 2.12 | 21 | 0.0501 % | 2,589.0 |
| FixedReset Bank Non | 1.98 % | 3.96 % | 159,207 | 2.61 | 3 | -0.1665 % | 2,647.5 |
| FixedReset Ins Non | 5.10 % | 6.80 % | 97,487 | 8.24 | 22 | 0.3036 % | 2,225.2 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BIP.PR.E | FixedReset Disc | -1.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-16 Maturity Price : 20.40 Evaluated at bid price : 20.40 Bid-YTW : 6.23 % |
| BIP.PR.F | FixedReset Disc | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-16 Maturity Price : 21.52 Evaluated at bid price : 21.52 Bid-YTW : 6.02 % |
| HSE.PR.E | FixedReset Disc | 1.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-16 Maturity Price : 20.20 Evaluated at bid price : 20.20 Bid-YTW : 6.44 % |
| RY.PR.M | FixedReset Disc | 1.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-16 Maturity Price : 20.15 Evaluated at bid price : 20.15 Bid-YTW : 5.19 % |
| EMA.PR.F | FixedReset Disc | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-16 Maturity Price : 18.50 Evaluated at bid price : 18.50 Bid-YTW : 5.74 % |
| BAM.PR.B | Floater | 1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-16 Maturity Price : 11.55 Evaluated at bid price : 11.55 Bid-YTW : 6.07 % |
| PWF.PR.A | Floater | 1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-16 Maturity Price : 13.30 Evaluated at bid price : 13.30 Bid-YTW : 5.23 % |
| IFC.PR.E | Deemed-Retractible | 1.19 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.90 Bid-YTW : 5.88 % |
| TRP.PR.F | FloatingReset | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-16 Maturity Price : 14.78 Evaluated at bid price : 14.78 Bid-YTW : 6.18 % |
| TD.PF.D | FixedReset Disc | 1.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-16 Maturity Price : 20.64 Evaluated at bid price : 20.64 Bid-YTW : 5.28 % |
| IFC.PR.F | Deemed-Retractible | 1.67 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.40 Bid-YTW : 5.72 % |
| IFC.PR.C | FixedReset Ins Non | 1.86 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.10 Bid-YTW : 7.97 % |
| MFC.PR.K | FixedReset Ins Non | 2.22 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.89 Bid-YTW : 7.43 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BMO.PR.F | FixedReset Prem | 84,143 | YTW SCENARIO Maturity Type : Call Maturity Date : 2024-05-25 Maturity Price : 25.00 Evaluated at bid price : 25.28 Bid-YTW : 4.96 % |
| CM.PR.T | FixedReset Prem | 59,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-16 Maturity Price : 23.23 Evaluated at bid price : 25.21 Bid-YTW : 4.87 % |
| RY.PR.H | FixedReset Disc | 57,326 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-16 Maturity Price : 18.78 Evaluated at bid price : 18.78 Bid-YTW : 5.15 % |
| MFC.PR.Q | FixedReset Ins Non | 51,785 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.43 Bid-YTW : 6.80 % |
| BMO.PR.Q | FixedReset Bank Non | 51,300 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.55 Bid-YTW : 4.25 % |
| TD.PF.B | FixedReset Disc | 38,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-16 Maturity Price : 18.45 Evaluated at bid price : 18.45 Bid-YTW : 5.28 % |
| There were 17 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| HSE.PR.E | FixedReset Disc | Quote: 20.20 – 20.80 Spot Rate : 0.6000 Average : 0.4016 YTW SCENARIO |
| EMA.PR.F | FixedReset Disc | Quote: 18.50 – 19.04 Spot Rate : 0.5400 Average : 0.3748 YTW SCENARIO |
| NA.PR.W | FixedReset Disc | Quote: 17.50 – 17.88 Spot Rate : 0.3800 Average : 0.2279 YTW SCENARIO |
| BAM.PF.A | FixedReset Disc | Quote: 20.17 – 20.69 Spot Rate : 0.5200 Average : 0.3807 YTW SCENARIO |
| GWO.PR.Q | Deemed-Retractible | Quote: 23.40 – 23.80 Spot Rate : 0.4000 Average : 0.2793 YTW SCENARIO |
| MFC.PR.B | Deemed-Retractible | Quote: 21.44 – 21.79 Spot Rate : 0.3500 Average : 0.2326 YTW SCENARIO |
BIP.PR.E is an issue I struggle to understand, it fell 5$ in one year, even though it is a minimum rate reset (best of both worlds no?) issued by an investment grade company. It currently yields close to 6%
I continue to hold this issue by I question myself if I am missing something glaring about it that other people see…
IMHO, it’s the rate spread. For BIP.PR.E, it’s only 300 bps vs much wider levels for issues that are trading at par. Plus there’s lots to choose from in the BIP world, so ‘investors’ want the widest spread, forgetting the call risk and chances for capital gains as and when the interest rates rise. In this case it seems, the market isn’t giving much value to BIP.PR.E’s minimum reset values. Perhaps too much influence of James on that section of investors!
I guess it is possible since they have so many outstanding preferred, and people do not like to buy a lot from the same issuer, that their issues start to slack.
I bought more at 20.40$, with a 6% dividend as the minimum possible it is very tempting to me.
It looks like a good buy, but unless you are a doomer and gloomer like me, BIP.PR.A is an even better value with a spread of 356 bps.
Even at zero GOC 5 year(imagine that world!), you’ll still get 4.45% dividend, which isn’t bad at all when everything around you yields zero.
With BIP.PR.E, you are always guaranteed a 6% yield at current prices.
Overall, there are so many exceptional opportunities in the preferred market.
https://bip.brookfield.com/press-releases/2019/february-05 <this may be why bip.pre is trading so much below premium and at a minimum reset of 6% at the time, because brookfield keeps on releasing shares with bigger and bigger dividends… I think we can expect the share price of their preferred to keep going down. Whether or not they will remain dependable in their payments is to be seen.