It was a very quiet opening for this issue, with only 11,200 shares changing hands. The leveraging / deleveraging feature appears to have found favour only with DBRS!
However, to my chagrin (and, undoubtedly, CC&L Capital Markets’), this is a teeny-tiny issue: the TSX reports that only 1.5-million shares are outstanding, for a value of $15-million in prefs and total company capitalization of $30-million.
Still, even if you take the view that this thing will trade by appointment only, you can’t deny that a lot of investors will consider it worth holding. It’s Pfd-1 and I calculate the curvePrice to be $10.42, compared to the closing quote of $10.06-25:
| |
CFS.PR.A |
CGI.PR.C |
| Price due to base-rate |
9.87 |
23.66 |
| Price due to short-term |
-0.20 |
-0.62 |
| Price due to long-term |
0.52 |
1.55 |
| Price due to SplitShareCorp |
-0.21 |
-0.90 |
| Price due to Retractibility |
0.30 |
1.24 |
| Price due to Liquidity |
0.15 |
-0.27 |
| Price due to error |
0.01 |
0.09 |
| Curve Price (some rounding error) |
10.42 |
24.75 |
| Quote |
10.06-25 |
25.86-09 |
| After-Tax bid-YTW |
3.29% |
2.82% |
| Pre-Tax bid-YTW |
4.14% |
3.55% |
| Presumed Maturity |
2012-1-31 |
2016-06-14 |
Even if one takes the view that the +$0.15 allowance for liquidity turns into -$0.10 for illiquidity (probably a safe bet!) there’s room for some capital gains for those who buy and sell liquidity in small amounts!
This issue has been entered into the HIMIPref™ database with the securityCode A41410, which replaces the preIssue code of P25006. A reorgDataEntry has been processed.
The issue has been added to the SplitShares index.
ENB.PR.D Redemption Completed
Thursday, February 15th, 2007ENB.PR.D, an interest bearing preferred security, was redeemed today as previously noted. They had, presumably, no difficulty in finding the money for the redemption, what with their recent equity issue and my January gas bill.
This leaves the interestBearing index bereft of all operating companies; it is now populated solely by split-share corporations.
It now remains to be seen whether they will also redeem ENB.PR.A, a perpetual that is currently part of the PerpetualPremium index. This issue has been mentioned as occasionally drifting into negative YTW territory; it’s currently redeemable at $25.25, but will be redeemable at par in December.
Oops! There is actually one remaining operating company issue left in the interestBearing index … BAM.PR.T. However, it is virtually certain that BAM.PR.T will be redeemed in June, so I was only off by five months!
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