| Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version | |||||||
| Index | Mean Current Yield (at bid) | Mean YTW | Mean Average Trading Value | Mean Mod Dur (YTW) | Issues | Day’s Perf. | Index Value |
| Ratchet | 4.11% | 4.03% | 42,749 | 10.68 | 2 | -0.1794% | 1,019.2 |
| Fixed-Floater | 5.00% | 2.75% | 151,045 | 10.65 | 7 | +0.0864% | 1,027.1 |
| Floater | 4.52% | -16.01% | 74,789 | 6.52 | 5 | 0.0635% | 1,022.9 |
| Op. Retract | 4.67% | 1.94% | 89,693 | 2.37 | 17 | 0.0859% | 1,021.3 |
| Split-Share | 4.95% | 3.47% | 157,739 | 3.26 | 11 | 0.0075% | 1,022.4 |
| Interest Bearing | 6.88% | 5.16% | 57,457 | 1.97 | 7 | 0.0257% | 1,024.2 |
| Perpetual-Premium | 5.07% | 3.88% | 213,084 | 4.32 | 47 | 0.1516% | 1,039.5 |
| Perpetual-Discount | 4.60% | 4.63% | 604,494 | 16.15 | 7 | 0.1804% | 1,032.6 |
| Major Price Changes | |||
| Issue | Index | Change | Notes |
| BCE.PR.R | FixedFloater | +1.1111% | Just a reversal of yesterday’s loss, really : a handful of shares traded just above $25.50. Closed at 25.48-56, 5×5. |
| Volume Highlights | |||
| Issue | Index | Volume | Notes |
| GWO.PR.X | OpRet | 307,528 | National sold 150,000 @27.55 to Nesbitt, Scotia & Desjardins in the late afternoon. Pre-tax YTW 2.69% based on a bid of $27.55 and a call 2009-10-30 @ $26.00. It only pays $1.20, so it might possibly make it to 2013-9-29, having yielded 3.23%. |
| ACO.PR.A | OpRet | 276,511 | Nesbitt processed an internal cross of 275,000 @ 27.89. Pre-tax YTW of 2.94%, based on a bid of $27.65 and a call 2008-12-31 @ $26.00. It pays $1.4375, so its chances of making it further along the redemption trail are … not good. |
| SLF.PR.D | PerpetualDiscount | 91,007 | The clean-out sale continues, but at a slower pace! |
| SLF.PR.B | PerpetualPremium | 81,885 | A bit, but not much, expensive I’d say, closing at $25.56-63 for a pre-tax YTW of 4.55% based on a call @ $25.00 on 2014-10-30. |
| PWF.PR.D | OpRet | 70,700 | Nesbitt processed an internal cross at $27.18 in the only trade of the day. This issue has trade enough this month that it will be back in the index after rebalancing. |
There were fifteen other index-included issues trading over 10,000 shares today.
BCE Trust Conversion and Preferred Offer Now Dubious?
Tuesday, October 31st, 2006It has just been announced that there will be a tax on trusts. Any trusts created after today will be subject to the tax in 2007; existing trusts will be taxed in 2011.
This makes execution of the BCE offer to buy their preferreds rather dubious, since it was conditional on their conversion taking place.
Of course, the pref market never fully believed the conversion would take place anyway: see the attached graph of the flatBidPrice of the most active affected issue, BC.PR.C, for this issue’s reaction to the offer. The putative offer price was $26.25, announced October 11.
The market could be very active tomorrow, and not just in the issues affected by the offer! There may well be a stampede of income investors into prefs out of trusts – well overdue, since they should never have been in those things in the first place.
Posted in Issue Comments, Miscellaneous News | No Comments »