Archive for February, 2017

VSN / CPX Deal: Not Great for VSN, says DBRS

Tuesday, February 21st, 2017

Veresen Inc. has announced:

it has entered into a suite of separate agreements to sell its power generation business for $1.18 billion.

Veresen has maximized the value of its power business by selling the assets in three separate packages.

Each of the agreements is subject to closing adjustments and conditions customary in transactions of this nature. Closing is expected to occur during the second quarter of 2017 subject to the receipt of all necessary approvals. Veresen anticipates the minimal amount of cash taxes arising from the sale of the power business will be recovered in the following year. The company expects to update its 2017 guidance for the divestiture of the power business upon the closing of the sale process. TD Securities Inc. acted as the company’s sole financial advisor on this divestiture.

… and Capital Power Corporation has announced:

that it has entered into an agreement to acquire the thermal power business of Veresen Inc., consisting of two gas-fired generation facilities and two waste heat assets.

Under the terms of the agreement, Capital Power will acquire 284 megawatts (MW, net) of generation from two natural gas-fired power assets in Ontario consisting of the 84 MW East Windsor Cogeneration Centre (East Windsor) and a 50% interest in the 400 MW York Energy Centre (York Energy), and will operate both facilities. Both East Windsor and York Energy are under long-term power purchase agreements (PPAs) with the Ontario Independent Electricity System Operator (IESO, A rated) with original terms expiring in 2029 and 2032, respectively. Both assets earn revenue through fixed capacity payments partly indexed to inflation and are compensated for operations and maintenance, and fuel (commodity and transportation) as well as start-up costs. Additionally, East Windsor is under a long-term steam supply agreement with Ford Motor Company (BBB rated).

The purchase price for the acquisition is $225 million in total cash consideration, subject to working capital adjustments and other closing adjustments, and the assumption of $275 million of project level debt (proportionate basis). Capital Power expects to finance the transaction through existing cash and its credit facilities. The transaction is expected to close in the second quarter of 2017, subject to regulatory approvals and satisfaction of closing conditions.

The acquisition is expected to increase adjusted funds from operations (AFFO) by an estimated $24 million in the first full year of operations, which will be accretive by 25 cents per share reflecting a 7% increase. The acquisition is expected to be accretive to earnings by 11 cents per share during its first full year of operations. The projected annual EBITDA generated by the assets is estimated to be $55 million per year.

With respect to VSN, DBRS comments:

DBRS had placed Veresen’s ratings Under Review with Negative Implications on August 4, 2016, following the Company’s announcement that it would sell its power generation business, suspend its Premium Dividend and Dividend Reinvestment Plan (DRIP) and maintain its current dividend payout. Proceeds from the sale of the power business will be invested to develop Veresen’s midstream projects in the core natural gas and natural gas liquids infrastructure business. DBRS believes that this announcement negatively affects Veresen’s business risk profile. Please refer to the DBRS press releases “DBRS Places Veresen Inc.’s Ratings Under Review with Negative Implications,” dated August 4, 2016, and “DBRS Maintains Veresen Inc.’s Ratings Under Review with Negative Implications Status,” dated November 18, 2016. DBRS notes that today’s announcement by the Company is consistent with its announcement on August 4, 2016. Consequently, DBRS is maintaining the Under Review with Negative Implications status on Veresen’s ratings. DBRS will further review the details relating to the sale transactions as they become available and aims to resolve the Under Review with Negative Implications status after the sale transactions have closed in Q2 2017.

With respect to CPX, DBRS comments:

DBRS views the Acquisition as having a modestly positive impact on CPC’s Business Risk Assessment factors as (1) the Acquisition assets are supported by long-term PPAs with highly rated counterparties; (2) cash flow from the Acquisition assets is expected to be stable reflecting the nature of capacity contract payments, which account for approximately 80% of the revenues of the Acquisition assets; and (3) the assets being located outside of Alberta also provides CPC with additional geographic diversification, away from the heightened political risk in the province. However, DBRS views the impact of the Acquisition to be modestly negative on CPC’s credit ratios as a result of additional debt from the Acquisition. Overall, DBRS does not view the Acquisition as having either a material positive or negative impact on CPC’s rating.

DBRS notes that CPC’s rating remains BBB with a Negative trend due to Alberta’s challenging wholesale power market environment and heightened political risk for the power market in Alberta. DBRS expects the Negative trend to be resolved upon the completion of its annual review of the Company, which is anticipated to occur in March 2017.

DBRS’ Review Negative of VSN was reported on PrefBlog here and here. The Negative Trend noted by DBRS with respect to CPX does not affect the preferred shares.

Affected VSN issues are VSN.PR.A, VSN.PR.C and VSN.PR.E.

Affected CPX issues are CPX.PR.A, CPX.PR.C, CPX.PR.E and CPX.PR.E.

February 21, 2017

Tuesday, February 21st, 2017

You know, if Trump can put a dent in supply management, I’ll forgive him one of his lies:

While growers and exporters of U.S. crops and food products have expressed anxiety over Trump’s restrictive immigration policies and determination to renegotiate trade deals, dairies see him as an opportunity to crack what they see as Canada’s protectionist milk practices and to help ease oversupply in some regions.

A key battleground is the little known market for ultrafiltered milk, a concentrated ingredient used to boost protein content in cheese and yogurt. Canada is creating incentives for processors to buy from domestic manufacturers. U.S. producers say that could be a disaster, and they allege the new policy would violate trade agreements. Companies in Wisconsin and New York alone might lose $150 million in sales north of the border.

The Globe republished a housing affordability index from Fitch:

houseaffordability_170221
Click for Big

I have problems with this kind of graph: it looks at the income per capita for the whole population, instead of just the upper two-thirds who have historically been the owners among us. While I am sure that Price to Income ratio will still increase once the “income” is defined according to the upper two thirds, I am also sure – given rising income inequality – that the increase will be less dramatic.

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 0.4699 % 2,049.9
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.4699 % 3,761.5
Floater 3.68 % 3.91 % 55,639 17.56 4 0.4699 % 2,167.8
OpRet 0.00 % 0.00 % 0 0.00 0 0.0888 % 2,986.8
SplitShare 4.73 % 4.12 % 59,314 0.78 4 0.0888 % 3,566.9
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0888 % 2,783.1
Perpetual-Premium 5.41 % -9.13 % 74,238 0.09 16 0.1856 % 2,738.4
Perpetual-Discount 5.17 % 5.16 % 101,171 15.02 22 -0.0191 % 2,907.0
FixedReset 4.44 % 4.10 % 232,062 6.79 97 0.8960 % 2,321.5
Deemed-Retractible 5.03 % 3.49 % 125,871 0.11 31 0.0040 % 2,844.2
FloatingReset 2.48 % 3.17 % 53,338 4.66 9 0.4987 % 2,472.4
Performance Highlights
Issue Index Change Notes
MFC.PR.G FixedReset 1.03 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.47
Bid-YTW : 4.85 %
TD.PF.D FixedReset 1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 22.64
Evaluated at bid price : 23.44
Bid-YTW : 4.08 %
PWF.PR.T FixedReset 1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 22.52
Evaluated at bid price : 22.85
Bid-YTW : 3.89 %
BMO.PR.S FixedReset 1.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.61
Evaluated at bid price : 22.03
Bid-YTW : 3.96 %
SLF.PR.I FixedReset 1.16 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.48
Bid-YTW : 4.70 %
IFC.PR.C FixedReset 1.17 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.70
Bid-YTW : 5.69 %
BMO.PR.Y FixedReset 1.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 22.90
Evaluated at bid price : 23.98
Bid-YTW : 3.92 %
BAM.PF.E FixedReset 1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 22.25
Evaluated at bid price : 22.72
Bid-YTW : 4.18 %
NA.PR.W FixedReset 1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.34
Evaluated at bid price : 21.65
Bid-YTW : 3.97 %
BAM.PF.F FixedReset 1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 23.03
Evaluated at bid price : 23.98
Bid-YTW : 4.21 %
BAM.PF.B FixedReset 1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 22.08
Evaluated at bid price : 22.32
Bid-YTW : 4.29 %
RY.PR.J FixedReset 1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 22.49
Evaluated at bid price : 23.13
Bid-YTW : 4.09 %
BAM.PF.A FixedReset 1.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 23.39
Evaluated at bid price : 23.79
Bid-YTW : 4.29 %
FTS.PR.H FixedReset 1.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 15.82
Evaluated at bid price : 15.82
Bid-YTW : 4.04 %
BAM.PR.R FixedReset 1.30 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 19.43
Evaluated at bid price : 19.43
Bid-YTW : 4.33 %
MFC.PR.F FixedReset 1.33 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.20
Bid-YTW : 9.43 %
HSE.PR.A FixedReset 1.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 15.72
Evaluated at bid price : 15.72
Bid-YTW : 4.43 %
PWF.PR.P FixedReset 1.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 15.63
Evaluated at bid price : 15.63
Bid-YTW : 4.24 %
FTS.PR.K FixedReset 1.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 20.08
Evaluated at bid price : 20.08
Bid-YTW : 4.05 %
TRP.PR.B FixedReset 1.40 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 14.48
Evaluated at bid price : 14.48
Bid-YTW : 4.11 %
RY.PR.H FixedReset 1.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.27
Evaluated at bid price : 21.56
Bid-YTW : 3.98 %
BAM.PR.Z FixedReset 1.42 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 22.17
Evaluated at bid price : 22.88
Bid-YTW : 4.50 %
BAM.PR.X FixedReset 1.42 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 16.38
Evaluated at bid price : 16.38
Bid-YTW : 4.55 %
NA.PR.S FixedReset 1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 22.18
Evaluated at bid price : 22.47
Bid-YTW : 3.98 %
TRP.PR.D FixedReset 1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.34
Evaluated at bid price : 21.64
Bid-YTW : 4.11 %
CM.PR.P FixedReset 1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.44
Evaluated at bid price : 21.44
Bid-YTW : 4.02 %
TD.PF.C FixedReset 1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.42
Evaluated at bid price : 21.42
Bid-YTW : 4.02 %
BMO.PR.W FixedReset 1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.40
Evaluated at bid price : 21.40
Bid-YTW : 3.99 %
MFC.PR.N FixedReset 1.57 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.97
Bid-YTW : 5.45 %
MFC.PR.M FixedReset 1.57 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.96
Bid-YTW : 5.53 %
GWO.PR.N FixedReset 1.57 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.49
Bid-YTW : 9.22 %
MFC.PR.K FixedReset 1.63 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.23
Bid-YTW : 5.81 %
RY.PR.M FixedReset 1.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 22.41
Evaluated at bid price : 23.09
Bid-YTW : 3.98 %
FTS.PR.M FixedReset 1.64 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.97
Evaluated at bid price : 22.27
Bid-YTW : 4.10 %
CM.PR.Q FixedReset 1.67 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 22.76
Evaluated at bid price : 23.68
Bid-YTW : 4.03 %
CU.PR.I FixedReset 1.70 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-12-01
Maturity Price : 25.00
Evaluated at bid price : 26.92
Bid-YTW : 2.34 %
BMO.PR.T FixedReset 1.70 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.48
Evaluated at bid price : 21.48
Bid-YTW : 4.00 %
TRP.PR.A FixedReset 1.75 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 18.57
Evaluated at bid price : 18.57
Bid-YTW : 4.18 %
MFC.PR.L FixedReset 1.82 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.23
Bid-YTW : 5.85 %
TD.PF.A FixedReset 1.83 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.41
Evaluated at bid price : 21.74
Bid-YTW : 3.94 %
TRP.PR.E FixedReset 1.83 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.97
Evaluated at bid price : 22.25
Bid-YTW : 4.02 %
FTS.PR.G FixedReset 1.83 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 20.57
Evaluated at bid price : 20.57
Bid-YTW : 4.01 %
CM.PR.O FixedReset 1.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.52
Evaluated at bid price : 21.90
Bid-YTW : 3.99 %
RY.PR.Z FixedReset 1.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.29
Evaluated at bid price : 21.58
Bid-YTW : 3.93 %
TD.PF.B FixedReset 1.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.28
Evaluated at bid price : 21.57
Bid-YTW : 3.99 %
BAM.PR.T FixedReset 1.90 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 19.32
Evaluated at bid price : 19.32
Bid-YTW : 4.49 %
CU.PR.C FixedReset 1.91 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 21.91
Evaluated at bid price : 22.42
Bid-YTW : 3.89 %
IFC.PR.A FixedReset 2.02 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.66
Bid-YTW : 7.38 %
TRP.PR.C FixedReset 2.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 15.64
Evaluated at bid price : 15.64
Bid-YTW : 4.15 %
TRP.PR.F FloatingReset 2.94 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 17.50
Evaluated at bid price : 17.50
Bid-YTW : 3.46 %
Volume Highlights
Issue Index Shares
Traded
Notes
TD.PF.H FixedReset 204,856 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.88
Bid-YTW : 4.14 %
BIP.PR.C FixedReset 160,845 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-09-30
Maturity Price : 25.00
Evaluated at bid price : 25.73
Bid-YTW : 4.86 %
RY.PR.Q FixedReset 154,949 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-24
Maturity Price : 25.00
Evaluated at bid price : 26.80
Bid-YTW : 3.67 %
BNS.PR.E FixedReset 116,083 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-25
Maturity Price : 25.00
Evaluated at bid price : 26.88
Bid-YTW : 3.66 %
BNS.PR.H FixedReset 111,545 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-01-26
Maturity Price : 25.00
Evaluated at bid price : 26.06
Bid-YTW : 4.00 %
BMO.PR.R FloatingReset 83,000 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.85
Bid-YTW : 3.07 %
There were 73 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
TRP.PR.G FixedReset Quote: 23.39 – 23.77
Spot Rate : 0.3800
Average : 0.2435

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 22.58
Evaluated at bid price : 23.39
Bid-YTW : 4.25 %

TRP.PR.H FloatingReset Quote: 13.30 – 13.66
Spot Rate : 0.3600
Average : 0.2311

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 13.30
Evaluated at bid price : 13.30
Bid-YTW : 3.34 %

GWO.PR.N FixedReset Quote: 15.49 – 15.86
Spot Rate : 0.3700
Average : 0.2668

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.49
Bid-YTW : 9.22 %

BAM.PF.G FixedReset Quote: 24.33 – 24.60
Spot Rate : 0.2700
Average : 0.1849

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 23.07
Evaluated at bid price : 24.33
Bid-YTW : 4.13 %

BNS.PR.D FloatingReset Quote: 21.49 – 21.76
Spot Rate : 0.2700
Average : 0.1943

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.49
Bid-YTW : 4.65 %

BMO.PR.Y FixedReset Quote: 23.98 – 24.23
Spot Rate : 0.2500
Average : 0.1806

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-21
Maturity Price : 22.90
Evaluated at bid price : 23.98
Bid-YTW : 3.92 %

February 17, 2017

Friday, February 17th, 2017

Let’s close the week off with some rather dated (2014) anti-drone news:

Watch how a US Military Naval ship equipped with a LaWS laser weapon-system destroys an enemy target.

The laser locks onto its target and opens ‘fire’. The target explodes leaving the platform unscathed.

The laser then neatly incinerates a Scan Eagle drone, which plunges to the sea below.

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 1.4098 % 2,040.3
FixedFloater 0.00 % 0.00 % 0 0.00 0 1.4098 % 3,743.9
Floater 3.70 % 3.94 % 54,166 17.50 4 1.4098 % 2,157.6
OpRet 0.00 % 0.00 % 0 0.00 0 0.4508 % 2,984.2
SplitShare 4.74 % 4.01 % 59,074 0.79 4 0.4508 % 3,563.8
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.4508 % 2,780.6
Perpetual-Premium 5.42 % -3.02 % 72,726 0.09 16 0.0073 % 2,733.3
Perpetual-Discount 5.17 % 5.16 % 96,865 15.07 22 -0.1810 % 2,907.5
FixedReset 4.48 % 4.13 % 227,641 6.78 97 0.1783 % 2,300.9
Deemed-Retractible 5.03 % 0.47 % 126,437 0.12 31 0.0016 % 2,844.1
FloatingReset 2.48 % 3.13 % 51,355 4.67 9 0.2796 % 2,460.1
Performance Highlights
Issue Index Change Notes
NA.PR.W FixedReset 1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-17
Maturity Price : 21.39
Evaluated at bid price : 21.39
Bid-YTW : 4.02 %
TRP.PR.A FixedReset 1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-17
Maturity Price : 18.25
Evaluated at bid price : 18.25
Bid-YTW : 4.23 %
TRP.PR.D FixedReset 1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-17
Maturity Price : 21.33
Evaluated at bid price : 21.33
Bid-YTW : 4.17 %
PWF.PR.A Floater 4.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-17
Maturity Price : 14.75
Evaluated at bid price : 14.75
Bid-YTW : 3.22 %
Volume Highlights
Issue Index Shares
Traded
Notes
BIP.PR.C FixedReset 171,858 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-09-30
Maturity Price : 25.00
Evaluated at bid price : 25.75
Bid-YTW : 4.82 %
BAM.PR.K Floater 155,300 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-17
Maturity Price : 12.10
Evaluated at bid price : 12.10
Bid-YTW : 3.94 %
BAM.PR.C Floater 130,583 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-17
Maturity Price : 12.10
Evaluated at bid price : 12.10
Bid-YTW : 3.94 %
BAM.PR.B Floater 120,956 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-17
Maturity Price : 12.12
Evaluated at bid price : 12.12
Bid-YTW : 3.94 %
TD.PR.Z FloatingReset 99,000 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.80
Bid-YTW : 3.13 %
TRP.PR.K FixedReset 89,297 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-31
Maturity Price : 25.00
Evaluated at bid price : 25.71
Bid-YTW : 4.30 %
There were 28 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
TRP.PR.F FloatingReset Quote: 17.00 – 17.35
Spot Rate : 0.3500
Average : 0.2413

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-17
Maturity Price : 17.00
Evaluated at bid price : 17.00
Bid-YTW : 3.55 %

MFC.PR.L FixedReset Quote: 20.85 – 21.11
Spot Rate : 0.2600
Average : 0.1649

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 20.85
Bid-YTW : 6.10 %

ELF.PR.F Perpetual-Discount Quote: 24.30 – 24.54
Spot Rate : 0.2400
Average : 0.1549

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-17
Maturity Price : 24.05
Evaluated at bid price : 24.30
Bid-YTW : 5.51 %

TD.PF.G FixedReset Quote: 26.85 – 27.06
Spot Rate : 0.2100
Average : 0.1297

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-30
Maturity Price : 25.00
Evaluated at bid price : 26.85
Bid-YTW : 3.67 %

CM.PR.O FixedReset Quote: 21.50 – 21.72
Spot Rate : 0.2200
Average : 0.1438

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-17
Maturity Price : 21.50
Evaluated at bid price : 21.50
Bid-YTW : 4.08 %

MFC.PR.H FixedReset Quote: 23.76 – 23.96
Spot Rate : 0.2000
Average : 0.1274

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.76
Bid-YTW : 4.96 %

BPO.PR.E Settles Firm on Good Volume

Friday, February 17th, 2017

BPO.PR.E settled today, but I was unable to find a press release. Which is not to say that there is no press release, of course – Brookfield’s website is an incredibly poorly designed labyrinth, although it looks really cool and groovy and awesome, man. Have another spliff, bro!

BPO.PR.E is a FixedReset, 5.10%+396M510, announced 2017-2-9. It will be tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

The issue traded 697,623 shares today in a range of 24.92-02 before closing at 24.99-00, 10×188. Vital statistics are:

BPO.PR.E FixedReset YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-17
Maturity Price : 23.15
Evaluated at bid price : 24.99
Bid-YTW : 5.03 %

DBRS formally assigned a Pfd-3 rating to the issue:

DBRS Limited (DBRS) has today assigned a rating of Pfd-3 with a Stable trend to the $275 million Class AAA Preference Shares, Series EE (Series EE Preferred Shares), issued by Brookfield Office Properties Inc. (Brookfield).

The Series EE Preferred Shares will rank equally and rateably with Brookfield’s existing Class AAA preference shares and in priority of the Company’s Class B preferred shares and common shares.

DBRS understands that the net proceeds from the sale of the Series EE Preferred Shares will be used for general corporate purposes, which may include the redemption of existing preferred shares.

Implied Volatility analysis suggests that the issue is a little expensive, but it will be noted that in addition to all the usual assumptions made in this analysis, this conclusion also depends on the assumption that the issues with a reset-floor are equivalent to issues without a reset floor … which is somewhat controversial!

impvol_bpo_170217
Click for Big

February 16, 2017

Thursday, February 16th, 2017
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 0.0795 % 2,012.0
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.0795 % 3,691.9
Floater 3.75 % 3.94 % 50,062 17.49 4 0.0795 % 2,127.6
OpRet 0.00 % 0.00 % 0 0.00 0 -0.1077 % 2,970.8
SplitShare 4.70 % 4.51 % 56,853 4.13 4 -0.1077 % 3,547.8
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.1077 % 2,768.1
Perpetual-Premium 5.42 % -3.21 % 73,220 0.09 16 0.1247 % 2,733.1
Perpetual-Discount 5.16 % 5.16 % 103,752 15.06 22 0.0305 % 2,912.8
FixedReset 4.48 % 4.14 % 228,690 6.72 97 0.0278 % 2,296.8
Deemed-Retractible 5.02 % 0.46 % 128,088 0.12 31 0.2560 % 2,844.0
FloatingReset 2.49 % 3.22 % 48,030 4.67 9 0.1130 % 2,453.3
Performance Highlights
Issue Index Change Notes
GWO.PR.P Deemed-Retractible 1.25 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-03-31
Maturity Price : 25.25
Evaluated at bid price : 25.83
Bid-YTW : 4.82 %
Volume Highlights
Issue Index Shares
Traded
Notes
MFC.PR.I FixedReset 364,210 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.05
Bid-YTW : 5.33 %
MFC.PR.H FixedReset 200,896 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.04
Bid-YTW : 4.95 %
TD.PF.C FixedReset 144,747 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-16
Maturity Price : 20.98
Evaluated at bid price : 20.98
Bid-YTW : 4.08 %
BAM.PR.T FixedReset 109,586 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-16
Maturity Price : 18.98
Evaluated at bid price : 18.98
Bid-YTW : 4.54 %
RY.PR.H FixedReset 86,824 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-16
Maturity Price : 21.25
Evaluated at bid price : 21.25
Bid-YTW : 4.04 %
MFC.PR.R FixedReset 72,799 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-03-19
Maturity Price : 25.00
Evaluated at bid price : 25.80
Bid-YTW : 4.42 %
There were 33 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
PVS.PR.E SplitShare Quote: 26.21 – 26.99
Spot Rate : 0.7800
Average : 0.5076

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-10-31
Maturity Price : 25.00
Evaluated at bid price : 26.21
Bid-YTW : 4.77 %

TRP.PR.E FixedReset Quote: 21.65 – 22.02
Spot Rate : 0.3700
Average : 0.2314

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-16
Maturity Price : 21.34
Evaluated at bid price : 21.65
Bid-YTW : 4.11 %

TRP.PR.D FixedReset Quote: 21.00 – 21.40
Spot Rate : 0.4000
Average : 0.2690

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-16
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 4.24 %

PWF.PR.A Floater Quote: 14.14 – 14.60
Spot Rate : 0.4600
Average : 0.3431

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-16
Maturity Price : 14.14
Evaluated at bid price : 14.14
Bid-YTW : 3.36 %

SLF.PR.J FloatingReset Quote: 15.17 – 15.45
Spot Rate : 0.2800
Average : 0.1782

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.17
Bid-YTW : 8.94 %

BAM.PR.R FixedReset Quote: 19.05 – 19.34
Spot Rate : 0.2900
Average : 0.2151

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-16
Maturity Price : 19.05
Evaluated at bid price : 19.05
Bid-YTW : 4.39 %

February 15, 2017

Thursday, February 16th, 2017

There’s a great piece in the WSJ about the practical effects of the fiduciary rule:

Judith Friedlander, an 80-year-old retiree from Murrieta, Calif., doesn’t appreciate the government trying to regulate how she manages her roughly $400,000 individual retirement account.

After the Labor Department last year approved the fiduciary rule, which generally requires advice on retirement assets to be conflict-free, Ms. Friedlander says her financial adviser suggested she transition from a commission-based account of the sort that could run afoul of the rule into a fee-only account.

But Ms. Friedlander isn’t interested in a switch. She trades only a few times a year and says moving to a fee-only account that charges a percentage of her assets would be far pricier than the periodic commissions she currently pays. “I don’t see any advantage to the regulation for someone like me,” says Ms Friedlander, who adds that she hasn’t decided what to do.

As brokerage firms over the past several months have announced their compliance plans, some approaches have put new limits on IRA investors. Bank of America Corp.’s Merrill Lynch, for example, has said it will no longer offer individual retirement accounts that charge commissions, and will instead favor charging retirement savers a fee based on a percentage of their assets. J.P. Morgan Chase is taking a similar tack, offering brokerage retirement clients only a fee-based IRA.

Of course, fee-based accounts in a sell-side brokerage is a whole nuther can of worms. New issue commissions, proxy solicitation fees … the potential for conflict is endless. I continue to advocate that buy-side and sell-side be strictly separated, with the former charging account fees and the latter charging commissions; that anybody on the buy-side be required to publish a performance history from inception that is subject to audit and in which any defined groups be strictly mapped onto the fiduciary’s contemporary KYC form; and that only one ‘side’ can be owned by a single entity (e.g., brokerages and advisory firms can’t have a common owner).

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 0.1991 % 2,010.4
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.1991 % 3,688.9
Floater 3.76 % 3.94 % 48,490 17.51 4 0.1991 % 2,125.9
OpRet 0.00 % 0.00 % 0 0.00 0 0.0490 % 2,974.0
SplitShare 4.70 % 4.17 % 57,396 0.79 4 0.0490 % 3,551.6
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0490 % 2,771.1
Perpetual-Premium 5.43 % -3.39 % 70,487 0.09 16 -0.0196 % 2,729.7
Perpetual-Discount 5.17 % 5.17 % 102,773 15.07 22 -0.1161 % 2,911.9
FixedReset 4.48 % 4.13 % 229,690 6.72 97 0.3169 % 2,296.2
Deemed-Retractible 5.04 % 0.45 % 128,795 0.12 31 -0.0633 % 2,836.8
FloatingReset 2.49 % 3.22 % 49,177 4.68 9 0.0431 % 2,450.5
Performance Highlights
Issue Index Change Notes
FTS.PR.J Perpetual-Discount -1.42 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 22.60
Evaluated at bid price : 22.95
Bid-YTW : 5.17 %
SLF.PR.J FloatingReset -1.11 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.15
Bid-YTW : 8.96 %
TRP.PR.A FixedReset 1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 18.09
Evaluated at bid price : 18.09
Bid-YTW : 4.27 %
BNS.PR.P FixedReset 1.10 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.90
Bid-YTW : 3.32 %
VNR.PR.A FixedReset 1.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 21.44
Evaluated at bid price : 21.44
Bid-YTW : 4.62 %
BAM.PR.R FixedReset 1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 19.22
Evaluated at bid price : 19.22
Bid-YTW : 4.35 %
PWF.PR.T FixedReset 1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 22.22
Evaluated at bid price : 22.52
Bid-YTW : 3.93 %
TRP.PR.D FixedReset 1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 21.17
Evaluated at bid price : 21.17
Bid-YTW : 4.20 %
BAM.PF.A FixedReset 1.21 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 22.93
Evaluated at bid price : 23.33
Bid-YTW : 4.35 %
FTS.PR.H FixedReset 1.30 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 15.55
Evaluated at bid price : 15.55
Bid-YTW : 4.08 %
BAM.PR.T FixedReset 1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 19.11
Evaluated at bid price : 19.11
Bid-YTW : 4.51 %
GWO.PR.N FixedReset 1.40 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.25
Bid-YTW : 9.42 %
CU.PR.C FixedReset 1.75 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 21.69
Evaluated at bid price : 22.09
Bid-YTW : 3.93 %
TRP.PR.F FloatingReset 1.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 17.02
Evaluated at bid price : 17.02
Bid-YTW : 3.54 %
Volume Highlights
Issue Index Shares
Traded
Notes
MFC.PR.R FixedReset 236,521 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-03-19
Maturity Price : 25.00
Evaluated at bid price : 25.80
Bid-YTW : 4.41 %
BMO.PR.S FixedReset 120,938 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 21.41
Evaluated at bid price : 21.74
Bid-YTW : 4.00 %
MFC.PR.H FixedReset 105,781 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.05
Bid-YTW : 4.94 %
BNS.PR.Z FixedReset 90,405 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.32
Bid-YTW : 4.61 %
TRP.PR.K FixedReset 86,235 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-31
Maturity Price : 25.00
Evaluated at bid price : 25.60
Bid-YTW : 4.38 %
IAG.PR.G FixedReset 79,902 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.15
Bid-YTW : 5.21 %
There were 45 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
FTS.PR.J Perpetual-Discount Quote: 22.95 – 23.30
Spot Rate : 0.3500
Average : 0.2319

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 22.60
Evaluated at bid price : 22.95
Bid-YTW : 5.17 %

GWO.PR.P Deemed-Retractible Quote: 25.51 – 25.80
Spot Rate : 0.2900
Average : 0.2024

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.51
Bid-YTW : 5.22 %

FTS.PR.F Perpetual-Discount Quote: 23.65 – 23.90
Spot Rate : 0.2500
Average : 0.1772

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 23.36
Evaluated at bid price : 23.65
Bid-YTW : 5.18 %

CU.PR.I FixedReset Quote: 26.36 – 26.67
Spot Rate : 0.3100
Average : 0.2461

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-12-01
Maturity Price : 25.00
Evaluated at bid price : 26.36
Bid-YTW : 2.94 %

NA.PR.W FixedReset Quote: 21.04 – 21.22
Spot Rate : 0.1800
Average : 0.1162

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-15
Maturity Price : 21.04
Evaluated at bid price : 21.04
Bid-YTW : 4.09 %

TD.PR.Z FloatingReset Quote: 23.64 – 23.88
Spot Rate : 0.2400
Average : 0.1815

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.64
Bid-YTW : 3.28 %

FTN.PR.A To Get Bigger

Wednesday, February 15th, 2017

Quadravest has announced:

Financial 15 Split Corp. (the “Company”) is pleased to announce it has filed a preliminary short form prospectus in each of the provinces of Canada with respect to an offering of Preferred Shares and Class A Shares of the Company. The offering will be co-led by National Bank Financial Inc., CIBC, RBC Capital Markets, Scotia Capital Inc., and will also include BMO Capital Markets, GMP Securities L.P., Canaccord Genuity Corp., Raymond James, Desjardins Securities Inc., Echelon Wealth Partners, Mackie Research Capital Corporation and Manulife Securities Incorporated.

The Preferred Shares will be offered at a price of $10.00 per Preferred Share to yield 5.25% and the Class A Shares will be offered at a price of $10.50 per Class A Share to yield 14.37%.

The closing price on the TSX of each of the Preferred Shares and the Class A Shares on February 14, 2017 was $10.24
and $10.79, respectively.

Since inception of the Company, the aggregate dividends paid on the Preferred Shares have been $6.94 per share and the aggregate dividends paid on the Class A Shares have been $16.00 per share, for a combined total of $22.94. 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:
i. to provide holders of the Preferred Shares with fixed, cumulative preferential monthly cash dividends currently in
the amount of 5.25% annually, to be set by the Board of Directors annually subject to a minimum of 5.25% until 2020; and
ii. on or about the termination date, currently December 1, 2020 (subject to further 5 year extensions thereafter), to pay the holders of the Preferred Shares $10.00 per Preferred Share.

Class A Shares:
i. 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
ii. 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, 2020 (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 February 16, 2017.

FTN.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.

Update, 2017-2-17: The offering appears to have been successful:

Financial 15 Split Corp. (the “Company”) is pleased to announce it has completed the overnight marketing of up to 2,980,000 Preferred Shares and up to 2,980,000 Class A Shares of the Company. The total proceeds of the offering are expected to be approximately $61.1 million.

February 14, 2017

Wednesday, February 15th, 2017

Wow. Toshiba might be going down:

The chaos at Toshiba, the Japanese corporate giant, deepened Tuesday, with its chairman resigning and the company saying it would book a $6.3 billion loss related to its U.S. nuclear business.

Then, after the stock market had closed, Toshiba said that it would take a $6.3 billion hit related to Westinghouse’s acquisition in December of Stone & Webster, a nuclear construction business, from Chicago Bridge & Iron in December.

Analysts are now speculating about the possibility that Toshiba, which employs almost 200,000 people in Japan and has significant investments in the United States, will have to file for bankruptcy.

Toshiba, which bought a majority stake in Pennsylvania-based nuclear power company Westinghouse in 2006, earlier said that it had received internal information late last month about irregularities during the acquisition. It had learned that controls at Westinghouse had been “insufficient” and that the company had used “inappropriate pressure” to make the acquisition.

“We concluded on Monday afternoon that we need further research on the internal reporting . . . and its impact on financial results,” the company said in a statement, adding that its lawyers and an independent auditing firm were still poring over the details.

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 0.3798 % 2,006.4
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.3798 % 3,681.6
Floater 3.76 % 3.95 % 48,314 17.49 4 0.3798 % 2,121.7
OpRet 0.00 % 0.00 % 0 0.00 0 0.0588 % 2,972.6
SplitShare 4.70 % 4.17 % 58,127 0.79 4 0.0588 % 3,549.9
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0588 % 2,769.7
Perpetual-Premium 5.43 % -1.72 % 70,961 0.09 16 0.0489 % 2,730.3
Perpetual-Discount 5.16 % 5.14 % 104,046 15.08 22 -0.0146 % 2,915.3
FixedReset 4.50 % 4.16 % 216,553 6.73 97 -0.2478 % 2,288.9
Deemed-Retractible 5.03 % 0.45 % 133,450 0.13 31 -0.1015 % 2,838.6
FloatingReset 2.49 % 3.20 % 45,810 4.68 9 -0.0054 % 2,449.4
Performance Highlights
Issue Index Change Notes
BAM.PF.E FixedReset -1.64 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-14
Maturity Price : 21.88
Evaluated at bid price : 22.19
Bid-YTW : 4.28 %
GWO.PR.N FixedReset -1.44 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.04
Bid-YTW : 9.62 %
BAM.PR.R FixedReset -1.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-14
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 4.40 %
BAM.PF.A FixedReset -1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-14
Maturity Price : 22.66
Evaluated at bid price : 23.05
Bid-YTW : 4.41 %
BAM.PF.F FixedReset -1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-14
Maturity Price : 22.78
Evaluated at bid price : 23.51
Bid-YTW : 4.29 %
RY.PR.M FixedReset -1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-14
Maturity Price : 22.13
Evaluated at bid price : 22.63
Bid-YTW : 4.05 %
HSE.PR.A FixedReset 1.81 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-14
Maturity Price : 15.18
Evaluated at bid price : 15.18
Bid-YTW : 4.55 %
Volume Highlights
Issue Index Shares
Traded
Notes
IFC.PR.C FixedReset 102,439 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.44
Bid-YTW : 5.85 %
IFC.PR.A FixedReset 81,454 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.18
Bid-YTW : 7.73 %
RY.PR.W Perpetual-Discount 75,435 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2017-03-16
Maturity Price : 25.00
Evaluated at bid price : 25.00
Bid-YTW : 3.29 %
IAG.PR.G FixedReset 74,139 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.97
Bid-YTW : 5.32 %
BIP.PR.D FixedReset 52,691 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-14
Maturity Price : 23.18
Evaluated at bid price : 25.09
Bid-YTW : 4.92 %
BAM.PF.B FixedReset 49,340 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-14
Maturity Price : 21.42
Evaluated at bid price : 21.75
Bid-YTW : 4.37 %
There were 35 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
TRP.PR.H FloatingReset Quote: 13.12 – 13.45
Spot Rate : 0.3300
Average : 0.2492

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-14
Maturity Price : 13.12
Evaluated at bid price : 13.12
Bid-YTW : 3.36 %

RY.PR.P Perpetual-Premium Quote: 25.61 – 25.85
Spot Rate : 0.2400
Average : 0.1642

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-02-24
Maturity Price : 25.00
Evaluated at bid price : 25.61
Bid-YTW : 4.89 %

HSE.PR.C FixedReset Quote: 22.95 – 23.17
Spot Rate : 0.2200
Average : 0.1447

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-14
Maturity Price : 22.42
Evaluated at bid price : 22.95
Bid-YTW : 4.67 %

TRP.PR.F FloatingReset Quote: 16.71 – 17.05
Spot Rate : 0.3400
Average : 0.2669

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-14
Maturity Price : 16.71
Evaluated at bid price : 16.71
Bid-YTW : 3.61 %

W.PR.K FixedReset Quote: 25.80 – 26.05
Spot Rate : 0.2500
Average : 0.1784

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-01-15
Maturity Price : 25.00
Evaluated at bid price : 25.80
Bid-YTW : 4.50 %

PVS.PR.E SplitShare Quote: 26.30 – 26.54
Spot Rate : 0.2400
Average : 0.1749

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2017-03-16
Maturity Price : 26.00
Evaluated at bid price : 26.30
Bid-YTW : 3.63 %

BEP.PR.K Firm On Good Volume

Wednesday, February 15th, 2017

Brookfield Renewable Partners L.P. has announced that it has:

completed its previously announced issue of Cumulative Minimum Rate Reset Class A Preferred Limited Partnership Units, Series 11 (the “Series 11 Preferred Units”). The offering was underwritten by a syndicate led by TD Securities Inc., CIBC Capital Markets, RBC Capital Markets and Scotiabank.

Brookfield Renewable issued 10,000,000 Series 11 Preferred Units at a price of $25.00 per unit, for total gross proceeds of CDN$250,000,000.

The Series 11 Preferred Units will commence trading on the Toronto Stock Exchange this morning under the ticker symbol BEP.PR.K.

BEP.PR.K is a FixedReset, 5.00%+382M500, announced 2017-2-7. Note that distributions on this security will be a mix of ordinary income and return of capital. It will be tracked by HIMIPref™ but relegated to the Scraps subindex on credit concerns.

The issue traded 784,722 shares today in a range of 24.88-00 before closing at 24.97-99, 54×45. Vital statistics are:

BEP.PR.K FixedReset YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-14
Maturity Price : 23.14
Evaluated at bid price : 24.97
Bid-YTW : 4.93 %

Update, 2017-10-11: Note that if we look at the prospectus (available on SEDAR under ““Brookfield Renewable Partners L.P. Feb 7 2017 18:36:01 ET Prospectus (non pricing) supplement – English PDF 284 K”:

The reclassification of a Series 11 Preferred Unit into a Series 12 Preferred Unit or a Series 12 Preferred Unit into a Series 11 Preferred Unit, whether pursuant to an election made by the Resident Holder or pursuant to an automatic reclassification, may be considered to be a disposition of the Series 11 Preferred Unit or Series 12 Preferred Unit by the Resident Holder. The CRA’s position is that the conversion of an interest in a partnership into another interest in the partnership may result in a disposition of the partnership interest by the holder if the conversion results in a significant change in the rights and obligations of the holder in respect of the converted interest, including a significant change in the percentage interest in the profits of the partnership. Whether or not the reclassification of Series 11 Preferred Units into Series 12 Preferred Units or Series 12 Preferred Units into Series 11 Preferred Units would result in a significant change in the percentage interest of a Resident Holder in the profits of the Partnership is a question of fact that depends upon the facts and circumstances that exist at the time of the reclassification.

February 13, 2017

Tuesday, February 14th, 2017

Preferred shares? There’s drone news to report!

Dubai has tested a Chinese prototype of a self-driving hover-taxi, its transport authority said on Monday, with the aim of introducing the aerial vehicle in the emirate by July.

The test of the one-man electric vehicle comes as the city state in the United Arab Emirates seeks to ensure a quarter of its means of transport are self-driving by 2030.

The EHang 184 can travel on a programmed course at 100 kilometres an hour (60 mph) at an altitude of 300 metres (1,000 feet), the authority said in a statement. The new version has an endurance of about 30 minute flying time. This is about 30 mile range. The drones can handle a flier and a small bag weighing up to a combined total of 220 pounds.

A passenger simply needs to select a destination for the autonomous taxi to take off, fly the route and touch down in the chosen spot monitored by a ground control center, it said.

The EHang 184 is very similar to a multicopter UAV with an X8 configuration.

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 0.0800 % 1,998.8
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.0800 % 3,667.7
Floater 3.78 % 3.97 % 47,430 17.45 4 0.0800 % 2,113.7
OpRet 0.00 % 0.00 % 0 0.00 0 0.0196 % 2,970.8
SplitShare 4.70 % 4.53 % 54,030 4.14 4 0.0196 % 3,547.8
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0196 % 2,768.1
Perpetual-Premium 5.43 % -1.91 % 75,103 0.09 16 0.0612 % 2,728.9
Perpetual-Discount 5.15 % 5.17 % 103,808 15.09 22 0.0914 % 2,915.7
FixedReset 4.48 % 4.14 % 216,888 6.73 97 0.2235 % 2,294.6
Deemed-Retractible 5.03 % 0.24 % 135,057 0.13 31 -0.0277 % 2,841.4
FloatingReset 2.49 % 3.24 % 47,269 4.68 9 0.1618 % 2,449.6
Performance Highlights
Issue Index Change Notes
TRP.PR.A FixedReset 1.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-13
Maturity Price : 18.08
Evaluated at bid price : 18.08
Bid-YTW : 4.27 %
CU.PR.C FixedReset 1.53 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-13
Maturity Price : 21.51
Evaluated at bid price : 21.84
Bid-YTW : 3.98 %
TRP.PR.H FloatingReset 3.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-13
Maturity Price : 13.22
Evaluated at bid price : 13.22
Bid-YTW : 3.34 %
Volume Highlights
Issue Index Shares
Traded
Notes
BAM.PR.K Floater 170,890 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-13
Maturity Price : 12.02
Evaluated at bid price : 12.02
Bid-YTW : 3.97 %
TD.PF.H FixedReset 159,626 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.89
Bid-YTW : 4.11 %
SLF.PR.D Deemed-Retractible 74,764 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.25
Bid-YTW : 6.35 %
MFC.PR.B Deemed-Retractible 64,724 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.31
Bid-YTW : 5.87 %
IAG.PR.G FixedReset 57,393 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.90
Bid-YTW : 5.37 %
TRP.PR.K FixedReset 56,636 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-31
Maturity Price : 25.00
Evaluated at bid price : 25.78
Bid-YTW : 4.23 %
There were 30 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
GWO.PR.N FixedReset Quote: 15.26 – 15.79
Spot Rate : 0.5300
Average : 0.3531

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.26
Bid-YTW : 9.41 %

CCS.PR.C Deemed-Retractible Quote: 23.80 – 24.24
Spot Rate : 0.4400
Average : 0.3299

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.80
Bid-YTW : 5.90 %

TRP.PR.F FloatingReset Quote: 16.74 – 17.00
Spot Rate : 0.2600
Average : 0.1869

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-13
Maturity Price : 16.74
Evaluated at bid price : 16.74
Bid-YTW : 3.60 %

BMO.PR.Z Perpetual-Premium Quote: 25.40 – 25.60
Spot Rate : 0.2000
Average : 0.1288

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2024-08-25
Maturity Price : 25.00
Evaluated at bid price : 25.40
Bid-YTW : 4.75 %

BNS.PR.D FloatingReset Quote: 21.35 – 21.55
Spot Rate : 0.2000
Average : 0.1330

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.35
Bid-YTW : 4.76 %

BIP.PR.A FixedReset Quote: 23.15 – 23.35
Spot Rate : 0.2000
Average : 0.1356

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-02-13
Maturity Price : 22.49
Evaluated at bid price : 23.15
Bid-YTW : 5.02 %