Month: December 2024

Issue Comments

TD.PF.C To Be Redeemed

The Toronto-Dominion Bank has announced:

that it will exercise its right to redeem all of its 20,000,000 outstanding Non-Cumulative 5-Year Rate Reset Class A First Preferred Shares, Series 5 (Non-Viability Contingent Capital) (the “Series 5 Shares”) on January 31, 2025 at the price of $25.00 per Series 5 Share for an aggregate total of approximately $500 million. The redemption has been approved by the Office of the Superintendent of Financial Institutions.

On December 5, 2024, TD announced that dividends of $0.24225 per Series 5 Share had been declared. These will be the final dividends on the Series 5 Shares, and will be paid in the usual manner on January 31, 2025 to shareholders of record on January 10, 2025, as previously announced. After January 31, 2025, the Series 5 Shares will cease to be entitled to dividends and the only remaining rights of holders of such shares will be to receive payment of the redemption amount.

Beneficial holders who are not directly the registered holder of Series 5 Shares should contact the financial institution, broker or other intermediary through which they hold these shares to confirm how they will receive their redemption proceeds. Inquiries should be directed to our Registrar and Transfer Agent, TSX Trust Company, at 1-800-387-0825 (or in Toronto 416-682-3860).

TD.PF.C is a FixedReset, 3.75%+225, that commenced trading 2014-12-16 after being announced 2014-12-5. Notice of extension was reported in December, 2019. TD.PF.C will reset at 3.876% effective January 31, 2020. I recommended against conversion and there was no conversion. TD.PF.C is tracked by HIMIPref™ and is assigned to the FixedReset-Discount subindex.

Issue Comments

NA.PR.W To Be Redeemed

National Bank of Canada has announced:

its intention to redeem all of its 12,000,000 issued and outstanding Non-Cumulative 5-Year Rate Reset First Preferred Shares Series 32 (the “Series 32 Shares”) on February 15, 2025, for cash at a redemption price of $25.00 per share, together with all declared and unpaid dividends.

The quarterly dividend of $0.2399375 per Series 32 Share declared on December 3, 2024 is the final dividend on the Series 32 Shares, and is payable in the usual manner on February 15, 2025 to shareholders of record on January 6, 2025, as previously announced.

Since February 15, 2025, is not a business day, amounts due to holders of the Series 32 Shares on that date will be paid on the first business day following that date, namely, Monday, February 17, 2025.

The redemption has been approved by the Office of the Superintendent of Financial Institutions. Formal notice will be given to holders of the Series 32 Shares in accordance with the terms of the Series 32 Shares.

The redemption of the Series 32 Shares is part of the Bank’s ongoing management of its regulatory capital.

NA.PR.W was issued as a FixedReset, 3.90%+225, that commenced trading 2014-10-9 after being announced 2014-9-30. The company announced the extension on 2019-12-19. NA.PR.W reset at 3.839% effective February 16, 2020. I recommended against conversion and there was no conversion. The issue is tracked by HIMIPref™ and is assigned to the FixedReset (Discount) subindex.

Issue Comments

CM.PR.P To Be Redeemed

Canadian Imperial Bank of Commerce has announced:

its intention to redeem all of its issued and outstanding Non-cumulative Rate Reset Class A Preferred Shares Series 41 (Non-viability contingent capital (NVCC)) (Series 41 shares) (TSX: CM.PR.P), for cash. The redemption will occur on January 31, 2025. The redemption price is $25.00 per Series 41 share.

The $0.244313 quarterly dividend announced on December 5, 2024 will be the final dividend on the Series 41 shares and will be paid on January 28, 2025, covering the period to January 31, 2025, to shareholders of record on December 27, 2024.

Holders of the Series 41 shares should contact the financial institution, broker or other intermediary through which they hold the shares to confirm how they will receive their redemption proceeds.

CM.PR.P is a FixedReset, 3.75%+224, that commenced trading 2014-12-16 after being announced 2014-12-8. In December, notice of extension was published. CM.PR.P will reset at 3.909% effective January 31, 2020. I recommended against conversion and there was no conversion. The issue is tracked by HIMIPref™ and is assigned to the FixedReset-Discount subindex.

Miscellaneous News

Redemption & New Issue Data

A recent post prompted an interesting discussion in which Assiduous Reader RAV4guy told us:

Since RBC announced in August 2020 the redemption of 6 preferred issues with a par value of $1.5 billion I have kept a log of the ongoing redemptions and new issues by all issuers.

The announced redemption of FFH.PR.C/D is the 100th issue to have its redemption announced. The par value of these 100 redemptions is $28.077 billion.

Since August 2020 there have been 12 new issues and their par value is $2.022 billion. These new issues are:

4 Split Share: PVS.PR.I, PVS.PR.J, PVS.PR.K and PVS.PR.L
1 FRR with a floor: EMA.PR.J
7 Perpetuals: MIC.PR.A, EMA.PR.L, GWO.PR.Y, PWF.PR.A, CU.PR.J, IFC.PR.K and BEP.PR.R

The last two issues were BEP.PR.R in April 2022 and then PVS.PR.L in September 2024. No operating companies have issued preferred shares in over 2.5 years.

We all know that redemptions have greatly exceeded new issues over the past few years, but it’s breathtaking to see the numbers quantified!

RAV4guy has very kindly made his spreadsheet available to us, with technical assistance from Assiduous Reader FletcherLynd Here it is, in two formats:

Thanks, RAV4guy & FletcherLynd!

Canada Prime

BoC Cuts Policy Rate 50bp to 3.25%; Prime Follows

The Bank of Canada has announced it has:

reduced its target for the overnight rate to 3¼%, with the Bank Rate at 3¾% and the deposit rate at 3¼%. The Bank is continuing its policy of balance sheet normalization.

The global economy is evolving largely as expected in the Bank’s October Monetary Policy Report (MPR). In the United States, the economy continues to show broad-based strength, with robust consumption and a solid labour market. US inflation has been holding steady, with some price pressures persisting. In the euro area, recent indicators point to weaker growth. In China, recent policy actions combined with strong exports are supporting growth, but household spending remains subdued. Global financial conditions have eased and the Canadian dollar has depreciated in the face of broad-based strength in the US dollar.

In Canada, the economy grew by 1% in the third quarter, somewhat below the Bank’s October projection, and the fourth quarter also looks weaker than projected. Third-quarter GDP growth was pulled down by business investment, inventories and exports. In contrast, consumer spending and housing activity both picked up, suggesting lower interest rates are beginning to boost household spending. Historical revisions to the National Accounts have increased the level of GDP over the past three years, largely reflecting higher investment and consumption. The unemployment rate rose to 6.8% in November as employment continued to grow more slowly than the labour force. Wage growth showed some signs of easing, but remains elevated relative to productivity.

A number of policy measures have been announced that will affect the outlook for near-term growth and inflation in Canada. Reductions in targeted immigration levels suggest GDP growth next year will be below the Bank’s October forecast. The effects on inflation will likely be more muted, given that lower immigration dampens both demand and supply. Other federal and provincial policies—including a temporary suspension of the GST on some consumer products, one-time payments to individuals, and changes to mortgage rules—will affect the dynamics of demand and inflation. The Bank will look through effects that are temporary and focus on underlying trends to guide its policy decisions.

In addition, the possibility the incoming US administration will impose new tariffs on Canadian exports to the United States has increased uncertainty and clouded the economic outlook.

CPI inflation has been about 2% since the summer, and is expected to average close to the 2% target over the next couple of years. Since October, the upward pressure on inflation from shelter and the downward pressure from goods prices have both moderated as expected. Looking ahead, the GST holiday will temporarily lower inflation but that will be unwound once the GST break ends. Measures of core inflation will help us assess the trend in CPI inflation.

With inflation around 2%, the economy in excess supply, and recent indicators tilted towards softer growth than projected, Governing Council decided to reduce the policy rate by a further 50 basis points to support growth and keep inflation close to the middle of the 1-3% target range. Governing Council has reduced the policy rate substantially since June. Going forward, we will be evaluating the need for further reductions in the policy rate one decision at a time. Our decisions will be guided by incoming information and our assessment of the implications for the inflation outlook. The Bank is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.

Mark Rendell in the Globe comments:

Mr. Macklem justified the oversized move by pointing to tepid economic growth and a weakening labour market in recent months. Canada’s gross domestic product growth undershot the bank’s forecast in the third quarter and the unemployment rate jumped to 6.8 per cent in November from 6.5 per cent the month before.

“Monetary policy no longer needs to be in restrictive territory. We want to see growth pick up to absorb the unused capacity in the economy to keep inflation close to 2 per cent,” Mr. Macklem said.

He highlighted a number of risks on the horizon. Chief among these is a slowdown in population growth following Ottawa’s new immigration targets, “which suggest GDP growth next year will be lower than we forecast in October,” Mr. Macklem said.

He also pointed to the potential of U.S. tariffs on Canadian goods, which he called “a major new uncertainty.” President-elect Donald Trump has threatened to impose a 25-per-cent tariff on all Canadian imports unless Ottawa does more to address border security concerns, and he campaigned on a across-the-board tariff of 10 per cent to 20 per cent on all imports.

“The economic outlook is clouded by the possibility of new tariffs on Canadian exports to the United States. No one knows how this will play out in the months ahead – whether tariffs will be imposed, whether exemptions get agreed, or whether retaliatory measures will be put in place,” Mr. Macklem said.

…while Darcy Keith reports:

Implied interest rate probabilities in overnight swaps markets suggest a 67 per cent chance of a 25 basis point cut at the next policy meeting on Jan. 29, and 33 per cent odds that there will be no change at all to the bank’s overnight rate, according to the latest LSEG data after today’s BoC decision.


Post-announcement

The indicated December, 2025, rate of 2.65% may be compared with the 2024-12-6 forecast of 2.61%.

Prime followed:

Well, Rob Carrick and Ryan Siever will be mad – nothing on the way up and precious few hopes for the way down:

There’s a case to be made for banks giving borrowers a break when what is expected to be the biggest interest rate hike in 22 years is announced on Wednesday.

A brief flashback to 2015 is required to get the sense of this story. The economy back then was in the opposite shape of what it is now – weak enough to prompt the Bank of Canada to cut its trendsetting overnight rate by 0.25 of a percentage point in January and again in July.

The big banks hijacked part of that rate cut. While the overnight rate fell by a total 0.5 of a point, the banks cut their prime rate by cumulative 0.3 of a point. They held back the rest of the rate cut to build their revenues and profit.

There was a delay in reducing the prime when the Canada Overnight rate dropped 25bp to 0.75% in January 2015 and again when Canada Overnight dropped a further 25bp to 0.50% in July of that year.

Market Action

December 11, 2024

Another good solid day for TXPR, which gained 0.32% and set a new 52-week high despite (because of?) the BoC policy easing.

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 -0.2373 % 2,305.6
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.2373 % 4,422.1
Floater 8.26 % 8.60 % 31,839 10.66 4 -0.2373 % 2,548.5
OpRet 0.00 % 0.00 % 0 0.00 0 -0.1534 % 3,628.2
SplitShare 4.77 % 4.24 % 65,021 1.18 7 -0.1534 % 4,332.8
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.1534 % 3,380.6
Perpetual-Premium 0.00 % 0.00 % 0 0.00 0 0.7053 % 2,899.3
Perpetual-Discount 5.92 % 6.09 % 52,745 13.71 32 0.7053 % 3,161.5
FixedReset Disc 5.43 % 6.63 % 106,179 12.81 53 0.2723 % 2,767.4
Insurance Straight 5.91 % 5.99 % 68,997 13.97 21 -0.0923 % 3,062.8
FloatingReset 6.41 % 6.04 % 33,710 12.79 4 0.0462 % 3,378.4
FixedReset Prem 6.03 % 5.48 % 222,848 13.89 9 -0.0997 % 2,598.0
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 0.2723 % 2,828.8
FixedReset Ins Non 5.16 % 5.90 % 84,884 13.94 14 0.4390 % 2,848.6
Performance Highlights
Issue Index Change Notes
SLF.PR.E Insurance Straight -7.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 5.94 %
SLF.PR.C Insurance Straight -5.94 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 5.88 %
GWO.PR.N FixedReset Ins Non -3.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 15.00
Evaluated at bid price : 15.00
Bid-YTW : 6.68 %
SLF.PR.D Insurance Straight -2.87 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 19.98
Evaluated at bid price : 19.98
Bid-YTW : 5.59 %
BN.PF.J FixedReset Disc -2.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.38
Evaluated at bid price : 21.70
Bid-YTW : 7.10 %
FFH.PR.E FixedReset Disc -1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.96
Evaluated at bid price : 22.50
Bid-YTW : 5.60 %
PVS.PR.L SplitShare -1.18 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-06-30
Maturity Price : 25.00
Evaluated at bid price : 25.20
Bid-YTW : 5.38 %
FFH.PR.F FloatingReset -1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 22.51
Evaluated at bid price : 22.75
Bid-YTW : 6.04 %
BN.PR.X FixedReset Disc 1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 16.80
Evaluated at bid price : 16.80
Bid-YTW : 7.10 %
PWF.PR.G Perpetual-Discount 1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 24.34
Evaluated at bid price : 24.65
Bid-YTW : 6.06 %
CU.PR.G Perpetual-Discount 1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 19.15
Evaluated at bid price : 19.15
Bid-YTW : 5.93 %
ELF.PR.H Perpetual-Discount 1.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 22.49
Evaluated at bid price : 22.75
Bid-YTW : 6.14 %
POW.PR.G Perpetual-Discount 1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 22.98
Evaluated at bid price : 23.25
Bid-YTW : 6.12 %
GWO.PR.H Insurance Straight 1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 20.40
Evaluated at bid price : 20.40
Bid-YTW : 5.97 %
GWO.PR.S Insurance Straight 1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.65
Evaluated at bid price : 21.90
Bid-YTW : 6.00 %
FFH.PR.G FixedReset Disc 1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.51
Evaluated at bid price : 21.86
Bid-YTW : 6.13 %
MFC.PR.I FixedReset Ins Non 1.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 23.05
Evaluated at bid price : 24.08
Bid-YTW : 5.98 %
CCS.PR.C Insurance Straight 1.21 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 20.85
Evaluated at bid price : 20.85
Bid-YTW : 6.02 %
GWO.PR.T Insurance Straight 1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.53
Evaluated at bid price : 21.53
Bid-YTW : 6.00 %
PWF.PR.Z Perpetual-Discount 1.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.40
Evaluated at bid price : 21.40
Bid-YTW : 6.11 %
BN.PF.E FixedReset Disc 1.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 19.60
Evaluated at bid price : 19.60
Bid-YTW : 6.99 %
PWF.PR.S Perpetual-Discount 1.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 20.09
Evaluated at bid price : 20.09
Bid-YTW : 6.07 %
BN.PF.F FixedReset Disc 1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.20
Evaluated at bid price : 21.20
Bid-YTW : 6.96 %
GWO.PR.L Insurance Straight 1.50 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 23.41
Evaluated at bid price : 23.70
Bid-YTW : 5.97 %
BN.PR.M Perpetual-Discount 1.58 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 19.32
Evaluated at bid price : 19.32
Bid-YTW : 6.28 %
ENB.PR.N FixedReset Disc 1.66 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.76
Evaluated at bid price : 22.10
Bid-YTW : 6.65 %
POW.PR.D Perpetual-Discount 1.69 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.10
Evaluated at bid price : 21.10
Bid-YTW : 6.03 %
MFC.PR.B Insurance Straight 1.74 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 20.50
Evaluated at bid price : 20.50
Bid-YTW : 5.70 %
PWF.PR.R Perpetual-Discount 1.79 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 22.49
Evaluated at bid price : 22.75
Bid-YTW : 6.12 %
BN.PR.R FixedReset Disc 1.82 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 17.91
Evaluated at bid price : 17.91
Bid-YTW : 7.03 %
SLF.PR.J FloatingReset 1.85 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 16.50
Evaluated at bid price : 16.50
Bid-YTW : 7.06 %
MFC.PR.C Insurance Straight 2.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 20.02
Evaluated at bid price : 20.02
Bid-YTW : 5.65 %
BN.PR.Z FixedReset Disc 2.21 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.90
Evaluated at bid price : 22.20
Bid-YTW : 6.77 %
ENB.PR.F FixedReset Disc 2.95 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 19.20
Evaluated at bid price : 19.20
Bid-YTW : 7.14 %
IFC.PR.G FixedReset Ins Non 3.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 23.10
Evaluated at bid price : 24.45
Bid-YTW : 5.73 %
Volume Highlights
Issue Index Shares
Traded
Notes
TD.PF.C FixedReset Disc 209,958 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 23.86
Evaluated at bid price : 24.85
Bid-YTW : 5.14 %
TD.PF.J FixedReset Prem 128,405 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 23.36
Evaluated at bid price : 25.10
Bid-YTW : 5.58 %
GWO.PR.R Insurance Straight 54,810 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 20.10
Evaluated at bid price : 20.10
Bid-YTW : 5.99 %
CU.PR.E Perpetual-Discount 51,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 20.85
Evaluated at bid price : 20.85
Bid-YTW : 5.93 %
FFH.PR.E FixedReset Disc 50,615 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.96
Evaluated at bid price : 22.50
Bid-YTW : 5.60 %
PWF.PR.Z Perpetual-Discount 44,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.40
Evaluated at bid price : 21.40
Bid-YTW : 6.11 %
There were 26 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
IFC.PR.F Insurance Straight Quote: 22.30 – 25.00
Spot Rate : 2.7000
Average : 1.6984

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.82
Evaluated at bid price : 22.30
Bid-YTW : 6.04 %

SLF.PR.E Insurance Straight Quote: 19.00 – 20.70
Spot Rate : 1.7000
Average : 0.9961

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 5.94 %

ELF.PR.H Perpetual-Discount Quote: 22.75 – 24.00
Spot Rate : 1.2500
Average : 0.7543

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 22.49
Evaluated at bid price : 22.75
Bid-YTW : 6.14 %

SLF.PR.C Insurance Straight Quote: 19.00 – 20.50
Spot Rate : 1.5000
Average : 1.0154

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 5.88 %

ENB.PF.A FixedReset Disc Quote: 19.75 – 20.90
Spot Rate : 1.1500
Average : 0.6717

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 19.75
Evaluated at bid price : 19.75
Bid-YTW : 7.14 %

BN.PF.J FixedReset Disc Quote: 21.70 – 23.20
Spot Rate : 1.5000
Average : 1.0546

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-11
Maturity Price : 21.38
Evaluated at bid price : 21.70
Bid-YTW : 7.10 %

Market Action

December 10, 2024

The Canadian preferred share market continued to show strength – up 0.41% today after setting a new 52-week high – aided by renewed murmers of a potential TD.PF.C redemption.

It’s a very odd market: there are enough players willing to bet that the market is cheap enough relative to other markets to make redemption speculation make sense, but not enough to actually raise the market to levels that would reflect this as a generalized rule. So it’s all special situations. I’ll be glad when things return to normal!

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 -0.3940 % 2,311.1
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.3940 % 4,432.6
Floater 8.24 % 8.53 % 32,261 10.73 4 -0.3940 % 2,554.6
OpRet 0.00 % 0.00 % 0 0.00 0 0.1993 % 3,633.7
SplitShare 4.76 % 4.24 % 67,683 1.18 7 0.1993 % 4,339.4
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.1993 % 3,385.8
Perpetual-Premium 0.00 % 0.00 % 0 0.00 0 0.6528 % 2,879.0
Perpetual-Discount 5.96 % 6.13 % 51,719 13.64 32 0.6528 % 3,139.4
FixedReset Disc 5.45 % 6.66 % 102,934 12.76 53 0.3497 % 2,759.9
Insurance Straight 5.91 % 6.04 % 66,334 13.88 21 0.9957 % 3,065.6
FloatingReset 6.41 % 5.97 % 32,726 12.79 4 0.5923 % 3,376.8
FixedReset Prem 6.03 % 5.45 % 212,675 13.91 9 0.0434 % 2,600.6
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 0.3497 % 2,821.1
FixedReset Ins Non 5.18 % 5.94 % 86,734 13.91 14 0.0000 % 2,836.2
Performance Highlights
Issue Index Change Notes
BN.PF.J FixedReset Disc -3.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 21.94
Evaluated at bid price : 22.26
Bid-YTW : 6.92 %
IFC.PR.G FixedReset Ins Non -2.83 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 22.76
Evaluated at bid price : 23.71
Bid-YTW : 5.94 %
PWF.PR.H Perpetual-Discount 1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 23.44
Evaluated at bid price : 23.73
Bid-YTW : 6.14 %
GWO.PR.M Insurance Straight 1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 23.68
Evaluated at bid price : 23.95
Bid-YTW : 6.06 %
ENB.PR.D FixedReset Disc 1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 18.56
Evaluated at bid price : 18.56
Bid-YTW : 7.19 %
GWO.PR.P Insurance Straight 1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 22.18
Evaluated at bid price : 22.46
Bid-YTW : 6.02 %
IFC.PR.K Insurance Straight 1.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 21.76
Evaluated at bid price : 22.10
Bid-YTW : 6.05 %
POW.PR.D Perpetual-Discount 1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 20.75
Evaluated at bid price : 20.75
Bid-YTW : 6.14 %
GWO.PR.H Insurance Straight 1.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 20.18
Evaluated at bid price : 20.18
Bid-YTW : 6.03 %
IFC.PR.A FixedReset Ins Non 1.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 20.18
Evaluated at bid price : 20.18
Bid-YTW : 5.87 %
IFC.PR.E Insurance Straight 1.37 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 21.73
Evaluated at bid price : 22.15
Bid-YTW : 5.97 %
BN.PF.B FixedReset Disc 1.40 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 21.52
Evaluated at bid price : 21.80
Bid-YTW : 6.66 %
CU.PR.D Perpetual-Discount 1.40 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 21.05
Evaluated at bid price : 21.05
Bid-YTW : 5.87 %
ENB.PR.A Perpetual-Discount 1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 22.49
Evaluated at bid price : 22.75
Bid-YTW : 6.09 %
GWO.PR.Y Insurance Straight 1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 18.79
Evaluated at bid price : 18.79
Bid-YTW : 6.01 %
POW.PR.A Perpetual-Discount 1.66 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 23.03
Evaluated at bid price : 23.30
Bid-YTW : 6.11 %
GWO.PR.I Insurance Straight 1.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 19.18
Evaluated at bid price : 19.18
Bid-YTW : 5.89 %
BN.PR.N Perpetual-Discount 1.87 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 19.05
Evaluated at bid price : 19.05
Bid-YTW : 6.37 %
ENB.PF.G FixedReset Disc 1.99 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 18.41
Evaluated at bid price : 18.41
Bid-YTW : 7.41 %
FFH.PR.F FloatingReset 2.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 22.72
Evaluated at bid price : 23.00
Bid-YTW : 5.97 %
BN.PF.D Perpetual-Discount 2.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 19.75
Evaluated at bid price : 19.75
Bid-YTW : 6.34 %
MFC.PR.C Insurance Straight 2.62 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 19.60
Evaluated at bid price : 19.60
Bid-YTW : 5.77 %
SLF.PR.D Insurance Straight 2.85 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 20.57
Evaluated at bid price : 20.57
Bid-YTW : 5.42 %
TD.PF.C FixedReset Disc 5.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 23.74
Evaluated at bid price : 24.77
Bid-YTW : 5.16 %
Volume Highlights
Issue Index Shares
Traded
Notes
TD.PF.C FixedReset Disc 300,026 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 23.74
Evaluated at bid price : 24.77
Bid-YTW : 5.16 %
NA.PR.W FixedReset Disc 116,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 23.04
Evaluated at bid price : 24.10
Bid-YTW : 5.29 %
FFH.PR.C FixedReset Prem 85,134 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-01-30
Maturity Price : 25.00
Evaluated at bid price : 25.23
Bid-YTW : 5.42 %
FFH.PR.E FixedReset Disc 82,593 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 22.15
Evaluated at bid price : 22.80
Bid-YTW : 5.52 %
ENB.PR.Y FixedReset Disc 48,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 18.25
Evaluated at bid price : 18.25
Bid-YTW : 7.29 %
GWO.PR.Y Insurance Straight 37,959 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 18.79
Evaluated at bid price : 18.79
Bid-YTW : 6.01 %
There were 24 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
MFC.PR.K FixedReset Ins Non Quote: 23.91 – 24.75
Spot Rate : 0.8400
Average : 0.4700

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 22.84
Evaluated at bid price : 23.91
Bid-YTW : 5.60 %

IFC.PR.G FixedReset Ins Non Quote: 23.71 – 24.50
Spot Rate : 0.7900
Average : 0.4957

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 22.76
Evaluated at bid price : 23.71
Bid-YTW : 5.94 %

BN.PF.J FixedReset Disc Quote: 22.26 – 23.10
Spot Rate : 0.8400
Average : 0.5662

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 21.94
Evaluated at bid price : 22.26
Bid-YTW : 6.92 %

PWF.PR.R Perpetual-Discount Quote: 22.35 – 23.00
Spot Rate : 0.6500
Average : 0.3909

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 22.06
Evaluated at bid price : 22.35
Bid-YTW : 6.23 %

SLF.PR.C Insurance Straight Quote: 20.20 – 20.89
Spot Rate : 0.6900
Average : 0.4841

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 20.20
Evaluated at bid price : 20.20
Bid-YTW : 5.52 %

CU.PR.E Perpetual-Discount Quote: 20.90 – 21.50
Spot Rate : 0.6000
Average : 0.4102

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-10
Maturity Price : 20.90
Evaluated at bid price : 20.90
Bid-YTW : 5.92 %

Issue Comments

PPL.PF.B To Be Redeemed

Pembina Pipeline Corporation has announced:

its intention to redeem its issued and outstanding Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 22 (“Series 22 Shares”) (TSX: PPL.PF.B) on January 8, 2025 (the “Redemption Date”).

Pembina intends to redeem all of its 1,028,130 issued and outstanding Series 22 Shares, in accordance with the terms of the Series 22 Shares, as set out in the Company’s articles of amendment dated December 1, 2017 on the Redemption Date for a redemption price equal to $25.50, plus all accrued and unpaid dividends thereon but excluding the Redemption Date per Series 22 Share (the “Redemption Price”), less any tax required to be deducted or withheld by the Company. The total redemption price to Pembina will be approximately $26 million.

The Company has provided notice today of the Redemption Price and the Redemption Date to the sole registered holder of the Series 22 Shares in accordance with the terms of the Series 22 Shares, as set out in the Company’s articles of amendment dated December 1, 2017. For non-registered holders of Series 22 Shares, no further action is required however, they should contact their broker or other intermediary with any questions regarding the redemption process for the Series 22 Shares in which they hold a beneficial interest. The Company’s transfer agent for the Series 22 Shares is Computershare Investor Services Inc. Questions regarding the redemption process may also be directed to Computershare at 1-800-564-6253 or by email to corporateactions@computershare.com.

The PPL.PF.B shares resulted from a partial conversion from PPL.PF.A, which was announced 2023-2-14:

Pembina Pipeline Corporation (“Pembina”) (TSX: PPL; NYSE: PBA) announced today that holders of an aggregate of 1,028,130 of its 16,000,000 Cumulative Redeemable Minimum Rate Reset Class A Preferred Shares, Series 21 (“Series 21 Shares”) have elected to convert, on a one-for-one basis, their Series 21 Shares into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 22 of Pembina (“Series 22 Shares”). As a result of the exercise of such conversion rights, on March 1, 2023, Pembina will have 14,971,870 Series 21 Shares and 1,028,130 Series 22 Shares issued and outstanding. The Series 21 Shares and the Series 22 Shares will be listed on the Toronto Stock Exchange under the symbols PPL.PF.A and PPL.PF.B, respectively.

.

In turn, PPL.PF.A was issued as a FixedReset 4.90%+326M490 that commenced trading 2017-12-7 after being announced 2017-11-28. It reset to 6.302% effective 2023-3-1. I regret to say that I missed the notice of conversion. PPL.PF.A is tracked by HIMIPref™, but has been relegated to the Scraps – FixedResets (Discount) subindex on credit concerns.

This is the first example I know of in which the ‘anytime redemption at a premium’ privilege generally attached to FloatingResets has been invoked – and there I was, thinking that it would never happen unless we returned to 1981 and saw Canadian policy rates spike to 21%. Shows how much I know!

Thanks to Assiduous Reader KB for bringing this to my attention!

Market Action

December 9, 2024

Straight Perpetuals did well today, presumably due to the L.PR.B redemption.

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 0.5348 % 2,320.2
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.5348 % 4,450.2
Floater 8.21 % 8.51 % 30,203 10.75 4 0.5348 % 2,564.7
OpRet 0.00 % 0.00 % 0 0.00 0 0.6533 % 3,626.5
SplitShare 4.77 % 4.23 % 69,286 1.18 7 0.6533 % 4,330.8
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.6533 % 3,379.1
Perpetual-Premium 0.00 % 0.00 % 0 0.00 0 0.7611 % 2,860.3
Perpetual-Discount 6.00 % 6.18 % 49,121 13.58 32 0.7611 % 3,119.0
FixedReset Disc 5.47 % 6.67 % 104,685 12.95 53 0.0756 % 2,750.2
Insurance Straight 5.96 % 6.10 % 63,468 13.82 21 0.9176 % 3,035.4
FloatingReset 6.45 % 6.10 % 33,039 12.79 4 -0.5084 % 3,357.0
FixedReset Prem 6.03 % 5.47 % 210,070 13.94 9 0.0434 % 2,599.5
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 0.0756 % 2,811.3
FixedReset Ins Non 5.18 % 5.95 % 88,011 13.85 14 0.2217 % 2,836.2
Performance Highlights
Issue Index Change Notes
MFC.PR.C Insurance Straight -2.85 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 19.10
Evaluated at bid price : 19.10
Bid-YTW : 5.92 %
BN.PF.D Perpetual-Discount -1.88 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 19.30
Evaluated at bid price : 19.30
Bid-YTW : 6.49 %
FFH.PR.F FloatingReset -1.53 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 22.25
Evaluated at bid price : 22.50
Bid-YTW : 6.10 %
BIP.PR.A FixedReset Disc -1.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 22.73
Evaluated at bid price : 23.44
Bid-YTW : 6.75 %
MFC.PR.I FixedReset Ins Non -1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 22.91
Evaluated at bid price : 23.80
Bid-YTW : 6.06 %
PWF.PR.E Perpetual-Discount 1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 22.31
Evaluated at bid price : 22.58
Bid-YTW : 6.17 %
ELF.PR.H Perpetual-Discount 1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 22.11
Evaluated at bid price : 22.33
Bid-YTW : 6.26 %
PWF.PR.L Perpetual-Discount 1.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 20.87
Evaluated at bid price : 20.87
Bid-YTW : 6.20 %
GWO.PR.G Insurance Straight 1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 21.40
Evaluated at bid price : 21.40
Bid-YTW : 6.10 %
POW.PR.B Perpetual-Discount 1.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 21.75
Evaluated at bid price : 22.00
Bid-YTW : 6.18 %
POW.PR.G Perpetual-Discount 1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 22.71
Evaluated at bid price : 23.00
Bid-YTW : 6.19 %
IFC.PR.F Insurance Straight 1.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 22.11
Evaluated at bid price : 22.11
Bid-YTW : 6.12 %
GWO.PR.S Insurance Straight 1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 21.28
Evaluated at bid price : 21.55
Bid-YTW : 6.10 %
CU.PR.H Perpetual-Discount 1.34 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 21.75
Evaluated at bid price : 22.00
Bid-YTW : 6.01 %
BN.PR.Z FixedReset Disc 1.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 21.39
Evaluated at bid price : 21.71
Bid-YTW : 6.93 %
BN.PR.C Floater 1.37 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 12.57
Evaluated at bid price : 12.57
Bid-YTW : 8.52 %
SLF.PR.E Insurance Straight 1.54 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 20.50
Evaluated at bid price : 20.50
Bid-YTW : 5.50 %
BN.PF.C Perpetual-Discount 1.56 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 19.50
Evaluated at bid price : 19.50
Bid-YTW : 6.36 %
FTS.PR.F Perpetual-Discount 1.65 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 21.50
Evaluated at bid price : 21.50
Bid-YTW : 5.75 %
PWF.PR.G Perpetual-Discount 1.77 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 23.93
Evaluated at bid price : 24.19
Bid-YTW : 6.18 %
ENB.PR.B FixedReset Disc 1.97 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 18.10
Evaluated at bid price : 18.10
Bid-YTW : 7.34 %
PVS.PR.J SplitShare 2.03 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2028-02-29
Maturity Price : 25.00
Evaluated at bid price : 25.15
Bid-YTW : 4.23 %
PWF.PR.S Perpetual-Discount 2.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 19.67
Evaluated at bid price : 19.67
Bid-YTW : 6.19 %
GWO.PR.T Insurance Straight 4.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 21.06
Evaluated at bid price : 21.06
Bid-YTW : 6.13 %
CU.PR.F Perpetual-Discount 4.83 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 18.87
Evaluated at bid price : 18.87
Bid-YTW : 6.02 %
IFC.PR.E Insurance Straight 6.74 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 21.85
Evaluated at bid price : 21.85
Bid-YTW : 6.08 %
GWO.PR.N FixedReset Ins Non 7.67 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 15.45
Evaluated at bid price : 15.45
Bid-YTW : 6.49 %
Volume Highlights
Issue Index Shares
Traded
Notes
BN.PR.Z FixedReset Disc 280,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 21.39
Evaluated at bid price : 21.71
Bid-YTW : 6.93 %
NA.PR.W FixedReset Disc 166,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 23.05
Evaluated at bid price : 24.10
Bid-YTW : 5.29 %
MFC.PR.Q FixedReset Ins Non 146,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 22.76
Evaluated at bid price : 23.70
Bid-YTW : 5.82 %
FFH.PR.E FixedReset Disc 62,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 22.15
Evaluated at bid price : 22.80
Bid-YTW : 5.52 %
GWO.PR.S Insurance Straight 36,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 21.28
Evaluated at bid price : 21.55
Bid-YTW : 6.10 %
BN.PF.A FixedReset Disc 27,700 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 22.99
Evaluated at bid price : 24.27
Bid-YTW : 6.28 %
There were 25 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
IFC.PR.F Insurance Straight Quote: 22.11 – 23.89
Spot Rate : 1.7800
Average : 1.0172

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 22.11
Evaluated at bid price : 22.11
Bid-YTW : 6.12 %

PVS.PR.K SplitShare Quote: 24.85 – 26.00
Spot Rate : 1.1500
Average : 0.7215

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2029-05-31
Maturity Price : 25.00
Evaluated at bid price : 24.85
Bid-YTW : 4.64 %

GWO.PR.R Insurance Straight Quote: 19.84 – 20.85
Spot Rate : 1.0100
Average : 0.6781

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 19.84
Evaluated at bid price : 19.84
Bid-YTW : 6.07 %

FFH.PR.F FloatingReset Quote: 22.50 – 23.50
Spot Rate : 1.0000
Average : 0.7123

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 22.25
Evaluated at bid price : 22.50
Bid-YTW : 6.10 %

MFC.PR.C Insurance Straight Quote: 19.10 – 19.90
Spot Rate : 0.8000
Average : 0.5176

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 19.10
Evaluated at bid price : 19.10
Bid-YTW : 5.92 %

CCS.PR.C Insurance Straight Quote: 20.54 – 21.40
Spot Rate : 0.8600
Average : 0.6014

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-12-09
Maturity Price : 20.54
Evaluated at bid price : 20.54
Bid-YTW : 6.11 %

Issue Comments

L.PR.B To Be Redeemed

Loblaw Companies Limited has announced:

its intention to redeem for cash all of its 9,000,000 outstanding Second Preferred Shares, Series B (the “Series B Shares”) on January 8, 2025 (the “Redemption Date”) at a redemption price equal to $25.00 per share, for an aggregate amount of $225 million, together with all accrued and unpaid dividends up to but excluding the Redemption Date in the amount of $0.02944 per Series B Share (collectively, the “Redemption Price”), less any tax required to be deducted and withheld by the Company.

Formal notice will be delivered to the sole registered holder of the Series B Shares in accordance with the terms of the Series B Shares contained in the Company’s articles.

The Series B Share redemption will not impact the Company’s previously announced quarterly dividend on the Series B Shares, payable on December 31, 2024 to shareholders of record on December 15, 2024. After the Series B Shares are redeemed, holders of Series B Shares will cease to be entitled to dividends and will not be entitled to exercise any rights as holders other than to receive the Redemption Price.

Non-registered holders of Series B Shares should contact their broker or other intermediary for information regarding the redemption process for the Series B Shares in which they hold a beneficial interest. The Company’s transfer agent for the Series B Shares is Computershare Trust Company of Canada (“Computershare”). Questions regarding the redemption process may be directed to Computershare at 1-800-564-6253 or by email to corporateactions@computershare.com.

Following the redemption on January 8, 2025, the Series B Shares will be delisted from and no longer trade on the Toronto Stock Exchange (“TSX”).

L.PR.B is a 5.30% Straight Perpetual commenced trading 2015-6-9 after being announced 2015-6-2. It has been tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

This was another market windfall, with the issue up 10.68% today on high volume.

Thanks to Assiduous Reader peet for bringing this to my attention!