PrefBlog

Preferred shares have been all-stars in the past year. Now, what?

June 15th, 2021

Many thanks to Rob Carrick for quoting me in his latest piece, Preferred shares have been all-stars in the past year. Now, what?:

Prefs still offer something for the income-hungry investor, said James Hymas, president of Hymas Investment Management Inc. The dividend yield on the S&P/TSX preferred share index is about 4.5 per cent, compared to a yield of 0.8 per cent from the five-year Government of Canada bond.

Mr. Hymas urges investors to collect their dividends and learn to live with price fluctuations like we’ve seen in the past two years.

“One thing with preferred shares is that you have very little institutional presence, and it’s institutions that generally keep the markets on track,” he said. “Extreme price volatility is simply part of the retail market.”

Posted in Press Clippings | No Comments »

June PrefLetter Released!

June 14th, 2021

The June, 2021, edition of PrefLetter has been released and is now available for purchase as the “Previous edition”. Those who subscribe for a full year receive the “Previous edition” as a bonus.

The June edition is somewhat foreshortened, but contains the most critical elements.

There is a problem with the dating of the site certificate; this is being updated but takes a surprising amount of time. If your browser warns you the link may not be private, just check that the domain is prefletter.com and you may proceed.

PrefLetter may now be purchased by all Canadian residents.

Until further notice, the “Previous Edition” will refer to the June, 2021, issue, while the “Next Edition” will be the July, 2021, issue, scheduled to be prepared as of the close July 9, 2021, and eMailed to subscribers prior to market-opening on July 12.

PrefLetter is intended for long term investors seeking issues to buy-and-hold. At least one recommendation from each of the major preferred share sectors is included and discussed.

Note: My verbosity has grown by such leaps and bounds that it is no longer possible to deliver PrefLetter as an eMail attachment – it’s just too big for my software! Instead, I have sent passwords – click on the link in your eMail and your copy will download.

Note: There have been problems lately with corporate eMail protection systems that substitute “safe” links for the links sent in the eMails; the problem being that the “safe” links do not work and an error is generated by my software. To avoid possible problems and delays, please subscribe through an eMail account that is not “protected” by such software.

Note: The PrefLetter website has a Subscriber Download Feature. If you have not received your copy, try it!

Note: PrefLetter eMails sometimes runs afoul of spam filters. If you have not received your copy within fifteen minutes of a release notice such as this one, please double check your (company’s) spam filtering policy and your spam repository – there are some hints in the post Sympatico Spam Filters out of Control. If it’s not there, contact me and I’ll get you your copy … somehow!

Note: There have been scattered complaints regarding inability to open PrefLetter in Acrobat Reader, despite my practice of including myself on the subscription list and immediately checking the copy received. I have had the occasional difficulty reading US Government documents, which I was able to resolve by downloading and installing the latest version of Adobe Reader. Also, note that so far, all complaints have been from users of Yahoo Mail. Try saving it to disk first, before attempting to open it.

Note: There have been other scattered complaints that double-clicking on the links in the “PrefLetter Download” email results in a message that the password has already been used. I have been able to reproduce this problem in my own eMail software … the problem is double-clicking. What happens is the first click opens the link and the second click finds that the password has already been used and refuses to work properly. So the moral of the story is: Don’t be a dick! Single Click!

Note: Assiduous Reader DG informs me:

In case you have any other Apple users: you need to install a free App from the apple store called “FileApp”. It comes with it’s own tutorial and allows you to download and save a PDF file.

However, Assiduous Reader Adrian informs me in the comments to the January 2015 release:

Some nitpicking for DG:
FileApp costs $1.19 in the Apple Store.

But Adrian2 now advises:

Well, as of now, FileApp is free (again?).

Posted in PrefLetter | 4 Comments »

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	0.0994 %	2,447.0
FixedFloater	0.00 %	0.00 %	0	0.00	0	0.0994 %	4,490.2
Floater	3.41 %	3.54 %	60,365	18.46	4	0.0994 %	2,587.7
OpRet	0.00 %	0.00 %	0	0.00	0	-0.1932 %	3,694.3
SplitShare	4.78 %	3.88 %	40,562	3.57	8	-0.1932 %	4,411.8
Interest-Bearing	0.00 %	0.00 %	0	0.00	0	-0.1932 %	3,442.3
Perpetual-Premium	5.30 %	-5.79 %	69,380	0.09	23	-0.3728 %	3,251.2
Perpetual-Discount	4.92 %	4.97 %	80,426	15.56	11	-0.0791 %	3,747.4
FixedReset Disc	4.39 %	3.78 %	176,969	17.61	48	0.0269 %	2,642.0
Insurance Straight	4.99 %	4.65 %	92,344	15.45	22	0.6783 %	3,649.8
FloatingReset	2.88 %	3.20 %	64,557	19.27	2	1.0960 %	2,451.9
FixedReset Prem	5.01 %	3.70 %	241,732	1.10	30	-0.0680 %	2,726.8
FixedReset Bank Non	1.81 %	2.35 %	183,586	0.80	1	-0.0400 %	2,889.7
FixedReset Ins Non	4.42 %	3.83 %	146,361	17.45	22	0.2646 %	2,785.9

Performance Highlights
Issue	Index	Change	Notes
EIT.PR.A	SplitShare	-1.56 %	YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2024-03-14 Maturity Price : 25.00 Evaluated at bid price : 25.85 Bid-YTW : 3.70 %
TD.PF.I	FixedReset Prem	1.00 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-04-08 Maturity Price : 23.71 Evaluated at bid price : 25.00 Bid-YTW : 3.91 %
MFC.PR.N	FixedReset Ins Non	1.30 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-04-08 Maturity Price : 22.09 Evaluated at bid price : 22.59 Bid-YTW : 3.67 %
BMO.PR.Y	FixedReset Disc	1.38 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-04-08 Maturity Price : 22.56 Evaluated at bid price : 23.45 Bid-YTW : 3.72 %
SLF.PR.J	FloatingReset	1.39 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-04-08 Maturity Price : 14.64 Evaluated at bid price : 14.64 Bid-YTW : 2.57 %
IFC.PR.G	FixedReset Ins Non	1.58 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-04-08 Maturity Price : 22.87 Evaluated at bid price : 23.17 Bid-YTW : 3.93 %
SLF.PR.G	FixedReset Ins Non	2.70 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-04-08 Maturity Price : 15.20 Evaluated at bid price : 15.20 Bid-YTW : 3.71 %
TRP.PR.B	FixedReset Disc	5.24 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-04-08 Maturity Price : 13.05 Evaluated at bid price : 13.05 Bid-YTW : 4.06 %
MFC.PR.C	Insurance Straight	14.31 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-04-08 Maturity Price : 24.04 Evaluated at bid price : 24.29 Bid-YTW : 4.66 %

Volume Highlights
Issue	Index	Shares Traded	Notes
TD.PF.G	FixedReset Prem	230,429	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-30 Maturity Price : 25.00 Evaluated at bid price : 24.97 Bid-YTW : 4.05 %
TRP.PR.J	FixedReset Prem	198,897	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-31 Maturity Price : 25.00 Evaluated at bid price : 25.27 Bid-YTW : 2.33 %
SLF.PR.E	Insurance Straight	189,448	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-04-08 Maturity Price : 24.05 Evaluated at bid price : 24.30 Bid-YTW : 4.65 %
NA.PR.X	FixedReset Prem	172,100	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-15 Maturity Price : 25.00 Evaluated at bid price : 24.95 Bid-YTW : 1.99 %
CM.PR.R	FixedReset Disc	82,206	YTW SCENARIO Maturity Type : Call Maturity Date : 2022-07-31 Maturity Price : 25.00 Evaluated at bid price : 25.19 Bid-YTW : 3.64 %
TD.PF.B	FixedReset Disc	69,487	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-04-08 Maturity Price : 22.22 Evaluated at bid price : 22.70 Bid-YTW : 3.59 %
There were 35 other index-included issues trading in excess of 10,000 shares.

Wide Spread Highlights
Issue	Index	Quote Data and Yield Notes
IFC.PR.E	Insurance Straight	Quote: 25.77 – 26.77 Spot Rate : 1.0000 Average : 0.5819 YTW SCENARIO Maturity Type : Call Maturity Date : 2025-06-30 Maturity Price : 25.25 Evaluated at bid price : 25.77 Bid-YTW : 4.67 %
MFC.PR.L	FixedReset Ins Non	Quote: 21.15 – 21.99 Spot Rate : 0.8400 Average : 0.5599 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-04-08 Maturity Price : 21.15 Evaluated at bid price : 21.15 Bid-YTW : 3.82 %
PWF.PR.R	Perpetual-Premium	Quote: 25.36 – 25.98 Spot Rate : 0.6200 Average : 0.3748 YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-30 Maturity Price : 25.00 Evaluated at bid price : 25.36 Bid-YTW : -6.76 %
MFC.PR.K	FixedReset Ins Non	Quote: 21.65 – 22.50 Spot Rate : 0.8500 Average : 0.6742 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-04-08 Maturity Price : 21.34 Evaluated at bid price : 21.65 Bid-YTW : 3.83 %
EIT.PR.A	SplitShare	Quote: 25.85 – 26.40 Spot Rate : 0.5500 Average : 0.3785 YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2024-03-14 Maturity Price : 25.00 Evaluated at bid price : 25.85 Bid-YTW : 3.70 %
ELF.PR.F	Perpetual-Premium	Quote: 25.08 – 26.60 Spot Rate : 1.5200 Average : 1.3637 YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-08 Maturity Price : 25.00 Evaluated at bid price : 25.08 Bid-YTW : -0.19 %

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	0.3192 %	2,444.6
FixedFloater	0.00 %	0.00 %	0	0.00	0	0.3192 %	4,485.7
Floater	3.41 %	3.53 %	61,108	18.47	4	0.3192 %	2,585.1
OpRet	0.00 %	0.00 %	0	0.00	0	0.1790 %	3,701.5
SplitShare	4.77 %	3.88 %	37,556	3.57	8	0.1790 %	4,420.4
Interest-Bearing	0.00 %	0.00 %	0	0.00	0	0.1790 %	3,448.9
Perpetual-Premium	5.28 %	-3.49 %	68,186	0.09	23	0.1193 %	3,263.3
Perpetual-Discount	4.92 %	4.98 %	76,500	15.45	11	0.0867 %	3,750.4
FixedReset Disc	4.39 %	3.79 %	177,107	17.59	48	0.0202 %	2,641.3
Insurance Straight	5.02 %	4.66 %	85,501	14.93	22	-0.5997 %	3,625.2
FloatingReset	2.91 %	3.22 %	62,658	19.20	2	0.0997 %	2,425.3
FixedReset Prem	5.00 %	3.79 %	245,426	1.11	30	0.0366 %	2,728.7
FixedReset Bank Non	1.81 %	2.29 %	190,078	0.81	1	0.0801 %	2,890.8
FixedReset Ins Non	4.43 %	3.82 %	142,303	17.45	22	0.0575 %	2,778.6

PrefBlog

April 8, 2021

April 7, 2021

April 6, 2021

April 5, 2021

April 1, 2021

March 31, 2021

March 30, 2021

March 29, 2021

Preferred shares have been all-stars in the past year. Now, what?

June PrefLetter Released!

Publisher

Recent Posts

Recent Comments

Archives

Categories

Of Interest

Canadian Financial Discussion

Credit Ratings

Calculators

Markets

Recommended External Commentary

Recommended Official Sites

Yield Calculation Conventions

Meta

Registration Problems?