Who remembers Jesse Litvak? I last discussed his case on December 23, 2015; basically, he was charged with fraud for acting like a bond salesman. It was one of the more ridiculous persecutions to emerge from the hysterical witch hunt that followed the credit crunch … and now it’s over:
Federal prosecutors moved to dismiss criminal charges against former Jefferies Group LLC managing director Jesse Litvak, whose two convictions for fraud were both overturned by a federal appeals court.
Litvak’s arrest five years ago put traders on notice that they could face criminal prosecution for making misrepresentations to customers while negotiating trades, sending shock waves through Wall Street and leading to the resignations and suspensions of dozens of traders.
The traders argued that they were dealing with sophisticated investors who knew not to accept their every sales pitch as gospel.
HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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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 | 0.6800 % | 3,088.8 |
FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.6800 % | 5,667.9 |
Floater | 3.50 % | 3.72 % | 59,957 | 18.02 | 4 | 0.6800 % | 3,266.4 |
OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0237 % | 3,203.0 |
SplitShare | 4.59 % | 4.62 % | 52,094 | 4.88 | 5 | -0.0237 % | 3,825.0 |
Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0237 % | 2,984.4 |
Perpetual-Premium | 5.63 % | -14.03 % | 62,079 | 0.09 | 9 | 0.0349 % | 2,914.2 |
Perpetual-Discount | 5.38 % | 5.51 % | 55,731 | 14.63 | 26 | 0.0608 % | 2,985.7 |
FixedReset | 4.28 % | 4.60 % | 128,271 | 3.80 | 106 | 0.0833 % | 2,573.4 |
Deemed-Retractible | 5.14 % | 5.96 % | 60,426 | 5.43 | 27 | 0.0656 % | 2,976.3 |
FloatingReset | 3.25 % | 3.51 % | 33,332 | 3.34 | 9 | 0.2523 % | 2,838.8 |
Performance Highlights | |||
Issue | Index | Change | Notes |
MFC.PR.Q | FixedReset | -1.47 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.80 Bid-YTW : 4.98 % |
MFC.PR.K | FixedReset | 1.09 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.24 Bid-YTW : 5.85 % |
TD.PF.A | FixedReset | 1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-07-30 Maturity Price : 23.25 Evaluated at bid price : 23.73 Bid-YTW : 4.63 % |
IFC.PR.G | FixedReset | 1.17 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.04 Bid-YTW : 5.03 % |
TD.PF.B | FixedReset | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-07-30 Maturity Price : 23.14 Evaluated at bid price : 23.70 Bid-YTW : 4.67 % |
TRP.PR.C | FixedReset | 1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-07-30 Maturity Price : 17.76 Evaluated at bid price : 17.76 Bid-YTW : 5.00 % |
PWF.PR.A | Floater | 1.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-07-30 Maturity Price : 21.48 Evaluated at bid price : 21.48 Bid-YTW : 3.01 % |
TRP.PR.H | FloatingReset | 1.65 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-07-30 Maturity Price : 17.29 Evaluated at bid price : 17.29 Bid-YTW : 3.95 % |
Volume Highlights | |||
Issue | Index | Shares Traded |
Notes |
BMO.PR.T | FixedReset | 48,987 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-07-30 Maturity Price : 22.88 Evaluated at bid price : 23.41 Bid-YTW : 4.75 % |
PWF.PR.F | Perpetual-Discount | 43,050 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-07-30 Maturity Price : 23.54 Evaluated at bid price : 23.81 Bid-YTW : 5.53 % |
CM.PR.P | FixedReset | 23,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-07-30 Maturity Price : 22.77 Evaluated at bid price : 23.19 Bid-YTW : 4.72 % |
BNS.PR.G | FixedReset | 21,851 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-07-25 Maturity Price : 25.00 Evaluated at bid price : 26.33 Bid-YTW : 3.64 % |
TD.PF.C | FixedReset | 20,111 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-07-30 Maturity Price : 23.23 Evaluated at bid price : 23.66 Bid-YTW : 4.64 % |
TRP.PR.K | FixedReset | 18,979 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-05-31 Maturity Price : 25.00 Evaluated at bid price : 25.81 Bid-YTW : 4.23 % |
There were 5 other index-included issues trading in excess of 10,000 shares. |
Wide Spread Highlights | ||
Issue | Index | Quote Data and Yield Notes |
HSE.PR.A | FixedReset | Quote: 18.03 – 18.67 Spot Rate : 0.6400 Average : 0.3583 YTW SCENARIO |
VNR.PR.A | FixedReset | Quote: 24.85 – 25.35 Spot Rate : 0.5000 Average : 0.2998 YTW SCENARIO |
IFC.PR.E | Deemed-Retractible | Quote: 24.14 – 24.53 Spot Rate : 0.3900 Average : 0.2246 YTW SCENARIO |
PWF.PR.A | Floater | Quote: 21.48 – 22.00 Spot Rate : 0.5200 Average : 0.3766 YTW SCENARIO |
MFC.PR.Q | FixedReset | Quote: 24.80 – 25.13 Spot Rate : 0.3300 Average : 0.2340 YTW SCENARIO |
CU.PR.C | FixedReset | Quote: 22.78 – 23.09 Spot Rate : 0.3100 Average : 0.2200 YTW SCENARIO |
AIM Preferreds Jump Again with New Bid for Other Assets
July 26th, 2018Aimia has received another bid for some of its assets:
Aeromexico’s press release highlights the unusual circumstance that Aimia will actually have made some money on its investment:
And, as noted in the news story, Aimia scorned the idea:
All this follows yesterday’s bid for the Aeroplan Canadian operation. I’m not sure why the newspapers persist in calling these ‘hostile bids’. It’s unusual that they’re public, of course, but management and the board have sole discretion regarding what to do, as far as I understand it. Shareholders will not get a vote.
AIM preferreds jumped on the news:
2018-07-25
2018-07-26
4.50%+375
+375
All three issues are tracked by HIMIPref™ but are relegated to the Scraps index on credit concerns.
Note that the bids are not for the company, just for most of its assets. If successful, the bid will change the balance sheet significantly – and just how good the preferreds will look at that point will be the topic of much speculation and puzzling over the balance sheet.
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