No news worth reporting today. There was some more Greek speculator-blame being tossed around, but I can’t make fun of Greek politicians every day!
It was a quiet day for Canadian preferred shares, but volume was good. PerpetualDiscounts lost 4bp and FixedResets gained 3bp, yields on the latter edging slowly, slowly, closer to 3.50%. Only a single entrant for the performance highlights; no prizes for guessing which sub-class of preferred!
PerpetualDiscounts now yield 5.94%, equivalent to 8.32% interest at the standard equivalency ratio of 1.4x. Long Corporates now yield about 5.9% – maybe a bit under – so the pre-tax interest-equivalent spread (also called the seniority spread) now stands at about 245bp, unchange from the level reported March 3.
| 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 | 2.62 % | 2.75 % | 44,998 | 20.85 | 1 | 1.4609 % | 2,106.6 |
| FixedFloater | 5.09 % | 3.21 % | 42,536 | 19.94 | 1 | -0.2336 % | 3,103.9 |
| Floater | 1.91 % | 1.66 % | 45,481 | 23.45 | 4 | -0.1939 % | 2,403.7 |
| OpRet | 4.88 % | 2.42 % | 106,316 | 0.22 | 13 | -0.0446 % | 2,308.5 |
| SplitShare | 6.38 % | 6.25 % | 125,048 | 3.71 | 2 | 0.0000 % | 2,139.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0446 % | 2,110.9 |
| Perpetual-Premium | 5.89 % | 5.89 % | 130,038 | 6.88 | 7 | 0.1308 % | 1,888.8 |
| Perpetual-Discount | 5.89 % | 5.94 % | 175,216 | 13.98 | 71 | -0.0363 % | 1,791.5 |
| FixedReset | 5.40 % | 3.52 % | 319,539 | 3.71 | 42 | 0.0313 % | 2,195.6 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.E | Ratchet | 1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-03-10 Maturity Price : 22.74 Evaluated at bid price : 21.53 Bid-YTW : 2.75 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PR.E | FixedReset | 155,869 | Nesbitt crossed 100,000 at 28.01; National crossed 35,000 at 28.05. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-30 Maturity Price : 25.00 Evaluated at bid price : 28.05 Bid-YTW : 3.36 % |
| TD.PR.I | FixedReset | 112,002 | Nesbitt crossed 100,000 at 28.01. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-08-30 Maturity Price : 25.00 Evaluated at bid price : 28.03 Bid-YTW : 3.51 % |
| GWO.PR.M | Perpetual-Discount | 103,800 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-03-10 Maturity Price : 24.20 Evaluated at bid price : 24.40 Bid-YTW : 5.98 % |
| MFC.PR.D | FixedReset | 55,530 | National crossed 40,000 at 28.00. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-19 Maturity Price : 25.00 Evaluated at bid price : 28.00 Bid-YTW : 3.61 % |
| TD.PR.Y | FixedReset | 54,519 | National crossed 35,000 at 26.55. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-11-30 Maturity Price : 25.00 Evaluated at bid price : 26.50 Bid-YTW : 3.49 % |
| BAM.PR.E | Ratchet | 50,000 | Also on the Performers list. Nesbitt crossed 50,000 at 21.50. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-03-10 Maturity Price : 22.74 Evaluated at bid price : 21.53 Bid-YTW : 2.75 % |
| There were 40 other index-included issues trading in excess of 10,000 shares. | |||