EPP.PR.A Valuation and Comparables

I thought it would be fun to look at the valuation of EPP.PR.A, given what I’ve heard about the underwriters getting impatient.

EPP.PR.A & Comparatives
Data EPP.PR.A WN.PR.E YPG.PR.B
Price due to base-rate 22.42 21.88 24.26
Price due to short-term -0.62 -0.61 -0.91
Price due to long-term 2.17 2.12 2.18
Price due to Cumulative Dividends 0.31 0.30 0.18
Price due to Retractibility 0.00 0.00 0.92
Price due to Credit Spread (3) -2.83 -2.76 -1.56
Price due to Liquidity 0.00 0.00 0.00
Price due to error 0.36 0.35 0.18
Price due to Credit Spread (high) 0.00 0.00 0.00
Curve Price (Taxable Curve) 21.81 21.28 25.25
Dividend Rate 1.2125 1.1875 1.25
Quote 7/25 20.80-20 20.31-68 23.05-15
YTW (at bid, after tax) 4.72% 4.72% 4.94%
YTW Date Infinite Infinite 2017-6-29
Credit Rating (DBRS) Pfd-3(high) Pfd-3(high) Pfd-3(high)
Credit Rating (S&P) P-2(low) P-3(high) P-3
YTW (Pre-Tax) 5.94% 5.92%  6.19% 
YTW Modified Duration (Pre-Tax) 13.92  14.02 7.60
YTW Pseudo-Convexity (Pre-Tax) 1.03 1.02 0.24

For those who are curious … Pfd-3 (& (high)) issues (using DBRS ratings) trading above their curve price are from BPO, FTS & LB.

As always with issues of this quality, choice of investment is as much a matter of credit anticipation as it is of cash-flow analysis … so before jumping in, do the work and make your own mind up! HIMIPref™’s accuracy is nothing special with these lower-grade credits … but I thought it would be fun to look!

One Response to “EPP.PR.A Valuation and Comparables”

  1. […] Assiduous Reader madequota asked about EPP.PR.A in the comments to February 5 … since he is an Assiduous Writer as well … let’s indulge him, shall we? It has been a long time since I last looked at this issue. […]

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