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!
[…] 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. […]