Quiet Disaster for SLF.PR.D

Readers will be familiar with my earlier comments on this issue … price-wise, things worked out much as expected – the closing quotation was $24.50-55, 14×61. The volume was a surprise, however, with only 12,300 shares trading on its first day out, which can be interpreted in a number of ways.

 I suspect that the correct interpretation is simply that the issue got sold in large chunks to long term investors (e.g., Balanced and Dividend funds run by the big fundcos), who don’t care what price they pay, as long as they can put eight-figures “to work” on a single ticket – and probably all committed before the issue was even thought about! But who knows? We’ll just have to see how this thing looks going forward.

 I never did issue the press release I had been intending. After some thought, I decided that given the presence of such a close comparable as SLF.PR.C (which closed at $24.64-70, 9×70, on volume of 6,300) made the HIMIPref™ evaluation of the new issue as expensive somewhat less than startling news.

SLF.PR.D has been set up on HIMIPref™ and will be added to “PerpetualDiscount” index and prefInfo in the very near future. The Preissue Security Code was P50005; the permanent code is A48983.

The price is actually quite reasonable at 24.50-55 … Now that the Street has given Sun Life it’s $6-million gift (12-million shares, overpriced by about $0.50, according to the first day of trading, if nothing else), the issue is looking like a much more reasonable investment.

7 Responses to “Quiet Disaster for SLF.PR.D”

  1. […] There were no index-included issues with major price moves today (unless you count SLF.PR.D) […]

  2. mpisni says:

    sfl.pr.d Boy did I just get blindsided today, I thought I was being smart by waiting for the issue to come to market and buying at less than par, then WAM a second tranch came out today and it dropped 75 cps.

    What can I do, if anything, to find out when a pref will be coming out with a second tranch or is this the luck of th edraw


  3. jiHymas says:

    An embarrassment of riches today, in terms of reader response! I responded to the eMail version of this question in today’s thread.

  4. […] Closed at 24.43-64; the extremely similar SLF.PR.D closed at 24.65-89. It would appear the market is prepared to pay a gigantic premium for 9 extra months of non-callability … hmm, let me review my Expectations Theory … […]

  5. […] Comparable quality to SLF.PR.C and SLF.PR.D, but pays a little more! […]

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