Sorry, people! I spent most my reading time today looking at Leverage, Bear Stearns & Econbrowser, so there won’t be much commentary here.
The potential for repricing of the BCE / Teachers’ deal was discussed in the comments to May 12; now Desjardins is saying a repricing is more likely than not:
Joseph MacKay of Desjardins Securities says an agreement between Clear Channel and its private equity purchasers, which will reduce the takeout price by more than eight per cent, may put pressure on BCE to follow suit.
…
However, the chance of re-pricing the deal has also increased, MacKay wrote in a report.
…
“We would advise investors to assume a potential re-price in the five to 8.16 per cent range,” he wrote.
Accrued Interest is nonplussed by seemingly contradictory reports, but is sticking with his recessionary views.
Another good strong day in the market, with volume continuing to show signs of life. I note that PerpetualDiscounts are now up 0.98% month-to-date, while long corporates are up 0.91%.
| Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version. In this version, index values are based at 1,000.0 on 2006-6-30 | |||||||
| Index | Mean Current Yield (at bid) | Mean YTW | Mean Average Trading Value | Mean Mod Dur (YTW) | Issues | Day’s Perf. | Index Value |
| Ratchet | 4.87% | 4.90% | 45,727 | 15.74 | 1 | -0.0806% | 1,081.9 |
| Fixed-Floater | 4.67% | 4.63% | 64,275 | 16.05 | 7 | +0.0060% | 1,069.8 |
| Floater | 4.12% | 4.16% | 62,061 | 17.05 | 2 | +0.5493% | 916.2 |
| Op. Retract | 4.83% | 2.57% | 89,700 | 2.59 | 15 | +0.1216% | 1,054.9 |
| Split-Share | 5.27% | 5.52% | 70,139 | 4.15 | 13 | +0.1432% | 1,052.4 |
| Interest Bearing | 6.13% | 6.08% | 53,116 | 3.82 | 3 | -0.0336% | 1,105.5 |
| Perpetual-Premium | 5.89% | 5.61% | 140,685 | 5.60 | 9 | +0.0178% | 1,021.8 |
| Perpetual-Discount | 5.67% | 5.71% | 304,127 | 13.98 | 63 | +0.1590% | 922.9 |
| Major Price Changes | |||
| Issue | Index | Change | Notes |
| LFE.PR.A | SplitShare | -1.0659% | Asset coverage of just under 2.5:1 as of April 30, according to the company. Now with a pre-tax bid-YTW of 4.79% based on a bid of 10.21 and a hardMaturity 2012-12-1 at 10.00. |
| DFN.PR.A | SplitShare | +1.0753% | Asset coverage of just under 2.5:1 as of April 30, according to the company. Now with a pre-tax bid-YTW of 4.70% based on a bid of 10.34 and a hardMaturity 2014-12-1 at 10.00. |
| BNA.PR.B | SplitShare | +1.4630% | Asset coverage of just under 3.2:1 as of April 30, according to the company. Timing of the current dividend is unclear. Now with a pre-tax bid-YTW of 7.55% based on a bid of 21.50 cum dividend and a hardMaturity 2016-3-25 at 25.00. Compare with BNA.PR.A (6.07% to 2010-9-30) and BNA.PR.C (6.73% to 2019-1-10). |
| CIU.PR.A | PerpetualDiscount | +1.6782% | Now with a pre-tax bid-YTW of 5.60% based on a bid of 20.60 and a limitMaturity. |
| BAM.PR.M | PerpetualDiscount | +2.6616% | Now with a pre-tax bid-YTW of 6.39% based on a bid of 18.90 and a limitMaturity. |
| Volume Highlights | |||
| Issue | Index | Volume | Notes |
| BNS.PR.M | PerpetualDiscount | 255,135 | Nesbitt crossed 208,600 at 20.55. Now with a pre-tax bid-YTW of 5.53% based on a bid of 20.55 and a limitMaturity. |
| PWF.PR.H | PerpetualDiscount | 211,900 | Now with a pre-tax bid-YTW of 5.78% based on a bid of 25.05 and a limitMaturity. |
| CM.PR.D | PerpetualDiscount | 204,047 | Now with a pre-tax bid-YTW of 5.89% based on a bid of 24.60 and a limitMaturity. |
| BAM.PR.N | PerpetualDiscount | 180,960 | Now with a pre-tax bid-YTW of 6.57% based on a bid of 18.38 and a limitMaturity. |
| NA.PR.K | PerpetualDiscount | 170,600 | Now with a pre-tax bid-YTW of 5.95% based on a bid of 24.70 and a limitMaturity. |
| BMO.PR.I | OpRet | 164,000 | TD crossed 59,300 at 25.10, then Nesbitt crossed 100,000 at the same price. Now with a pre-tax bid-YTW of -0.07% based on a bid of 25.06 and a call 2008-6-13 at 25.00. |
| POW.PR.D | PerpetualDiscount | 107,190 | Nesbitt crossed 100,000 at 21.85. Now with a pre-tax bid-YTW of 5.79% based on a bid of 21.80 and a limitMaturity. |
| BNS.PR.L | PerpetualDiscount | 105,500 | Nesbitt crossed 50,000 at 20.55, then TD crossed the same number at the same price. Now with a pre-tax bid-YTW of 5.53% based on a bid of 20.55 and a limitMaturity. |
There were twenty-seven other index-included $25-pv-equivalent issues trading over 10,000 shares today.
[…] has predicted a repricing of the deal five to 8.16% lower, as reported on PrefBlog May 14. Syndication of the deal has started; the last major development was the loss in court by […]