TD.PR.T: Big Premium On Debut

TD.PR.T, the FloatingReset part of the TD.PR.S / TD.PR.T Strong Pair, commenced trading today and closed at a very impressive 25.47-55, 33×2, after trading 9,400 shares in a range of 25.50-65.

This compares with TD.PR.S, the FixedReset, closing at 24.60-74, 70×1, after trading 2,223 shares in a range of 24.53-73.

According to the “Quick Method” of the updated Pair Equivalency Calculator, this implies that the break-even 3-Month Bill rate is 2.59%.

Vital statistics are:

TD.PR.S FixedReset YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.60
Bid-YTW : 3.59 %
TD.PR.T FixedReset YTW SCENARIO
Maturity Type : Call
Maturity Date : 2013-09-29
Maturity Price : 25.50
Evaluated at bid price : 25.47
Bid-YTW : 0.72 %

Both issues are tracked by HIMIPref™ and both are assigned to the FixedReset subindex; TD.PR.T will be assigned to a new FloatingReset index as soon as enough of these issues are outstanding to make such and index meaningful. As announced by TD Bank and reported on PrefBlog, slightly more TD.PR.S shares are outstanding.

5 Responses to “TD.PR.T: Big Premium On Debut”

  1. […] PrefBlog Canadian Preferred Shares – Data and Discussion « TD.PR.T: Big Premium On Debut […]

  2. adrian2 says:

    Since you’re too modest to emphasize, you have recommended existing holders of TD.PR.S to convert to TD.PR.T.

    The conversion was on a 1:1 basis; those who listened to your advice have gained a nice 3.5% ($25.47 vs. $24.60), about a year’s worth of dividends in unrealized capital gains vs. the alternative.

    The trader in me suggests taking the money and run…

  3. jiHymas says:

    Well, I would take the money and run! Maybe run all the way over to BMO.PR.M and see how long the streak lasts! I know at least one dealer is recommending speculation of this nature to their clients.

  4. […] Recently converted FloatingReset. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-07-31 Maturity Price : 25.00 Evaluated at bid price : 25.15 Bid-YTW : 2.37 % […]

  5. […] Recent exchange issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-07-31 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 2.52 % […]

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