BNS.PR.B: Very Small Premium On Debut

BNS.PR.B, a FloatingReset +170 just converted from BNS.PR.Q, reached only a very small premium over BNS.PR.Q on its debut today.

The issue traded 17,400 shares in a range of 24.70-15 before settling at 24.85-05, 1×11.

BNS.PR.B will be tracked by HIMIPref™ and is temporarily assigned to the FixedReset subindex. When TD.PR.Z settles on October 31 all FloatingResets will be transferred from the FixedReset subindex to a new FloatingReset subindex.

We can examine the comparables with the help of the Pairs Equivalency Calculator:

FixedReset / FloatingReset Strong Pairs
FixedReset FloatingReset Next
Bill Rate
BNS.PR.P BNS.PR.A 2018-4-26 2.53%
TD.PR.S TD.PR.T 2018-7-31 2.37%
BMO.PR.M BMO.PR.R 2018-8-25 2.13%
BNS.PR.Q BNS.PR.B 2018-10-25 1.98%

So BNS.PR.B has the smallest premium of the lot. It will be most interesting to see whether the bloom is off the rose as far as FloatingResets are concerned!

Vital Statistics are:

Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.85
Bid-YTW : 2.62 %

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