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
Exchange
Date |
Implied
3-Month
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:
| BNS.PR.B |
FixedReset |
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.85
Bid-YTW : 2.62 % |
This entry was posted on Monday, October 28th, 2013 at 8:59 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
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:
Exchange
Date
3-Month
Bill Rate
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 %
This entry was posted on Monday, October 28th, 2013 at 8:59 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.