TD.PR.Z, a FloatingReset +168 just converted from TD.PR.Y, reached only a very small premium over TD.PR.Y on its debut today.
The issue traded 8,500 shares in a range of 25.00-09 before settling at 25.00-08, 15×5.
TD.PR.Z will be tracked by HIMIPref™ and is assigned to the brand-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 | 2.54% |
| TD.PR.S | TD.PR.T | 2018-7-31 | 2.29% |
| BMO.PR.M | BMO.PR.R | 2018-8-25 | 2.13% |
| BNS.PR.Q | BNS.PR.B | 2018-10-25 | 2.03% |
| TD.PR.Y | TD.PR.Z | 2018-10-31 | 2.01% |
So TD.PR.Y has the smallest premium of the lot, eclipsed even by the previous low of BNS.PR.Q/BNS.PR.B Is the bloom is off the rose as far as FloatingResets are concerned?
Vital Statistics are:
| TD.PR.Z | FloatingReset | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 2.52 % |
Sorry, was searching for “TD.P” posts, and I got into this old post.
Could you please change BNS.PR.B to TD.PR.Z in the first paragraph?
Thanks,
Adrian
Oops! Done!
That’s what I get for copy-pasting templates!