The new Royal Bank 4.6% perpetuals were off to a good start today, trading 239,875 shares in a range of 25.15-25 to close at $25.16-18, 3×13.
The reorg entry has been processed on HIMIPref™: the pre-issue code was P50006, the new security code is A45012.
I’ll update this post with some comments about valuation when I update HIMIPref™ with today’s closing quotations later tonight.
Update : The issue still looks attractive at the closing quotation. Consider the YTWs of the other Royal Perpetual issues that are outstanding (except for the soon to be redeemed RY.PR.O:
| Issue | Pre-tax YTW | Quote | “Taxable Curve” Price |
| RY.PR.A | 4.47% | 24.84-91 | 24.97 |
| RY.PR.B | 4.30% | 25.70-75 | 25.83 |
| RY.PR.C | 4.54% | 25.16-18 | 25.59 |
| RY.PR.W | 4.07% | 26.27-55 | 25.89 |
So, it’s my guess there’s still a little value left in this issue!
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