As reported here previously, RY.PR.K is a FloatingReset, 3-Month Bills + 193, that forms a Strong Pair with RY.PR.I.
Neither is NVCC compliant, so both have a Deemed Maturity in their call schedules dated 2022-1-31, at par.
RY.PR.K was posted for trading today, but there were no trades. This issue will be tracked by HIMIPref™ but due to low initial and anticipated volume, will be relegated to the Scraps index on volume concerns.
Vital statistics are:
| RY.PR.K | FloatingReset | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 2.75 % |
The following FixedReset/FloatingReset Strong Pairs now exist and the schedule of implied 3-Month bill rates according to the Pairs Equivalency Calculator is:
| FixedReset/FloatingReset Pairs, 2014-2-24 | |||
| FixedReset | FloatingReset | Next Exchange Date | Implied 3-Month Bills |
| BNS.PR.P | BNS.PR.A | 2018-4-26 | 1.36% |
| TD.PR.S | TD.PR.T | 2018-7-31 | 1.59% |
| BMO.PR.M | BMO.PR.R | 2018-8-25 | 1.63% |
| BNS.PR.Q | BNS.PR.B | 2018-10-31 | 1.51% |
| TD.PR.Y | TD.PR.Z | 2018-10-31 | 1.64% |
| BNS.PR.R | BNS.PR.C | 2019-1-25 | 1.24% |
| RY.PR.I | RY.PR.K | 2019-2-24 | 1.74% |
Update, 2016-2-25: I should have included the following paragraph:
Note that since the issue is issued by a bank, is not compliant with OSFI’s Non-Viability Contingent Capital (NVCC) rules and is not convertible into common at the option of the issuer, I consider it to have a “Deemed Maturity” 2022-1-31 (this date may change in the future). This is an approximation (they will probably be called on an Exchange Date at par, not on precisely 2022-1-31) and is the result of analysis, not due to any legally binding commitment by the issuer – although I will note that this analysis with respect to bank issues has wide acceptance in the market. There is a brief explanation of this on the PrefLetter website (under the heading “DeemedRetractibles”) and with more detailed argument and progress reports on international negotiations in every edition of PrefLetter.