BRF.PR.B Listed – No Action Despite 45% Conversion

Not much to report here! BRF.PR.B, a FloatingReset +262 that has resulted from a partial conversion of BRF.PR.A but there were no trades and a $5.00 spread on the quote.

However, TMXMoney reports that there are 4,518,289 shares outstanding compared to 5,481,711 for BRF.PR.A, implying a 45% conversion rate, in line with the recent 42% rate for BNS.PR.Y / BNS.PR.D and 43% rate for AIM.PR.A / AIM.PR.G despite my exhortation to continue to hold the FixedReset half of the pair.

For what it’s worth, the bid on BRF.PR.B looks reasonable relative to the bid on BRF.PR.A, resulting in an implied averge 3-month bill rate of 0.06% which, while certainly subject to criticism, is not utterly ridiculous compared to other FixedReset / FloatingReset Strong Pairs:

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Vital statistics (again, with the caveat that the quote has a ridiculous spread and is unsupported by any trading activity) are:

Maturity Type : Limit Maturity
Maturity Date : 2045-05-01
Maturity Price : 20.00
Evaluated at bid price : 20.00
Bid-YTW : 4.08 %

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