There is official concern about a sharp rise in buy-to-let investments in the UK:
Buy-to-let lending could pose a risk to financial stability.
The actions of buy-to-let investors affect the broader housing and mortgage markets as individuals compete to buy the same pool of properties. Looser lending standards in the buy-to-let sector could contribute to general house price increases and a broader increase in household indebtedness. And in a downswing, investors selling buy-to-let properties into an illiquid market could amplify falls in house prices, potentially raising losses given default for all mortgages. This could be a particular concern in a rising interest rate environment, if properties become unprofitable given higher debt-servicing costs. Buy-to-let borrowers are potentially more vulnerable to rising interest rates because loans are more likely to be interest only and extended on floating-rate terms, and affordability tends to be tested at lower stressed interest rates
than owner-occupied lending.The FPC continues to monitor closely conditions in UK property markets given high household indebtedness. Aggregate UK household debt to income, while falling gradually since 2010, remains high compared to historical and international norms (Chart F). The distribution of debt has improved marginally, with the tail of households with debt to income ratios greater than 4.0 falling in early 2015. House prices and activity in the housing market have increased again recently, and mortgage rates on many mortgage products are historically low. House prices grew at an annual rate of 5.6% in the three months to May 2015, compared with 3% in 2014 Q4; and 68,000 mortgages were approved in April, compared with 60,000 per month in 2014 Q4. Given this, the FPC judges that the policies it introduced in June 2014 to insure against the risk of a marked loosening in underwriting standards and a further significant rise in the number of highly indebted households remain warranted. In the buy-to-let mortgage market, lending has continued to grow, with buy-to-let mortgage lending now accounting for 15% of the stock of outstanding mortgages and nearly 20% of the flow in 2015 Q1 (Chart G). As it set out in October 2014, HM Treasury will consult later this year on giving to the FPC the power of Direction to limit residential mortgage lending at high loan to value or high debt to income ratios, including interest coverage ratios, for buy-to-let lending. Parliament provided the equivalent powers to the FPC for owner-occupied lending in April this year.
This has already attracted the interest of the Central Planners:
Landlords are being offered the largest number of buy-to-let mortgage deals since the financial crisis as banks try to profit from older savers cashing in their pensions to buy property.
There are now more than 1,000 buy-to-let products on the market for the first time since April 2008, according to data analyst Moneyfacts.
The rise was attributed to the new pension freedoms introduced in April. Under the rules savers have unlimited access to their funds from age 55, and many older investors have said they will spend the cash on properties to let to students or City workers. Banks are spotting the opportunity to attract wealthy customers and have offered attractive new deals.
…
But experts now believe the entire market could begin to collapse following changes to tax laws which were announced by George Osborne in July.The Chancellor said that by 2020 higher-rate taxpayers will no longer be able to deduct the cost of their mortgage interest from their rental income when they calculate a profit on which to pay tax. Only basic-rate relief will be available.
BCE Inc., proud issuer of a huge number of preferred shares, has been confirmed at Pfd-3(high) by DBRS:
DBRS Limited (DBRS) has today confirmed the long- and short-term ratings of Bell Canada (Bell Canada or the Company) and its parent company BCE Inc. (BCE) at A (low)/R-1 (low) and BBB (high)/R-1 (low), respectively. DBRS has also confirmed the ratings of Bell Canada’s Subordinated Debentures at BBB. All trends remain Stable. It should be noted that BCE’s ratings are linked to the ratings of Bell Canada and reflect the structural subordination of debt (currently none outstanding) and its preferred share obligations relative to Bell Canada. The ratings acknowledge the increase in financial leverage resulting from the acquisition of Astral Media and privatization of Bell Aliant (which DBRS believes enhanced the Company’s scale and diversification), but also reflect the expectation for deleveraging over the medium term. The ratings continue to be supported by the Company’s large and established subscriber base and quad-play offerings, and also consider intensifying competition and the risks associated with regulatory change.
The fourth quarter began with a return to normal in the Canadian preferred share market, by which I mean it was a lousy day, with PerpetualDiscounts losing 74bp, FixedResets down 49bp and DeemedRetractibles off 3bp. It looks like a sell programme kicked in at about 3:40pm – until then, the market was off a little, but nothing too serious:
Click for Big
One really has to wonder how the decision to execute this sell programme was rationalized. On the one hand, it seems very strange to start executing mass sales late in the day in a little backwater market like Canadian preferred shares. On the other hand … for the past nine months, executors of aggressive sell programmes have been patting themselves on the back a little while later, regretting only that they didn’t execute a few days earlier.
The Performance Highlights table is its usually lengthy self, highlighted by four issues that got caught by the late day sales and lost more than 5% (bid/bid). Volume was average.
For as long as the FixedReset market is so violently unsettled, I’ll keep publishing updates of the more interesting and meaningful series of FixedResets’ Implied Volatilities. This doesn’t include Enbridge because although Enbridge has a large number of issues outstanding, all of which are quite liquid, the range of Issue Reset Spreads is too small for decent conclusions. The low is 212bp (ENB.PR.H; second-lowest is ENB.PR.D at 237bp) and the high is a mere 268 for ENB.PF.G.
Remember that all rich /cheap assessments are:
» based on Implied Volatility Theory only
» are relative only to other FixedResets from the same issuer
» assume constant GOC-5 yield
» assume constant Implied Volatility
» assume constant spread
Here’s TRP:
Click for Big
Implied Volatility dropped significantly today.
TRP.PR.E, which resets 2019-10-30 at +235, is bid at 17.73 to be $0.96 rich, while TRP.PR.C, resetting 2016-1-30 at +164, is $0.48 cheap at its bid price of 12.10.
Click for Big
Another good fit today for MFC, with Implied Volatility unchanged.
Most expensive is MFC.PR.M, resetting at +236bp on 2019-12-19, bid at 20.00 to be 0.64 rich, while MFC.PR.I, resetting at +286bp on 2017-9-19, is bid at 20.92 to be 0.57 cheap.
Click for Big
The fit on the BAM issues continues to be horrible. Note that the pending new issue has been added with a price of 25.00; the valuation effects of the rate floor have been ignored.
The cheapest issue relative to its peers is BAM.PF.A, resetting at +290bp on 2018-9-30, bid at 18.48 to be $0.63 cheap. BAM.PF.G, resetting at +284bp on 2020-6-30 is bid at 19.70 and appears to be $0.90 rich.
Click for Big
FTS.PR.H, with a spread of +145bp, and bid at 13.65, looks $0.41 expensive and resets 2020-6-1. FTS.PR.G, with a spread of +213bp and resetting 2018-9-1, is bid at 16.85 and is $0.39 cheap.
Click for Big
Investment-grade pairs predict an average three-month bill yield over the next five-odd years of -1.19%, with one outlier above 0.00%. The distribution is bimodal, with bank NVCC non-compliant pairs averaging -1.74% and other issues averaging -0.42%. There are four junk outliers above 0.00%.
Click for Big
Shall we just say that this exhibits a high level of confidence in the continued rapacity of Canadian banks?
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -2.7450 % | 1,596.7 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -2.7450 % | 2,791.8 |
| Floater | 4.65 % | 4.68 % | 62,296 | 16.13 | 3 | -2.7450 % | 1,697.4 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0324 % | 2,761.9 |
| SplitShare | 4.34 % | 4.81 % | 67,083 | 4.49 | 5 | -0.0324 % | 3,236.8 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0324 % | 2,525.4 |
| Perpetual-Premium | 5.83 % | 5.88 % | 55,000 | 14.00 | 5 | 0.1274 % | 2,466.5 |
| Perpetual-Discount | 5.74 % | 5.74 % | 73,874 | 14.24 | 32 | -0.7444 % | 2,483.0 |
| FixedReset | 5.18 % | 4.76 % | 189,226 | 15.17 | 75 | -0.4902 % | 1,963.5 |
| Deemed-Retractible | 5.23 % | 5.26 % | 98,669 | 5.46 | 33 | -0.0307 % | 2,540.7 |
| FloatingReset | 2.65 % | 4.59 % | 61,278 | 5.83 | 9 | -0.8710 % | 2,048.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRP.PR.B | FixedReset | -5.66 % | Reasonably real, in that yes, there was a trade at the closing bid of 11.01. However, this is timestamped 3:59pm; there is an oddlot trade also timestamped 3:59bp at the price of 11.67. It looks like algorithmic selling, since all but three of the last 25 trades were for 100 shares and the earliest of these 25 trades was at 3:49. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 11.01 Evaluated at bid price : 11.01 Bid-YTW : 4.76 % |
| W.PR.J | Perpetual-Discount | -5.63 % | This one is strange and illustrates the kind of things that can happen in a thin market. The last trade, for 100 shares, was at 21.95 so, as above, we can call the quote technically real. But there were three trades timestamped 3:43pm, each of which was for 100 shares, all executed at 22.98. So the thing dropped over a buck in the last 17 minutes! The volume in this time was 1,300 shares! So the market maker – assuming he was awake – got scared, for either good reasons or bad; there’s no way of telling according to the data available to me. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 21.70 Evaluated at bid price : 21.95 Bid-YTW : 6.40 % |
| W.PR.H | Perpetual-Discount | -5.50 % | Another Thin Market Special! The closing bid is technically real, since there were two actual trade at 21.91 – both for 100 shares in the closing two minutes. On the other hand, there were trades timestamped 3:43 at 22.84! So again, the market-maker got scared. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 21.55 Evaluated at bid price : 21.81 Bid-YTW : 6.32 % |
| TRP.PR.F | FloatingReset | -5.00 % | This looks like another victim of the sell programme, as all but one of the last 25 trades was for 100 shares, taking the trade price from 12.80 at 3:40 to 12.35 at 3:59. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 12.35 Evaluated at bid price : 12.35 Bid-YTW : 4.72 % |
| BMO.PR.Y | FixedReset | -3.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 19.73 Evaluated at bid price : 19.73 Bid-YTW : 4.65 % |
| HSE.PR.E | FixedReset | -3.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 21.33 Evaluated at bid price : 21.33 Bid-YTW : 5.18 % |
| BAM.PR.B | Floater | -2.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 10.23 Evaluated at bid price : 10.23 Bid-YTW : 4.65 % |
| BAM.PR.C | Floater | -2.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 10.08 Evaluated at bid price : 10.08 Bid-YTW : 4.72 % |
| TRP.PR.A | FixedReset | -2.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 14.50 Evaluated at bid price : 14.50 Bid-YTW : 4.92 % |
| BMO.PR.Z | Perpetual-Discount | -2.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 22.41 Evaluated at bid price : 22.71 Bid-YTW : 5.59 % |
| FTS.PR.J | Perpetual-Discount | -2.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 21.02 Evaluated at bid price : 21.02 Bid-YTW : 5.72 % |
| BAM.PR.K | Floater | -2.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 10.16 Evaluated at bid price : 10.16 Bid-YTW : 4.68 % |
| CM.PR.Q | FixedReset | -2.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 19.94 Evaluated at bid price : 19.94 Bid-YTW : 4.49 % |
| RY.PR.M | FixedReset | -2.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 19.40 Evaluated at bid price : 19.40 Bid-YTW : 4.50 % |
| TD.PF.B | FixedReset | -2.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 18.52 Evaluated at bid price : 18.52 Bid-YTW : 4.40 % |
| FTS.PR.F | Perpetual-Discount | -1.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 21.33 Evaluated at bid price : 21.60 Bid-YTW : 5.73 % |
| GWO.PR.H | Deemed-Retractible | -1.81 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.69 Bid-YTW : 6.83 % |
| CU.PR.H | Perpetual-Discount | -1.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 22.15 Evaluated at bid price : 22.50 Bid-YTW : 5.92 % |
| RY.PR.N | Perpetual-Discount | -1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 22.20 Evaluated at bid price : 22.55 Bid-YTW : 5.57 % |
| BAM.PR.X | FixedReset | -1.65 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 14.31 Evaluated at bid price : 14.31 Bid-YTW : 4.86 % |
| TRP.PR.D | FixedReset | -1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 16.93 Evaluated at bid price : 16.93 Bid-YTW : 4.91 % |
| BNS.PR.Y | FixedReset | -1.53 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.35 Bid-YTW : 6.26 % |
| BMO.PR.R | FloatingReset | -1.38 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.40 Bid-YTW : 4.70 % |
| BAM.PF.G | FixedReset | -1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 19.70 Evaluated at bid price : 19.70 Bid-YTW : 4.91 % |
| BAM.PF.B | FixedReset | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 17.23 Evaluated at bid price : 17.23 Bid-YTW : 5.22 % |
| IFC.PR.C | FixedReset | -1.29 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.42 Bid-YTW : 7.54 % |
| RY.PR.W | Perpetual-Discount | -1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 22.82 Evaluated at bid price : 23.10 Bid-YTW : 5.36 % |
| BAM.PF.A | FixedReset | -1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 18.48 Evaluated at bid price : 18.48 Bid-YTW : 5.20 % |
| GWO.PR.Q | Deemed-Retractible | -1.27 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.61 Bid-YTW : 6.58 % |
| RY.PR.J | FixedReset | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 20.01 Evaluated at bid price : 20.01 Bid-YTW : 4.47 % |
| BNS.PR.D | FloatingReset | -1.18 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.47 Bid-YTW : 6.51 % |
| HSB.PR.C | Deemed-Retractible | -1.17 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.51 Bid-YTW : 5.51 % |
| BMO.PR.W | FixedReset | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 18.09 Evaluated at bid price : 18.09 Bid-YTW : 4.44 % |
| NA.PR.W | FixedReset | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 18.11 Evaluated at bid price : 18.11 Bid-YTW : 4.53 % |
| NA.PR.S | FixedReset | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 19.28 Evaluated at bid price : 19.28 Bid-YTW : 4.41 % |
| BAM.PF.F | FixedReset | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 19.33 Evaluated at bid price : 19.33 Bid-YTW : 4.98 % |
| BNS.PR.Z | FixedReset | -1.11 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.65 Bid-YTW : 6.60 % |
| TD.PF.C | FixedReset | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 18.25 Evaluated at bid price : 18.25 Bid-YTW : 4.45 % |
| SLF.PR.G | FixedReset | -1.06 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.92 Bid-YTW : 8.65 % |
| CU.PR.D | Perpetual-Discount | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 21.52 Evaluated at bid price : 21.52 Bid-YTW : 5.77 % |
| BAM.PR.N | Perpetual-Discount | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 19.85 Evaluated at bid price : 19.85 Bid-YTW : 6.03 % |
| GWO.PR.N | FixedReset | -1.01 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.75 Bid-YTW : 9.58 % |
| PVS.PR.B | SplitShare | 1.02 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2019-01-10 Maturity Price : 25.00 Evaluated at bid price : 24.75 Bid-YTW : 4.81 % |
| TRP.PR.E | FixedReset | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 17.73 Evaluated at bid price : 17.73 Bid-YTW : 4.76 % |
| SLF.PR.J | FloatingReset | 1.17 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 12.95 Bid-YTW : 9.83 % |
| FTS.PR.K | FixedReset | 1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 16.77 Evaluated at bid price : 16.77 Bid-YTW : 4.59 % |
| BMO.PR.T | FixedReset | 1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 18.75 Evaluated at bid price : 18.75 Bid-YTW : 4.32 % |
| IFC.PR.A | FixedReset | 1.96 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.60 Bid-YTW : 9.18 % |
| PWF.PR.P | FixedReset | 2.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 15.00 Evaluated at bid price : 15.00 Bid-YTW : 4.08 % |
| FTS.PR.H | FixedReset | 2.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 13.65 Evaluated at bid price : 13.65 Bid-YTW : 4.25 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| RY.PR.M | FixedReset | 107,934 | Scotia crossed 100,000 at 19.90. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 19.40 Evaluated at bid price : 19.40 Bid-YTW : 4.50 % |
| BMO.PR.Y | FixedReset | 61,975 | RBC crossed 48,600 at 20.65. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 19.73 Evaluated at bid price : 19.73 Bid-YTW : 4.65 % |
| MFC.PR.J | FixedReset | 56,748 | Scotia crossed 55,300 at 20.35. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.32 Bid-YTW : 6.30 % |
| FTS.PR.K | FixedReset | 44,635 | TD crossed 16,700 at 16.94. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 16.77 Evaluated at bid price : 16.77 Bid-YTW : 4.59 % |
| GWO.PR.N | FixedReset | 39,049 | Nesbitt crossed 19,400 at 13.85. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.75 Bid-YTW : 9.58 % |
| PWF.PR.P | FixedReset | 34,115 | TD crossed 24,800 at 15.05. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-10-01 Maturity Price : 15.00 Evaluated at bid price : 15.00 Bid-YTW : 4.08 % |
| There were 34 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| W.PR.J | Perpetual-Discount | Quote: 21.95 – 23.60 Spot Rate : 1.6500 Average : 1.0335 YTW SCENARIO |
| W.PR.H | Perpetual-Discount | Quote: 21.81 – 23.20 Spot Rate : 1.3900 Average : 0.8409 YTW SCENARIO |
| BMO.PR.R | FloatingReset | Quote: 21.40 – 21.99 Spot Rate : 0.5900 Average : 0.3948 YTW SCENARIO |
| TRP.PR.A | FixedReset | Quote: 14.50 – 15.20 Spot Rate : 0.7000 Average : 0.5122 YTW SCENARIO |
| IFC.PR.C | FixedReset | Quote: 18.42 – 18.98 Spot Rate : 0.5600 Average : 0.4087 YTW SCENARIO |
| HSE.PR.E | FixedReset | Quote: 21.33 – 21.90 Spot Rate : 0.5700 Average : 0.4227 YTW SCENARIO |
Hi James, can you comment on the hrtible price action on BCE.PR.T. Do you see any rational reason this is dropping like a stone
Looks like the same reason as the four investment-grade issues that dropped over 5% (bid / bid) – the TMX reports at least nine trades in the last minute of October 1, totalling 1200 shares. It bounced back today.