Assiduous Readers will remember that FN.PR.B has sprung into existence as a result of a 28% conversion from FN.PR.A. I recommended against conversion. FN.PR.A has reset for the next five years at 2.79%, while FN.PR.B will pay 3-Month Bills +207bp, reset quarterly.
FN.PR.B was listed today, but there was no trading and no offer. This issue will be tracked by HIMIPref™ but has been relegated to the Scraps index on credit concerns.
Vital statistics for the two issues are:
| FN.PR.A | FixedReset | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-04-01 Maturity Price : 11.81 Evaluated at bid price : 11.81 Bid-YTW : 5.92 % |
| FN.PR.B | FloatingReset | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-04-01 Maturity Price : 10.60 Evaluated at bid price : 10.60 Bid-YTW : 5.95 % |