MFC.PR.P, the new FloatingReset that has come into existence via partial exchange from MFC.PR.F, is now trading.
The 21% conversion rate has been reported previously; Assiduous Readers will remember that I recommended against conversion. MFC.PR.F now pays 2.178% (on par) until 2021-6-19, while MFC.PR.P will pay 3-month bills +141bp, reset quarterly.
MFC.PR.P closed June 20 with a quote of 12.90-20
Vital statistics are:
| MFC.PR.P |
FloatingReset |
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 11.50
Bid-YTW : 12.25 % |
The $2.05 price difference between the two elements of the Strong Pair (I told you not to convert!) implies a break-even three-month bill rate of -1.20% – at the low end of the range defined by other investment-grade Strong Pairs.
Click for Big
This entry was posted on Thursday, June 23rd, 2016 at 3:01 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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MFC.PR.P: Little Trading After Conversion From MFC.PR.F
MFC.PR.P, the new FloatingReset that has come into existence via partial exchange from MFC.PR.F, is now trading.
The 21% conversion rate has been reported previously; Assiduous Readers will remember that I recommended against conversion. MFC.PR.F now pays 2.178% (on par) until 2021-6-19, while MFC.PR.P will pay 3-month bills +141bp, reset quarterly.
MFC.PR.P closed June 20 with a quote of 12.90-20
Vital statistics are:
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 11.50
Bid-YTW : 12.25 %
The $2.05 price difference between the two elements of the Strong Pair (I told you not to convert!) implies a break-even three-month bill rate of -1.20% – at the low end of the range defined by other investment-grade Strong Pairs.
Click for Big
This entry was posted on Thursday, June 23rd, 2016 at 3:01 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.