BCE.PR.Z To Reset At 3.904%

BCE Inc. has announced:

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The new rate of 3.904% is a little above the rate I estimated when making my recommendation, but the difference is not material. Accordingly, I reiterate that:

I recommend holders retain, or switch to, BCE.PR.Y.

For those punctilious souls out there, however, I will update the chart of Break-Even Prime Rates for this type of Strong Pair:

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The average break-even Prime rate for the seven BCE pairs is 4.38%.

And the table of projected prices becomes:

Estimate of BCE.PR.Y (received in exchange for BCE.PR.Z) Trading Price In Current Conditions
  Assumed RatchetRate
Price if Implied Prime
is equal to
FixedFloater Bid Price Fixed Rate +3.75% 4.25% 4.75%
BCE.PR.Z 19.45 3.904%
19.29 19.80 20.30
  Actual bid on 11/14 is 19.55

One Response to “BCE.PR.Z To Reset At 3.904%”

  1. […] BCE.PR.Z reset to 4.331% in 2007; to 3.152% in 2012; and to 3.904% in 2017. […]

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