TD.PR.C Settles Like a 5-Year

Monday’s settlement of RY.PR.L provided one data point and here’s another … it looks like we may state fairly conclusively that the market is currently pricing the Fixed Reset issues as if the market price will be $25 at the time of the first call – whether that is due to a call or a reset of the dividend to a market comparable number.

TD.PR.C and some comparators
Ticker Fixed Reset Quote Yield
5-year call
TD.PR.C 5.60% +274bp 25.00-01 5.64% 5.59%
RY.PR.L 5.60% +267bp 24.92-95 5.71% 5.57%
TD.PR.Y 5.10% +168bp 23.92-09 6.13% 4.89%
RY.PR.I 5.00% +193bp 23.61-99 6.42% 5.17%
TD.PR.A 5.00% +196bp 23.80-00 6.27% 5.15%
TD.PR.S 5.00% +160bp 24.05-28 5.94% 4.76%

The issue seems to have been well-received: I updated the issue announcement post with news that the greenshoe had been partially exercised.

2 Responses to “TD.PR.C Settles Like a 5-Year”

  1. […] PrefBlog Canadian Preferred Shares – Data and Discussion « TD.PR.C Settles Like a 5-Year […]

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