The Toronto-Dominion Bank new issue closed today without a formal announcement from the company.
TD.PF.L is a FixedReset, 5.20%+327, announced 2019-01-17. It has been assigned to the FixedReset-Discount subindex.
TD.PF.L traded 688,942 shares today in a range of 24.75-92 before settling at 24.85-88. Vital statistics are:
| TD.PF.L | FixedReset Disc | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-28 Maturity Price : 23.09 Evaluated at bid price : 24.85 Bid-YTW : 5.13 % |
The new issue is ridiculously expensive according to Implied Volatility Analysis:
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According to this analysis, the fair value of the new issue on January 28 is 22.93, down from 23.32 on January 19. Note that TD.PF.K, a FixedReset, 4.75%+259, NVCC Compliant issue that commenced trading 2018-9-13 after being announced 2018-9-4, was quoted today at 20.80-21, compared to 22.50-65 on January 19. The fair value of TD.PF.K is 20.68 on January 28, according to the analysis, compared to 21.24 on January 19; it is now merely 0.12 rich, compared to 1.26 rich on the TD.PF.L announcement date.
It’s interesting to note that the theoretical spread (on a notional non-callable perpetual resettable annuity) is just a bit more than the actual issue spread for TD.PF.L – which means that TD is basically not just getting the call options on the issue for free, they’re actually being paid to take them!
[…] was issued as a FixedReset, 5.20%+327, that commenced trading 2019-1-28 after being announced 2019-01-17. It is currently assigned to the FixedReset-Discount […]