May 7, 2020

Brookfield’s got a new project going:

Brookfield Asset Management Inc. plans to spend US$5-billion to prop up retailers hit by the coronavirus pandemic, in an attempt to find investment opportunities in the retail carnage while mitigating the company’s significant exposure to malls.

Under its plan, called the Retail Revitalization Program, Brookfield will provide capital to cash-strapped retailers in exchange for a non-controlling stake in the business. That would throw a lifeline to retailers who are under immense financial stress after governments shuttered non-essential shops and malls to stop the spread of the coronavirus.

We might be seeing a bit more of this; I hope we do. The current experience is reminding us that:

  • It’s good to be well capitalized, and
  • It’s good to have low fixed costs

Owning your own real-estate fits nicely into these precepts, even though the B-School boys will be pleased to tell you that since real-estate is not a core competency of many retailers, it should be contracted out.

But it makes sense. And there should be more Main Street businesses where Mom ‘n’ Pop live on top of the store, even though security guarding isn’t a core competency either.

It’s also interesting to note that what is essentially an equity-for-rent swap is reminiscent of Islamic Finance.

HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices

Values are provisional and are finalized monthly
Index Mean
Current
Yield
(at bid)
Median
YTW
Median
Average
Trading
Value
Median
Mod Dur
(YTW)
Issues Day’s Perf. Index Value
Ratchet 0.00 % 0.00 % 0 0.00 0 -0.4911 % 1,459.6
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.4911 % 2,678.4
Floater 5.29 % 5.57 % 36,058 14.52 4 -0.4911 % 1,543.6
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0175 % 3,338.8
SplitShare 4.97 % 5.76 % 68,997 3.89 7 -0.0175 % 3,987.3
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0175 % 3,111.0
Perpetual-Premium 0.00 % 0.00 % 0 0.00 0 0.1114 % 2,883.5
Perpetual-Discount 5.84 % 6.05 % 86,191 13.82 35 0.1114 % 3,092.8
FixedReset Disc 6.35 % 5.25 % 213,765 14.82 83 0.2970 % 1,792.3
Deemed-Retractible 5.56 % 5.82 % 93,876 13.83 27 0.4562 % 3,045.4
FloatingReset 5.07 % 5.04 % 61,770 15.41 3 -0.9427 % 1,740.6
FixedReset Prem 0.00 % 0.00 % 0 0.00 0 0.2970 % 2,478.7
FixedReset Bank Non 1.99 % 3.23 % 189,133 1.70 2 -0.0616 % 2,773.6
FixedReset Ins Non 6.57 % 5.38 % 125,618 14.45 22 0.4686 % 1,809.1
Performance Highlights
Issue Index Change Notes
TD.PF.E FixedReset Disc -11.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 14.40
Evaluated at bid price : 14.40
Bid-YTW : 5.73 %
SLF.PR.J FloatingReset -3.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 8.85
Evaluated at bid price : 8.85
Bid-YTW : 4.71 %
BAM.PR.T FixedReset Disc -2.56 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 11.43
Evaluated at bid price : 11.43
Bid-YTW : 6.20 %
MFC.PR.I FixedReset Ins Non -1.98 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 15.35
Evaluated at bid price : 15.35
Bid-YTW : 5.65 %
BMO.PR.D FixedReset Disc -1.73 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 17.00
Evaluated at bid price : 17.00
Bid-YTW : 5.41 %
TRP.PR.A FixedReset Disc -1.62 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 11.51
Evaluated at bid price : 11.51
Bid-YTW : 5.80 %
BAM.PF.G FixedReset Disc -1.62 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 13.40
Evaluated at bid price : 13.40
Bid-YTW : 6.12 %
BAM.PF.F FixedReset Disc -1.37 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 14.40
Evaluated at bid price : 14.40
Bid-YTW : 6.10 %
BAM.PF.I FixedReset Disc -1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 22.29
Evaluated at bid price : 22.61
Bid-YTW : 5.36 %
BAM.PR.R FixedReset Disc -1.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 11.16
Evaluated at bid price : 11.16
Bid-YTW : 6.17 %
TD.PF.I FixedReset Disc -1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 18.14
Evaluated at bid price : 18.14
Bid-YTW : 4.95 %
SLF.PR.H FixedReset Ins Non -1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 12.37
Evaluated at bid price : 12.37
Bid-YTW : 5.29 %
RY.PR.M FixedReset Disc 1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 15.10
Evaluated at bid price : 15.10
Bid-YTW : 5.02 %
POW.PR.D Perpetual-Discount 1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 21.10
Evaluated at bid price : 21.10
Bid-YTW : 5.99 %
MFC.PR.C Deemed-Retractible 1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 19.70
Evaluated at bid price : 19.70
Bid-YTW : 5.81 %
SLF.PR.C Deemed-Retractible 1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 19.70
Evaluated at bid price : 19.70
Bid-YTW : 5.73 %
NA.PR.A FixedReset Disc 1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 23.27
Evaluated at bid price : 23.75
Bid-YTW : 5.34 %
PWF.PR.T FixedReset Disc 1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 14.00
Evaluated at bid price : 14.00
Bid-YTW : 5.57 %
MFC.PR.N FixedReset Ins Non 1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 13.95
Evaluated at bid price : 13.95
Bid-YTW : 5.40 %
CM.PR.T FixedReset Disc 1.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 19.90
Evaluated at bid price : 19.90
Bid-YTW : 5.10 %
IFC.PR.E Deemed-Retractible 1.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 22.62
Evaluated at bid price : 22.93
Bid-YTW : 5.73 %
IFC.PR.C FixedReset Ins Non 1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 14.72
Evaluated at bid price : 14.72
Bid-YTW : 5.29 %
TRP.PR.E FixedReset Disc 1.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 13.06
Evaluated at bid price : 13.06
Bid-YTW : 5.81 %
SLF.PR.A Deemed-Retractible 1.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 21.06
Evaluated at bid price : 21.06
Bid-YTW : 5.72 %
GWO.PR.L Deemed-Retractible 1.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 23.53
Evaluated at bid price : 23.80
Bid-YTW : 6.01 %
IFC.PR.G FixedReset Ins Non 1.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 15.70
Evaluated at bid price : 15.70
Bid-YTW : 5.33 %
BIP.PR.F FixedReset Disc 1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 20.01
Evaluated at bid price : 20.01
Bid-YTW : 6.47 %
CM.PR.Y FixedReset Disc 1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 21.15
Evaluated at bid price : 21.15
Bid-YTW : 5.11 %
BMO.PR.F FixedReset Disc 1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 4.97 %
TRP.PR.H FloatingReset 1.46 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 7.63
Evaluated at bid price : 7.63
Bid-YTW : 5.04 %
TRP.PR.C FixedReset Disc 1.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 8.53
Evaluated at bid price : 8.53
Bid-YTW : 5.74 %
HSE.PR.C FixedReset Disc 1.56 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 11.07
Evaluated at bid price : 11.07
Bid-YTW : 9.07 %
MFC.PR.R FixedReset Ins Non 1.70 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 19.73
Evaluated at bid price : 19.73
Bid-YTW : 5.53 %
SLF.PR.G FixedReset Ins Non 1.76 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 9.26
Evaluated at bid price : 9.26
Bid-YTW : 4.92 %
MFC.PR.F FixedReset Ins Non 1.76 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 9.26
Evaluated at bid price : 9.26
Bid-YTW : 5.00 %
SLF.PR.B Deemed-Retractible 1.76 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 21.41
Evaluated at bid price : 21.41
Bid-YTW : 5.68 %
BIP.PR.B FixedReset Disc 2.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 22.61
Evaluated at bid price : 23.25
Bid-YTW : 5.97 %
HSE.PR.E FixedReset Disc 2.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 11.30
Evaluated at bid price : 11.30
Bid-YTW : 9.52 %
BAM.PF.E FixedReset Disc 2.37 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 12.97
Evaluated at bid price : 12.97
Bid-YTW : 6.14 %
GWO.PR.N FixedReset Ins Non 2.53 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 9.74
Evaluated at bid price : 9.74
Bid-YTW : 4.43 %
BIP.PR.E FixedReset Disc 2.53 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 19.48
Evaluated at bid price : 19.48
Bid-YTW : 6.52 %
IFC.PR.A FixedReset Ins Non 2.76 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 11.56
Evaluated at bid price : 11.56
Bid-YTW : 5.05 %
HSE.PR.G FixedReset Disc 2.98 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 10.70
Evaluated at bid price : 10.70
Bid-YTW : 9.33 %
TRP.PR.B FixedReset Disc 5.56 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 7.60
Evaluated at bid price : 7.60
Bid-YTW : 5.57 %
BIK.PR.A FixedReset Disc 6.75 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 22.01
Evaluated at bid price : 22.45
Bid-YTW : 6.60 %
Volume Highlights
Issue Index Shares
Traded
Notes
HSE.PR.C FixedReset Disc 106,965 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 11.07
Evaluated at bid price : 11.07
Bid-YTW : 9.07 %
TD.PF.G FixedReset Disc 78,690 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 24.47
Evaluated at bid price : 24.85
Bid-YTW : 5.12 %
NA.PR.C FixedReset Disc 77,253 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 17.30
Evaluated at bid price : 17.30
Bid-YTW : 5.69 %
MFC.PR.Q FixedReset Ins Non 64,206 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 15.58
Evaluated at bid price : 15.58
Bid-YTW : 5.32 %
TD.PF.E FixedReset Disc 63,859 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 14.40
Evaluated at bid price : 14.40
Bid-YTW : 5.73 %
TD.PF.C FixedReset Disc 58,179 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 15.24
Evaluated at bid price : 15.24
Bid-YTW : 4.91 %
There were 63 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
TD.PF.E FixedReset Disc Quote: 14.40 – 16.50
Spot Rate : 2.1000
Average : 1.4129

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 14.40
Evaluated at bid price : 14.40
Bid-YTW : 5.73 %

BNS.PR.E FixedReset Disc Quote: 24.30 – 24.97
Spot Rate : 0.6700
Average : 0.4421

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 23.78
Evaluated at bid price : 24.30
Bid-YTW : 5.08 %

BMO.PR.D FixedReset Disc Quote: 17.00 – 17.66
Spot Rate : 0.6600
Average : 0.4330

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 17.00
Evaluated at bid price : 17.00
Bid-YTW : 5.41 %

BAM.PR.M Perpetual-Discount Quote: 19.93 – 20.49
Spot Rate : 0.5600
Average : 0.3699

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 19.93
Evaluated at bid price : 19.93
Bid-YTW : 6.05 %

EIT.PR.B SplitShare Quote: 24.21 – 24.75
Spot Rate : 0.5400
Average : 0.3947

YTW SCENARIO
Maturity Type : Soft Maturity
Maturity Date : 2025-03-14
Maturity Price : 25.00
Evaluated at bid price : 24.21
Bid-YTW : 5.75 %

CU.PR.G Perpetual-Discount Quote: 20.31 – 20.75
Spot Rate : 0.4400
Average : 0.3209

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-05-07
Maturity Price : 20.31
Evaluated at bid price : 20.31
Bid-YTW : 5.55 %

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