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 |
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| 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 |
| BNS.PR.E | FixedReset Disc | Quote: 24.30 – 24.97 Spot Rate : 0.6700 Average : 0.4421 YTW SCENARIO |
| BMO.PR.D | FixedReset Disc | Quote: 17.00 – 17.66 Spot Rate : 0.6600 Average : 0.4330 YTW SCENARIO |
| BAM.PR.M | Perpetual-Discount | Quote: 19.93 – 20.49 Spot Rate : 0.5600 Average : 0.3699 YTW SCENARIO |
| EIT.PR.B | SplitShare | Quote: 24.21 – 24.75 Spot Rate : 0.5400 Average : 0.3947 YTW SCENARIO |
| CU.PR.G | Perpetual-Discount | Quote: 20.31 – 20.75 Spot Rate : 0.4400 Average : 0.3209 YTW SCENARIO |