Click for Big
TXPR closed at 524.36, up 0.80% on the day. Volume today was 2.22-million, a little above average in the context of the past thirty days.
CPD closed at 10.49, up 0.67% on the day. Volume was 75,051, slightly below the average of the past 30 trading days.
ZPR closed at 8.13, up 0.49% on the day. Volume of 455,562 was second-highest of the past 30 trading days, behind only June 2.
Five-year Canada yields were up 3bp at 0.48% today.
| 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 | 1.0941 % | 1,456.0 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 1.0941 % | 2,671.8 |
| Floater | 5.30 % | 5.63 % | 37,244 | 14.37 | 4 | 1.0941 % | 1,539.8 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2123 % | 3,452.3 |
| SplitShare | 4.87 % | 4.92 % | 64,445 | 3.88 | 7 | 0.2123 % | 4,122.8 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2123 % | 3,216.8 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1285 % | 2,995.1 |
| Perpetual-Discount | 5.62 % | 5.85 % | 78,369 | 14.06 | 35 | 0.1285 % | 3,212.5 |
| FixedReset Disc | 6.29 % | 5.21 % | 174,007 | 14.70 | 83 | 1.1013 % | 1,811.9 |
| Deemed-Retractible | 5.41 % | 5.61 % | 83,019 | 14.28 | 27 | 0.2395 % | 3,159.1 |
| FloatingReset | 5.00 % | 4.94 % | 49,083 | 15.66 | 3 | 0.2334 % | 1,742.7 |
| FixedReset Prem | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 1.1013 % | 2,505.8 |
| FixedReset Bank Non | 1.98 % | 3.26 % | 150,436 | 1.62 | 2 | 0.0000 % | 2,778.7 |
| FixedReset Ins Non | 6.59 % | 5.33 % | 114,598 | 14.65 | 22 | 1.0545 % | 1,812.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.M | Perpetual-Discount | -1.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 20.25 Evaluated at bid price : 20.25 Bid-YTW : 5.98 % |
| GWO.PR.F | Deemed-Retractible | -1.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 24.29 Evaluated at bid price : 24.60 Bid-YTW : 5.99 % |
| SLF.PR.J | FloatingReset | -1.59 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 8.66 Evaluated at bid price : 8.66 Bid-YTW : 4.58 % |
| CU.PR.E | Perpetual-Discount | -1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 22.13 Evaluated at bid price : 22.57 Bid-YTW : 5.44 % |
| PWF.PR.P | FixedReset Disc | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 9.50 Evaluated at bid price : 9.50 Bid-YTW : 5.40 % |
| BMO.PR.E | FixedReset Disc | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 17.03 Evaluated at bid price : 17.03 Bid-YTW : 5.08 % |
| BMO.PR.D | FixedReset Disc | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 17.81 Evaluated at bid price : 17.81 Bid-YTW : 5.21 % |
| BAM.PF.A | FixedReset Disc | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 16.14 Evaluated at bid price : 16.14 Bid-YTW : 5.80 % |
| TRP.PR.K | FixedReset Disc | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 22.42 Evaluated at bid price : 22.74 Bid-YTW : 5.41 % |
| TD.PF.M | FixedReset Disc | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 21.33 Evaluated at bid price : 21.33 Bid-YTW : 5.04 % |
| BMO.PR.B | FixedReset Disc | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 22.17 Evaluated at bid price : 22.50 Bid-YTW : 5.02 % |
| BMO.PR.T | FixedReset Disc | 1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 14.36 Evaluated at bid price : 14.36 Bid-YTW : 5.05 % |
| GWO.PR.H | Deemed-Retractible | 1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 21.24 Evaluated at bid price : 21.24 Bid-YTW : 5.72 % |
| BIK.PR.A | FixedReset Disc | 1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 22.77 Evaluated at bid price : 23.77 Bid-YTW : 6.12 % |
| IFC.PR.A | FixedReset Ins Non | 1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 11.16 Evaluated at bid price : 11.16 Bid-YTW : 5.31 % |
| BNS.PR.I | FixedReset Disc | 1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 17.70 Evaluated at bid price : 17.70 Bid-YTW : 4.63 % |
| BMO.PR.F | FixedReset Disc | 1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 20.85 Evaluated at bid price : 20.85 Bid-YTW : 5.05 % |
| RY.PR.S | FixedReset Disc | 1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 17.51 Evaluated at bid price : 17.51 Bid-YTW : 4.59 % |
| TD.PF.F | Perpetual-Discount | 1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 23.61 Evaluated at bid price : 24.10 Bid-YTW : 5.12 % |
| TD.PF.D | FixedReset Disc | 1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 5.07 % |
| BAM.PF.H | FixedReset Disc | 1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 24.39 Evaluated at bid price : 24.90 Bid-YTW : 5.08 % |
| SLF.PR.H | FixedReset Ins Non | 1.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 12.41 Evaluated at bid price : 12.41 Bid-YTW : 5.24 % |
| TD.PF.C | FixedReset Disc | 1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 15.25 Evaluated at bid price : 15.25 Bid-YTW : 4.96 % |
| HSE.PR.C | FixedReset Disc | 1.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 11.00 Evaluated at bid price : 11.00 Bid-YTW : 9.24 % |
| BAM.PF.I | FixedReset Disc | 1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 23.39 Evaluated at bid price : 24.40 Bid-YTW : 4.94 % |
| BMO.PR.Z | Perpetual-Discount | 1.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 23.37 Evaluated at bid price : 23.85 Bid-YTW : 5.26 % |
| TD.PF.K | FixedReset Disc | 1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 16.95 Evaluated at bid price : 16.95 Bid-YTW : 5.02 % |
| TD.PF.L | FixedReset Disc | 1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 20.20 Evaluated at bid price : 20.20 Bid-YTW : 5.03 % |
| RY.PR.J | FixedReset Disc | 1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 16.10 Evaluated at bid price : 16.10 Bid-YTW : 4.93 % |
| NA.PR.E | FixedReset Disc | 1.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 15.85 Evaluated at bid price : 15.85 Bid-YTW : 5.19 % |
| TD.PF.J | FixedReset Disc | 1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 17.07 Evaluated at bid price : 17.07 Bid-YTW : 5.00 % |
| IAF.PR.B | Deemed-Retractible | 1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 21.14 Evaluated at bid price : 21.14 Bid-YTW : 5.45 % |
| NA.PR.W | FixedReset Disc | 1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 14.26 Evaluated at bid price : 14.26 Bid-YTW : 5.26 % |
| NA.PR.S | FixedReset Disc | 1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 14.65 Evaluated at bid price : 14.65 Bid-YTW : 5.32 % |
| BAM.PF.F | FixedReset Disc | 1.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 15.05 Evaluated at bid price : 15.05 Bid-YTW : 5.88 % |
| PWF.PR.T | FixedReset Disc | 1.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 14.90 Evaluated at bid price : 14.90 Bid-YTW : 5.28 % |
| TRP.PR.F | FloatingReset | 1.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 9.73 Evaluated at bid price : 9.73 Bid-YTW : 5.39 % |
| SLF.PR.B | Deemed-Retractible | 1.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 22.22 Evaluated at bid price : 22.50 Bid-YTW : 5.33 % |
| BMO.PR.W | FixedReset Disc | 1.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 14.67 Evaluated at bid price : 14.67 Bid-YTW : 5.03 % |
| TD.PF.B | FixedReset Disc | 1.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 15.00 Evaluated at bid price : 15.00 Bid-YTW : 4.93 % |
| BAM.PR.C | Floater | 1.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 7.70 Evaluated at bid price : 7.70 Bid-YTW : 5.66 % |
| MFC.PR.R | FixedReset Ins Non | 1.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 5.26 % |
| TRP.PR.A | FixedReset Disc | 2.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 11.20 Evaluated at bid price : 11.20 Bid-YTW : 5.94 % |
| IAF.PR.G | FixedReset Ins Non | 2.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 15.50 Evaluated at bid price : 15.50 Bid-YTW : 5.36 % |
| BAM.PR.K | Floater | 2.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 7.75 Evaluated at bid price : 7.75 Bid-YTW : 5.63 % |
| BAM.PF.B | FixedReset Disc | 2.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 14.86 Evaluated at bid price : 14.86 Bid-YTW : 5.78 % |
| BMO.PR.S | FixedReset Disc | 2.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 14.86 Evaluated at bid price : 14.86 Bid-YTW : 5.06 % |
| BAM.PF.G | FixedReset Disc | 2.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 14.05 Evaluated at bid price : 14.05 Bid-YTW : 5.90 % |
| SLF.PR.G | FixedReset Ins Non | 2.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 8.89 Evaluated at bid price : 8.89 Bid-YTW : 5.13 % |
| MFC.PR.H | FixedReset Ins Non | 2.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 16.70 Evaluated at bid price : 16.70 Bid-YTW : 5.44 % |
| BIP.PR.A | FixedReset Disc | 2.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 14.45 Evaluated at bid price : 14.45 Bid-YTW : 6.89 % |
| BMO.PR.Y | FixedReset Disc | 2.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 15.40 Evaluated at bid price : 15.40 Bid-YTW : 5.11 % |
| RY.PR.H | FixedReset Disc | 2.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 15.25 Evaluated at bid price : 15.25 Bid-YTW : 4.78 % |
| BAM.PR.T | FixedReset Disc | 2.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 12.05 Evaluated at bid price : 12.05 Bid-YTW : 5.95 % |
| HSE.PR.E | FixedReset Disc | 3.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 11.61 Evaluated at bid price : 11.61 Bid-YTW : 9.35 % |
| BAM.PF.E | FixedReset Disc | 3.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 13.58 Evaluated at bid price : 13.58 Bid-YTW : 5.91 % |
| TD.PF.E | FixedReset Disc | 3.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 16.21 Evaluated at bid price : 16.21 Bid-YTW : 5.14 % |
| BAM.PR.Z | FixedReset Disc | 3.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 15.58 Evaluated at bid price : 15.58 Bid-YTW : 5.87 % |
| GWO.PR.N | FixedReset Ins Non | 3.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 9.39 Evaluated at bid price : 9.39 Bid-YTW : 4.60 % |
| RY.PR.M | FixedReset Disc | 3.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 15.15 Evaluated at bid price : 15.15 Bid-YTW : 5.06 % |
| TRP.PR.C | FixedReset Disc | 4.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 8.46 Evaluated at bid price : 8.46 Bid-YTW : 5.88 % |
| MFC.PR.F | FixedReset Ins Non | 5.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 9.23 Evaluated at bid price : 9.23 Bid-YTW : 5.00 % |
| BAM.PR.R | FixedReset Disc | 5.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 11.95 Evaluated at bid price : 11.95 Bid-YTW : 5.83 % |
| CU.PR.C | FixedReset Disc | 6.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 15.96 Evaluated at bid price : 15.96 Bid-YTW : 4.52 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TRP.PR.F | FloatingReset | 61,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 9.73 Evaluated at bid price : 9.73 Bid-YTW : 5.39 % |
| BAM.PR.K | Floater | 45,206 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 7.75 Evaluated at bid price : 7.75 Bid-YTW : 5.63 % |
| NA.PR.C | FixedReset Disc | 41,864 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 18.25 Evaluated at bid price : 18.25 Bid-YTW : 5.44 % |
| BAM.PR.X | FixedReset Disc | 40,740 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 9.90 Evaluated at bid price : 9.90 Bid-YTW : 5.87 % |
| BAM.PF.G | FixedReset Disc | 38,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 14.05 Evaluated at bid price : 14.05 Bid-YTW : 5.90 % |
| CM.PR.Q | FixedReset Disc | 36,410 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-06-04 Maturity Price : 14.63 Evaluated at bid price : 14.63 Bid-YTW : 5.55 % |
| There were 36 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BAM.PF.F | FixedReset Disc | Quote: 15.05 – 20.10 Spot Rate : 5.0500 Average : 2.7998 YTW SCENARIO |
| IAF.PR.G | FixedReset Ins Non | Quote: 15.50 – 16.92 Spot Rate : 1.4200 Average : 0.8569 YTW SCENARIO |
| PVS.PR.G | SplitShare | Quote: 24.96 – 25.96 Spot Rate : 1.0000 Average : 0.5559 YTW SCENARIO |
| PVS.PR.D | SplitShare | Quote: 24.90 – 25.90 Spot Rate : 1.0000 Average : 0.5727 YTW SCENARIO |
| BAM.PR.M | Perpetual-Discount | Quote: 20.25 – 21.31 Spot Rate : 1.0600 Average : 0.6349 YTW SCENARIO |
| SLF.PR.A | Deemed-Retractible | Quote: 21.76 – 22.65 Spot Rate : 0.8900 Average : 0.5249 YTW SCENARIO |
Favourable mention of undervalued preferred shares in the following article:
https://business.financialpost.com/personal-finance/retirement/these-are-the-investments-you-should-consider-adding-to-your-portfolio-right-now
I have been a reader of your blog for the last few years (you really are doing a public service by having it by the way). At one point I believe you said that one should not hold pref shares as a hedge against mortgage interest rates. Well… that’s exactly what I was thinking of doing. I was going to get a $500,000 mortgage at prime rate, and hold $250,000 in floating rate prefs. If prime rate increases, so will my dividends and the price of the prefs, offsetting the extra interest I am paying on the mortgage. Is there a specific reason why this would be bad idea? I was thinking BCE.PR.Y, BAM.PR.B, and maybe some other investment grade floaters. I prefer the ones linked to prime rate, but there are not that many to choose from/diversify, so will also consider T-bill linked. It seems like now might be the time to implement such a plan
I don’t think I can do much better than pointing out the risks, as I did in this comment from 2009.
However, I should point out that I missed (at least!) one risk:
Basis Risk: Floating Rate mortgages are normally done at a spread to prime and are subject to change without much notice. What if the bank suddenly changes the spread to prime on your mortgage at a time when the preferred share market is depressed? Which, in the case of a bank crisis, will probably happen at the same time.
Makes sense, thank you for the response James.