TXPR closed at 628.86, up 0.83% on the day. Volume today was 2.26-million, above the median of the past 21 trading days.
CPD closed at 12.59, up 1.21% on the day. Volume was 53,630, lowest of the past 21 trading days.
ZPR closed at 10.46 up 0.67% on the day. Volume of 86,110 was the lowest of the past 21 trading days.
Five-year Canada yields were up to 2.89% today.
S&P commented on the BAM Spinout Plan:
Brookfield Asset Management (BAM) announced definitive plans to spin off its asset management business in the form of a tax-free special distribution to shareholders, creating a new listed entity. This separation is expected to close by year-end 2022.
The asset management business (“spinco”) will be publicly traded on the New York and Toronto stock exchanges. BAM will maintain 75% ownership of spinco.
We affirmed our ratings on Brookfield Asset Management Inc. because we continue to view BAM’s business position as strong and its leverage and cash flow as unchanged, since we believe growth in other BAM businesses will offset BAM’s lower proportion of spinco’s earnings.
At the same time, we affirmed our ‘A-‘ issue rating on the firm’s senior notes, ‘BBB’ issue rating on the firm’s junior subordinated notes, and ‘BBB’ and ‘P-2’ (Canadian scale) issue ratings on the firm’s preferred stock. We also affirmed our short-term issuer rating and commercial paper rating at ‘A-1’, and our Canadian scale commercial paper rating at ‘A-1 (mid)’.
The stable outlook reflects our expectation for BAM’s fee-bearing capital and earnings to continue to grow as the company maintains leverage of 2x-3x post-spin.
We view this transaction as strategically consistent with BAM’s previous launches of its renewables, infrastructure, real estate, and private equity platforms into separately managed businesses over the past 15 years. That said, this pending spin-off modestly weakens our view of BAM as an asset manager due to the resulting dilution in earnings contribution from the asset management business. Furthermore, we may view it negatively if BAM were to spin off a larger portion (more than 25%) of its investment in the asset manager, thereby further reducing spinco’s earnings contribution to BAM.
We consider BAM’s post-spin financial risk as largely unchanged from our current assessment because we expect growth in BAM’s other businesses to offset the lower earnings contribution from asset management. We expect BAM’s weighted leverage to remain 2x-3x over the next two years, and we weight our pro forma debt-to-EBITDA metric 50% for 2023 and 50% for 2024 to fully reflect the post spin-off view.
| 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 | 3.94 % | 4.62 % | 20,837 | 18.19 | 1 | -1.5000 % | 2,525.7 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 2.4157 % | 4,998.2 |
| Floater | 4.13 % | 4.16 % | 45,188 | 17.05 | 3 | 2.4157 % | 2,880.5 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4150 % | 3,496.8 |
| SplitShare | 4.86 % | 5.43 % | 39,165 | 3.27 | 8 | -0.4150 % | 4,176.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4150 % | 3,258.3 |
| Perpetual-Premium | 5.86 % | 1.93 % | 62,107 | 0.08 | 1 | 0.6805 % | 2,976.0 |
| Perpetual-Discount | 5.78 % | 5.87 % | 66,143 | 14.06 | 35 | 0.4341 % | 3,213.9 |
| FixedReset Disc | 4.58 % | 5.91 % | 131,794 | 14.21 | 59 | 0.6175 % | 2,535.7 |
| Insurance Straight | 5.70 % | 5.86 % | 94,848 | 14.04 | 20 | 0.4885 % | 3,149.1 |
| FloatingReset | 4.55 % | 4.88 % | 59,005 | 15.66 | 2 | 2.2298 % | 2,679.3 |
| FixedReset Prem | 5.11 % | 5.34 % | 136,730 | 2.07 | 9 | 0.0224 % | 2,578.5 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.6175 % | 2,591.9 |
| FixedReset Ins Non | 4.46 % | 5.91 % | 81,172 | 14.17 | 15 | 1.4060 % | 2,690.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PVS.PR.G | SplitShare | -2.64 % | YTW SCENARIO Maturity Type : Option Certainty Maturity Date : 2026-02-28 Maturity Price : 25.00 Evaluated at bid price : 24.00 Bid-YTW : 6.43 % |
| BIP.PR.F | FixedReset Prem | -1.65 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 22.86 Evaluated at bid price : 23.26 Bid-YTW : 6.17 % |
| TRP.PR.C | FixedReset Disc | -1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 13.28 Evaluated at bid price : 13.28 Bid-YTW : 7.15 % |
| GWO.PR.Q | Insurance Straight | -1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 21.49 Evaluated at bid price : 21.75 Bid-YTW : 6.00 % |
| BAM.PR.E | Ratchet | -1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 25.00 Evaluated at bid price : 17.73 Bid-YTW : 4.62 % |
| BMO.PR.T | FixedReset Disc | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 5.95 % |
| MFC.PR.K | FixedReset Ins Non | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 21.37 Evaluated at bid price : 21.68 Bid-YTW : 5.83 % |
| TRP.PR.A | FixedReset Disc | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 16.69 Evaluated at bid price : 16.69 Bid-YTW : 6.87 % |
| NA.PR.E | FixedReset Disc | 1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 22.90 Evaluated at bid price : 23.45 Bid-YTW : 5.71 % |
| SLF.PR.H | FixedReset Ins Non | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 18.50 Evaluated at bid price : 18.50 Bid-YTW : 6.09 % |
| POW.PR.D | Perpetual-Discount | 1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 21.75 Evaluated at bid price : 22.00 Bid-YTW : 5.74 % |
| GWO.PR.R | Insurance Straight | 1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 20.75 Evaluated at bid price : 20.75 Bid-YTW : 5.88 % |
| PVS.PR.F | SplitShare | 1.18 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2024-09-30 Maturity Price : 25.00 Evaluated at bid price : 24.90 Bid-YTW : 5.43 % |
| GWO.PR.H | Insurance Straight | 1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 21.05 Evaluated at bid price : 21.05 Bid-YTW : 5.85 % |
| BAM.PF.F | FixedReset Disc | 1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 6.55 % |
| MFC.PR.B | Insurance Straight | 1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 20.80 Evaluated at bid price : 20.80 Bid-YTW : 5.69 % |
| GWO.PR.M | Insurance Straight | 1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 24.55 Evaluated at bid price : 24.80 Bid-YTW : 5.93 % |
| BMO.PR.W | FixedReset Disc | 1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 20.97 Evaluated at bid price : 20.97 Bid-YTW : 5.82 % |
| BAM.PR.Z | FixedReset Disc | 1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 22.64 Evaluated at bid price : 23.30 Bid-YTW : 6.22 % |
| SLF.PR.G | FixedReset Ins Non | 1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 15.40 Evaluated at bid price : 15.40 Bid-YTW : 6.18 % |
| MFC.PR.L | FixedReset Ins Non | 1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 20.10 Evaluated at bid price : 20.10 Bid-YTW : 6.09 % |
| BAM.PR.N | Perpetual-Discount | 1.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 20.58 Evaluated at bid price : 20.58 Bid-YTW : 5.86 % |
| IAF.PR.B | Insurance Straight | 1.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 21.75 Evaluated at bid price : 22.00 Bid-YTW : 5.29 % |
| CU.PR.D | Perpetual-Discount | 1.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 21.30 Evaluated at bid price : 21.30 Bid-YTW : 5.78 % |
| SLF.PR.D | Insurance Straight | 1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 20.45 Evaluated at bid price : 20.45 Bid-YTW : 5.52 % |
| FTS.PR.J | Perpetual-Discount | 1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 21.17 Evaluated at bid price : 21.17 Bid-YTW : 5.63 % |
| FTS.PR.K | FixedReset Disc | 1.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 18.85 Evaluated at bid price : 18.85 Bid-YTW : 6.34 % |
| SLF.PR.J | FloatingReset | 1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 16.11 Evaluated at bid price : 16.11 Bid-YTW : 4.31 % |
| BAM.PR.C | Floater | 1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 13.60 Evaluated at bid price : 13.60 Bid-YTW : 4.16 % |
| BAM.PR.M | Perpetual-Discount | 1.65 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 20.33 Evaluated at bid price : 20.33 Bid-YTW : 5.94 % |
| FTS.PR.G | FixedReset Disc | 1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 20.20 Evaluated at bid price : 20.20 Bid-YTW : 6.09 % |
| BAM.PR.B | Floater | 1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 13.60 Evaluated at bid price : 13.60 Bid-YTW : 4.16 % |
| IFC.PR.A | FixedReset Ins Non | 1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 18.85 Evaluated at bid price : 18.85 Bid-YTW : 6.05 % |
| IFC.PR.C | FixedReset Disc | 1.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 5.90 % |
| IFC.PR.F | Insurance Straight | 2.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 22.41 Evaluated at bid price : 22.75 Bid-YTW : 5.90 % |
| FTS.PR.H | FixedReset Disc | 2.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 15.10 Evaluated at bid price : 15.10 Bid-YTW : 6.33 % |
| MFC.PR.M | FixedReset Ins Non | 2.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 20.75 Evaluated at bid price : 20.75 Bid-YTW : 6.07 % |
| CU.PR.I | FixedReset Prem | 2.46 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-12-01 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 4.46 % |
| IFC.PR.G | FixedReset Ins Non | 2.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 22.34 Evaluated at bid price : 22.80 Bid-YTW : 5.91 % |
| BAM.PF.A | FixedReset Disc | 2.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 22.66 Evaluated at bid price : 23.10 Bid-YTW : 6.20 % |
| TRP.PR.F | FloatingReset | 2.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 16.90 Evaluated at bid price : 16.90 Bid-YTW : 4.88 % |
| CU.PR.C | FixedReset Disc | 2.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 21.65 Evaluated at bid price : 22.02 Bid-YTW : 5.91 % |
| TRP.PR.G | FixedReset Disc | 3.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 20.81 Evaluated at bid price : 20.81 Bid-YTW : 6.29 % |
| TRP.PR.E | FixedReset Disc | 3.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 18.95 Evaluated at bid price : 18.95 Bid-YTW : 6.59 % |
| IAF.PR.I | FixedReset Ins Non | 3.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 23.99 Evaluated at bid price : 24.50 Bid-YTW : 5.70 % |
| BAM.PF.C | Perpetual-Discount | 3.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 21.35 Evaluated at bid price : 21.35 Bid-YTW : 5.77 % |
| BIP.PR.A | FixedReset Disc | 3.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 22.33 Evaluated at bid price : 22.85 Bid-YTW : 6.52 % |
| BAM.PR.K | Floater | 3.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 13.50 Evaluated at bid price : 13.50 Bid-YTW : 4.19 % |
| IAF.PR.G | FixedReset Ins Non | 4.27 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-06-30 Maturity Price : 25.00 Evaluated at bid price : 25.15 Bid-YTW : 2.74 % |
| BAM.PF.E | FixedReset Disc | 4.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 19.00 Evaluated at bid price : 19.00 Bid-YTW : 6.72 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TRP.PR.K | FixedReset Prem | 427,450 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-06-30 Maturity Price : 25.00 Evaluated at bid price : 24.97 Bid-YTW : 4.72 % |
| TRP.PR.C | FixedReset Disc | 255,648 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 13.28 Evaluated at bid price : 13.28 Bid-YTW : 7.15 % |
| CM.PR.T | FixedReset Prem | 192,445 | YTW SCENARIO Maturity Type : Call Maturity Date : 2024-04-30 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 5.38 % |
| IAF.PR.G | FixedReset Ins Non | 157,870 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-06-30 Maturity Price : 25.00 Evaluated at bid price : 25.15 Bid-YTW : 2.74 % |
| PWF.PF.A | Perpetual-Discount | 78,675 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-17 Maturity Price : 19.92 Evaluated at bid price : 19.92 Bid-YTW : 5.71 % |
| CM.PR.Y | FixedReset Prem | 75,400 | YTW SCENARIO Maturity Type : Call Maturity Date : 2024-07-31 Maturity Price : 25.00 Evaluated at bid price : 25.38 Bid-YTW : 4.57 % |
| There were 19 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| MFC.PR.L | FixedReset Ins Non | Quote: 20.10 – 23.50 Spot Rate : 3.4000 Average : 2.1033 YTW SCENARIO |
| TRP.PR.E | FixedReset Disc | Quote: 18.95 – 21.20 Spot Rate : 2.2500 Average : 1.4265 YTW SCENARIO |
| CU.PR.E | Perpetual-Discount | Quote: 21.05 – 25.12 Spot Rate : 4.0700 Average : 3.2783 YTW SCENARIO |
| SLF.PR.H | FixedReset Ins Non | Quote: 18.50 – 20.25 Spot Rate : 1.7500 Average : 1.1162 YTW SCENARIO |
| TRP.PR.C | FixedReset Disc | Quote: 13.28 – 14.49 Spot Rate : 1.2100 Average : 0.7600 YTW SCENARIO |
| TD.PF.D | FixedReset Disc | Quote: 21.88 – 23.40 Spot Rate : 1.5200 Average : 1.1379 YTW SCENARIO |