Oh, what a wicked world this is!
The Securities and Exchange Commission today charged Haverford, PA-based Egan-Jones Ratings Company, a nationally recognized statistical rating organization (NRSRO) registered with the Commission in certain ratings classes, with violating conflict of interest provisions. The SEC also charged the company’s founder and chief executive officer, Sean Egan, with causing certain of those violations.
The SEC’s order finds that, in 2019, Egan, who at the time headed Egan-Jones’s ratings group, became involved in business and marketing activities concerning a client and was influenced by sales and marketing considerations while participating in determining a credit rating for that client, which created a prohibited conflict of interest. The order finds that by issuing and maintaining a rating for the client under those circumstances, Egan-Jones violated the SEC’s NRSRO conflict of interest rules and, further, that Egan caused the company’s violations.
Egan-Jones is an investor-pay Credit Rating Agency; you know, those guys who are ever so much more ethical than the issuer-pay crowd.
| 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 | -0.3008 % | 2,547.0 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3008 % | 4,885.2 |
| Floater | 4.88 % | 4.90 % | 51,129 | 15.70 | 3 | -0.3008 % | 2,815.4 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3894 % | 3,476.2 |
| SplitShare | 4.89 % | 5.50 % | 39,943 | 3.17 | 8 | -0.3894 % | 4,151.3 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3894 % | 3,239.0 |
| Perpetual-Premium | 5.95 % | 6.09 % | 78,517 | 13.68 | 2 | -0.0813 % | 2,905.7 |
| Perpetual-Discount | 5.95 % | 6.06 % | 63,338 | 13.75 | 34 | 0.0551 % | 3,117.9 |
| FixedReset Disc | 4.65 % | 6.65 % | 114,718 | 13.32 | 57 | 0.4493 % | 2,510.8 |
| Insurance Straight | 5.99 % | 6.07 % | 86,799 | 13.82 | 19 | 0.0890 % | 3,003.9 |
| FloatingReset | 5.55 % | 5.89 % | 49,864 | 14.08 | 2 | 0.9583 % | 2,650.9 |
| FixedReset Prem | 5.10 % | 5.16 % | 135,609 | 1.97 | 9 | 0.0487 % | 2,584.7 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4493 % | 2,566.5 |
| FixedReset Ins Non | 4.49 % | 6.55 % | 78,024 | 13.45 | 15 | -0.4599 % | 2,672.3 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| MFC.PR.K | FixedReset Ins Non | -4.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 21.05 Evaluated at bid price : 21.05 Bid-YTW : 6.65 % |
| TRP.PR.G | FixedReset Disc | -1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 20.25 Evaluated at bid price : 20.25 Bid-YTW : 7.05 % |
| IFC.PR.I | Perpetual-Discount | -1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 22.16 Evaluated at bid price : 22.50 Bid-YTW : 6.02 % |
| CU.PR.J | Perpetual-Discount | -1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 19.70 Evaluated at bid price : 19.70 Bid-YTW : 6.10 % |
| CU.PR.G | Perpetual-Discount | -1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 19.05 Evaluated at bid price : 19.05 Bid-YTW : 5.97 % |
| POW.PR.G | Perpetual-Discount | -1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 23.41 Evaluated at bid price : 23.70 Bid-YTW : 6.01 % |
| CCS.PR.C | Insurance Straight | -1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 21.15 Evaluated at bid price : 21.15 Bid-YTW : 5.94 % |
| PWF.PF.A | Perpetual-Discount | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 18.95 Evaluated at bid price : 18.95 Bid-YTW : 6.04 % |
| PVS.PR.J | SplitShare | -1.08 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2028-02-29 Maturity Price : 25.00 Evaluated at bid price : 23.00 Bid-YTW : 6.16 % |
| PVS.PR.I | SplitShare | -1.02 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-10-31 Maturity Price : 25.00 Evaluated at bid price : 24.20 Bid-YTW : 5.90 % |
| BIP.PR.B | FixedReset Prem | 1.01 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 5.49 % |
| BNS.PR.I | FixedReset Disc | 1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 23.89 Evaluated at bid price : 24.25 Bid-YTW : 6.01 % |
| BAM.PF.J | FixedReset Disc | 1.39 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-12-31 Maturity Price : 25.00 Evaluated at bid price : 24.85 Bid-YTW : 5.72 % |
| TD.PF.J | FixedReset Disc | 1.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 23.20 Evaluated at bid price : 23.80 Bid-YTW : 6.44 % |
| PWF.PR.S | Perpetual-Discount | 1.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 19.80 Evaluated at bid price : 19.80 Bid-YTW : 6.17 % |
| BMO.PR.W | FixedReset Disc | 1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 20.80 Evaluated at bid price : 20.80 Bid-YTW : 6.53 % |
| POW.PR.B | Perpetual-Discount | 1.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 22.08 Evaluated at bid price : 22.36 Bid-YTW : 6.09 % |
| PWF.PR.T | FixedReset Disc | 1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 20.40 Evaluated at bid price : 20.40 Bid-YTW : 6.98 % |
| BMO.PR.T | FixedReset Disc | 1.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 20.60 Evaluated at bid price : 20.60 Bid-YTW : 6.61 % |
| SLF.PR.J | FloatingReset | 1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 16.15 Evaluated at bid price : 16.15 Bid-YTW : 5.22 % |
| TRP.PR.B | FixedReset Disc | 2.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 13.21 Evaluated at bid price : 13.21 Bid-YTW : 7.74 % |
| IFC.PR.C | FixedReset Disc | 2.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 6.59 % |
| CU.PR.F | Perpetual-Discount | 2.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 19.11 Evaluated at bid price : 19.11 Bid-YTW : 5.95 % |
| TRP.PR.D | FixedReset Disc | 2.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 19.10 Evaluated at bid price : 19.10 Bid-YTW : 7.41 % |
| NA.PR.W | FixedReset Disc | 3.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 20.36 Evaluated at bid price : 20.36 Bid-YTW : 6.67 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BMO.PR.E | FixedReset Disc | 211,090 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 23.47 Evaluated at bid price : 23.90 Bid-YTW : 6.33 % |
| TRP.PR.F | FloatingReset | 105,759 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 16.51 Evaluated at bid price : 16.51 Bid-YTW : 5.89 % |
| BAM.PF.A | FixedReset Disc | 52,176 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 21.81 Evaluated at bid price : 22.31 Bid-YTW : 6.99 % |
| MFC.PR.C | Insurance Straight | 30,985 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 19.20 Evaluated at bid price : 19.20 Bid-YTW : 5.90 % |
| TD.PF.B | FixedReset Disc | 25,700 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 20.68 Evaluated at bid price : 20.68 Bid-YTW : 6.61 % |
| BAM.PR.Z | FixedReset Disc | 23,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-21 Maturity Price : 22.82 Evaluated at bid price : 23.56 Bid-YTW : 6.71 % |
| There were 6 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| CU.PR.J | Perpetual-Discount | Quote: 19.70 – 21.99 Spot Rate : 2.2900 Average : 1.4739 YTW SCENARIO |
| IFC.PR.A | FixedReset Ins Non | Quote: 19.51 – 20.98 Spot Rate : 1.4700 Average : 0.9659 YTW SCENARIO |
| BMO.PR.W | FixedReset Disc | Quote: 20.80 – 22.35 Spot Rate : 1.5500 Average : 1.1019 YTW SCENARIO |
| TD.PF.D | FixedReset Disc | Quote: 21.29 – 22.92 Spot Rate : 1.6300 Average : 1.2319 YTW SCENARIO |
| RY.PR.Z | FixedReset Disc | Quote: 20.70 – 22.55 Spot Rate : 1.8500 Average : 1.5006 YTW SCENARIO |
| CCS.PR.C | Insurance Straight | Quote: 21.15 – 24.25 Spot Rate : 3.1000 Average : 2.7538 YTW SCENARIO |