New lows today for each of TXPR, CPD and ZPR. When will it end? Ah, well, for those of us with dividends to reinvest, this is good news, right?
| 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 | 0.0000 % | 2,203.1 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0000 % | 4,225.5 |
| Floater | 11.05 % | 11.46 % | 45,506 | 8.34 | 2 | 0.0000 % | 2,435.2 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4426 % | 3,318.0 |
| SplitShare | 5.09 % | 7.73 % | 43,371 | 2.29 | 7 | 0.4426 % | 3,962.4 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4426 % | 3,091.6 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2615 % | 2,506.2 |
| Perpetual-Discount | 6.82 % | 7.03 % | 46,747 | 12.44 | 33 | -0.2615 % | 2,732.9 |
| FixedReset Disc | 6.11 % | 9.11 % | 97,543 | 10.75 | 55 | -0.2264 % | 2,059.1 |
| Insurance Straight | 6.82 % | 6.94 % | 64,069 | 12.69 | 17 | 0.0390 % | 2,638.9 |
| FloatingReset | 11.65 % | 11.74 % | 36,303 | 8.38 | 1 | 0.0000 % | 2,277.5 |
| FixedReset Prem | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2264 % | 2,256.7 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2264 % | 2,104.9 |
| FixedReset Ins Non | 6.40 % | 8.40 % | 124,568 | 11.04 | 11 | -0.0955 % | 2,244.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BN.PF.D | Perpetual-Discount | -3.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 16.70 Evaluated at bid price : 16.70 Bid-YTW : 7.53 % |
| BIP.PR.E | FixedReset Disc | -1.98 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 19.85 Evaluated at bid price : 19.85 Bid-YTW : 8.71 % |
| BN.PF.I | FixedReset Disc | -1.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 18.31 Evaluated at bid price : 18.31 Bid-YTW : 9.95 % |
| BN.PR.R | FixedReset Disc | -1.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 12.77 Evaluated at bid price : 12.77 Bid-YTW : 11.12 % |
| FTS.PR.F | Perpetual-Discount | -1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 19.22 Evaluated at bid price : 19.22 Bid-YTW : 6.44 % |
| BN.PF.G | FixedReset Disc | -1.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 14.25 Evaluated at bid price : 14.25 Bid-YTW : 11.26 % |
| BIP.PR.F | FixedReset Disc | -1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 18.46 Evaluated at bid price : 18.46 Bid-YTW : 9.37 % |
| ELF.PR.F | Perpetual-Discount | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 19.60 Evaluated at bid price : 19.60 Bid-YTW : 6.90 % |
| PWF.PR.T | FixedReset Disc | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 18.08 Evaluated at bid price : 18.08 Bid-YTW : 8.93 % |
| CU.PR.G | Perpetual-Discount | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 6.89 % |
| CIU.PR.A | Perpetual-Discount | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 7.05 % |
| FTS.PR.M | FixedReset Disc | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 16.30 Evaluated at bid price : 16.30 Bid-YTW : 9.70 % |
| BN.PR.N | Perpetual-Discount | -1.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 16.80 Evaluated at bid price : 16.80 Bid-YTW : 7.25 % |
| PWF.PR.L | Perpetual-Discount | 1.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 18.27 Evaluated at bid price : 18.27 Bid-YTW : 7.11 % |
| PVS.PR.H | SplitShare | 2.99 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2027-02-28 Maturity Price : 25.00 Evaluated at bid price : 22.70 Bid-YTW : 7.85 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| CU.PR.E | Perpetual-Discount | 32,100 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 17.90 Evaluated at bid price : 17.90 Bid-YTW : 6.92 % |
| RY.PR.S | FixedReset Disc | 24,761 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 19.72 Evaluated at bid price : 19.72 Bid-YTW : 8.16 % |
| FTS.PR.F | Perpetual-Discount | 21,561 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 19.22 Evaluated at bid price : 19.22 Bid-YTW : 6.44 % |
| BN.PR.R | FixedReset Disc | 21,250 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 12.77 Evaluated at bid price : 12.77 Bid-YTW : 11.12 % |
| BIP.PR.E | FixedReset Disc | 21,073 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-09-12 Maturity Price : 19.85 Evaluated at bid price : 19.85 Bid-YTW : 8.71 % |
| PVS.PR.H | SplitShare | 20,500 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2027-02-28 Maturity Price : 25.00 Evaluated at bid price : 22.70 Bid-YTW : 7.85 % |
| There were 13 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BN.PF.F | FixedReset Disc | Quote: 16.12 – 25.00 Spot Rate : 8.8800 Average : 6.6028 YTW SCENARIO |
| PWF.PR.Z | Perpetual-Discount | Quote: 18.55 – 19.72 Spot Rate : 1.1700 Average : 0.7295 YTW SCENARIO |
| TD.PF.C | FixedReset Disc | Quote: 16.35 – 17.26 Spot Rate : 0.9100 Average : 0.5508 YTW SCENARIO |
| TD.PF.L | FixedReset Disc | Quote: 23.10 – 23.96 Spot Rate : 0.8600 Average : 0.5942 YTW SCENARIO |
| GWO.PR.S | Insurance Straight | Quote: 18.90 – 19.70 Spot Rate : 0.8000 Average : 0.5537 YTW SCENARIO |
| BN.PR.X | FixedReset Disc | Quote: 13.32 – 14.00 Spot Rate : 0.6800 Average : 0.4416 YTW SCENARIO |
“New lows today for each of TXPR, CPD and ZPR. When will it end?”
Rhetorical question, I know. It ends when it ends, probably in a whoosh (maybe a months long whoosh). Why should Enbridge, for example, be facing a situation where a new issue would need to offer GOC5 plus 8.6% vs fully 2% less at the start of the year (which is still too much)? The price implications (up, way up) of a reversion to normal spreads are huge.
Where are the animal spirits in the market?
Nothing seems to makes sense in this market, so perhaps it’s just simply supply and demand… very little demand for pref shares within retail, even less demand within institutional investors.
What’s most interesting to me is how BPO shares continue to bleed daily, seemingly pricing in little to no recovery on its assets for the division’s stock holders. By the time the big whoosh and recession comes this will be made apparent. No doubt market can be wrong and irrational, but not for this long. Flatt and the rest of Brookfield mgmt really aren’t as good as they’re made out to be, and BPY/BPO is good evidence of that. Major consequences if BPO goes bust. The whole BN entity can be the black swan the market is not ready for!
“ No doubt market can be wrong and irrational, but not for this long. Flatt and the rest of Brookfield mgmt really aren’t as good as they’re made out to be, and BPY/BPO is good evidence of that. Major consequences if BPO goes bust. The whole BN entity can be the black swan the market is not ready for!”
All that because foolish people are selling BPO prefs?
Uub wrote: The whole BN entity can be the black swan the market is not ready for!
Not quite. Current market value of BN is less than its holdings of publicly traded companies. So, the market is saying that BN’s real estate and insurance subsidiaries are worth less than zero. Yes, there is a holdco discount that I am ignoring for the sake of simplicity. However, the point is valid – BN is trading at a cheap valuation. Also, BN’s market cap is less than $80 billion. As compared to $170 billion for the Royal Bank.