| 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 | -0.1334 % | 2,170.2 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1334 % | 4,162.5 |
| Floater | 11.22 % | 11.39 % | 55,959 | 8.54 | 2 | -0.1334 % | 2,398.9 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0249 % | 3,289.0 |
| SplitShare | 5.09 % | 8.66 % | 38,012 | 1.91 | 7 | -0.0249 % | 3,927.8 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0249 % | 3,064.6 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.5388 % | 2,453.1 |
| Perpetual-Discount | 7.00 % | 7.13 % | 43,282 | 12.44 | 31 | 0.5388 % | 2,675.0 |
| FixedReset Disc | 6.10 % | 9.28 % | 100,844 | 10.55 | 56 | -0.0664 % | 2,092.4 |
| Insurance Straight | 6.90 % | 7.04 % | 60,201 | 12.51 | 16 | -0.0385 % | 2,607.5 |
| FloatingReset | 11.17 % | 11.38 % | 33,828 | 8.55 | 1 | -0.8649 % | 2,396.6 |
| FixedReset Prem | 4.76 % | 5.16 % | 420,300 | 0.13 | 1 | 0.0000 % | 2,297.3 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0664 % | 2,138.8 |
| FixedReset Ins Non | 6.34 % | 8.96 % | 63,253 | 10.91 | 13 | -0.2321 % | 2,274.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| GWO.PR.N | FixedReset Ins Non | -2.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 12.75 Evaluated at bid price : 12.75 Bid-YTW : 9.55 % |
| PWF.PR.P | FixedReset Disc | -1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 12.25 Evaluated at bid price : 12.25 Bid-YTW : 10.51 % |
| SLF.PR.G | FixedReset Ins Non | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 13.45 Evaluated at bid price : 13.45 Bid-YTW : 9.70 % |
| BMO.PR.F | FixedReset Disc | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 22.90 Evaluated at bid price : 23.60 Bid-YTW : 8.27 % |
| GWO.PR.I | Insurance Straight | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 16.28 Evaluated at bid price : 16.28 Bid-YTW : 6.99 % |
| POW.PR.B | Perpetual-Discount | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 19.01 Evaluated at bid price : 19.01 Bid-YTW : 7.09 % |
| POW.PR.G | Perpetual-Discount | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 19.75 Evaluated at bid price : 19.75 Bid-YTW : 7.15 % |
| IFC.PR.A | FixedReset Ins Non | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 15.53 Evaluated at bid price : 15.53 Bid-YTW : 9.15 % |
| POW.PR.A | Perpetual-Discount | 1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 20.21 Evaluated at bid price : 20.21 Bid-YTW : 6.98 % |
| PWF.PR.Z | Perpetual-Discount | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 18.11 Evaluated at bid price : 18.11 Bid-YTW : 7.14 % |
| TD.PF.A | FixedReset Disc | 1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 17.74 Evaluated at bid price : 17.74 Bid-YTW : 8.95 % |
| BIP.PR.E | FixedReset Disc | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 18.95 Evaluated at bid price : 18.95 Bid-YTW : 9.43 % |
| CM.PR.Q | FixedReset Disc | 1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 17.30 Evaluated at bid price : 17.30 Bid-YTW : 9.37 % |
| CU.PR.D | Perpetual-Discount | 2.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 17.71 Evaluated at bid price : 17.71 Bid-YTW : 7.04 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| MFC.PR.F | FixedReset Ins Non | 336,181 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 13.26 Evaluated at bid price : 13.26 Bid-YTW : 9.49 % |
| TD.PF.B | FixedReset Disc | 73,810 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 18.17 Evaluated at bid price : 18.17 Bid-YTW : 8.87 % |
| PWF.PR.T | FixedReset Disc | 64,219 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 18.69 Evaluated at bid price : 18.69 Bid-YTW : 8.93 % |
| MFC.PR.J | FixedReset Ins Non | 50,403 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 19.46 Evaluated at bid price : 19.46 Bid-YTW : 8.68 % |
| MFC.PR.L | FixedReset Ins Non | 42,258 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 17.90 Evaluated at bid price : 17.90 Bid-YTW : 8.96 % |
| CM.PR.T | FixedReset Disc | 38,284 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-10-13 Maturity Price : 22.22 Evaluated at bid price : 22.95 Bid-YTW : 8.17 % |
| There were 6 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| POW.PR.B | Perpetual-Discount | Quote: 19.01 – 23.00 Spot Rate : 3.9900 Average : 2.1680 YTW SCENARIO |
| CU.PR.I | FixedReset Disc | Quote: 21.20 – 23.32 Spot Rate : 2.1200 Average : 1.2315 YTW SCENARIO |
| BN.PR.X | FixedReset Disc | Quote: 12.90 – 14.00 Spot Rate : 1.1000 Average : 0.8114 YTW SCENARIO |
| GWO.PR.N | FixedReset Ins Non | Quote: 12.75 – 13.64 Spot Rate : 0.8900 Average : 0.6545 YTW SCENARIO |
| MFC.PR.Q | FixedReset Ins Non | Quote: 19.25 – 19.85 Spot Rate : 0.6000 Average : 0.3744 YTW SCENARIO |
| CU.PR.F | Perpetual-Discount | Quote: 16.41 – 18.28 Spot Rate : 1.8700 Average : 1.6630 YTW SCENARIO |
Hi Guys, any idea why TRP-PA.TO took a beating today compared to the other preferreds? My BIP-UN took it on the chin too.
Hey fsabbagh.
No beating at all, it’s been around $13 for a 1 1/2 months now.
Just a ludicrous closing price on Thursday that was “corrected”.
don’t worry about it. end of 2024 it resets at 11-12% for 5 years. as long as rates stay around here. anywhere between $1.40-1.60 per year. in 5 year you’ve made back more than half the cost of the pref. if you hold long enough, …
“don’t worry about it. end of 2024 it resets at 11-12% for 5 years. as long as rates stay around here.”
It seems worth stating that “by around here” means around the GOC5yr, not short term rate set by the BOC. With the long end of the curve rising, the short end doesn’t need to fall as far to normalize things (upward sloping yield curve). There are scenarios from here where the GOC5 doesn’t fall very far even with BOC cuts next year (maybe).
The 2025/26 resets that are so cheap now could look amazing later next year. When does the market wake up?
hopefully, the market is slow to figure it out. i’m not finished buying yet.
Thanks for the feedback
“ The 2025/26 resets that are so cheap now could look amazing next year”
As it happens, I agree
I understand if you are still adding and would prefer not to say, but if not, I’m curious Stusclues – what are the three most interesting’25/‘26 resets right now, in your opinion?
“I’m curious Stusclues – what are the three most interesting’25/‘26 resets right now, in your opinion?”
BPO.PR.R
INE.PR.A
TRP.PR.C
They are hardly alone.
Cue the Brookfield haters haha
Any 2024 interesting resets?
“Any 2024 interesting resets?”
nope
tend to echo stusclues in that the value lies in resets beyond a year out. the market just can’t come to grips with the current shape of the yield curve suggesting rates to stay elevated but rather bid up the bird in hand near to resets.
as for brookfield haters. i am one despite owning a large amount of BN (r&t) and a smaller amount of BPO (n&r).
i have a hard time distinguishing between say Silicon Valley Bank and BPO. that is entities that bought maximum duration assets and funded them with shortest duration liabilities.
related in part to the rate reset value phenomenon and that is decades of brainwashing even the seemingly smartest of players to believe rates would be zero forever.
what more signs could people have wanted that rates were set to lift off?
ought to qualify first statement. value everywhere in rate resets but that the best value lies a bit further out
“i have a hard time distinguishing between say Silicon Valley Bank and BPO.”
Here is the difference.
BPO is 100% owned by BPY which is 100% owned by BN. BN controls the balance sheets and can change them almost overnight (with a liquidity injection). BPY prefs in New York are pari passu with BPO prefs (confirmed to me by BPY investor relations recently). BPY prefs (perpetuals) are not trading at the firesale levels that BPO do.
stusclues,
might i suggest doing fundamental analysis of the health of a business by reading their financial statements as opposed to basing it off a single security out of countless
but yes, stating that rate resets are trading back of perpetuals for the same credit is, well, stating the obvious, making certain assumptions of goc5yr of course…
“might i suggest doing fundamental analysis of the health of a business by reading their financial statements”
Yes we should. The important financials are those of BPY and BN. BPO financials are irrelevant. I have and my conclusion is that their is an improper “extra” discount being applied by the market to the BPO fixed resets relative to other resets.
Others are free to make their own conclusions.
stusclues, I hear what your saying. Just wondering why the credit agencies have BN’s preferreds at Pfd-2(low) while BPO.PR.R is Pfd-3(low)?
when i am referring to the financials, needless to say i am referring to BPY as they are the sole reporting entity, not BPO.
fsabbagh, that is because BN in no legal way guarantees the obligations of BPY/BPO
BN could do a lot of things, including defaulting on properties and putting them back to the lenders (which they have been doing) but one thing they can not do is rewind the clock and fix all BPY/BPO’s debt obligations 300 bps ago
regrettably, unlike most publicly traded REITs in Australia, BPY does not provide a “property by property” breakdown of debt.
this would be useful as has been stated in previously threads on this topic, there is undoubtedly equity in some of BPY’s “good” properties while others there isn’t and thus are getting put to lenders.
the consolidated picture is not pretty and justifies BPY/BPO prefs trading well back of other names.
however, should they be able to ride out the curve potentially normalizing (ie some easing in the short end) that would go a long way to reducing the strain of debt servicing.
referring back to Australia, many a central bank watcher after ridiculing Phil Lowe for years began applauding him for stopping the rate hikes earlier (than US, UK, Canada) and allowing the back end of the curve to do some of the tightening. this is finally being discussed as our long ends continue their retreat but regrettably the move in the short end has already taken place.
“BN could do a lot of things, including defaulting on properties and putting them back to the lenders (which they have been doing) but one thing they can not do is rewind the clock and fix all BPY/BPO’s debt obligations 300 bps ago”
BN can indeed do a lot of things, that is one of my key points. BPY is a fully owned subsidiary. If it fails, it will be because BN let it. I believe this to be improbable but not impossible. At some price level BPY and BPO prefs have a decent risk/reward. that is now IMO.
“Just wondering why the credit agencies have BN’s preferreds at Pfd-2(low) while BPO.PR.R is Pfd-3(low)?”
DBRS Morningstar’s view of implicit support from Brookfield. Not explicit. As you point out.