BNA.PR.C Off to a Sorry Start!

I was surprised at the hostile reception accorded BNA.PR.C, the new issue that settled today after beingĀ announced December 20.

It traded in a fairly narrow range, 24.70-85, on heavy volume of 798,550 shares. The closing quotation was 24.74-78, 10×10.

More later.

Much later, more: I’ve uploaded the Split-Share sub-Index Portfolio Evaluation. Interested readers should be able to tell with a glance at the “Yield-to-Worst” column (and a peek at the “Modified Duration – Yield to Worst” column) that I do have some basis for considering this issue undervalued!

7 Responses to “BNA.PR.C Off to a Sorry Start!”

  1. […] PrefBlog Canadian Preferred Shares – Data and Discussion « BNA.PR.C Off to a Sorry Start! […]

  2. […] Recent new issue. Now with a pre-tax bid-YTW of 4.47%, based on a bid of $24.76 and a hardMaturity 2019-1-10 at $25.00. That’s basically even with the recent perpetual issues! […]

  3. […] Recent New Issue. Now with a pre-tax bid-YTW of 4.51% based on a bid of $24.68 and a hardMaturity 2019-01-10 at $25.00. I confess to some surprise that this isn’t priced much higher. […]

  4. […] Recent New Issue. CIBC crossed 95,000 at $24.70. Now with a pre-tax bid-YTW of 4.49% based on a bid of $24.72 and a hardMaturity 2019-1-10. […]

  5. […] Well … the issue did, after all, go ex-dividend today … but the price didn’t budge. So the pre-tax bid-YTW went from -4.59% yesterday to -21.46% today, based on a bid of $26.30 and a call 2007-3-22 at $25.75. But who knows? Maybe the issue will survive until its hardMaturity 2010-09-30 at $25.00 to have yielded 4.62% … but why BAM Split would allow an issue paying $1.56 to remain outstanding (OK, so they save $0.25 p.a. on that with the declining call premium. It’s still a lot!) when they’ve just proved they can issue with a $1.0875 pay-out is beyond me. […]

  6. […] I should also note that while the price of the issue suffered on the first trading day, the volume was heavy. This indicates that the underwriting, in terms of getting the issue out the door, was a success, which makes the whole “overhang” theory even more unlikely. […]

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