TXPR closed at 591.74, down 0.90% on the day. Volume today was 1.76-million, near the median of the past 21 trading days.
CPD closed at 11.73, down 0.93% on the day. Volume was 54,310, above the median of the past 21 trading days.
ZPR closed at 10.06, down 1.18% on the day. Volume was 429,190, highest by far of the past 21 trading days.
Five-year Canada yields were down to 3.46%.
So it looks like there were a few people who resolved to hold on to their FixedResets until the very first BoC policy loosening, reasoning that this was just the first step towards negative rates. Or maybe they were raising cash to invest in Gamestop – it nearly doubled today, if you count after-hours trading.
Update, 2024-06-07: After-hours trading prices are a little hard to find once the day is done: here’s proof:
HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
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 | -2.0576 % | 2,272.6 |
FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -2.0576 % | 4,358.8 |
Floater | 10.22 % | 10.56 % | 61,862 | 9.00 | 1 | -2.0576 % | 2,512.0 |
OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0295 % | 3,473.5 |
SplitShare | 4.84 % | 6.45 % | 33,209 | 1.64 | 7 | 0.0295 % | 4,148.1 |
Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0295 % | 3,236.5 |
Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2545 % | 2,702.3 |
Perpetual-Discount | 6.37 % | 6.55 % | 55,667 | 13.08 | 28 | -0.2545 % | 2,946.8 |
FixedReset Disc | 5.22 % | 7.35 % | 118,146 | 12.28 | 49 | -0.4152 % | 2,556.5 |
Insurance Straight | 6.34 % | 6.44 % | 59,269 | 13.34 | 20 | -0.5008 % | 2,864.2 |
FloatingReset | 9.31 % | 9.23 % | 35,533 | 10.16 | 3 | 1.6196 % | 2,782.1 |
FixedReset Prem | 6.38 % | 6.68 % | 219,646 | 12.17 | 7 | -0.3846 % | 2,522.7 |
FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4152 % | 2,613.2 |
FixedReset Ins Non | 5.23 % | 7.07 % | 105,170 | 12.68 | 14 | -2.7693 % | 2,714.6 |
Performance Highlights | |||
Issue | Index | Change | Notes |
IFC.PR.G | FixedReset Ins Non | -10.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 21.12 Evaluated at bid price : 21.12 Bid-YTW : 7.45 % |
MFC.PR.Q | FixedReset Ins Non | -7.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 21.68 Evaluated at bid price : 22.00 Bid-YTW : 6.99 % |
BIP.PR.A | FixedReset Disc | -6.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 8.49 % |
MFC.PR.J | FixedReset Ins Non | -4.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 22.07 Evaluated at bid price : 22.53 Bid-YTW : 6.94 % |
GWO.PR.N | FixedReset Ins Non | -4.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 14.60 Evaluated at bid price : 14.60 Bid-YTW : 7.84 % |
BN.PR.M | Perpetual-Discount | -4.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 17.40 Evaluated at bid price : 17.40 Bid-YTW : 6.98 % |
IFC.PR.C | FixedReset Ins Non | -4.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 20.95 Evaluated at bid price : 20.95 Bid-YTW : 7.07 % |
IFC.PR.A | FixedReset Ins Non | -3.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 18.85 Evaluated at bid price : 18.85 Bid-YTW : 7.10 % |
PWF.PR.P | FixedReset Disc | -2.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 14.75 Evaluated at bid price : 14.75 Bid-YTW : 8.26 % |
CU.PR.C | FixedReset Disc | -2.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 19.90 Evaluated at bid price : 19.90 Bid-YTW : 7.44 % |
BN.PR.T | FixedReset Disc | -2.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 8.74 % |
TD.PF.I | FixedReset Prem | -2.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 23.18 Evaluated at bid price : 24.62 Bid-YTW : 6.72 % |
BN.PR.X | FixedReset Disc | -2.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 15.75 Evaluated at bid price : 15.75 Bid-YTW : 8.53 % |
MFC.PR.L | FixedReset Ins Non | -2.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 21.05 Evaluated at bid price : 21.05 Bid-YTW : 6.94 % |
BN.PR.B | Floater | -2.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 11.90 Evaluated at bid price : 11.90 Bid-YTW : 10.56 % |
BN.PR.Z | FixedReset Disc | -2.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 20.57 Evaluated at bid price : 20.57 Bid-YTW : 8.06 % |
FFH.PR.G | FixedReset Disc | -1.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 17.65 Evaluated at bid price : 17.65 Bid-YTW : 8.43 % |
BN.PF.E | FixedReset Disc | -1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 17.63 Evaluated at bid price : 17.63 Bid-YTW : 8.70 % |
FFH.PR.I | FixedReset Disc | -1.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 18.40 Evaluated at bid price : 18.40 Bid-YTW : 8.42 % |
FFH.PR.C | FixedReset Disc | -1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 21.55 Evaluated at bid price : 21.90 Bid-YTW : 7.79 % |
RY.PR.M | FixedReset Disc | -1.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 21.64 Evaluated at bid price : 22.06 Bid-YTW : 6.75 % |
GWO.PR.H | Insurance Straight | -1.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 18.82 Evaluated at bid price : 18.82 Bid-YTW : 6.46 % |
CU.PR.E | Perpetual-Discount | -1.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 19.20 Evaluated at bid price : 19.20 Bid-YTW : 6.44 % |
BN.PF.H | FixedReset Disc | -1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 23.03 Evaluated at bid price : 23.45 Bid-YTW : 8.10 % |
BMO.PR.W | FixedReset Disc | -1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 22.38 Evaluated at bid price : 23.23 Bid-YTW : 6.26 % |
GWO.PR.I | Insurance Straight | -1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 17.65 Evaluated at bid price : 17.65 Bid-YTW : 6.39 % |
FFH.PR.K | FixedReset Disc | -1.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 21.35 Evaluated at bid price : 21.35 Bid-YTW : 8.01 % |
CU.PR.I | FixedReset Disc | -1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 22.76 Evaluated at bid price : 23.18 Bid-YTW : 7.62 % |
BIP.PR.E | FixedReset Disc | -1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 21.70 Evaluated at bid price : 22.00 Bid-YTW : 7.57 % |
BN.PR.R | FixedReset Disc | -1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 15.96 Evaluated at bid price : 15.96 Bid-YTW : 8.75 % |
GWO.PR.Y | Insurance Straight | -1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 17.52 Evaluated at bid price : 17.52 Bid-YTW : 6.44 % |
RY.PR.O | Perpetual-Discount | -1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 22.74 Evaluated at bid price : 23.00 Bid-YTW : 5.36 % |
MFC.PR.K | FixedReset Ins Non | -1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 22.35 Evaluated at bid price : 23.05 Bid-YTW : 6.51 % |
SLF.PR.H | FixedReset Ins Non | -1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 19.40 Evaluated at bid price : 19.40 Bid-YTW : 6.92 % |
SLF.PR.G | FixedReset Ins Non | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 16.80 Evaluated at bid price : 16.80 Bid-YTW : 7.18 % |
GWO.PR.L | Insurance Straight | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 21.54 Evaluated at bid price : 21.80 Bid-YTW : 6.49 % |
MFC.PR.C | Insurance Straight | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 18.37 Evaluated at bid price : 18.37 Bid-YTW : 6.15 % |
RY.PR.J | FixedReset Disc | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 22.48 Evaluated at bid price : 23.00 Bid-YTW : 6.74 % |
FFH.PR.H | FloatingReset | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 18.65 Evaluated at bid price : 18.65 Bid-YTW : 10.28 % |
GWO.PR.G | Insurance Straight | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 20.25 Evaluated at bid price : 20.25 Bid-YTW : 6.44 % |
PVS.PR.G | SplitShare | -1.02 % | YTW SCENARIO Maturity Type : Option Certainty Maturity Date : 2026-02-28 Maturity Price : 25.00 Evaluated at bid price : 24.25 Bid-YTW : 6.80 % |
CCS.PR.C | Insurance Straight | 2.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 19.00 Evaluated at bid price : 19.00 Bid-YTW : 6.60 % |
MFC.PR.M | FixedReset Ins Non | 5.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 20.61 Evaluated at bid price : 20.61 Bid-YTW : 7.23 % |
SLF.PR.J | FloatingReset | 7.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 17.10 Evaluated at bid price : 17.10 Bid-YTW : 9.23 % |
NA.PR.W | FixedReset Disc | 29.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 21.01 Evaluated at bid price : 21.01 Bid-YTW : 6.97 % |
Volume Highlights | |||
Issue | Index | Shares Traded |
Notes |
CM.PR.O | FixedReset Disc | 147,191 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 23.14 Evaluated at bid price : 24.26 Bid-YTW : 6.15 % |
BN.PF.A | FixedReset Disc | 146,604 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 21.49 Evaluated at bid price : 21.76 Bid-YTW : 7.78 % |
BIP.PR.E | FixedReset Disc | 64,138 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 21.70 Evaluated at bid price : 22.00 Bid-YTW : 7.57 % |
TD.PF.I | FixedReset Prem | 38,611 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 23.18 Evaluated at bid price : 24.62 Bid-YTW : 6.72 % |
RY.PR.M | FixedReset Disc | 33,617 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 21.64 Evaluated at bid price : 22.06 Bid-YTW : 6.75 % |
TD.PF.B | FixedReset Disc | 26,669 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-06-06 Maturity Price : 23.18 Evaluated at bid price : 24.30 Bid-YTW : 6.08 % |
There were 21 other index-included issues trading in excess of 10,000 shares. |
Wide Spread Highlights | ||
Issue | Index | Quote Data and Yield Notes |
IFC.PR.G | FixedReset Ins Non | Quote: 21.12 – 23.30 Spot Rate : 2.1800 Average : 1.2557 YTW SCENARIO |
BIP.PR.A | FixedReset Disc | Quote: 20.50 – 22.05 Spot Rate : 1.5500 Average : 0.9126 YTW SCENARIO |
MFC.PR.Q | FixedReset Ins Non | Quote: 22.00 – 23.46 Spot Rate : 1.4600 Average : 0.9477 YTW SCENARIO |
GWO.PR.S | Insurance Straight | Quote: 20.36 – 22.48 Spot Rate : 2.1200 Average : 1.6675 YTW SCENARIO |
GWO.PR.N | FixedReset Ins Non | Quote: 14.60 – 15.65 Spot Rate : 1.0500 Average : 0.7094 YTW SCENARIO |
BN.PR.X | FixedReset Disc | Quote: 15.75 – 16.95 Spot Rate : 1.2000 Average : 0.8831 YTW SCENARIO |
What does the « change » column refers to?
e.g. what is -10.51% for IFC.PR.G and what is +29.69% for NA.PR.W ?
What does the « change » column refers to?
Change in the TSE reported bid price from the previous day’s bid price.
Think some of the number are a little … odd? So do I!
Oh it’s the last bid price!
Hmmm…
Another bad day for the preferreds and another day of me overreacting 🙂 I am holding back on a few buys till things stabilize (if ever).
fsabbagh, but it all makes sense in prefland. Earlier this week, BoC cuts rates, bond yields fall, prefs prices fall. Today, strong non-farm payrolls, strong wage growth both in the US and here, bond yields rise, so pref prices fall. See? Quite logical in prefland.
And you thought that investing in prefs would be boring….
” I am holding back on a few buys till things stabilize (if ever). ”
yes. things are very unstable last few years. run for the hills.
MAPF Performance as of May 31
One Month +3.69%
Three Months +10.98%
One Year +37.82%
Two Years (annualized) +6.10%
Three Years (annualized) +4.54%
Four Years (annualized) +18.51%
The last couple of years, rates were rising. We all did very well. The opposite is true today. BOC made it clear that we can expect more rate cuts. Before I invest more $$$, I wanna see what’s gonna happen in July. Yes I’ll miss out on some dividends, so be it.
https://ca.finance.yahoo.com/news/bank-of-canada-first-to-cut-rates-in-g7-economist-bets-are-on-another-in-july-200057740.html
I may sound ignorant but I don’t see how rate cuts are going to impact all that much most of the pref market.
Correct me if I’m wrong but when it comes to perpetuals or rate-reset (at least for issues based on the 5yr GOC bond yield) and considering how the rate curve looks right now (inverted), the BoC can cut from 4.75% to 2.75% over time and I would not be surprised to only see a very muted impact on the mid and long end of the yield curve resulting in a neutral situation for pref holders.
That would be a simple normalization of the situation.
Lowering rates can have adverse consequences like igniting a new bout of inflation but that is the only obvious risk I see.
Actually, a bigger danger for preferreds in my opinion would have been the BoC holding steady (higher for much longer) because it would have increased the risk of a bear steepener if we started to assume that short term rates at or near 5% was the new normal.
In this situation, going back to the lows of october 2023 and even much lower would have been a given in my opinion.
Now I agree with a comment made by James, not impossible that a few people seeing the first rate cut in 4 years began to assume we would be going back to sub 1% in no time hence hurting many prefs.
Anyway, I hope it makes sense ah ah.
” BOC made it clear that we can expect more rate cuts.”
so….. ??
own perpetuals then if you’re scared of rate cuts
“The last couple of years, rates were rising. We all did very well. ”
Not the strongest power of observation. FRs got killed during the run-up, only turning around last October for a fantastic run when rates looked to have peaked and folks starting anticipating cuts. Now that the cuts are starting, it seems to be a bit “buy the rumour, sell the news” type of situation.
FR pricing has been driven by spreads demanded in the market. These spreads have been falling since October but are still very elevated by historical standards. Unless “this time is different”, which is one of Mark Carney’s three big lies of finance, spreads will resume their descent and FR pricing will continue to improve.
Thanks guys for putting me straight 😉 On a serious note, I appreciate your feedback. You all seem more knowledgeable than I am in this field. That’s why I count on James to guide me with his newsletter.
Still have quite a bit of cash to deploy. Will slowly ease into more purchases.
All the best!