PrefBlog

TXPR closed at 589.62, up 0.96% on the day. Volume today was 4.75-million, second-highest of the past 21 trading days.

CPD closed at 11.705, up 0.99% on the day. Volume was 89,520, third-highest of the past 21 trading days.

ZPR closed at 10.115, up 0.75% on the day. Volume was 105,310, well below the median of the past 21 trading days.

Five-year Canada yields were up to 3.56%.

How’s this for a fund?

Quadravest Capital Management Inc. (the “Manager’) is pleased to announce that Quadravest Preferred Split Share ETF (“Preferred ETF”) will commence trading on the Toronto Stock Exchange (the “TSX”) on June 27, 2024 under the symbol PREF. A final prospectus dated June 7, 2024 has been filed with the securities regulatory authorities in each province and territory in Canada.

The investment objectives of Preferred ETF are to provide unitholders with: (a) monthly distributions and (b) the opportunity for capital preservation, primarily through a portfolio of preferred shares of split share corporations.

Preferred ETF will seek to achieve its investment objectives by investing in an actively managed portfolio of split corp. preferred shares offered by Canadian split share corporations listed on a Canadian exchange. The Preferred ETF may also invest in preferred shares of other issuers, exchange-traded funds, other investment funds, equities or income-generating securities, and securities that are convertible into any of the above noted securities provided such investments are consistent with the Preferred ETF’s investment objectives.

Thanks to Assiduous Reader NK for bringing this to my attention!

PerpetualDiscounts now yield 6.72%, equivalent to 8.74% interest at the standard equivalency factor of 1.3x. Long corporates yielded 4.97% on 2024-6-24 and since then the closing price of ZLC has changed from 15.21 to 15.05, a decrease of 106bp in price, implying an increase of yields of 9bp (BMO reports a duration of 12.39, but don’t disclose whether this is Macaulay or Modified; I will assume Modified) to 5.06%. Therefore, the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has declined sharply to 370bp from the 390bp reported June 19.

This entry was posted on Wednesday, June 26th, 2024 at 8:29 pm and is filed under Market Action. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.