9 Responses to “November 18, 2024”

1. IrateAR says:

   November 19, 2024 at 1:27 pm

   Middle of day FFH LRCN issue… presumably calling FFH C/D all the FFHs rallied.

2. DR says:

   November 19, 2024 at 2:39 pm

   thanks irate. any sense of pricing? will be a 6.25 call give or take. impressive

3. IrateAR says:

   November 19, 2024 at 2:51 pm

   Actually sorry it doesn’t use the word LRCN – not positive about that.

   “NEW DEAL: Fairfax Financial C$500m; 10Y +140#, 30Y +185#”

4. DR says:

   November 19, 2024 at 2:55 pm

   long canadas despite recent backup are still a joke.

   canada’s remain 100-125bps thru each of US, AUS, UK from 5s – 30s. near records best i can tell

   any hint of growth in canada and those spreads are gonna tighten. we tagged -138 vs AUS in 10s the other day. madness.

   this “mortgage cliff” everyone been yammering about is fine to price over couple years but out to 30yrs?

5. fsabbagh says:

   November 19, 2024 at 3:19 pm

   I got this from my BMO account:
   DIVIDEND GROWTH SPLIT CORP CL A AND PREFERRED SHARES – QUARTERLY CONCURRENT RETRACTION

   Option 1: Cash – Quarterly Concurrent Retraction Privilege (Tender Equal amount of Class A and Preferred Shares)
   To receive a retraction price per Unit equal to the NAV per Unit on that date, less any costs associated with the retraction, including commissions and other such costs, if any, related to the liquidation of any portion of the Portfolio required to fund such retraction.

   Can someone dumb it down for me? 😉 Is it worthwhile?

6. jiHymas says:

   November 19, 2024 at 3:57 pm

   Actually sorry it doesn’t use the word LRCN – not positive about that.

   Fairfax is not regulated by OSFI so I’m not even sure if it’s legal for them to call one of their issues an LRCN – maybe OSFI holds the trademark? I don’t know.

7. niagara says:

   November 19, 2024 at 4:58 pm

   fsabbagh,
   you would have to tender both the preferred shares AND the capital shares. DGS is trading near the recent NAV but DGS.PR.A is trading well over NAV (which was $10.13 as of Nov 14).

   So, not worthwhile IMO.

   Odd, I didn’t get that notification. Perhaps because I only hold the prefs? Or perhaps it is because I am with TDDI, which is becoming more useless by the day it seems…..

8. November 19, 2024 « PrefBlog says:

   November 19, 2024 at 7:53 pm

   […] issues single-handedly lifted the market today, following reported reports (thanks, IrateAR!) that FFH will be issuing an LRCN-like sub-debt issue. We’ll see what gets […]

9. IrateAR says:

   November 19, 2024 at 7:57 pm

   Lol still nothing from Fairfax but Moody’s says:

   “New York , November 19, 2024 – Moody’s Ratings (Moody’s) has assigned a Baa2 rating to senior unsecured notes due in 2034 and 2054 to be issued by Fairfax Financial Holdings Limited (Fairfax). Fairfax plans to use the net proceeds from the offering to redeem some of its preferred shares and the remainder for general corporate purposes. The rating outlook for Fairfax is unchanged at stable.”

   Need to register but it’s free I think:

   https://www.moodys.com/research/null-Moodys-Ratings-rates-Fairfaxs-senior-unsecured-notes-Baa2-Rating-Action–PR_1000010627#0572b961dceedc105347b4ba6f05cd6f