Market Action

January 31, 2018

PerpetualDiscounts now yield 5.27%, equivalent to 6.85% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 3.85%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 300bp, a slight (and perhaps spurious) widening from the 295bp reported January 31.

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 1.4970 % 2,900.3
FixedFloater 0.00 % 0.00 % 0 0.00 0 1.4970 % 5,322.0
Floater 3.43 % 3.60 % 48,538 18.27 4 1.4970 % 3,067.1
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0389 % 3,148.4
SplitShare 4.66 % 4.36 % 68,022 4.14 5 -0.0389 % 3,759.9
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0389 % 2,933.6
Perpetual-Premium 5.36 % -1.97 % 65,098 0.09 18 0.0573 % 2,871.4
Perpetual-Discount 5.28 % 5.27 % 70,590 15.03 16 0.0561 % 3,010.8
FixedReset 4.20 % 4.47 % 151,082 3.82 101 0.0674 % 2,542.5
Deemed-Retractible 5.06 % 5.44 % 84,097 5.80 28 -0.0798 % 2,955.9
FloatingReset 3.03 % 2.91 % 41,188 3.76 10 0.1339 % 2,778.5
Performance Highlights
Issue Index Change Notes
MFC.PR.F FixedReset -1.04 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.97
Bid-YTW : 7.35 %
BIP.PR.E FixedReset 1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-31
Maturity Price : 23.10
Evaluated at bid price : 24.86
Bid-YTW : 5.02 %
BAM.PR.T FixedReset 1.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-31
Maturity Price : 21.54
Evaluated at bid price : 21.82
Bid-YTW : 4.82 %
GWO.PR.N FixedReset 1.22 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.90
Bid-YTW : 6.59 %
PWF.PR.A Floater 1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-31
Maturity Price : 19.87
Evaluated at bid price : 19.87
Bid-YTW : 3.03 %
BAM.PF.E FixedReset 1.30 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-31
Maturity Price : 23.21
Evaluated at bid price : 24.18
Bid-YTW : 4.75 %
BAM.PR.R FixedReset 1.38 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-31
Maturity Price : 21.24
Evaluated at bid price : 21.24
Bid-YTW : 4.90 %
POW.PR.D Perpetual-Discount 1.47 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-31
Maturity Price : 23.86
Evaluated at bid price : 24.11
Bid-YTW : 5.22 %
BAM.PR.C Floater 1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-31
Maturity Price : 16.86
Evaluated at bid price : 16.86
Bid-YTW : 3.61 %
BAM.PR.K Floater 2.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-31
Maturity Price : 16.89
Evaluated at bid price : 16.89
Bid-YTW : 3.60 %
Volume Highlights
Issue Index Shares
Traded
Notes
BNS.PR.P FixedReset 251,984 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2018-04-25
Maturity Price : 25.00
Evaluated at bid price : 25.01
Bid-YTW : 3.35 %
CM.PR.S FixedReset 192,908 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-31
Maturity Price : 23.12
Evaluated at bid price : 24.87
Bid-YTW : 4.47 %
NA.PR.E FixedReset 168,525 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-31
Maturity Price : 23.07
Evaluated at bid price : 24.80
Bid-YTW : 4.60 %
BNS.PR.Q FixedReset 104,200 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.98
Bid-YTW : 3.81 %
TD.PF.I FixedReset 79,735 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.41
Bid-YTW : 4.14 %
BMO.PR.B FixedReset 77,722 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-02-25
Maturity Price : 25.00
Evaluated at bid price : 26.17
Bid-YTW : 3.54 %
There were 23 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
EIT.PR.A SplitShare Quote: 25.60 – 26.55
Spot Rate : 0.9500
Average : 0.5855

YTW SCENARIO
Maturity Type : Soft Maturity
Maturity Date : 2024-03-14
Maturity Price : 25.00
Evaluated at bid price : 25.60
Bid-YTW : 4.49 %

PWF.PR.R Perpetual-Premium Quote: 25.60 – 25.99
Spot Rate : 0.3900
Average : 0.2528

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-04-30
Maturity Price : 25.25
Evaluated at bid price : 25.60
Bid-YTW : 4.82 %

CCS.PR.C Deemed-Retractible Quote: 23.80 – 24.50
Spot Rate : 0.7000
Average : 0.5814

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.80
Bid-YTW : 5.96 %

MFC.PR.F FixedReset Quote: 18.97 – 19.37
Spot Rate : 0.4000
Average : 0.2918

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.97
Bid-YTW : 7.35 %

RY.PR.L FixedReset Quote: 25.20 – 25.49
Spot Rate : 0.2900
Average : 0.1849

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2019-02-24
Maturity Price : 25.00
Evaluated at bid price : 25.20
Bid-YTW : 3.25 %

PWF.PR.F Perpetual-Discount Quote: 24.51 – 24.79
Spot Rate : 0.2800
Average : 0.1790

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-31
Maturity Price : 24.22
Evaluated at bid price : 24.51
Bid-YTW : 5.38 %

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