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No Surprises on RY.PR.E First Day of Trading

Written by

jiHymas

in

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This was pretty much a carbon copy of the BMO.PR.J opening last Wednesday. Volume was 313,249 trading in a range of 24.85-95 – which was below the issue price, which is eventually going to annoy the buyers of these new issues!

It closed at 24.90-92, 17×338, and looks reasonably attractive there. When I look at the curvePrice according to the yieldCurve calculated for taxable accounts, I get:

RY.PR.E Taxable Curve Price
Component Value
Price due to base-rate 23.30
Price due to short-term 0.04
Price due to long-term 0.49
Price due to Liquidity 1.48
Price due to error -0.03
Total 25.28

At the closing bid of $24.90, the issue has a pre-tax bid-yieldToWorst of 4.53%, based on a limitMaturity.

The issue has been added to the PerpetualDiscount index.

The securityCode for this issue is A45014 and a reorgDataEntry has been processed to reflect the change from the preIssue code of P87000.

Update (for linking!) 2007-01-27 : This issue was announced on January 10.

Comments

9 responses to “No Surprises on RY.PR.E First Day of Trading”

  1. PrefBlog » Blog Archive » January 19, 2007

    […] PrefBlog Canadian Preferred Shares – Data and Discussion « January 18, 2007 No Surprises on RY.PR.E First Day of Trading » […]

  2. PrefBlog » Blog Archive » January 22, 2007

    […] Recent new issue. Now with a pre-tax bid-YTW of 4.52% based on a bid of $24.94 and a limitMaturity […]

  3. PrefBlog » Blog Archive » January 23, 2007

    […] Recent new issue. Now with a pre-tax bid-YTW of 4.52% based on a bid of $24.97 and a limitMaturity […]

  4. PrefBlog » Blog Archive » January 24, 2007

    […] Recent new issue. Now with a pre-tax bid-YTW of 4.51% based on a bid of $25.00 and a limitMaturity. […]

  5. PrefBlog » Blog Archive » January 29, 2007

    […] Recent new issue. Now with a pre-tax bid-YTW of 4.52% based on a bid of $24.99 and a limitMaturity. […]

  6. PrefBlog » Blog Archive » February 1, 2007

    […] Recent new issue. Now with a pre-tax bid-YTW of 4.53% based on a bid of $24.96 and a limitMaturity […]

  7. PrefBlog » Blog Archive » New Issue : CIBC 4.5% Perpetual

    […] This is actually rather nice, having so many issues that are so similar (SunLife, Scotia, Royal and BMO) … I forsee many happy hours in the years ahead, swapping between them in a low-risk dividend-capture strategy. […]

  8. PrefBlog » Blog Archive » February 28, 2007

    […] Recent new issue. Now with a pre-tax bid-YTW of 4.51%, based on a bid of $25.15 and either a call at $25.00 on 2016-3-25, or a limitMaturity – take your pick. […]

  9. PrefBlog » Blog Archive » New Issue : Royal Bank 4.45% Perpetuals

    […] From my Tier 1 Capital notes: It is also interesting that Royal has used up about half its available room. Given that their Tier 1 Ratio at year-end significantly lagged the competition, I suspect that there will be more opportunistic issuances in addition to RY.PR.D and RY.PR.E. […]

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