Market Action

September 3, 2025

PerpetualDiscounts now yield 5.68%, equivalent to 7.38% interest at the standard conversion factor of 1.3x. Long corporates yield 5.10%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now 230bp, a slight (and perhaps spurious) narrowing from the 235bp reported August 27.

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 6.72 % 7.14 % 37,850 13.31 1 0.3058 % 2,450.8
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.6827 % 4,655.8
Floater 6.53 % 6.85 % 45,367 12.65 3 0.6827 % 2,683.2
OpRet 0.00 % 0.00 % 0 0.00 0 -0.6393 % 3,630.2
SplitShare 4.83 % 4.39 % 57,958 3.43 6 -0.6393 % 4,335.3
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.6393 % 3,382.6
Perpetual-Premium 5.49 % 2.84 % 69,143 0.08 3 0.5057 % 3,073.1
Perpetual-Discount 5.58 % 5.68 % 44,365 14.26 28 0.3783 % 3,365.2
FixedReset Disc 5.90 % 6.18 % 123,194 13.39 32 0.0572 % 3,034.6
Insurance Straight 5.50 % 5.50 % 53,350 14.65 18 0.0864 % 3,288.2
FloatingReset 5.16 % 4.44 % 44,869 0.15 1 0.0000 % 3,809.5
FixedReset Prem 5.66 % 5.06 % 121,013 2.44 21 0.1729 % 2,627.9
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 0.0572 % 3,102.0
FixedReset Ins Non 5.28 % 5.57 % 71,406 14.34 15 0.2585 % 3,037.5
Performance Highlights
Issue Index Change Notes
IFC.PR.I Insurance Straight -5.54 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 22.59
Evaluated at bid price : 23.00
Bid-YTW : 5.97 %
PVS.PR.M SplitShare -3.60 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2031-03-31
Maturity Price : 25.00
Evaluated at bid price : 24.65
Bid-YTW : 5.47 %
GWO.PR.G Insurance Straight -1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 22.98
Evaluated at bid price : 23.25
Bid-YTW : 5.59 %
BN.PF.E FixedReset Disc -1.10 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 21.55
Evaluated at bid price : 21.55
Bid-YTW : 6.39 %
POW.PR.C Perpetual-Premium 1.12 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-10-03
Maturity Price : 25.00
Evaluated at bid price : 25.28
Bid-YTW : 1.82 %
MFC.PR.B Insurance Straight 1.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 21.70
Evaluated at bid price : 21.95
Bid-YTW : 5.30 %
BN.PF.G FixedReset Disc 1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 22.34
Evaluated at bid price : 23.09
Bid-YTW : 6.19 %
CU.PR.D Perpetual-Discount 1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 21.75
Evaluated at bid price : 22.00
Bid-YTW : 5.59 %
PWF.PR.L Perpetual-Discount 1.60 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 22.01
Evaluated at bid price : 22.25
Bid-YTW : 5.79 %
ENB.PR.N FixedReset Disc 1.91 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 22.92
Evaluated at bid price : 23.95
Bid-YTW : 6.07 %
NA.PR.I FixedReset Prem 2.71 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2029-05-01
Maturity Price : 25.00
Evaluated at bid price : 26.15
Bid-YTW : 5.56 %
FTS.PR.J Perpetual-Discount 2.91 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 22.71
Evaluated at bid price : 22.95
Bid-YTW : 5.19 %
MFC.PR.F FixedReset Ins Non 3.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 18.07
Evaluated at bid price : 18.07
Bid-YTW : 5.89 %
GWO.PR.P Insurance Straight 4.78 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 23.85
Evaluated at bid price : 24.10
Bid-YTW : 5.60 %
Volume Highlights
Issue Index Shares
Traded
Notes
GWO.PR.G Insurance Straight 150,300 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 22.98
Evaluated at bid price : 23.25
Bid-YTW : 5.59 %
MFC.PR.N FixedReset Ins Non 90,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 22.59
Evaluated at bid price : 23.53
Bid-YTW : 5.51 %
BN.PR.M Perpetual-Discount 62,930 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 20.61
Evaluated at bid price : 20.61
Bid-YTW : 5.88 %
SLF.PR.D Insurance Straight 57,400 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 21.47
Evaluated at bid price : 21.47
Bid-YTW : 5.19 %
ENB.PF.K FixedReset Disc 54,900 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 23.46
Evaluated at bid price : 24.95
Bid-YTW : 6.11 %
BN.PR.T FixedReset Disc 50,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 20.06
Evaluated at bid price : 20.06
Bid-YTW : 6.45 %
There were 11 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
See TMX DataLinx: ‘Last’ != ‘Close’ and the posts linked therein for an idea of why these quotes are so horrible.
Issue Index Quote Data and Yield Notes
IFC.PR.I Insurance Straight Quote: 23.00 – 24.94
Spot Rate : 1.9400
Average : 1.1661

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 22.59
Evaluated at bid price : 23.00
Bid-YTW : 5.97 %

BN.PF.E FixedReset Disc Quote: 21.55 – 25.00
Spot Rate : 3.4500
Average : 2.7626

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 21.55
Evaluated at bid price : 21.55
Bid-YTW : 6.39 %

GWO.PR.Q Insurance Straight Quote: 22.55 – 24.36
Spot Rate : 1.8100
Average : 1.3811

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 22.28
Evaluated at bid price : 22.55
Bid-YTW : 5.71 %

PVS.PR.M SplitShare Quote: 24.65 – 25.65
Spot Rate : 1.0000
Average : 0.5899

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2031-03-31
Maturity Price : 25.00
Evaluated at bid price : 24.65
Bid-YTW : 5.47 %

CIU.PR.A Perpetual-Discount Quote: 20.70 – 22.00
Spot Rate : 1.3000
Average : 0.9585

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 20.70
Evaluated at bid price : 20.70
Bid-YTW : 5.60 %

GWO.PR.S Insurance Straight Quote: 23.39 – 24.15
Spot Rate : 0.7600
Average : 0.4713

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-09-03
Maturity Price : 23.13
Evaluated at bid price : 23.39
Bid-YTW : 5.61 %

One comment September 3, 2025

[…] PerpetualDiscounts now yield 5.63%, equivalent to 7.32% interest at the standard conversion factor of 1.3x. Long corporates yielded 4.87% on 2025-9-9 and the price of the fund increased from 15.22 (2025-9-9) to 15.29 (2025-9-10), or 46bp, with a duration of 12.27 (BMO does not specify what kind of duration; I will assume Modified) implying a yield decrease of 4bp, implying in turn a 2025-9-10 yield of 4.83%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now 250bp, a sharp widening from the 230bp reported September 3. […]

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