On 2025-9-19, National Bank of Canada announced:
its intention to redeem, on November 15, 2025 (the “Redemption Date”), all of its outstanding $500,000,000 aggregate principal amount of 4.300% Limited Recourse Capital Notes Series 1 (Non-Viability Contingent Capital (NVCC)) (Subordinated Indebtedness) (the “Series 1 LRCNs”), at a redemption price equal to the principal amount of the Series 1 LRCNs, plus any accrued and unpaid interest up to, but excluding, the Redemption Date. Formal notice of the redemption will be delivered to registered holders of the Series 1 LRCNs in accordance with the terms outlined in the trust indenture for the Series 1 LRCNs.
In connection with the redemption of the Series 1 LRCNs, the Bank will redeem all 500,000 Non-Cumulative 5-Year Fixed Rate Reset First Preferred Shares, Series 44 (Non-Viability Contingent Capital (NVCC)) (the “Series 44 Preferred Shares”) that are held by Computershare Trust Company of Canada as trustee of NBC LRCN Limited Recourse Trust.
Since November 15, 2025 is not a business day, amounts due to holders of the Series 1 LRCNs will be paid on the first business day following that date.
The redemption of the Series 44 Preferred Shares and Series 1 LRCNs has been approved by the Office of the Superintendent of Financial Institutions and is part of the Bank’s ongoing management of its regulatory capital.
These issues are discussed on PDF pages 209 and 210 of the 2024 Annual Report – the preferreds were 4.30%+394.3 , which would imply quite a pop in interest paid to the LRCN holders if they had reset!
Thanks to Assiduous Reader DB for bringing this to my attention!
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 6.68 % | 7.12 % | 27,574 | 13.37 | 1 | 0.0000 % | 2,428.3 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2795 % | 4,588.0 |
| Floater | 6.29 % | 6.58 % | 56,230 | 13.11 | 3 | -0.2795 % | 2,644.1 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1254 % | 3,654.3 |
| SplitShare | 4.78 % | 4.40 % | 67,260 | 3.34 | 5 | 0.1254 % | 4,364.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1254 % | 3,405.0 |
| Perpetual-Premium | 5.50 % | 4.93 % | 82,123 | 0.08 | 8 | 0.2625 % | 3,096.4 |
| Perpetual-Discount | 5.57 % | 5.65 % | 46,229 | 14.43 | 26 | 0.3988 % | 3,385.8 |
| FixedReset Disc | 6.00 % | 6.08 % | 115,142 | 13.68 | 30 | 0.0363 % | 3,044.2 |
| Insurance Straight | 5.54 % | 5.53 % | 55,320 | 14.61 | 21 | -0.3447 % | 3,282.1 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0363 % | 3,621.5 |
| FixedReset Prem | 5.63 % | 4.85 % | 126,606 | 2.42 | 22 | -0.2065 % | 2,633.2 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0363 % | 3,111.8 |
| FixedReset Ins Non | 5.23 % | 5.38 % | 55,623 | 14.53 | 15 | 0.0784 % | 3,066.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| GWO.PR.H | Insurance Straight | -7.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 20.20 Evaluated at bid price : 20.20 Bid-YTW : 6.06 % |
| BN.PF.E | FixedReset Disc | -2.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 21.05 Evaluated at bid price : 21.05 Bid-YTW : 6.32 % |
| GWO.PR.Q | Insurance Straight | -2.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 22.11 Evaluated at bid price : 22.33 Bid-YTW : 5.80 % |
| NA.PR.G | FixedReset Prem | -1.87 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-11-16 Maturity Price : 25.00 Evaluated at bid price : 26.25 Bid-YTW : 5.07 % |
| GWO.PR.R | Insurance Straight | -1.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 21.13 Evaluated at bid price : 21.13 Bid-YTW : 5.73 % |
| PWF.PR.K | Perpetual-Discount | -1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 21.75 Evaluated at bid price : 22.00 Bid-YTW : 5.72 % |
| CU.PR.J | Perpetual-Discount | -1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 21.46 Evaluated at bid price : 21.46 Bid-YTW : 5.61 % |
| BN.PF.D | Perpetual-Discount | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 20.86 Evaluated at bid price : 20.86 Bid-YTW : 5.92 % |
| ELF.PR.F | Insurance Straight | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 23.20 Evaluated at bid price : 23.50 Bid-YTW : 5.65 % |
| IFC.PR.E | Insurance Straight | 1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 23.73 Evaluated at bid price : 24.00 Bid-YTW : 5.44 % |
| GWO.PR.G | Insurance Straight | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 23.48 Evaluated at bid price : 23.75 Bid-YTW : 5.50 % |
| POW.PR.G | Perpetual-Discount | 1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 24.57 Evaluated at bid price : 24.83 Bid-YTW : 5.65 % |
| MFC.PR.C | Insurance Straight | 1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 21.33 Evaluated at bid price : 21.60 Bid-YTW : 5.24 % |
| POW.PR.A | Perpetual-Discount | 1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 24.55 Evaluated at bid price : 24.80 Bid-YTW : 5.66 % |
| FTS.PR.F | Perpetual-Discount | 2.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 23.20 Evaluated at bid price : 23.50 Bid-YTW : 5.26 % |
| CU.PR.H | Perpetual-Discount | 4.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 23.53 Evaluated at bid price : 23.80 Bid-YTW : 5.57 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| RY.PR.M | FixedReset Prem | 274,000 | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-11-24 Maturity Price : 25.00 Evaluated at bid price : 25.08 Bid-YTW : 3.21 % |
| GWO.PR.Z | Perpetual-Premium | 60,300 | YTW SCENARIO Maturity Type : Call Maturity Date : 2034-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.60 Bid-YTW : 5.42 % |
| GWO.PR.N | FixedReset Ins Non | 50,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 17.55 Evaluated at bid price : 17.55 Bid-YTW : 5.77 % |
| SLF.PR.G | FixedReset Ins Non | 29,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 18.56 Evaluated at bid price : 18.56 Bid-YTW : 5.69 % |
| POW.PR.H | Perpetual-Premium | 28,100 | YTW SCENARIO Maturity Type : Call Maturity Date : 2034-10-15 Maturity Price : 25.00 Evaluated at bid price : 25.50 Bid-YTW : 5.54 % |
| POW.PR.G | Perpetual-Discount | 22,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-06 Maturity Price : 24.57 Evaluated at bid price : 24.83 Bid-YTW : 5.65 % |
| There were 13 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 |
| GWO.PR.H | Insurance Straight | Quote: 20.20 – 22.50 Spot Rate : 2.3000 Average : 1.5480 YTW SCENARIO |
| ENB.PF.E | FixedReset Disc | Quote: 21.45 – 23.00 Spot Rate : 1.5500 Average : 0.8664 YTW SCENARIO |
| SLF.PR.D | Insurance Straight | Quote: 21.35 – 22.65 Spot Rate : 1.3000 Average : 0.8089 YTW SCENARIO |
| PVS.PR.M | SplitShare | Quote: 25.26 – 26.26 Spot Rate : 1.0000 Average : 0.6778 YTW SCENARIO |
| GWO.PR.Q | Insurance Straight | Quote: 22.33 – 23.95 Spot Rate : 1.6200 Average : 1.2985 YTW SCENARIO |
| BN.PF.E | FixedReset Disc | Quote: 21.05 – 21.85 Spot Rate : 0.8000 Average : 0.5231 YTW SCENARIO |