Nice to see that Banco Santander has imported North American financial advisory practices to Europe:
Branch managers channeled customers with money from property sales or inheritances to private banking salespeople, lawyers for the investors said. A retired school teacher put 300,000 euros ($388,000), half her savings, in a structured product linked to Madoff, said Jordi Ruiz de Villa, an attorney at the Barcelona law firm Jausas. The vendor invested 325,000 euros of lottery winnings in a similar product and may have to return to street sales, according to lawyers at Cremades & Calvo-Sotelo in Madrid.
…
Spanish securities law requires anyone offering investment services to “suitably evaluate” a customer’s experience and market knowledge and ensure that he or she understands the risks.
A decent day, with PerpetualDiscounts up a bit. Fixed-Resets were also up a bit, until the announcement of two new issues in the late afternoon obviated the need to buy them in the secondary market.
| 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 | 6.87 % | 7.44 % | 38,216 | 13.63 | 2 | 0.0347 % | 868.6 |
| FixedFloater | 7.31 % | 6.92 % | 158,793 | 13.82 | 8 | 0.2684 % | 1,402.9 |
| Floater | 5.26 % | 4.74 % | 36,344 | 15.98 | 4 | -1.4294 % | 999.8 |
| OpRet | 5.31 % | 4.79 % | 142,691 | 4.06 | 15 | 0.0251 % | 2,021.2 |
| SplitShare | 6.20 % | 9.82 % | 83,443 | 4.15 | 15 | 0.1472 % | 1,793.8 |
| Interest-Bearing | 7.17 % | 8.33 % | 38,135 | 0.90 | 2 | 0.2934 % | 1,973.5 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2046 % | 1,563.3 |
| Perpetual-Discount | 6.85 % | 6.89 % | 233,941 | 12.72 | 71 | 0.2046 % | 1,439.7 |
| FixedReset | 5.95 % | 4.77 % | 833,940 | 15.28 | 22 | -0.6284 % | 1,821.5 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.K | Floater | -5.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 7.55 Evaluated at bid price : 7.55 Bid-YTW : 7.04 % |
| PPL.PR.A | SplitShare | -4.70 % | Asset coverage of 1.4+:1 as of January 15 according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2012-12-01 Maturity Price : 10.00 Evaluated at bid price : 8.51 Bid-YTW : 9.82 % |
| BAM.PR.N | Perpetual-Discount | -4.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 11.32 Evaluated at bid price : 11.32 Bid-YTW : 10.70 % |
| PWF.PR.M | FixedReset | -4.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 24.37 Evaluated at bid price : 24.42 Bid-YTW : 5.35 % |
| BAM.PR.B | Floater | -3.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 8.20 Evaluated at bid price : 8.20 Bid-YTW : 6.48 % |
| TD.PR.S | FixedReset | -3.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 22.20 Evaluated at bid price : 22.25 Bid-YTW : 4.04 % |
| RY.PR.N | FixedReset | -2.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 24.96 Evaluated at bid price : 25.01 Bid-YTW : 5.49 % |
| BAM.PR.M | Perpetual-Discount | -2.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 11.86 Evaluated at bid price : 11.86 Bid-YTW : 10.20 % |
| PWF.PR.E | Perpetual-Discount | -2.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 19.79 Evaluated at bid price : 19.79 Bid-YTW : 6.99 % |
| BMO.PR.N | FixedReset | -1.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 25.00 Evaluated at bid price : 25.05 Bid-YTW : 5.80 % |
| TCA.PR.Y | Perpetual-Discount | -1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 43.02 Evaluated at bid price : 43.66 Bid-YTW : 6.44 % |
| RY.PR.P | FixedReset | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 24.96 Evaluated at bid price : 25.01 Bid-YTW : 5.96 % |
| CM.PR.A | OpRet | -1.33 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2009-02-20 Maturity Price : 25.50 Evaluated at bid price : 25.91 Bid-YTW : -14.86 % |
| CU.PR.B | Perpetual-Discount | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 22.32 Evaluated at bid price : 22.50 Bid-YTW : 6.79 % |
| LFE.PR.A | SplitShare | -1.27 % | Asset coverage of 1.5-:1 as of January 15, according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2012-12-01 Maturity Price : 10.00 Evaluated at bid price : 9.33 Bid-YTW : 7.41 % |
| BMO.PR.L | Perpetual-Discount | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 21.21 Evaluated at bid price : 21.21 Bid-YTW : 6.98 % |
| BNA.PR.B | SplitShare | -1.18 % | Asset coverage of 1.8+:1 as of December 31 according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2016-03-25 Maturity Price : 25.00 Evaluated at bid price : 21.00 Bid-YTW : 8.10 % |
| BMO.PR.M | FixedReset | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 22.45 Evaluated at bid price : 22.50 Bid-YTW : 4.10 % |
| FBS.PR.B | SplitShare | 1.12 % | Asset coverage of 1.1-:1 as of January 15 according to TD Securities. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2011-12-15 Maturity Price : 10.00 Evaluated at bid price : 8.10 Bid-YTW : 13.13 % |
| MFC.PR.C | Perpetual-Discount | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 17.10 Evaluated at bid price : 17.10 Bid-YTW : 6.68 % |
| TRI.PR.B | Floater | 1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 11.18 Evaluated at bid price : 11.18 Bid-YTW : 4.74 % |
| NA.PR.M | Perpetual-Discount | 1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 22.16 Evaluated at bid price : 22.26 Bid-YTW : 6.76 % |
| BMO.PR.H | Perpetual-Discount | 1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 20.25 Evaluated at bid price : 20.25 Bid-YTW : 6.68 % |
| BNS.PR.M | Perpetual-Discount | 1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 17.41 Evaluated at bid price : 17.41 Bid-YTW : 6.50 % |
| NA.PR.K | Perpetual-Discount | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 7.16 % |
| BCE.PR.C | FixedFloater | 1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 25.00 Evaluated at bid price : 16.20 Bid-YTW : 7.08 % |
| BCE.PR.R | FixedFloater | 1.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 25.00 Evaluated at bid price : 16.21 Bid-YTW : 6.92 % |
| PWF.PR.L | Perpetual-Discount | 1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 18.45 Evaluated at bid price : 18.45 Bid-YTW : 6.96 % |
| RY.PR.C | Perpetual-Discount | 1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 18.05 Evaluated at bid price : 18.05 Bid-YTW : 6.50 % |
| SLF.PR.C | Perpetual-Discount | 1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 15.80 Evaluated at bid price : 15.80 Bid-YTW : 7.14 % |
| RY.PR.E | Perpetual-Discount | 1.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 18.13 Evaluated at bid price : 18.13 Bid-YTW : 6.33 % |
| SBC.PR.A | SplitShare | 1.49 % | Asset coverage of 1.4+:1 as of January 15 according to Brompton. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2012-11-30 Maturity Price : 10.00 Evaluated at bid price : 8.20 Bid-YTW : 11.23 % |
| LBS.PR.A | SplitShare | 1.82 % | Asset coverage of 1.4-:1 as of January 15 according to Brompton. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2013-11-29 Maturity Price : 10.00 Evaluated at bid price : 8.40 Bid-YTW : 9.53 % |
| ALB.PR.A | SplitShare | 1.93 % | Asset coverage of 1.2-:1 as of January 15 according to Scotia. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2011-02-28 Maturity Price : 25.00 Evaluated at bid price : 20.03 Bid-YTW : 16.21 % |
| PWF.PR.I | Perpetual-Discount | 2.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 22.55 Evaluated at bid price : 22.75 Bid-YTW : 6.63 % |
| POW.PR.C | Perpetual-Discount | 2.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 21.66 Evaluated at bid price : 21.66 Bid-YTW : 6.76 % |
| DFN.PR.A | SplitShare | 2.16 % | Asset coverage of 1.7-:1 as of January 15 according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2014-12-01 Maturity Price : 10.00 Evaluated at bid price : 9.00 Bid-YTW : 7.51 % |
| SLF.PR.D | Perpetual-Discount | 2.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 15.80 Evaluated at bid price : 15.80 Bid-YTW : 7.14 % |
| PWF.PR.K | Perpetual-Discount | 2.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 17.90 Evaluated at bid price : 17.90 Bid-YTW : 6.96 % |
| NA.PR.N | FixedReset | 3.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 21.71 Evaluated at bid price : 21.75 Bid-YTW : 4.65 % |
| BAM.PR.J | OpRet | 3.98 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2018-03-30 Maturity Price : 25.00 Evaluated at bid price : 17.26 Bid-YTW : 10.96 % |
| ELF.PR.G | Perpetual-Discount | 4.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 15.50 Evaluated at bid price : 15.50 Bid-YTW : 7.74 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BNS.PR.T | FixedReset | 769,327 | New issue settled today. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 24.95 Evaluated at bid price : 25.00 Bid-YTW : 5.92 % |
| TD.PR.E | FixedReset | 275,742 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 25.02 Evaluated at bid price : 25.07 Bid-YTW : 6.07 % |
| RY.PR.P | FixedReset | 136,408 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 24.96 Evaluated at bid price : 25.01 Bid-YTW : 5.96 % |
| TD.PR.S | FixedReset | 127,435 | Nesbitt crossed 117,200 at 22.78. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 22.20 Evaluated at bid price : 22.25 Bid-YTW : 4.04 % |
| RY.PR.A | Perpetual-Discount | 78,260 | RBC crossed 55,000 at 17.75. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-01-21 Maturity Price : 17.79 Evaluated at bid price : 17.79 Bid-YTW : 6.38 % |
| WFS.PR.A | SplitShare | 74,550 | RBC crossed 41,700 at 8.50. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2011-06-30 Maturity Price : 10.00 Evaluated at bid price : 8.81 Bid-YTW : 11.19 % |
| There were 39 other index-included issues trading in excess of 10,000 shares. | |||
HI James, I have to admit I feel more than a bit confused when I see these new bank issues flying of the shelf and the demand so high that the offerings are increased such as RY this week.
There are so many bank issues that have been beaten down and offer competitive div’s and reduced prices and a larger chance for capital gain, am I missing something here ?
In less than 24 hours, TD, RY, BNS and NA all rush to market with new fixed reset offerings – c’mon stick in the mud BMO and CM – join the party! The ducks are quacking loudly – too much of a “good” thing?