Market Action

December 5, 2019

I was pleased to see that Atlantic Power ‘fessed up to their error regarding the reset rate for AZP.PR.B. Very impressive! It isn’t “making no errors” that makes you good; errors happen all the time. It’s recognizing, acknowledging and fixing errors that makes you good.

I just wish Husky Energy was as prompt! I have used their online form to contact Investor Relations:

I would appreciate greater detail regarding the reset rate for HSE.PR.C announced December 2, specifically the Government of Canada 5-Year Bond Yield used as the basis for this calculation.

Can you please tell me the effective date and time that the Government of Canada 5-Year Bond Yield was measured for the purpose of this calculation?

Sincerely,

I urge anybody who has a spare minute today to similarly contact the company to ask this question. This is a brief, simple question regarding a matter of fact and while I appreciate that they have a lot going on at the moment, this is my third eMail to them. First be polite, then be annoying, that’s my motto!

Shaw Communications issued 30-Year Notes today:

Shaw Communications Inc. (“Shaw” or the “Corporation”) announced today the terms of an offering of C$800 million of senior notes, comprised of C$500 million principal amount of 3.30% senior notes due 2029 (the “2029 Notes”) and C$300 million principal amount of 4.25% senior notes due 2049 (the “2049 Notes”, and together with the 2029 Notes, the “Notes”).

SJR.PR.A currently yields 6.59% (equivalent to interest of 8.57%) and SJR.PR.B yields 6.89% (equivalent to interest of 8.96%), based on GOC yields of 1.54% and 1.66% respectively. A Straight Perpetual would probably yield a little less, given the current state of the markets, but that’s quite a spread! No wonder that they – and nobody else, either – aren’t issuing new preferreds!

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 0.3779 % 1,973.2
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.3779 % 3,620.8
Floater 6.12 % 6.33 % 50,954 13.31 4 0.3779 % 2,086.7
OpRet 0.00 % 0.00 % 0 0.00 0 0.2198 % 3,430.7
SplitShare 4.65 % 4.45 % 44,031 3.86 7 0.2198 % 4,097.0
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.2198 % 3,196.7
Perpetual-Premium 5.55 % -12.88 % 55,946 0.09 10 -0.1837 % 3,040.6
Perpetual-Discount 5.29 % 5.38 % 69,203 14.79 25 0.0517 % 3,265.7
FixedReset Disc 5.64 % 5.74 % 195,234 14.27 66 0.3857 % 2,088.0
Deemed-Retractible 5.18 % 5.26 % 70,573 14.96 27 -0.0141 % 3,215.5
FloatingReset 6.32 % 6.62 % 129,739 13.09 2 1.1932 % 2,434.5
FixedReset Prem 5.12 % 3.70 % 131,535 1.56 20 -0.0507 % 2,627.9
FixedReset Bank Non 1.95 % 3.99 % 62,683 2.09 3 0.2337 % 2,710.1
FixedReset Ins Non 5.53 % 5.80 % 125,460 14.21 22 0.4004 % 2,118.8
Performance Highlights
Issue Index Change Notes
TRP.PR.G FixedReset Disc -1.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 17.45
Evaluated at bid price : 17.45
Bid-YTW : 6.45 %
SLF.PR.I FixedReset Ins Non -1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 17.94
Evaluated at bid price : 17.94
Bid-YTW : 5.89 %
CM.PR.Q FixedReset Disc 1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 18.20
Evaluated at bid price : 18.20
Bid-YTW : 5.98 %
SLF.PR.G FixedReset Ins Non 1.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 12.90
Evaluated at bid price : 12.90
Bid-YTW : 5.70 %
MFC.PR.R FixedReset Ins Non 1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 23.38
Evaluated at bid price : 24.65
Bid-YTW : 5.33 %
IFC.PR.A FixedReset Ins Non 1.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 14.22
Evaluated at bid price : 14.22
Bid-YTW : 5.90 %
GWO.PR.N FixedReset Ins Non 1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 13.01
Evaluated at bid price : 13.01
Bid-YTW : 5.40 %
BAM.PF.E FixedReset Disc 1.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 16.57
Evaluated at bid price : 16.57
Bid-YTW : 6.32 %
BAM.PR.X FixedReset Disc 1.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 13.10
Evaluated at bid price : 13.10
Bid-YTW : 6.30 %
BAM.PF.G FixedReset Disc 1.40 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 18.05
Evaluated at bid price : 18.05
Bid-YTW : 6.20 %
EMA.PR.C FixedReset Disc 1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 17.45
Evaluated at bid price : 17.45
Bid-YTW : 6.25 %
PWF.PR.P FixedReset Disc 1.59 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 12.75
Evaluated at bid price : 12.75
Bid-YTW : 6.13 %
SLF.PR.H FixedReset Ins Non 1.68 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 15.75
Evaluated at bid price : 15.75
Bid-YTW : 5.76 %
TRP.PR.B FixedReset Disc 1.80 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 11.30
Evaluated at bid price : 11.30
Bid-YTW : 6.22 %
HSE.PR.E FixedReset Disc 1.82 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 17.36
Evaluated at bid price : 17.36
Bid-YTW : 7.38 %
MFC.PR.Q FixedReset Ins Non 1.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 18.61
Evaluated at bid price : 18.61
Bid-YTW : 5.69 %
BAM.PF.B FixedReset Disc 1.87 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 18.02
Evaluated at bid price : 18.02
Bid-YTW : 6.01 %
PWF.PR.A Floater 1.98 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 11.86
Evaluated at bid price : 11.86
Bid-YTW : 5.89 %
SLF.PR.J FloatingReset 2.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 12.75
Evaluated at bid price : 12.75
Bid-YTW : 6.02 %
Volume Highlights
Issue Index Shares
Traded
Notes
BMO.PR.T FixedReset Disc 127,985 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 16.54
Evaluated at bid price : 16.54
Bid-YTW : 5.70 %
HSE.PR.A FixedReset Disc 116,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 10.70
Evaluated at bid price : 10.70
Bid-YTW : 7.50 %
GWO.PR.P Deemed-Retractible 83,810 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-01-04
Maturity Price : 25.00
Evaluated at bid price : 25.00
Bid-YTW : 0.72 %
RY.PR.Z FixedReset Disc 75,658 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 16.88
Evaluated at bid price : 16.88
Bid-YTW : 5.58 %
BMO.PR.E FixedReset Disc 64,980 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 19.42
Evaluated at bid price : 19.42
Bid-YTW : 5.67 %
TRP.PR.E FixedReset Disc 62,940 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 15.80
Evaluated at bid price : 15.80
Bid-YTW : 6.18 %
There were 68 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
IAF.PR.G FixedReset Ins Non Quote: 18.35 – 18.83
Spot Rate : 0.4800
Average : 0.3510

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 18.35
Evaluated at bid price : 18.35
Bid-YTW : 5.87 %

IFC.PR.G FixedReset Ins Non Quote: 18.04 – 18.45
Spot Rate : 0.4100
Average : 0.2975

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 18.04
Evaluated at bid price : 18.04
Bid-YTW : 6.05 %

POW.PR.C Perpetual-Premium Quote: 25.60 – 25.89
Spot Rate : 0.2900
Average : 0.1809

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-01-04
Maturity Price : 25.00
Evaluated at bid price : 25.60
Bid-YTW : -12.88 %

TRP.PR.G FixedReset Disc Quote: 17.45 – 17.83
Spot Rate : 0.3800
Average : 0.2811

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 17.45
Evaluated at bid price : 17.45
Bid-YTW : 6.45 %

POW.PR.D Perpetual-Discount Quote: 23.09 – 23.35
Spot Rate : 0.2600
Average : 0.1698

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-12-05
Maturity Price : 22.81
Evaluated at bid price : 23.09
Bid-YTW : 5.48 %

PVS.PR.F SplitShare Quote: 25.40 – 25.69
Spot Rate : 0.2900
Average : 0.2055

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2024-09-30
Maturity Price : 25.00
Evaluated at bid price : 25.40
Bid-YTW : 4.45 %

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