| 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 | -0.1642 % | 2,633.5 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1642 % | 4,959.2 |
| Floater | 5.49 % | 5.61 % | 35,999 | 14.50 | 3 | -0.1642 % | 2,858.0 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0952 % | 3,635.0 |
| SplitShare | 4.79 % | 4.99 % | 64,426 | 2.65 | 5 | 0.0952 % | 4,341.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0952 % | 3,387.0 |
| Perpetual-Premium | 5.66 % | -5.70 % | 56,230 | 0.09 | 7 | 0.0844 % | 3,093.4 |
| Perpetual-Discount | 5.50 % | 5.53 % | 43,388 | 14.57 | 27 | 0.2127 % | 3,435.7 |
| FixedReset Disc | 5.62 % | 5.86 % | 99,403 | 13.95 | 19 | -0.4754 % | 3,381.3 |
| Insurance Straight | 5.37 % | 5.42 % | 49,235 | 14.67 | 20 | -0.0151 % | 3,348.3 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4754 % | 4,128.6 |
| FixedReset Prem | 5.88 % | 4.27 % | 80,046 | 2.15 | 29 | -0.1126 % | 2,673.9 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4754 % | 3,456.4 |
| FixedReset Ins Non | 5.22 % | 5.11 % | 58,549 | 3.08 | 14 | -0.1990 % | 3,273.6 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| GWO.PR.Y | Insurance Straight | -5.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 5.69 % |
| MFC.PR.J | FixedReset Ins Non | -5.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 23.61 Evaluated at bid price : 24.82 Bid-YTW : 5.90 % |
| BN.PR.R | FixedReset Disc | -4.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 22.20 Evaluated at bid price : 22.86 Bid-YTW : 6.01 % |
| BN.PR.X | FixedReset Disc | -3.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 21.20 Evaluated at bid price : 21.20 Bid-YTW : 5.91 % |
| BN.PF.E | FixedReset Disc | -2.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 22.96 Evaluated at bid price : 24.17 Bid-YTW : 5.80 % |
| MFC.PR.K | FixedReset Ins Non | -2.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 23.75 Evaluated at bid price : 25.60 Bid-YTW : 5.38 % |
| BN.PF.A | FixedReset Prem | -1.72 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.75 Bid-YTW : 5.52 % |
| PWF.PR.R | Perpetual-Discount | -1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 24.21 Evaluated at bid price : 24.50 Bid-YTW : 5.63 % |
| MFC.PR.N | FixedReset Ins Non | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 23.19 Evaluated at bid price : 24.72 Bid-YTW : 5.46 % |
| BN.PF.F | FixedReset Prem | -1.26 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-10-01 Maturity Price : 25.00 Evaluated at bid price : 25.14 Bid-YTW : 5.80 % |
| BN.PR.M | Perpetual-Discount | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 21.29 Evaluated at bid price : 21.29 Bid-YTW : 5.64 % |
| CU.PR.G | Perpetual-Discount | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 5.38 % |
| NA.PR.E | FixedReset Prem | 1.15 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-05-15 Maturity Price : 25.00 Evaluated at bid price : 26.35 Bid-YTW : 2.57 % |
| IFC.PR.K | Insurance Straight | 1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 23.96 Evaluated at bid price : 24.45 Bid-YTW : 5.40 % |
| GWO.PR.N | FixedReset Ins Non | 1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 20.25 Evaluated at bid price : 20.25 Bid-YTW : 5.46 % |
| SLF.PR.E | Insurance Straight | 1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 21.97 Evaluated at bid price : 22.20 Bid-YTW : 5.11 % |
| CU.PR.C | FixedReset Prem | 1.51 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-06-01 Maturity Price : 25.00 Evaluated at bid price : 25.50 Bid-YTW : 3.73 % |
| IFC.PR.I | Insurance Straight | 1.61 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-03-31 Maturity Price : 25.00 Evaluated at bid price : 25.20 Bid-YTW : 5.26 % |
| PWF.PR.A | Floater | 1.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 14.50 Evaluated at bid price : 14.50 Bid-YTW : 5.38 % |
| BN.PR.N | Perpetual-Discount | 1.90 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 5.59 % |
| PWF.PF.A | Perpetual-Discount | 1.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 20.70 Evaluated at bid price : 20.70 Bid-YTW : 5.46 % |
| MFC.PR.L | FixedReset Ins Non | 2.48 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-06-20 Maturity Price : 25.00 Evaluated at bid price : 25.60 Bid-YTW : 5.11 % |
| IFC.PR.A | FixedReset Ins Non | 2.59 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 22.96 Evaluated at bid price : 23.40 Bid-YTW : 5.26 % |
| ENB.PF.E | FixedReset Disc | 4.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 23.04 Evaluated at bid price : 24.40 Bid-YTW : 5.90 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| ENB.PR.D | FixedReset Disc | 129,658 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 23.63 Evaluated at bid price : 24.02 Bid-YTW : 5.84 % |
| ENB.PR.F | FixedReset Disc | 109,151 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 23.38 Evaluated at bid price : 24.40 Bid-YTW : 5.86 % |
| ENB.PR.N | FixedReset Prem | 57,303 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 23.73 Evaluated at bid price : 25.72 Bid-YTW : 5.81 % |
| BN.PF.D | Perpetual-Discount | 50,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 21.49 Evaluated at bid price : 21.75 Bid-YTW : 5.68 % |
| PWF.PR.E | Perpetual-Discount | 25,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-07-24 Maturity Price : 24.46 Evaluated at bid price : 24.70 Bid-YTW : 5.58 % |
| BN.PF.M | FixedReset Prem | 20,400 | YTW SCENARIO Maturity Type : Call Maturity Date : 2031-01-01 Maturity Price : 25.00 Evaluated at bid price : 25.77 Bid-YTW : 4.99 % |
| There were 4 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.Y | Insurance Straight | Quote: 20.00 – 21.30 Spot Rate : 1.3000 Average : 0.7635 YTW SCENARIO |
| BN.PR.R | FixedReset Disc | Quote: 22.86 – 24.10 Spot Rate : 1.2400 Average : 0.7806 YTW SCENARIO |
| MFC.PR.J | FixedReset Ins Non | Quote: 24.82 – 26.30 Spot Rate : 1.4800 Average : 1.0858 YTW SCENARIO |
| BN.PR.X | FixedReset Disc | Quote: 21.20 – 21.93 Spot Rate : 0.7300 Average : 0.4455 YTW SCENARIO |
| GWO.PR.Q | Insurance Straight | Quote: 23.50 – 24.08 Spot Rate : 0.5800 Average : 0.3692 YTW SCENARIO |
| BN.PF.E | FixedReset Disc | Quote: 24.17 – 24.80 Spot Rate : 0.6300 Average : 0.4199 YTW SCENARIO |
Hello,
Sorry for this lack of knowledge but I have a (probably dumb) question.
I’m looking at the interchangeable series NPI.PR.A / NPI.PR.B.
I own the latter and I’m wondering the following:
=> If at the next reset date, A gets called, can I still choose to convert B to A and gets $25 back or no, in this case, B remains outstanding and I won’t have a conversion right?
Thank you.
If A gets called, B will also be called as they are interchangeable. You will get $25 either way plus the final dividend (assuming that you are holding it prior to ex-div date, which you obviously are).
It appears as though Google AI disagrees.
It seems like if A gets called, you cannot convert B => A since it no longer exists and therefore, the issuer can decide to leave B outstanding.
Although they are interchangeable, it is still 2 different series.
Maybe it is the reason why B is much cheaper than A…
Yomgui, the difference in price is due to the difference in dividend. more or less. NPI.a is guaranteed at 0.356/q until reset in 2030 and NPI.b is a floater that pays 0.31/q but if rates fall, dividend will drop. if rates rise, dividend will increase.
they are the same. if A gets taken out, so will B.
if rates do not change in 5 years you would have made 92 cents more on the A vs B. which explains part of the price difference. the other may be the lack of liquidity.
Thanks!
Since I don’t think expectations are for much lower rates in the future, it is not outrageous to make the assumption that the BOC interest rate will stay the same (= it can realistically go up or down).
However, current yield is like 5.45% for B and 5.69% for A so not a big gap but A is $25.1 and B $22.8.
Liquidity is a factor but this 10% price difference does not make much sense imo
“Yes, NPI.PR.A can get called (redeemed) while NPI.PR.B is left outstanding, because they represent two distinct, independently managed series of preferred shares even though they are interconvertible.”
Google AI… is giving me headache!
“Yes, NPI.PR.A can get called (redeemed) while NPI.PR.B is left outstanding, because they represent two distinct, independently managed series of preferred shares even though they are interconvertible.”
I don’t see anything wrong with this statement. It should be noted that the opposite is explicitly allowed: NPI.PR.A is redeemable only on Exchange Dates at $25, while NPI.PR.B is redeemable on Exchange Dates at $25 and at any other time at $25.50. This is a common feature for all FloatingResets of which I am aware, but I’ve never done an exhaustive study, so feel free to embarrass me by finding an exception.
So sure, if three-month bills spike to 25% a la 1980, companies may well decide to pay a $0.50 premium to redeem their FloatingResets while being prohibited from redeeming the FixedReset counterparts.
The complications get interesting if the company tries to redeem only one of the two series on an Exchange Date; one can concoct many interesting scenarios, particularly when considering the ‘1-million shares minimum rule’ as part of the process; but it all hinges on whether conversions or redemption are processed first. I do not believe that this is specified in the various prospectuses and so it will be left to the company to make a good faith decision about the outcome and then await the lawsuits; but not only do I not see any reason for a company to want to do this, I don’t see any reason to spend a lot of money on a lawsuit.
Thank you so much for weighing in on this topic.
I agree that the statement from Google AI is clear but it is just that it went opposite to what my fellow investors were assuming.
So this could be a grey area…
Buying NPI.PR.B under the assumption that I will have the option to convert this series to A in 2030 may therefore be ill-advised since it is not impossible to see A get called and not B.