Sorry this is late! I went out to watch a movie last night. Photography was excellent but I don’t think the story was told very well – too much Troy (if they want to make the prequel, The Iliad, I’m all in favour and will go see it!), too much of Penelope’s feelings, very odd harpies, not enough narrative. And, unforgivably, Odysseus didn’t tell the Cyclops his name was ‘Nobody’, one of the best jokes in classic literature. But it was worth the time and money – go see it, if you haven’t.
| 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 | 0.5374 % | 2,777.6 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.5374 % | 5,230.6 |
| Floater | 5.20 % | 5.29 % | 31,895 | 15.05 | 3 | 0.5374 % | 3,014.4 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1197 % | 3,624.9 |
| SplitShare | 4.66 % | 4.81 % | 50,048 | 2.50 | 4 | 0.1197 % | 4,328.9 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1197 % | 3,377.6 |
| Perpetual-Premium | 5.91 % | 5.96 % | 70,643 | 13.98 | 9 | -1.5948 % | 2,940.0 |
| Perpetual-Discount | 5.90 % | 5.96 % | 44,071 | 13.89 | 21 | -1.3466 % | 3,206.3 |
| FixedReset Disc | 5.65 % | 6.33 % | 80,083 | 13.33 | 21 | 0.3222 % | 3,372.5 |
| Insurance Straight | 5.77 % | 5.85 % | 60,560 | 14.14 | 19 | -1.3381 % | 3,116.9 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3222 % | 4,117.9 |
| FixedReset Prem | 5.98 % | 4.79 % | 76,736 | 2.00 | 27 | 0.0288 % | 2,641.3 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3222 % | 3,447.4 |
| FixedReset Ins Non | 5.27 % | 5.71 % | 51,949 | 13.20 | 14 | -0.7412 % | 3,238.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IFC.PR.G | FixedReset Ins Non | -5.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.64 Evaluated at bid price : 24.00 Bid-YTW : 6.52 % |
| GWO.PR.Y | Insurance Straight | -3.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 19.01 Evaluated at bid price : 19.01 Bid-YTW : 5.96 % |
| POW.PR.C | Perpetual-Premium | -3.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.69 Evaluated at bid price : 24.00 Bid-YTW : 6.05 % |
| IFC.PR.M | Perpetual-Premium | -3.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.47 Evaluated at bid price : 23.80 Bid-YTW : 5.80 % |
| GWO.PR.G | Insurance Straight | -3.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 21.49 Evaluated at bid price : 21.75 Bid-YTW : 6.00 % |
| PWF.PR.S | Perpetual-Discount | -2.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 20.23 Evaluated at bid price : 20.23 Bid-YTW : 6.04 % |
| FTS.PR.F | Perpetual-Discount | -2.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 21.51 Evaluated at bid price : 21.51 Bid-YTW : 5.77 % |
| ENB.PR.A | Perpetual-Discount | -2.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.53 Evaluated at bid price : 23.80 Bid-YTW : 5.84 % |
| FTS.PR.J | Perpetual-Discount | -2.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 20.75 Evaluated at bid price : 20.75 Bid-YTW : 5.79 % |
| GWO.PR.H | Insurance Straight | -2.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 5.96 % |
| GWO.PR.S | Insurance Straight | -2.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 21.78 Evaluated at bid price : 22.02 Bid-YTW : 5.99 % |
| CCS.PR.C | Insurance Straight | -1.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 21.97 Evaluated at bid price : 22.20 Bid-YTW : 5.65 % |
| MFC.PR.F | FixedReset Ins Non | -1.98 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 5.91 % |
| GWO.PR.I | Insurance Straight | -1.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 19.50 Evaluated at bid price : 19.50 Bid-YTW : 5.81 % |
| POW.PR.D | Perpetual-Discount | -1.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 21.21 Evaluated at bid price : 21.21 Bid-YTW : 5.92 % |
| PWF.PR.L | Perpetual-Discount | -1.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 21.33 Evaluated at bid price : 21.60 Bid-YTW : 6.00 % |
| BN.PF.C | Perpetual-Discount | -1.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 19.73 Evaluated at bid price : 19.73 Bid-YTW : 6.19 % |
| SLF.PR.D | Insurance Straight | -1.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 5.60 % |
| SLF.PR.E | Insurance Straight | -1.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 20.15 Evaluated at bid price : 20.15 Bid-YTW : 5.62 % |
| PWF.PR.R | Perpetual-Discount | -1.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 22.93 Evaluated at bid price : 23.20 Bid-YTW : 6.02 % |
| SLF.PR.C | Insurance Straight | -1.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 20.18 Evaluated at bid price : 20.18 Bid-YTW : 5.55 % |
| PWF.PR.E | Perpetual-Discount | -1.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 22.98 Evaluated at bid price : 23.25 Bid-YTW : 6.01 % |
| PWF.PF.A | Perpetual-Discount | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 19.56 Evaluated at bid price : 19.56 Bid-YTW : 5.86 % |
| POW.PR.I | Perpetual-Premium | -1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.66 Evaluated at bid price : 24.01 Bid-YTW : 5.89 % |
| PWF.PR.H | Perpetual-Premium | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.99 Evaluated at bid price : 24.24 Bid-YTW : 6.03 % |
| PWF.PR.O | Perpetual-Premium | -1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 24.19 Evaluated at bid price : 24.45 Bid-YTW : 6.03 % |
| PWF.PR.G | Perpetual-Premium | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 24.43 Evaluated at bid price : 24.67 Bid-YTW : 6.08 % |
| BN.PF.D | Perpetual-Discount | -1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 19.89 Evaluated at bid price : 19.89 Bid-YTW : 6.20 % |
| ENB.PR.P | FixedReset Disc | -1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.07 Evaluated at bid price : 24.01 Bid-YTW : 6.46 % |
| GWO.PR.R | Insurance Straight | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 20.44 Evaluated at bid price : 20.44 Bid-YTW : 5.91 % |
| POW.PR.H | Perpetual-Premium | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.77 Evaluated at bid price : 24.13 Bid-YTW : 5.96 % |
| GWO.PR.Z | Insurance Straight | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.93 Evaluated at bid price : 24.31 Bid-YTW : 5.88 % |
| PWF.PR.K | Perpetual-Discount | -1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 21.13 Evaluated at bid price : 21.13 Bid-YTW : 5.97 % |
| SLF.PR.H | FixedReset Ins Non | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.62 Evaluated at bid price : 24.80 Bid-YTW : 5.91 % |
| BN.PF.E | FixedReset Disc | -1.02 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2030-04-01 Maturity Price : 25.00 Evaluated at bid price : 24.35 Bid-YTW : 6.05 % |
| POW.PR.G | Perpetual-Discount | -1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.21 Evaluated at bid price : 23.51 Bid-YTW : 5.96 % |
| BN.PR.K | Floater | 1.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 14.70 Evaluated at bid price : 14.70 Bid-YTW : 5.33 % |
| BN.PF.G | FixedReset Prem | 1.32 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2030-07-01 Maturity Price : 25.00 Evaluated at bid price : 25.33 Bid-YTW : 5.29 % |
| BN.PF.A | FixedReset Prem | 1.64 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.48 Bid-YTW : 5.74 % |
| ENB.PR.D | FixedReset Disc | 1.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 22.96 Evaluated at bid price : 23.41 Bid-YTW : 6.48 % |
| BN.PR.T | FixedReset Disc | 2.90 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.00 Evaluated at bid price : 23.77 Bid-YTW : 6.26 % |
| BN.PR.Z | FixedReset Disc | 6.47 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.02 Bid-YTW : 6.03 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| ENB.PF.E | FixedReset Disc | 223,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 22.82 Evaluated at bid price : 23.85 Bid-YTW : 6.46 % |
| IFC.PR.C | FixedReset Ins Non | 135,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 23.93 Evaluated at bid price : 24.99 Bid-YTW : 6.37 % |
| TD.PF.I | FixedReset Prem | 78,110 | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.85 Bid-YTW : 4.07 % |
| MFC.PR.I | FixedReset Ins Non | 71,895 | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-09-19 Maturity Price : 25.00 Evaluated at bid price : 25.17 Bid-YTW : 5.45 % |
| BN.PF.F | FixedReset Prem | 61,800 | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-10-01 Maturity Price : 25.00 Evaluated at bid price : 24.97 Bid-YTW : 5.90 % |
| BN.PR.K | Floater | 50,930 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-09-28 Maturity Price : 14.70 Evaluated at bid price : 14.70 Bid-YTW : 5.33 % |
| 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 |
| PWF.PR.L | Perpetual-Discount | Quote: 21.60 – 23.55 Spot Rate : 1.9500 Average : 1.1066 YTW SCENARIO |
| GWO.PR.H | Insurance Straight | Quote: 20.50 – 22.00 Spot Rate : 1.5000 Average : 0.8938 YTW SCENARIO |
| POW.PR.C | Perpetual-Premium | Quote: 24.00 – 25.49 Spot Rate : 1.4900 Average : 0.9154 YTW SCENARIO |
| GWO.PR.Y | Insurance Straight | Quote: 19.01 – 20.50 Spot Rate : 1.4900 Average : 1.0045 YTW SCENARIO |
| GWO.PR.M | Insurance Straight | Quote: 24.55 – 25.80 Spot Rate : 1.2500 Average : 0.8074 YTW SCENARIO |
| GWO.PR.P | Insurance Straight | Quote: 23.37 – 24.44 Spot Rate : 1.0700 Average : 0.6873 YTW SCENARIO |
Hi,
Enduring a slow grind down for my perpetual preferred shares. Thinking of dumping them all. Are you guys holding on to them? My recent purchases are all underwater.
let us know what you decide to do..
Now the prices will fall more because prices are falling. Many will sell because they are terrified of losing even more. The succulent yield that tantalized buyers just a month ago has now become poisonous.
They are all shouting, please take this away from my hands…take it away at any cost. I don’t want these stinky perpetuals. I don’t want now close to 6% yield because US 30 year is yielding nearly 5.7%. Yields will soon reach 10%, 12% or more.
Well, what will you do with the money….well, I’ll buy some GICs and lose half to the government.
lol. yes. i don’t know why anyone would buy government bonds.
at 5.7% US 30 year, i definitely want at least 10% on my perpetuals. lol…
So let me ask, are you buying. Preferreds were my biggest loser today.
what i do or don’t do should have no relevance on what you should be doing. i have no idea what you are holding. what % prefs are of your total portfolio. what your risk tolerance is. what your objectives are etc. etc. etc.
if you have a problem figuring out what to do, you probably need professional advice. something that should not be given over a blog.
i think James offers a consulting service, but i’m not sure. you may want to contact him and ask.
Thanks for the recommendations. I am just curious what everyone is thinking in these crazy times. That’s why I ask. Trying to spark some thoughts from others. As for my financial situation, near retirement and don’t really need to work financially. Preferreds make up 20% of my net worth. Just upset with myself for continually buying perpetuals even though the writing was on the wall that rates will be going up.
I am a subscriber to Prefletter. As for consulting services, I will continue on my own.
[…] I’m pretty sure all this happened because Assiduous Reader Nestor has declared: […]
Hi Fsabbagh.
Pref prices are unpredictable at the best of times and often completely irrational, so it’s all a bit of a crap shoot.
FWIW, I reduced perpetuals down to about 15% of my pref holdings and moved the money into floaters and split shares. If perpetuals keep dropping I’ll probably just hang on to what’s left and wait for the eventual recovery.
James posts a monthly breakdown of which types of prefs he’s invested in – that’s a good place to look for guidance.
I still get paid my coupon regardless of stock price. Like most here, I am in the top tax bracket so I greatly prefer a 6% eligible dividend vs 6% income.
For a variety of reasons, preferreds are not the best place to be if your investment time horizon is short. If you can ride out the waves then they have historically paid well.
My thoughts exactly!
One of my favourite exhortations is ‘Shut up and clip your coupons!‘
i still prefer 10% … lol
I am personally underinvested in preferreds, and so I am viewing this situation as an emerging opportunity. The perpetuals are starting to look attractive.
The big question is, where do long term rates go from here? How much of the rise in US long term rates is the strong economy, higher inflation and the AI investment push, as opposed to concerns over the unsustainable US debt situation? What will Donald and his myrmidons do next? One of the few things that is highly probable is a declining US dollar through inflation and deliberate devaluation.
So who else looks at this as a future opportunity, and what are your thoughts?