Standard & Poor’s has announced (although not yet on their official index news page):
the following index changes as a result of the semi-annual S&P/TSX Preferred Share Index Review. These changes will be effective at the open on Monday, July 20, 2009
| TXPR Revision 2009/7 Additions |
|||
| Ticker | HIMIPref™ SubIndex |
DBRS Rating |
Last Index Action |
| BMO.PR.P | FixedReset | Pfd-1(low) | |
| BCE.PR.F | Scraps (FixFloat) |
Pfd-3(high) | Deleted July 2008 |
| BAM.PR.P | FixedReset | Pfd-2(low) | |
| CCS.PR.D | Scraps (FixedReset) |
Pfd-3 | |
| CIU.PR.B | FixedReset | Pfd-2(high) | |
| FTS.PR.E | Scraps (OpRet) |
Pfd-3(high) | Deleted Jan. 2009 |
| HSB.PR.E | FixedReset | Pfd-2(high) | |
| IAG.PR.C | FixedReset | Pfd-2(high) | |
| MFC.PR.E | FixedReset | Pfd-1(low) | |
| MFC.PR.D | FixedReset | Pfd-1(low) | |
| RY.PR.R | FixedReset | Pfd-1(low) | |
| RY.PR.X | FixedReset | Pfd-1(low) | |
| TD.PR.G | FixedReset | Pfd-1(low) | |
| WN.PR.E | Scraps (PerpDis) |
Pfd-3 | |
| WN.PR.C | Scraps (PerpDis) |
Pfd-3 | |
| TXPR Revision 2009/7 Deletions |
||||
| Ticker | HIMIPref™ SubIndex |
DBRS Rating |
Last Index Action |
|
| BMO.PR.L | PerpDis | Pfd-1(low) | Added Jan. 2009 | |
| BCE.PR.C | Scraps (FixFloat) |
Pfd-3(high) | ||
| BAM.PR.O | OpRet | Pfd-2(low) | Added Jan. 2009 |
|
| FTS.PR.C | Scraps (OpRet) |
Pfd-3(high) | Added Jan. 2009 |
|
| MFC.PR.B | PerpDis | Pfd-1(low) | ||
| MFC.PR.C | PerpDis | Pfd-1(low) | ||
| NSI.PR.D | Scraps (OpRet) |
Pfd-2(low) | Added Jan. 2009 |
|
| POW.PR.C | PerpDis | Pfd-2(high) | Added July 2007 |
|
| RY.PR.B | PerpDis | Pfd-1(low) | ||
| RY.PR.W | PerpDis | Pfd-1(low) | ||
| TD.PR.S | FixedReset | Pfd-1(low) | Added July 2008 |
|
| TCA.PR.Y | PerpDis | Pfd-2(low) | ||
| WN.PR.A | PerpDis | Pfd-3 | ||
| "Deletions" without a listed "Prior Action" are Originals | ||||
The net effect of these changes (counting solely by issue count, not by the undisclosed index weight; and counting HIMIPref™ "Scraps" issues according to their bracketted ‘would be’ subindex) are:
| TXPR Net Changes by Issue July 2009 |
|||
| Category | Adds | Deletions | Net |
| Class | |||
| FixedReset | 11 | 1 | +10 |
| FixFloat | 1 | 1 | 0 |
| OpRet | 1 | 3 | -2 |
| PerpDis | 2 | 8 | -6 |
| Credit | |||
| Pfd-1(low) | 6 | 6 | 0 |
| Pfd-2(high) | 3 | 1 | +2 |
| Pfd-2(low) | 1 | 3 | -2 |
| Pfd-3(high) | 2 | 2 | 0 |
| Pfd-3 | 3 | 1 | +2 |
All in all – and bearing in mind that I am not looking at the (unavailable) weightings, only at the issue counts – it looks like the index is increasingly dominated by the FixedReset structure, and that credit quality has declined marginally.
Thank you S&P! I LOVE indices that are easy to beat! The churning helps a lot, too … keep it going!
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