The CIT restructuring continues to encourage speculation:
Since CIT Chief Executive Officer Jeffrey Peek started a $30 billion debt swap Oct. 1, the company’s notes due Nov. 3 have dropped 13 cents to 67 cents on the dollar, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Holders of the $500 million in notes are being offered 90 cents on the dollar in new debt and equity in an out-of-court exchange. They would get 70 cents on the dollar in bonds and new stock in a pre-packaged bankruptcy.
…
The CIT notes due Nov. 3 fell 2.5 cents to 67 cents on the dollar yesterday, Trace data show.The cost to protect CIT debt against default for five years has risen 4.7 percentage points to 38.7 percent upfront since Sept. 30, according to CMA DataVision.
It was a mild day for the Canadian preferred share market, with PerpetualDiscounts gaining 1bp, while FixedResets gained 2bp. Volume was steady.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| 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 | 0.0000 % | 1,477.4 |
| FixedFloater | 6.69 % | 4.74 % | 47,663 | 17.89 | 1 | -1.4554 % | 2,328.1 |
| Floater | 2.64 % | 3.09 % | 103,575 | 19.48 | 3 | 0.0000 % | 1,845.7 |
| OpRet | 4.87 % | -6.52 % | 115,996 | 0.09 | 15 | 0.0281 % | 2,294.1 |
| SplitShare | 6.41 % | 6.37 % | 461,873 | 3.93 | 2 | 0.3548 % | 2,063.9 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0281 % | 2,097.7 |
| Perpetual-Premium | 5.90 % | 5.90 % | 139,747 | 13.78 | 11 | -0.1283 % | 1,854.4 |
| Perpetual-Discount | 6.00 % | 6.05 % | 207,650 | 13.82 | 63 | 0.0102 % | 1,729.4 |
| FixedReset | 5.53 % | 4.28 % | 443,397 | 4.00 | 41 | 0.0219 % | 2,104.4 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| HSB.PR.D | Perpetual-Discount | -2.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-10-29 Maturity Price : 21.11 Evaluated at bid price : 21.11 Bid-YTW : 6.00 % |
| POW.PR.B | Perpetual-Discount | -1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-10-29 Maturity Price : 21.22 Evaluated at bid price : 21.22 Bid-YTW : 6.37 % |
| BAM.PR.G | FixedFloater | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-10-29 Maturity Price : 25.00 Evaluated at bid price : 16.25 Bid-YTW : 4.74 % |
| PWF.PR.M | FixedReset | -1.30 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-03-02 Maturity Price : 25.00 Evaluated at bid price : 26.50 Bid-YTW : 4.48 % |
| RY.PR.G | Perpetual-Discount | -1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-10-29 Maturity Price : 19.16 Evaluated at bid price : 19.16 Bid-YTW : 5.88 % |
| BNS.PR.Q | FixedReset | -1.16 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-11-24 Maturity Price : 25.00 Evaluated at bid price : 25.60 Bid-YTW : 4.34 % |
| PWF.PR.L | Perpetual-Discount | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-10-29 Maturity Price : 20.81 Evaluated at bid price : 20.81 Bid-YTW : 6.17 % |
| TD.PR.O | Perpetual-Discount | -1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-10-29 Maturity Price : 20.93 Evaluated at bid price : 20.93 Bid-YTW : 5.83 % |
| CIU.PR.A | Perpetual-Discount | 1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-10-29 Maturity Price : 19.26 Evaluated at bid price : 19.26 Bid-YTW : 6.09 % |
| GWO.PR.L | Perpetual-Discount | 1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-10-29 Maturity Price : 23.30 Evaluated at bid price : 23.45 Bid-YTW : 6.09 % |
| MFC.PR.A | OpRet | 1.78 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2015-12-18 Maturity Price : 25.00 Evaluated at bid price : 26.31 Bid-YTW : 3.25 % |
| BNS.PR.P | FixedReset | 2.42 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-05-25 Maturity Price : 25.00 Evaluated at bid price : 25.80 Bid-YTW : 4.04 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BNS.PR.X | FixedReset | 48,022 | TD bought 10,000 from National at 27.21. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-25 Maturity Price : 25.00 Evaluated at bid price : 27.22 Bid-YTW : 4.17 % |
| SLF.PR.F | FixedReset | 36,250 | RBC crossed 33,100 at 27.05. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-30 Maturity Price : 25.00 Evaluated at bid price : 26.98 Bid-YTW : 4.31 % |
| SLF.PR.B | Perpetual-Discount | 35,419 | RBC crossed 22,900 at 19.88. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-10-29 Maturity Price : 19.87 Evaluated at bid price : 19.87 Bid-YTW : 6.12 % |
| CM.PR.H | Perpetual-Discount | 28,537 | RBC crossed 17,700 at 20.04. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-10-29 Maturity Price : 19.95 Evaluated at bid price : 19.95 Bid-YTW : 6.06 % |
| RY.PR.B | Perpetual-Discount | 27,963 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-10-29 Maturity Price : 20.14 Evaluated at bid price : 20.14 Bid-YTW : 5.85 % |
| RY.PR.E | Perpetual-Discount | 27,875 | RBC crossed 15,000 at 19.40. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-10-29 Maturity Price : 19.34 Evaluated at bid price : 19.34 Bid-YTW : 5.83 % |
| There were 37 other index-included issues trading in excess of 10,000 shares. | |||