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, January 18, 2010
| TXPR Revision 2010/1 Additions |
|||
| Ticker | HIMIPref™ SubIndex |
DBRS Rating |
Last Index Action |
| ACO.PR.A | OpRet | Pfd-2(low) | Deleted 2009-1 |
| CZP.PR.B | Scraps (FixedReset) |
Pfd-3 | |
| DC.PR.A | Scraps (OpRet) |
Pfd-3(low) | |
| DC.PR.B | Scraps (FixedReset) |
Pfd-3(low) | |
| DW.PR.A | Scraps (OpRet) |
Pfd-3 | Deleted 2009-1 |
| FFH.PR.C | Scraps (FixedReset) |
Pfd-3(low) | |
| GWO.PR.J | FixedReset | Pfd-1(low) | |
| IAG.PR.E | Perpetual-Premium | Pfd-2(high) | |
| IGM.PR.B | Perpetual-Discount | Pfd-2(high) | |
| NA.PR.O | FixedReset | Pfd-2 | |
| POW.PR.C | Perpetual-Discount | Pfd-2(high) | Deleted 2009-7 |
| TCL.PR.D | Scraps (FixedReset) |
Pfd-3(high) | |
| TRP.PR.A | FixedReset | Pfd-2(low) | |
| YPG.PR.C | Scraps (FixedReset) |
Pfd-3(high) | |
| TXPR Revision 2010/1 Deletions |
|||
| Ticker | HIMIPref™ SubIndex |
DBRS Rating |
Last Index Action |
| CL.PR.B | Perpetual-Premium | Pfd-1(low) | Added 2008-7 |
| ENB.PR.A | Perpetual-Premium | Pfd-2(low) | Added 2008-7 |
| NA.PR.N | FixedReset | Pfd-2 | Added 2008-7 |
| TCA.PR.X | Perpetual-Discount | Pfd-2(low) | Added 2009-1 |
| W.PR.J | Perpetual-Discount | Pfd-2(low) | Added 2009-1 |
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 January 2010 |
|||
| Category | Adds | Deletions | Net |
| Class | |||
| FixedReset | 8 | 1 | +7 |
| OpRet | 3 | 0 | +3 |
| PerpDis | 2 | 2 | 0 |
| PerpPrem | 1 | 2 | -1 |
| Credit | |||
| Pfd-1(low) | 1 | 1 | 0 |
| Pfd-2(high) | 3 | 0 | +3 |
| Pfd-2 | 1 | 1 | 0 |
| Pfd-2(low) | 2 | 3 | +1 |
| Pfd-3(high) | 2 | 0 | +2 |
| Pfd-3 | 2 | 0 | +2 |
| Pfd-3(low) | 3 | 0 | +3 |
Note: Sorry, folks, but with PrefLetter due out this weekend (among other things), I’m a little pushed for time! I’ll fill in the blanks as soon as I can … but just off the top of my head, it looks like fully half of the additions are below investment grade.
Update, 2010-1-9: Done!
Update, 2010-1-11: It should be noted that the summary tables do not reflect the year-end deletion of the issues that were redeemed, GWO.PR.X (Pfd-1(low), OpRet) and IGM.PR.A (Pfd-2(high), Opret). Thus, the credit quality decline from the last revision is actually more severe than may be inferred from the summary tables of this revision.
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