PrefBlog

Market Action

New Issue: PRM SplitShare, 5-Year, 5%

Harvest Portfolios Group Inc. has announced:

that Big Pharma Split Corp. (the “Company”) has completed its initial public offering (the “Offering”) of 1,360,000 Preferred Shares and 1,360,000 Class A Shares for aggregate gross proceeds of $34 million. The Company has granted the Agents (as defined below) an over-allotment option, exercisable for a period of 30 days from today’s date, to purchase up to an additional 204,000 Preferred Shares and up to an additional 204,000 Class A Shares. The Class A Shares and the Preferred Shares will commence trading today on the Toronto Stock Exchange under the symbols “PRM” and “PRM.PR.A”, respectively.

The Company will invest in an initially equally-weighted portfolio (the “Portfolio”) of ten issuers comprised of equity securities selected by Harvest from a universe of pharmaceutical issuers that at the time of investment and immediately following each semi-annual reconstitution and rebalancing: (i) are listed on a North American exchange; (ii) pay a dividend; and (iii) have options in respect of its equity securities that, in the opinion of Harvest, are sufficiently liquid to permit Harvest to write options in respect of such securities (the “Investable Universe”). The Portfolio will be comprised primarily of the largest (as determined by market capitalization calculated in US$) pharmaceutical issuers in the Investable Universe. In order to seek to generate additional returns, Harvest may write call options each month in respect to some or all of the equity securities in the Portfolio.

The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.125 per Preferred Share ($0.50 per annum or 5.0% per annum on the $10.00 issue price) until December 31, 2022 (the “Maturity Date”) and to return of the original issue price to holders on the Maturity Date.

The investment objectives for the Class A Shares are to provide their holders with regular monthly cash distributions targeted to be $0.1031 per Class A Share ($1.2372 per annum or 8.25% per annum on the $15.00 issue price) and with the opportunity for growth in net asset value per Class A Share.

Harvest is the manager, portfolio manager and promoter of the Company.

The syndicate of agents for the Offering is being co-led by BMO Capital Markets, CIBC Capital Markets and Scotiabank and also includes National Bank Financial Inc., Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Echelon Wealth Partners Inc., Industrial Alliance Securities Inc., Mackie Research Capital Corporation and PI Financial Corp. (collectively, the “Agents”).

For additional information: Please visit www.harvestportfolios.com, e-mail info@harvestportfolios.com or call toll free 1-866-998-8298.

The SplitShare Corporation has its own web-page.

The preferred shares have been rated Pfd-3(high) by DBRS:

The Class A Share distributions are subject to the asset coverage test, which does not permit any distributions to holders of the Class A Shares if the net asset value (NAV) of the Company falls below $15.00 or if the dividends of the Preferred Shares are in arrears.
…
Based on current asset coverage of 2.4 times (x), the net asset value of the Company would have to fall by approximately 57.5% for the holders of the Preferred Shares to be in a loss position. The initial dividend coverage ratio is 0.4x. To supplement Portfolio income, the manager will engage in call option writing.

On maturity, the holders of the Preferred Shares will be entitled to the value of the Portfolio up to the face value of the Preferred Shares and any accrued but unpaid dividends in priority to the holders of the Class A Shares.
The credit quality of the Portfolio is strong, though it is concentrated in the health-care sector. Nevertheless, the underlying companies from the indicative Portfolio have a consistent dividend paying history. The Company’s NAV may be sensitive to volatility of prices of the Portfolio securities as well as changes in the dividend policies of the underlying companies and the health-care industry-specific risks. In assigning the Pfd-3 (high) rating, DBRS has taken into account (1) the level of downside protection available to holders of the Preferred Shares, (2) the Portfolio quality, (3) potential foreign-exchange risk because the income received on the Portfolio will not be hedged and (4) stated distributions to the Class A Shares.

This issue will not be tracked by HIMIPref™ as it is too small to allow for reasonable expectations of efficient tradability. But here’s hoping they build it up!

Market Action

November 23, 2017

Chris Bourke of Bloomberg wrote a piece about Australia’s housing market that interested me because of Canada’s presence in the charts:

Click for Big

That represents the failure of Canada’s housing policy since 2006 – the vast expansion of the CMHC insurance books has enabled the banks – through lower risk and, importantly, lower risk weights feeding into their capital ratios – to load up on mortgages. It astonishes me that there are some people who are surprised by the housing bubble in Toronto and Vancouver; I am flabbergasted that there are some who blame foreign money for the problem.

The other chart I liked was:

Click for Big

Wow. In Toronto, you can’t throw a brick without hitting a crane – Sydney must be something else!

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	-0.2626 %	2,452.0
FixedFloater	0.00 %	0.00 %	0	0.00	0	-0.2626 %	4,499.3
Floater	3.69 %	3.91 %	99,610	17.55	3	-0.2626 %	2,593.0
OpRet	0.00 %	0.00 %	0	0.00	0	0.0987 %	3,117.2
SplitShare	4.73 %	4.14 %	53,442	1.10	6	0.0987 %	3,722.6
Interest-Bearing	0.00 %	0.00 %	0	0.00	0	0.0987 %	2,904.5
Perpetual-Premium	5.34 %	4.69 %	45,043	0.16	20	-0.0020 %	2,843.2
Perpetual-Discount	5.19 %	5.23 %	62,934	15.06	15	0.0338 %	3,025.8
FixedReset	4.22 %	4.20 %	152,585	4.41	98	-0.1509 %	2,504.6
Deemed-Retractible	5.01 %	5.31 %	87,901	5.91	30	-0.0450 %	2,947.1
FloatingReset	2.70 %	2.77 %	41,823	3.96	8	-0.1353 %	2,686.5

Performance Highlights
Issue	Index	Change	Notes
PWF.PR.P	FixedReset	-7.36 %	Clearly a bogus quote (16.75-18.10), since the low for the day was 18.00 (three trades of 100 shares each, timestamped 3:36). I have not checked whether this lamentable state of affairs is due to inadequate Toronto Stock Exchange reporting or inadequate Toronto Stock Exchange supervision of market-makers. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-23 Maturity Price : 16.75 Evaluated at bid price : 16.75 Bid-YTW : 4.68 %
IFC.PR.A	FixedReset	-1.24 %	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.91 Bid-YTW : 7.24 %
W.PR.K	FixedReset	-1.02 %	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-01-15 Maturity Price : 25.00 Evaluated at bid price : 26.15 Bid-YTW : 3.90 %
VNR.PR.A	FixedReset	1.04 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-23 Maturity Price : 22.89 Evaluated at bid price : 24.25 Bid-YTW : 4.63 %

Volume Highlights
Issue	Index	Shares Traded	Notes
CU.PR.E	Perpetual-Discount	115,800	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-23 Maturity Price : 23.93 Evaluated at bid price : 24.41 Bid-YTW : 5.01 %
NA.PR.A	FixedReset	62,700	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-08-15 Maturity Price : 25.00 Evaluated at bid price : 26.77 Bid-YTW : 3.42 %
GWO.PR.N	FixedReset	24,000	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.43 Bid-YTW : 7.44 %
TRP.PR.J	FixedReset	22,540	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-31 Maturity Price : 25.00 Evaluated at bid price : 26.70 Bid-YTW : 3.42 %
PWF.PR.Z	Perpetual-Discount	14,436	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-23 Maturity Price : 24.39 Evaluated at bid price : 24.78 Bid-YTW : 5.23 %
BMO.PR.D	FixedReset	13,190	YTW SCENARIO Maturity Type : Call Maturity Date : 2022-08-25 Maturity Price : 25.00 Evaluated at bid price : 25.56 Bid-YTW : 3.90 %
There were 3 other index-included issues trading in excess of 10,000 shares.

Wide Spread Highlights
Issue	Index	Quote Data and Yield Notes
PWF.PR.P	FixedReset	Quote: 16.75 – 18.10 Spot Rate : 1.3500 Average : 0.7509 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-23 Maturity Price : 16.75 Evaluated at bid price : 16.75 Bid-YTW : 4.68 %
MFC.PR.L	FixedReset	Quote: 22.70 – 23.00 Spot Rate : 0.3000 Average : 0.1832 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.70 Bid-YTW : 5.39 %
TRP.PR.G	FixedReset	Quote: 24.23 – 24.75 Spot Rate : 0.5200 Average : 0.4106 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-23 Maturity Price : 23.08 Evaluated at bid price : 24.23 Bid-YTW : 4.58 %
W.PR.K	FixedReset	Quote: 26.15 – 26.50 Spot Rate : 0.3500 Average : 0.2650 YTW SCENARIO Maturity Type : Call Maturity Date : 2021-01-15 Maturity Price : 25.00 Evaluated at bid price : 26.15 Bid-YTW : 3.90 %
SLF.PR.C	Deemed-Retractible	Quote: 22.10 – 22.32 Spot Rate : 0.2200 Average : 0.1519 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.10 Bid-YTW : 6.66 %
IFC.PR.A	FixedReset	Quote: 19.91 – 20.20 Spot Rate : 0.2900 Average : 0.2252 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.91 Bid-YTW : 7.24 %

Market Action

November 22, 2017

PerpetualDiscounts now yield 5.23%, equivalent to 6.80% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 3.80%, so the pre-tax, interest-equivalent spread (in this context, the “Seniority Spread”) is now about 300bp, a slight (and perhaps spurious) narrowing from the 305bp reported November 15

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	0.0876 %	2,458.4
FixedFloater	0.00 %	0.00 %	0	0.00	0	0.0876 %	4,511.1
Floater	3.68 %	3.90 %	98,567	17.57	3	0.0876 %	2,599.8
OpRet	0.00 %	0.00 %	0	0.00	0	0.0593 %	3,114.1
SplitShare	4.74 %	4.52 %	66,104	4.33	6	0.0593 %	3,718.9
Interest-Bearing	0.00 %	0.00 %	0	0.00	0	0.0593 %	2,901.7
Perpetual-Premium	5.34 %	2.46 %	44,925	0.11	20	0.1275 %	2,843.3
Perpetual-Discount	5.19 %	5.23 %	64,539	15.04	15	0.0734 %	3,024.8
FixedReset	4.21 %	4.19 %	155,101	4.41	98	0.1274 %	2,508.4
Deemed-Retractible	5.01 %	5.28 %	88,488	5.91	30	0.1625 %	2,948.4
FloatingReset	2.70 %	2.74 %	43,079	3.96	8	0.1463 %	2,690.1

Performance Highlights
Issue	Index	Change	Notes
VNR.PR.A	FixedReset	-1.03 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-22 Maturity Price : 22.78 Evaluated at bid price : 24.00 Bid-YTW : 4.68 %
MFC.PR.B	Deemed-Retractible	1.46 %	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.94 Bid-YTW : 6.06 %
HSE.PR.A	FixedReset	1.54 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-22 Maturity Price : 17.84 Evaluated at bid price : 17.84 Bid-YTW : 4.57 %

Volume Highlights
Issue	Index	Shares Traded	Notes
RY.PR.I	FixedReset	466,895	YTW SCENARIO Maturity Type : Call Maturity Date : 2019-02-24 Maturity Price : 25.00 Evaluated at bid price : 25.01 Bid-YTW : 3.49 %
RY.PR.Q	FixedReset	289,136	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-24 Maturity Price : 25.00 Evaluated at bid price : 26.90 Bid-YTW : 3.20 %
TRP.PR.J	FixedReset	257,205	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-31 Maturity Price : 25.00 Evaluated at bid price : 26.67 Bid-YTW : 3.45 %
TD.PF.G	FixedReset	187,549	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-30 Maturity Price : 25.00 Evaluated at bid price : 27.00 Bid-YTW : 3.14 %
NA.PR.A	FixedReset	178,206	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-08-15 Maturity Price : 25.00 Evaluated at bid price : 26.89 Bid-YTW : 3.29 %
SLF.PR.H	FixedReset	76,912	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.41 Bid-YTW : 5.11 %
There were 23 other index-included issues trading in excess of 10,000 shares.

Wide Spread Highlights
Issue	Index	Quote Data and Yield Notes
VNR.PR.A	FixedReset	Quote: 24.00 – 24.40 Spot Rate : 0.4000 Average : 0.2975 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-22 Maturity Price : 22.78 Evaluated at bid price : 24.00 Bid-YTW : 4.68 %
MFC.PR.R	FixedReset	Quote: 26.18 – 26.39 Spot Rate : 0.2100 Average : 0.1517 YTW SCENARIO Maturity Type : Call Maturity Date : 2022-03-19 Maturity Price : 25.00 Evaluated at bid price : 26.18 Bid-YTW : 3.59 %
BMO.PR.Y	FixedReset	Quote: 24.79 – 25.00 Spot Rate : 0.2100 Average : 0.1523 YTW SCENARIO Maturity Type : Call Maturity Date : 2020-08-25 Maturity Price : 25.00 Evaluated at bid price : 24.79 Bid-YTW : 4.14 %
CU.PR.I	FixedReset	Quote: 26.00 – 26.25 Spot Rate : 0.2500 Average : 0.1956 YTW SCENARIO Maturity Type : Call Maturity Date : 2020-12-01 Maturity Price : 25.00 Evaluated at bid price : 26.00 Bid-YTW : 3.08 %
RY.PR.A	Deemed-Retractible	Quote: 25.42 – 25.58 Spot Rate : 0.1600 Average : 0.1106 YTW SCENARIO Maturity Type : Call Maturity Date : 2017-12-22 Maturity Price : 25.00 Evaluated at bid price : 25.42 Bid-YTW : -15.50 %
BAM.PF.J	FixedReset	Quote: 25.88 – 26.15 Spot Rate : 0.2700 Average : 0.2217 YTW SCENARIO Maturity Type : Call Maturity Date : 2022-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.88 Bid-YTW : 4.20 %

Market Action

November 21, 2017

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	0.4843 %	2,456.3
FixedFloater	0.00 %	0.00 %	0	0.00	0	0.4843 %	4,507.2
Floater	3.68 %	3.90 %	97,362	17.57	3	0.4843 %	2,597.5
OpRet	0.00 %	0.00 %	0	0.00	0	0.4971 %	3,112.3
SplitShare	4.74 %	4.53 %	50,368	4.33	6	0.4971 %	3,716.7
Interest-Bearing	0.00 %	0.00 %	0	0.00	0	0.4971 %	2,899.9
Perpetual-Premium	5.35 %	1.78 %	44,224	0.11	20	0.0451 %	2,839.6
Perpetual-Discount	5.20 %	5.22 %	66,720	15.08	15	0.3398 %	3,022.6
FixedReset	4.22 %	4.20 %	151,634	4.35	98	0.2440 %	2,505.2
Deemed-Retractible	5.02 %	5.31 %	88,261	5.92	30	0.0437 %	2,943.7
FloatingReset	2.70 %	2.76 %	43,378	3.96	8	0.0922 %	2,686.2

Performance Highlights
Issue	Index	Change	Notes
MFC.PR.B	Deemed-Retractible	-1.31 %	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.61 Bid-YTW : 6.30 %
TRP.PR.G	FixedReset	1.08 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-21 Maturity Price : 23.09 Evaluated at bid price : 24.26 Bid-YTW : 4.58 %
BAM.PR.X	FixedReset	1.12 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-21 Maturity Price : 18.10 Evaluated at bid price : 18.10 Bid-YTW : 4.60 %
PVS.PR.F	SplitShare	1.15 %	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2024-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.30 Bid-YTW : 4.59 %
BAM.PF.D	Perpetual-Discount	1.23 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-21 Maturity Price : 22.66 Evaluated at bid price : 23.01 Bid-YTW : 5.39 %
MFC.PR.N	FixedReset	1.24 %	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.69 Bid-YTW : 4.76 %
VNR.PR.A	FixedReset	1.38 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-21 Maturity Price : 22.89 Evaluated at bid price : 24.25 Bid-YTW : 4.62 %
TD.PF.D	FixedReset	1.40 %	YTW SCENARIO Maturity Type : Call Maturity Date : 2020-07-31 Maturity Price : 25.00 Evaluated at bid price : 24.64 Bid-YTW : 4.27 %
PWF.PR.A	Floater	1.58 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-21 Maturity Price : 16.76 Evaluated at bid price : 16.76 Bid-YTW : 3.36 %

Volume Highlights
Issue	Index	Shares Traded	Notes
TD.PF.D	FixedReset	130,775	YTW SCENARIO Maturity Type : Call Maturity Date : 2020-07-31 Maturity Price : 25.00 Evaluated at bid price : 24.64 Bid-YTW : 4.27 %
BNS.PR.H	FixedReset	118,127	YTW SCENARIO Maturity Type : Call Maturity Date : 2022-01-26 Maturity Price : 25.00 Evaluated at bid price : 26.56 Bid-YTW : 3.34 %
BAM.PF.B	FixedReset	78,450	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-21 Maturity Price : 23.67 Evaluated at bid price : 24.10 Bid-YTW : 4.49 %
MFC.PR.N	FixedReset	68,771	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.69 Bid-YTW : 4.76 %
MFC.PR.M	FixedReset	51,227	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.54 Bid-YTW : 4.94 %
IFC.PR.F	Deemed-Retractible	40,417	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.35 Bid-YTW : 5.34 %
There were 20 other index-included issues trading in excess of 10,000 shares.

Wide Spread Highlights
Issue	Index	Quote Data and Yield Notes
HSE.PR.A	FixedReset	Quote: 17.57 – 18.09 Spot Rate : 0.5200 Average : 0.3663 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-21 Maturity Price : 17.57 Evaluated at bid price : 17.57 Bid-YTW : 4.64 %
IFC.PR.C	FixedReset	Quote: 23.50 – 23.85 Spot Rate : 0.3500 Average : 0.2325 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.50 Bid-YTW : 4.88 %
MFC.PR.B	Deemed-Retractible	Quote: 22.61 – 22.90 Spot Rate : 0.2900 Average : 0.1970 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.61 Bid-YTW : 6.30 %
MFC.PR.K	FixedReset	Quote: 23.09 – 23.45 Spot Rate : 0.3600 Average : 0.2686 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.09 Bid-YTW : 5.14 %
RY.PR.M	FixedReset	Quote: 24.34 – 24.63 Spot Rate : 0.2900 Average : 0.2042 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-21 Maturity Price : 23.12 Evaluated at bid price : 24.34 Bid-YTW : 4.23 %
POW.PR.A	Perpetual-Premium	Quote: 25.40 – 25.69 Spot Rate : 0.2900 Average : 0.2074 YTW SCENARIO Maturity Type : Call Maturity Date : 2017-12-21 Maturity Price : 25.00 Evaluated at bid price : 25.40 Bid-YTW : -6.77 %

Issue Comments

BCE.PR.Z / BCE.PR.Y : Net 7% Conversion to BCE.PR.Z

BCE Inc. has announced:

that 585,184 of its 1,227,532 fixed-rate Cumulative Redeemable First Preferred Shares, Series Z (“Series Z Preferred Shares”) have been tendered for conversion on December 1, 2017, on a one-for-one basis, into floating-rate Cumulative Redeemable First Preferred Shares, Series Y (“Series Y Preferred Shares”). In addition, 1,276,161 of its 8,772,468 Series Y Preferred Shares have been tendered for conversion on December 1, 2017, on a one-for-one basis, into Series Z Preferred Shares. Consequently, on December 1, 2017, BCE will have 1,918,509 Series Z Preferred Shares and 8,081,491 Series Y Preferred Shares issued and outstanding. The Series Z Preferred Shares and the Series Y Preferred Shares will continue to be listed on the Toronto Stock Exchange under the symbols BCE.PR.Z and BCE.PR.Y, respectively.

The Series Z Preferred Shares will pay on a quarterly basis, for the five-year period beginning on December 1, 2017, as and when declared by the Board of Directors of BCE, a fixed cash dividend based on an annual fixed dividend rate of 3.904%.

The Series Y Preferred Shares will continue to pay a monthly floating adjustable cash dividend for the five-year period beginning on December 1, 2017, as and when declared by the Board of Directors of BCE. The monthly floating adjustable dividend for any particular month will continue to be calculated based on the prime rate for such month and using the Designated Percentage for such month representing the sum of an adjustment factor (based on the market price of the Series Y Preferred Shares in the preceding month) and the Designated Percentage for the preceding month.

It will be recalled that after the conversion notice was sent, I recommended holding or converting to BCE.PR.Y; afterwards, it was announced that BCE.PR.Z will reset to 3.904% until the next interconversion date on 2022-12-1.

Market Action

November 20, 2017

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	-0.8512 %	2,444.4
FixedFloater	0.00 %	0.00 %	0	0.00	0	-0.8512 %	4,485.4
Floater	3.70 %	3.90 %	97,703	17.58	3	-0.8512 %	2,585.0
OpRet	0.00 %	0.00 %	0	0.00	0	-0.0523 %	3,096.9
SplitShare	4.71 %	4.64 %	46,635	4.28	6	-0.0523 %	3,698.3
Interest-Bearing	0.00 %	0.00 %	0	0.00	0	-0.0523 %	2,885.6
Perpetual-Premium	5.35 %	3.55 %	55,610	0.12	20	0.0393 %	2,838.4
Perpetual-Discount	5.21 %	5.25 %	67,306	15.03	15	0.1816 %	3,012.3
FixedReset	4.23 %	4.21 %	152,001	4.41	98	0.2179 %	2,499.1
Deemed-Retractible	5.02 %	5.38 %	87,932	5.92	30	0.2314 %	2,942.4
FloatingReset	2.71 %	2.75 %	42,239	3.97	8	-0.0379 %	2,683.7

Performance Highlights
Issue	Index	Change	Notes
PWF.PR.A	Floater	-2.65 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-20 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 3.41 %
TD.PF.D	FixedReset	-1.22 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-20 Maturity Price : 23.16 Evaluated at bid price : 24.30 Bid-YTW : 4.42 %
MFC.PR.F	FixedReset	1.03 %	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.10 Bid-YTW : 7.64 %
PWF.PR.P	FixedReset	1.06 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-20 Maturity Price : 18.19 Evaluated at bid price : 18.19 Bid-YTW : 4.31 %
GWO.PR.R	Deemed-Retractible	1.10 %	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.92 Bid-YTW : 5.69 %
W.PR.M	FixedReset	1.14 %	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-15 Maturity Price : 25.00 Evaluated at bid price : 26.70 Bid-YTW : 3.49 %
MFC.PR.K	FixedReset	1.47 %	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.00 Bid-YTW : 5.20 %

Volume Highlights
Issue	Index	Shares Traded	Notes
TD.PF.G	FixedReset	189,555	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-30 Maturity Price : 25.00 Evaluated at bid price : 26.75 Bid-YTW : 3.43 %
BAM.PF.J	FixedReset	84,223	YTW SCENARIO Maturity Type : Call Maturity Date : 2022-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.85 Bid-YTW : 4.22 %
TD.PF.E	FixedReset	78,522	YTW SCENARIO Maturity Type : Call Maturity Date : 2020-10-31 Maturity Price : 25.00 Evaluated at bid price : 24.85 Bid-YTW : 4.01 %
RY.PR.J	FixedReset	78,492	YTW SCENARIO Maturity Type : Call Maturity Date : 2020-05-24 Maturity Price : 25.00 Evaluated at bid price : 24.61 Bid-YTW : 4.26 %
MFC.PR.O	FixedReset	53,086	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-06-19 Maturity Price : 25.00 Evaluated at bid price : 26.78 Bid-YTW : 3.37 %
PWF.PR.Z	Perpetual-Discount	42,900	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-20 Maturity Price : 24.38 Evaluated at bid price : 24.77 Bid-YTW : 5.23 %
There were 13 other index-included issues trading in excess of 10,000 shares.

Wide Spread Highlights
Issue	Index	Quote Data and Yield Notes
TRP.PR.G	FixedReset	Quote: 24.00 – 24.98 Spot Rate : 0.9800 Average : 0.6347 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-20 Maturity Price : 22.97 Evaluated at bid price : 24.00 Bid-YTW : 4.63 %
PWF.PR.A	Floater	Quote: 16.50 – 16.94 Spot Rate : 0.4400 Average : 0.2777 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-20 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 3.41 %
GWO.PR.S	Deemed-Retractible	Quote: 25.22 – 25.65 Spot Rate : 0.4300 Average : 0.2697 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.22 Bid-YTW : 5.26 %
TD.PF.D	FixedReset	Quote: 24.30 – 24.72 Spot Rate : 0.4200 Average : 0.2737 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-20 Maturity Price : 23.16 Evaluated at bid price : 24.30 Bid-YTW : 4.42 %
TRP.PR.F	FloatingReset	Quote: 19.81 – 20.19 Spot Rate : 0.3800 Average : 0.2777 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-20 Maturity Price : 19.81 Evaluated at bid price : 19.81 Bid-YTW : 3.55 %
MFC.PR.J	FixedReset	Quote: 24.41 – 24.73 Spot Rate : 0.3200 Average : 0.2323 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.41 Bid-YTW : 4.63 %

Market Action

November 17, 2017

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	-0.2829 %	2,465.4
FixedFloater	0.00 %	0.00 %	0	0.00	0	-0.2829 %	4,524.0
Floater	3.67 %	3.91 %	96,700	17.57	3	-0.2829 %	2,607.2
OpRet	0.00 %	0.00 %	0	0.00	0	0.0982 %	3,098.5
SplitShare	4.71 %	4.67 %	48,463	4.29	6	0.0982 %	3,700.3
Interest-Bearing	0.00 %	0.00 %	0	0.00	0	0.0982 %	2,887.1
Perpetual-Premium	5.35 %	4.68 %	55,309	2.23	20	0.0924 %	2,837.2
Perpetual-Discount	5.22 %	5.25 %	67,770	15.05	15	0.1477 %	3,006.9
FixedReset	4.23 %	4.23 %	151,459	4.31	98	0.0421 %	2,493.6
Deemed-Retractible	5.03 %	5.38 %	88,741	5.93	30	0.1178 %	2,935.6
FloatingReset	2.78 %	2.83 %	41,374	3.97	8	0.0217 %	2,684.7

Performance Highlights
Issue	Index	Change	Notes
MFC.PR.F	FixedReset	-1.37 %	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.05 Bid-YTW : 7.79 %
BMO.PR.T	FixedReset	1.18 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-17 Maturity Price : 22.78 Evaluated at bid price : 23.15 Bid-YTW : 4.21 %

Volume Highlights
Issue	Index	Shares Traded	Notes
RY.PR.Q	FixedReset	414,067	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-24 Maturity Price : 25.00 Evaluated at bid price : 26.74 Bid-YTW : 3.37 %
TD.PF.G	FixedReset	194,110	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-30 Maturity Price : 25.00 Evaluated at bid price : 26.72 Bid-YTW : 3.46 %
HSB.PR.D	Deemed-Retractible	88,869	YTW SCENARIO Maturity Type : Call Maturity Date : 2017-12-17 Maturity Price : 25.00 Evaluated at bid price : 25.25 Bid-YTW : 0.82 %
BAM.PF.I	FixedReset	83,876	YTW SCENARIO Maturity Type : Call Maturity Date : 2022-03-31 Maturity Price : 25.00 Evaluated at bid price : 26.18 Bid-YTW : 3.80 %
RY.PR.C	Deemed-Retractible	71,430	YTW SCENARIO Maturity Type : Call Maturity Date : 2017-12-17 Maturity Price : 25.00 Evaluated at bid price : 25.30 Bid-YTW : -10.70 %
BAM.PR.R	FixedReset	68,400	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-17 Maturity Price : 20.40 Evaluated at bid price : 20.40 Bid-YTW : 4.69 %
There were 21 other index-included issues trading in excess of 10,000 shares.

Wide Spread Highlights
Issue	Index	Quote Data and Yield Notes
MFC.PR.M	FixedReset	Quote: 23.55 – 24.11 Spot Rate : 0.5600 Average : 0.4352 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.55 Bid-YTW : 5.09 %
W.PR.M	FixedReset	Quote: 26.40 – 26.75 Spot Rate : 0.3500 Average : 0.2269 YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-15 Maturity Price : 25.00 Evaluated at bid price : 26.40 Bid-YTW : 3.80 %
MFC.PR.H	FixedReset	Quote: 25.36 – 25.78 Spot Rate : 0.4200 Average : 0.3002 YTW SCENARIO Maturity Type : Call Maturity Date : 2022-03-19 Maturity Price : 25.00 Evaluated at bid price : 25.36 Bid-YTW : 4.65 %
W.PR.K	FixedReset	Quote: 26.04 – 26.50 Spot Rate : 0.4600 Average : 0.3488 YTW SCENARIO Maturity Type : Call Maturity Date : 2021-01-15 Maturity Price : 25.00 Evaluated at bid price : 26.04 Bid-YTW : 4.02 %
MFC.PR.F	FixedReset	Quote: 18.05 – 18.35 Spot Rate : 0.3000 Average : 0.1986 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.05 Bid-YTW : 7.79 %
MFC.PR.G	FixedReset	Quote: 24.65 – 25.00 Spot Rate : 0.3500 Average : 0.2612 YTW SCENARIO Maturity Type : Call Maturity Date : 2021-12-19 Maturity Price : 25.00 Evaluated at bid price : 24.65 Bid-YTW : 4.46 %

Issue Comments

DGS.PR.A To Get Bigger

Brompton Group has announced:

Dividend Growth Split Corp. (the “Company”) is pleased to announce it is undertaking an overnight treasury offering of class A and preferred shares.

The sales period for this overnight offering will end at 9:00 a.m. (ET) tomorrow, November 17, 2017. The offering is expected to close on or about November 29, 2017 and is subject to certain closing conditions including approval by the Toronto Stock Exchange (“TSX”).

The class A shares will be offered at a price of $8.00 for a distribution rate of 15% on the issue price, and the preferred shares will be offered at a price of $10.00 for a yield to maturity of 5.9%. The closing price on the TSX for each of the class A and preferred shares on November 15, 2017 was $8.16 and $10.15, respectively. The class A and preferred share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of the Company (calculated as at November 15, 2017), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.

The Company invests in a portfolio of common shares of high quality, large capitalization companies, which have among the highest dividend growth rates of those companies included in the S&P/TSX Composite Index. Currently, the portfolio consists of common shares of the following 20 companies:

Great-West Lifeco Inc. The Bank of Nova Scotia CI Financial Corp. Shaw Communications Inc.

Industrial Alliance Insurance and Financial Services Inc. Canadian Imperial Bank of Commerce IGM Financial Inc. TELUS Corporation

Manulife Financial Corporation National Bank of Canada Power Corporation of Canada Canadian Utilities Limited

Sun Life Financial Inc. Royal Bank of Canada BCE Inc. Enbridge Inc.

Bank of Montreal The Toronto-Dominion Bank Rogers Communications Inc. TransCanada Corporation

The investment objectives for the class A shares are to provide holders with regular monthly cash distributions targeted to be $0.10 per class A share and to provide the opportunity for growth in the net asset value per class A share.

The investment objectives for the preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions, currently in the amount of $0.13125 per preferred share, and to return the original issue price to holders of preferred shares on the Company’s maturity date (November 28, 2019).

The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC Capital Markets, National Bank Financial Inc., and Scotiabank.

So the Whole Units are being offered at a price of $18.00, versus a NAVPU of 17.38 as of November 9. The premium of 3.6% isn’t the fattest we’ve seen recently, but it’s still a nice business to be in!

Update, 2017-11-17: The offering was successful:

Dividend Growth Split Corp. (the “Company”) is pleased to announce a successful overnight treasury offering of class A and preferred shares. Gross proceeds of the offering are expected to be approximately $76 million. The offering is expected to close on or about November 29, 2017 and is subject to certain closing conditions including approval by the Toronto Stock Exchange (the “TSX”). The Company has granted the Agents (as defined below) an over-allotment option, exercisable for 30 days following the closing date of the offering, to purchase up to an additional 15% of the number of class A and preferred shares issued at the closing of the offering.

Market Action

November 16, 2017

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	0.4372 %	2,472.4
FixedFloater	0.00 %	0.00 %	0	0.00	0	0.4372 %	4,536.8
Floater	3.66 %	3.91 %	97,573	17.56	3	0.4372 %	2,614.6
OpRet	0.00 %	0.00 %	0	0.00	0	0.1245 %	3,095.5
SplitShare	4.71 %	4.69 %	50,462	4.29	6	0.1245 %	3,696.7
Interest-Bearing	0.00 %	0.00 %	0	0.00	0	0.1245 %	2,884.3
Perpetual-Premium	5.36 %	4.69 %	44,793	2.24	20	0.0236 %	2,834.6
Perpetual-Discount	5.23 %	5.26 %	70,555	15.02	15	0.0654 %	3,002.4
FixedReset	4.23 %	4.22 %	145,257	4.31	99	0.1650 %	2,492.6
Deemed-Retractible	5.03 %	5.39 %	88,596	5.93	30	-0.0452 %	2,932.1
FloatingReset	2.78 %	2.84 %	42,008	3.97	8	0.2827 %	2,684.1

Performance Highlights
Issue	Index	Change	Notes
BNS.PR.D	FloatingReset	1.14 %	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.14 Bid-YTW : 3.91 %
PWF.PR.A	Floater	1.19 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-16 Maturity Price : 17.05 Evaluated at bid price : 17.05 Bid-YTW : 3.30 %

Volume Highlights
Issue	Index	Shares Traded	Notes
HSB.PR.C	Deemed-Retractible	404,327	YTW SCENARIO Maturity Type : Call Maturity Date : 2017-12-16 Maturity Price : 25.00 Evaluated at bid price : 25.25 Bid-YTW : 0.91 %
W.PR.M	FixedReset	376,380	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-15 Maturity Price : 25.00 Evaluated at bid price : 26.45 Bid-YTW : 3.74 %
HSB.PR.D	Deemed-Retractible	114,975	YTW SCENARIO Maturity Type : Call Maturity Date : 2017-12-16 Maturity Price : 25.00 Evaluated at bid price : 25.25 Bid-YTW : 0.65 %
MFC.PR.O	FixedReset	109,547	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-06-19 Maturity Price : 25.00 Evaluated at bid price : 27.01 Bid-YTW : 3.49 %
BNS.PR.E	FixedReset	95,983	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-25 Maturity Price : 25.00 Evaluated at bid price : 26.94 Bid-YTW : 3.21 %
RY.PR.Q	FixedReset	87,413	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-24 Maturity Price : 25.00 Evaluated at bid price : 26.85 Bid-YTW : 3.24 %
There were 14 other index-included issues trading in excess of 10,000 shares.

Wide Spread Highlights
Issue	Index	Quote Data and Yield Notes
TRP.PR.G	FixedReset	Quote: 24.15 – 24.78 Spot Rate : 0.6300 Average : 0.4271 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-16 Maturity Price : 23.04 Evaluated at bid price : 24.15 Bid-YTW : 4.66 %
PVS.PR.B	SplitShare	Quote: 25.35 – 25.87 Spot Rate : 0.5200 Average : 0.3237 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2019-01-10 Maturity Price : 25.00 Evaluated at bid price : 25.35 Bid-YTW : 3.87 %
NA.PR.W	FixedReset	Quote: 22.67 – 22.99 Spot Rate : 0.3200 Average : 0.2067 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-16 Maturity Price : 22.32 Evaluated at bid price : 22.67 Bid-YTW : 4.32 %
HSE.PR.C	FixedReset	Quote: 24.52 – 24.80 Spot Rate : 0.2800 Average : 0.1898 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-16 Maturity Price : 23.37 Evaluated at bid price : 24.52 Bid-YTW : 4.85 %
GWO.PR.I	Deemed-Retractible	Quote: 22.31 – 22.65 Spot Rate : 0.3400 Average : 0.2603 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.31 Bid-YTW : 6.53 %
BMO.PR.T	FixedReset	Quote: 22.88 – 23.18 Spot Rate : 0.3000 Average : 0.2409 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-16 Maturity Price : 22.52 Evaluated at bid price : 22.88 Bid-YTW : 4.26 %

Volume Highlights
Issue	Index	Shares Traded	Notes
RY.PR.R	FixedReset	147,625	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-08-24 Maturity Price : 25.00 Evaluated at bid price : 27.00 Bid-YTW : 3.24 %
IFC.PR.E	Deemed-Retractible	83,950	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 5.37 %
CM.PR.P	FixedReset	51,728	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-24 Maturity Price : 23.11 Evaluated at bid price : 23.42 Bid-YTW : 4.17 %
TRP.PR.G	FixedReset	35,390	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-24 Maturity Price : 23.08 Evaluated at bid price : 24.25 Bid-YTW : 4.58 %
TD.PF.H	FixedReset	20,466	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-31 Maturity Price : 25.00 Evaluated at bid price : 26.21 Bid-YTW : 3.63 %
BMO.PR.C	FixedReset	19,675	YTW SCENARIO Maturity Type : Call Maturity Date : 2022-05-25 Maturity Price : 25.00 Evaluated at bid price : 25.60 Bid-YTW : 3.93 %
There were 14 other index-included issues trading in excess of 10,000 shares.

PrefBlog

November 24, 2017

New Issue: PRM SplitShare, 5-Year, 5%

November 23, 2017

November 22, 2017

November 21, 2017

BCE.PR.Z / BCE.PR.Y : Net 7% Conversion to BCE.PR.Z

November 20, 2017

November 17, 2017

DGS.PR.A To Get Bigger

November 16, 2017

Archives

Of Interest