MAPF Performance: January, 2024

February 4th, 2024

Malachite Aggressive Preferred Fund’s Net Asset Value per Unit as of the close January 31, 2024, was $9.1625.

Performance was affected by MFC.PR.B underperforming with a +3.65% return, NA.PR.W with a +6.07% return and MIC.PR.A with a +6.50% return [after last month’s outperformance]. This was outweighed by good performance from TD.PF.C (+11.96%, after last month’s underperformance), TRP.PR.E (+11.47%) and CU.PR.C (+9.09%, adding to the last two month’s outperformance) [small holdings are not considered for individual mention here].

The last few months have been very good to preferred shareholders, following the lows of the TXPR price index on 2023-10-31, but yields remain elevated well above those available on instruments with similar risk.

FixedResets continue to yield more, in general, than PerpetualDiscounts; on January 31, I reported median YTWs of 7.51% and 6.56%, respectively, for these two indices; compare with mean Current Yields of 6.41% and 5.59%, respectively. RY.PR.J, to take a representative example, is calculated by HIMIPref™ as having a yield-to-worst of 7.59% at monthend (Current Yield of 3.98%); bid at 19.80, resetting 2025-5-24 at a spread of 274bp over GOC-5 (assumed to be constant at 3.57%) and currently paying 0.80 p.a. (3.20% annually). The next pay-date is 2024-2-24; it is trading ex-dividend.

If we plug the above data into the yield calculator for resets (which is discussed here and has recently been slightly modified), we arrive at a annualized (compounded semi-annually) yield of 7.60% for RY.PR.J . To take this 1bp (the difference between the spreadsheets and HIMIPref™) above the PerpetualDiscount median index yield of 6.56% (to account for the calculation methodological differences), which is to say 6.57%, requires the assumption that GOC-5 will be 2.65% forever, as opposed the ‘constant rate’ assumption of 3.57%. Well … pays yer money and takes yer chances, gents! Assiduous Readers with long memories will liken this to all the calculations of Break-even Rate Shock when the puzzle represented the same problem with a different sign! Note that even if the unfavourable scenario of GOC-5 = 2.65% is realized, this has only reduced the yield of RY.PR.J to that of the median adjusted PerpetualDiscount yield of 6.57%, which isn’t the worst outcome one might fear from one’s investments!

Returns to January 31, 2024
Period MAPF TXPR*
Total Return		 CPD – according to Blackrock
One Month +8.16% +5.81% N/A
Three Months +21.48% +16.78% N/A
One Year +13.61% +4.47% +3.90%
Two Years (annualized) -3.86% -4.18% N/A
Three Years (annualized) +6.43% +2.22% +1.68%
Four Years (annualized) +8.61% +3.83% N/A
Five Years (annualized) +6.96% +3.88% +3.29%
Six Years (annualized) +2.77% +1.46% N/A
Seven Years (annualized) +5.14% +2.76% N/A
Eight Years (annualized) +8.59% +5.23% N/A
Nine Years (annualized) +4.14% +2.05% N/A
Ten Years (annualized) +4.21% +1.95% +1.45%
Eleven Years (annualized) +3.48% +1.55%  
Twelve Years (annualized) +3.77% +1.78%  
Thirteen Years (annualized) +3.83% +2.15%  
Fourteen Years (annualized) +4.77% +2.62%  
Fifteen Years (annualized) +7.46% +3.84%  
Sixteen Years (annualized) +7.30% +2.62%  
Seventeen Years (annualized) +6.89%    
Eighteen Years (annualized) +6.82%    
Nineteen Years (annualized) +6.76%    
Twenty Years (annualized) +7.00%    
Twenty-One Years (annualized) +7.89%    
Twenty-Two Years (annualized) +7.65%    
MAPF returns assume reinvestment of distributions, and are shown after expenses but before fees.
The BMO Capital Markets “50” Preferred Share Index is no longer being calculated. The final performance report incorporating this venerable index was published as of December, 2020.
“TXPR” is the S&P/TSX Preferred Share Index. It is calculated without accounting for fees, but does assume reinvestment of dividends.
CPD Returns are for the NAV and are after all fees and expenses. Reinvestment of dividends is assumed.
Figures for National Bank Preferred Equity Income Fund [NBC780F] (formerly Omega Preferred Equity) (which are after all fees and expenses) for 1-, 3- and 12-months are +7.47%, +17.51% and +6.19%, respectively, according to National Bank Investments after all fees & expenses. Three year performance is +4.04%; five year is +5.50%; ten year is +3.64%.

Figures from Morningstar are no longer conveniently available.
Manulife Preferred Income Class Adv has been terminated by Manulife. The performance of this fund was last reported here in March, 2018.
Figures for Horizons Active Preferred Share ETF (HPR) (which are after all fees and expenses) for 1-, 3- and 12-months are +7.03%, +17.69% & +7.82%, respectively. Three year performance is +4.03%, five-year is +4.86%, ten year is +2.81%
Figures for National Bank Preferred Equity Fund [NBC710F] (formerly Altamira Preferred Equity Fund) are +7.61%, +18.20% and +8.94% for one-, three- and twelve months, respectively. Three year performance is +4.44%; five-year is +5.16%; ten-year is +2.95%

Acccording to the fund’s fact sheet as of June 30, 2016, the fund’s inception date was October 30, 2015. I do not know how they justify this nonsensical statement, but will assume that prior performance is being suppressed in some perfectly legal manner that somebody at National considers ethical.

The last time Altamira Preferred Equity Fund’s performance was reported here was April, 2014; performance under the National Bank banner was first reported here May, 2014.
The figures for the NAV of BMO Laddered Preferred Share Index ETF (ZPR) is +7.68% for the past twelve months. Two year performance is -3.04%, three year is +4.01%, five year is +4.78%, ten year is +1.42%
Figures for Fiera Canadian Preferred Share Class Cg Series F, (formerly Natixis Canadian Preferred Share Class Series F) (formerly NexGen Canadian Preferred Share Tax Managed Fund) are no longer available as the Fund is now the property of Canoe Financial. The last reported performance for the merged fund was May 2020.
Figures for BMO Preferred Share Fund (advisor series) according to Morningstar are +5.65%, +15.47% and +3.04% for the past one-, three- and twelve-months, respectively. Three year performance is +0.19%; five-year is +1.84%; ten-year is -0.03%.

Note that figures from BMO are highly suspicious, so I have used figures from Morningstar
Figures for PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March 2023
Figures for the First Asset Preferred Share Investment Trust (PSF.UN) are no longer available since the fund has merged with First Asset Preferred Share ETF (FPR).

Performance for the fund was last reported here in September, 2016; the first report of unavailability was in October, 2016.
Figures for Lysander-Slater Preferred Share Dividend Fund (Class F) according to the company are +5.9%, +14.9% and +7.1% for the past one, three and twelve months, respectively. Three year performance is +5.0%, five-year is +4.1%.
Figures for the Desjardins Canadian Preferred Share Fund A Class (A Class), as reported by the company are +5.90%, +16.47% and +4.36% for the past one, three and twelve months, respectively. Two year performance is -4.91%, three-year is +1.74%, five-year is +2.79%
Figures for the RBC Canadian Preferred Share ETF (RPF) are reported by Morningstar as +7.18%, +18.95% and +4.46% for the past one, three and twelve months, respectively. Three-year performance is +2.76%, five-year is +3.88%
Figures for the Dynamic Active Preferred Shares ETF (DXP) are +%, +% and +% for the past one, three and twelve months, respectively. Three-year performance is +%; five-year is +%
Figures for the Purpose Canadian Preferred Share Fund (Class F) are +5.79%, +15.92% and +8.52% for the past one, three and twelve months, respectively. Three-year performance is +4.97%; five-year is +5.50%; seven-year is +2.83%; ten-year is +5.20%.

The five-year Canada yield increased, with the five-year Canada yield (“GOC-5”) rising from 3.31% at December month-end to 3.57% at January month-end.

The Seniority Spread (between long-term corporate bonds and interest-equivalent PerpetualDiscounts) was 340bp on 2024-1-31, down precipituously from 430bp as of 2023-12-27 (chart end-date 2024-1-12) :

The situation with FixedResets is interesting, with the spread between GOC-5 and the interest-adjusted FixedReset (Discount) rate widening significantly from its 2021-11-10 low of 344bp to a level of 636bp (as of 2024-1-31) … (chart end-date 2024-01-12):

…while at the same time the interest-equivalent spread between FixedReset (Discounts) and PerpetualDiscounts has narrowed to -124bp (as of 2024-1-31) from its 2021-7-28 level of +170bp (chart end-date 2024-01-12):

There is no significant correlation between the Issue Reset Spread and 1-month performance for discounted FixedResets for either the Pfd-2 or Pfd-3 Group issues.

There is no significant correlation between the Issue Reset Spread and 3-month performance for discounted FixedResets for either the Pfd-2 or Pfd-3 Group issues.

There was a correlation for the Pfd-2 Group (11%) but none for the Pfd-3 Group for 1-Month performance against term-to-reset (just like last month, but this time the slope of the correlation is negative):

… and last month’s correlation for three-month returns vs. Term to Reset for the Pfd-2 Group has disappeared:

It should be noted that to some extent a dependence (of performance on term-to-reset) can be justified as the nearer-term issues will receive the benefit of higher projected dividend rates sooner as a result of higher GOC-5 yields and therefore, perhaps, for longer. Equations for the relationship between correlation slope and change in GOC-5 were derived in the August 2022 PrefLetter. In the three months from October 31 to January 31, the GOC-5 rate declined from 4.16% to 3.57%, but this has had little effect. At present the situation is chaotic.

Upwards-sloping correlations of Performance vs. Term are to be expected when GOC-5 declines.

I keep talking about ‘Sustainable Income’ and nowadays it’s far higher than the dividends that are currently being distributed. This is because Sustainable Income is the average yield-to-worst (YTW) of the portfolio when the YTW is calculated to perpetuity (or to redemption, of course, if the yield to redemption is lower), including resets at the current GOC-5 rate. The sharp increase in GOC-5 in the past year-odd has caused the difference between YTW and Current Yield to skyrocket, but one way or another I expect that these two values will become much closer – slowly at first, but quickening in about two years. We have to wait for the reset date of the MAPF portfolio securities before we see a change in actual cash receipts – and, of course, there is no guarantee whatsoever that the rate used for estimation purposes now will be used for the actual calculation in the future (chart prepared as of 2024-1-12).

I will note that the fund’s current holdings of FixedResets are now paying dividends based on their previous reset at an average GOC-5 rate of 1.31% (weighted by shares held). While nobody knows what the future might bring, I suggest that we won’t see GOC-5 return to that level again for a while!

Calculation of MAPF Sustainable Income Per Unit
Month NAVPU Portfolio
Average
YTW		 Leverage
Divisor		 Securities
Average
YTW		 Capital
Gains
Multiplier		 Sustainable
Income
per
current
Unit
June, 2007 9.3114 5.16% 1.03 5.01% 1.3240 0.3524
September 9.1489 5.35% 0.98 5.46% 1.3240 0.3773
December, 2007 9.0070 5.53% 0.942 5.87% 1.3240 0.3993
March, 2008 8.8512 6.17% 1.047 5.89% 1.3240 0.3938
June 8.3419 6.034% 0.952 6.338% 1.3240 $0.3993
September 8.1886 7.108% 0.969 7.335% 1.3240 $0.4537
December, 2008 8.0464 9.24% 1.008 9.166% 1.3240 $0.5571
March 2009 $8.8317 8.60% 0.995 8.802% 1.3240 $0.5872
June 10.9846 7.05% 0.999 7.057% 1.3240 $0.5855
September 12.3462 6.03% 0.998 6.042% 1.3240 $0.5634
December 2009 10.5662 5.74% 0.981 5.851% 1.1141 $0.5549
March 2010 10.2497 6.03% 0.992 6.079% 1.1141 $0.5593
June 10.5770 5.96% 0.996 5.984% 1.1141 $0.5681
September 11.3901 5.43% 0.980 5.540% 1.1141 $0.5664
December 2010 10.7659 5.37% 0.993 5.408% 1.0298 $0.5654
March, 2011 11.0560 6.00% 0.994 5.964% 1.0298 $0.6403
June 11.1194 5.87% 1.018 5.976% 1.0298 $0.6453
September 10.2709 6.10%
Note		 1.001 6.106% 1.0298 $0.6090
December, 2011 10.0793 5.63%
Note		 1.031 5.805% 1.0000 $0.5851
March, 2012 10.3944 5.13%
Note		 0.996 5.109% 1.0000 $0.5310
June 10.2151 5.32%
Note		 1.012 5.384% 1.0000 $0.5500
September 10.6703 4.61%
Note		 0.997 4.624% 1.0000 $0.4934
December, 2012 10.8307 4.24% 0.989 4.287% 1.0000 $0.4643
March, 2013 10.9033 3.87% 0.996 3.886% 1.0000 $0.4237
June 10.3261 4.81% 0.998 4.80% 1.0000 $0.4957
September 10.0296 5.62% 0.996 5.643% 1.0000 $0.5660
December, 2013 9.8717 6.02% 1.008 5.972% 1.0000 $0.5895
March, 2014 10.2233 5.55% 0.998 5.561% 1.0000 $0.5685
June 10.5877 5.09% 0.998 5.100% 1.0000 $0.5395
September 10.4601 5.28% 0.997 5.296% 1.0000 $0.5540
December, 2014 10.5701 4.83% 1.009 4.787% 1.0000 $0.5060
March, 2015 9.9573 4.99% 1.001 4.985% 1.0000 $0.4964
June, 2015 9.4181 5.55% 1.002 5.539% 1.0000 $0.5217
September 7.8140 6.98% 0.999 6.987% 1.0000 $0.5460
December, 2015 8.1379 6.85% 0.997 6.871% 1.0000 $0.5592
March, 2016 7.4416 7.79% 0.998 7.805% 1.0000 $0.5808
June 7.6704 7.67% 1.011 7.587% 1.0000 $0.5819
September 8.0590 7.35% 0.993 7.402% 1.0000 $0.5965
December, 2016 8.5844 7.24% 0.990 7.313% 1.0000 $0.6278
March, 2017 9.3984 6.26% 0.994 6.298% 1.0000 $0.5919
June 9.5313 6.41% 0.998 6.423% 1.0000 $0.6122
September 9.7129 6.56% 0.998 6.573% 1.0000 $0.6384
December, 2017 10.0566 6.06% 1.004 6.036% 1.0000 $0.6070
March, 2018 10.2701 6.22% 1.007 6.177% 1.0000 $0.6344
June 10.2518 6.22% 0.995 6.251% 1.0000 $0.6408
September 10.2965 6.62% 1.018 6.503% 1.0000 $0.6696
December, 2018 8.6875 7.16% 0.997 7.182% 1.0000 $0.6240
March, 2019 8.4778 7.09% 1.007 7.041% 1.0000 $0.5969
June 8.0896 7.33% 0.996 7.359% 1.0000 $0.5953
September 7.7948 7.96% 0.998 7.976% 1.0000 $0.6217
December, 2019 8.0900 6.03% 0.995 6.060% 1.0000 $0.4903
March 5.5596 7.04% 1.006 6.998% 1.0000 $0.3891
June 6.3568 6.10% 0.9900 6.162% 1.0000 $0.3917
September 7.2852 5.32% 1.00 5.320% 1.0000 $0.3876
December, 2020 8.3947 4.46% 0.999 4.464% 1.0000 $0.3747
March, 2021 9.6473 4.48% 0.996 4.498% 1.0000 $0.4339
June 10.3712 3.92% 0.985 3.980% 1.0000 $0.4127
September 10.7572 4.08% 1.017 4.012% 1.0000 $0.4316
December, 2021 10.7432 4.31% 0.999 4.314% 1.0000 $0.4635
March, 2022 10.5040 5.53% 1.004 5.508% 1.0000 $0.5786
June 9.3115 7.04% 0.993 7.090% 1.0000 $0.6672
September 8.4093 8.10% 0.997 8.124% 1.0000 $0.6916
December, 2022 7.9921 8.47% 0.996 8.504% 1.0000 $0.6796
March 8.0788 7.90% 0.997 7.924% 1.0000 $0.6401
June 30 8.0197 9.19% 1.003 9.163% 1.0000 $0.7348
September 29 7.9922 9.86% 0.997 9.890% 1.0000 $0.7904
Decenber 29, 2023 8.4715 8.14% 1.002 8.124% 1.0000 $0.6882
January 31, 2024 9.1625 7.89% 0.996 7.922% 1.0000 $0.7258
NAVPU is shown after quarterly distributions of dividend income and annual distribution of capital gains.
Portfolio YTW includes cash (or margin borrowing), with an assumed interest rate of 0.00%
The Leverage Divisor indicates the level of cash in the account: if the portfolio is 1% in cash, the Leverage Divisor will be 0.99
Securities YTW divides “Portfolio YTW” by the “Leverage Divisor” to show the average YTW on the securities held; this assumes that the cash is invested in (or raised from) all securities held, in proportion to their holdings.
The Capital Gains Multiplier adjusts for the effects of Capital Gains Dividends. On 2009-12-31, there was a capital gains distribution of $1.989262 which is assumed for this purpose to have been reinvested at the final price of $10.5662. Thus, a holder of one unit pre-distribution would have held 1.1883 units post-distribution; the CG Multiplier reflects this to make the time-series comparable. Note that Dividend Distributions are not assumed to be reinvested.
Sustainable Income is the resultant estimate of the fund’s dividend income per current unit, before fees and expenses. Note that a “current unit” includes reinvestment of prior capital gains; a unitholder would have had the calculated sustainable income with only, say, 0.9 units in the past which, with reinvestment of capital gains, would become 1.0 current units.
DeemedRetractibles are comprised of all Straight Perpetuals (both PerpetualDiscount and PerpetualPremium) issued by BMO, BNS, CM, ELF, GWO, HSB, IAG, MFC, NA, RY, SLF and TD, which are not exchangable into common at the option of the company or the regulator (definition refined in May, 2011). These issues are analyzed as if their prospectuses included a requirement to redeem at par on or prior to 2022-1-31 (banks) or the Deemed Maturity date for insurers and insurance holding companies (see below)), in addition to the call schedule explicitly defined. See the Deemed Retractible Review: September 2016 for the rationale behind this analysis.

The same reasoning is also applied to FixedResets from these issuers, other than explicitly defined NVCC from banks.

In November, 2019, the assumption of DeemedRetraction for insurance issues was cancelled in the wake of the IAIS decision included in ICS 2.0. This resulted in a large drop in the yield calculated for these issues
The Deemed Maturity date for insurers was set at 2022-1-31 at the commencement of the process in February, 2011. It was extended to 2025-1-31 in April, 2013 and to 2030-1-31 in December, 2018. In November, 2019, the assumption of DeemedRetraction was cancelled in the wake of the IAIS decision included in ICS 2.0.
Yields for September, 2011, to January, 2012, were calculated by imposing a cap of 10% on the yields of YLO issues held, in order to avoid their extremely high calculated yields distorting the calculation and to reflect the uncertainty in the marketplace that these yields will be realized. From February to September 2012, yields on these issues have been set to zero. All YLO issues held were sold in October 2012.

These calculations were performed assuming constant contemporary GOC-5 and 3-Month Bill rates, as follows:

Canada Yields Assumed in Calculations
Month-end GOC-5 3-Month Bill
September, 2015 0.78% 0.40%
December, 2015 0.71% 0.46%
March, 2016 0.70% 0.44%
June 0.57% 0.47%
September 0.58% 0.53%
December, 2016 1.16% 0.47%
March, 2017 1.08% 0.55%
June 1.35% 0.69%
September 1.79% 0.97%
December, 2017 1.83% 1.00%
March, 2018 2.06% 1.08%
June 1.95% 1.22%
September 2.33% 1.55%
December, 2018 1.88% 1.65%
March, 2019 1.46% 1.66%
June 1.34% 1.66%
September 1.41% 1.66%
December, 2019 1.68% 1.68%
March, 2020 0.57% 0.21%
June 0.37% 0.21%
September 0.35% 0.14%
December, 2020 0.42% 0.08%
March, 2021 0.94% 0.09%
June 0.93% 0.13%
September 1.07% 0.13%
December, 2021 1.31% 0.16%
March, 2022 2.44% 0.53%
June 3.24% 2.11%
September 3.45% 3.60%
December, 2022 3.37% 4.35%
March, 2023 2.93% 4.44%
June 3.74% 5.00%
September 4.31% 5.21%
December, 2023 3.21% 5.13%
January, 2024 3.57% 5.11%

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MAPF Portfolio Composition: January 2024

February 4th, 2024

Turnover declined to 5% in January, the absence of tax-loss selling and the market’s violent move upwards combined to make trading difficult.

Sectoral distribution of the MAPF portfolio on January 31, 2024, were:

MAPF Sectoral Analysis 2024-1-31
HIMI Indices Sector Weighting YTW ModDur
Ratchet 0% N/A N/A
FixFloat 0% N/A N/A
Floater 0% N/A N/A
OpRet 0% N/A N/A
SplitShare 0% N/A N/A
Interest Rearing 0% N/A N/A
PerpetualPremium 0% N/A N/A
PerpetualDiscount 9.0% 6.92% 12.65
Fixed-Reset Discount 65.8% 7.83% 11.95
Insurance – Straight 6.9% 6.12% 13.69
FloatingReset 0% N/A N/A
FixedReset Premium 0% N/A N/A
FixedReset Bank non-NVCC 0% N/A N/A
FixedReset Insurance non-NVCC 0% N/A N/A
Scraps – Ratchet 0% N/A N/A
Scraps – FixedFloater 1.4% 9.79% 10.95
Scraps – Floater 0% N/A N/A
Scraps – OpRet 0% N/A N/A
Scraps – SplitShare 3.3% 7.69% 2.17
Scraps – PerpPrem 0% N/A N/A
Scraps – PerpDisc 0% N/A N/A
Scraps – FR Discount 13.2% 9.83% 10.15
Scraps – Insurance Straight 0% N/A N/A
Scraps – FloatingReset 0% N/A N/A
Scraps – FR Premium 0% N/A N/A
Scraps – Bank non-NVCC 0% N/A N/A
Scraps – Ins non-NVCC 0% N/A N/A
Cash +0.4% 0.00% 0.00
Total 100% 7.89% 11.52
Totals and changes will not add precisely due to rounding. Cash is included in totals with duration and yield both equal to zero.
The various “Scraps” indices include issues with a DBRS rating of Pfd-3(high) or lower and issues with an Average Trading Value (calculated with HIMIPref™ methodology, which is relatively complex) of less than $25,000. The issues considered “Scraps” are subdivided into indices which reflect those of the main indices.
DeemedRetractibles were comprised of all Straight Perpetuals (both PerpetualDiscount and PerpetualPremium) issued by BMO, BNS, CM, ELF, GWO, HSB, IAG, MFC, NA, RY, SLF and TD, which are not exchangable into common at the option of the company or the regulator. These issues are analyzed as if their prospectuses included a requirement to redeem at par on or prior to 2022-1-31 in the case of banks or normally in the case of insurers and insurance holding companies, in addition to the call schedule explicitly defined. See the Deemed Retractible Review: September 2016 for the rationale behind this analysis and IAIS Says No To DeemedRetractions for the recent change in policy with respect to insurers.

Note that the estimate for the time this will become effective for insurers and insurance holding companies was extended by three years in April 2013, due to the delays in OSFI’s providing clarity on the issue and by a further five years in December, 2018; the estimate was eliminated in November. However, the distinctions are being kept because it is useful to distinguish insurance issues from others.

The name of this subindex has been changed to “Insurance Straight” as of November, 2020
Calculations of yield and related attributes of resettable instruments are performed assuming a constant GOC-5 rate of 3.57%, a constant 3-Month Bill rate of 5.11% and a constant Canada Prime Rate of 7.20%

The “total” reflects the un-leveraged total portfolio (i.e., cash is included in the portfolio calculations and is deemed to have a duration and yield of 0.00.). MAPF will often have relatively large cash balances, both credit and debit, to facilitate trading. Figures presented in the table have been rounded to the indicated precision.

Credit distribution is:

MAPF Credit Analysis 2024-01-31
DBRS Rating MAPF Weighting
Pfd-1 0
Pfd-1(low) 0
Pfd-2(high) 40.7%
Pfd-2 32.1%
Pfd-2(low) 9.0%
Pfd-3(high) 9.6%
Pfd-3 2.5%
Pfd-3(low) 5.5%
Pfd-4(high) 0.3%
Pfd-4 0%
Pfd-4(low) 0%
Pfd-5(high) 0%
Pfd-5 0%
Cash +0.3%
Totals will not add precisely due to rounding.
A position held in INE.PR.A is not rated by DBRS nor by S&P, but has been included as “Pfd-4(high)” in the above table on the basis of its last S&P rating of P-4(high) and its BB rating from Fitch. A “BB” rating would normally map to Pfd-3, but the company’s disdain for the two major preferred share agencies makes me nervous.

Liquidity Distribution is:

MAPF Liquidity Analysis 2024-01-31
Average Daily Trading MAPF Weighting
<$50,000 5.3%
$50,000 – $100,000 16.5%
$100,000 – $200,000 43.2%
$200,000 – $300,000 26.8%
>$300,000 7.9%
Cash +0.4%
Totals will not add precisely due to rounding.

The distribution of Issue Reset Spreads is:

Range MAPF Weight
<100bp 0%
100-149bp 0%
150-199bp 7.4%
200-249bp 57.5%
250-299bp 12.7%
300-349bp 1.6%
350-399bp 0.9%
400-449bp 0%
450-499bp 0%
500-549bp 0%
550-599bp 0%
>= 600bp 0%
Undefined 19.8%

Distribution of Floating Rate Start Dates is shown in the table below. This is the date of the next adjustment to the dividend rate, if the issue is currently paying a fixed rate for a limited time; which in practice is successive terms of 5 years. Issues that adjust quarterly are considered “Currently Floating”.

Range MAPF Weight
Currently Floating 1.1%
0-1 Year 25.0%
1-2 Years 28.0%
2-3 Years 14.3%
3-4 Years 12.2%
4-5 Years 0.9%
5-6 Years 0%
>6 Years 0%
Not Floating Rate 18.4%

MAPF is, of course, Malachite Aggressive Preferred Fund, a “unit trust” managed by Hymas Investment Management Inc. Further information and links to performance, audited financials and subscription information are available the fund’s web page. The fund may be purchased directly from Hymas Investment Management. A “unit trust” is like a regular mutual fund, but are not sold with a prospectus This is cheaper, but means subscription is restricted to “accredited investors” (as defined by the Ontario Securities Commission). Fund past performances are not a guarantee of future performance. You can lose money investing in MAPF or any other fund.

Posted in MAPF | 1 Comment »

February 2, 2024

February 2nd, 2024

Jobs, jobs, jobs!:

The United States produced an unexpectedly sizable batch of jobs last month, a boon for American workers that shows the labor market retains remarkable strength after three years of expansion.

Employers added 353,000 jobs in January on a seasonally adjusted basis, the Labor Department reported on Friday, and the unemployment rate remained at 3.7 percent.

The report also put an even shinier gloss on job growth for 2023, including revisions that added more than 100,000 to the figure previously tallied for December. All told, employers added 3.1 million jobs last year, more than the 2.7 million initially reported.

So bonds got hammered:

The U.S. added 353,000 jobs in January, blasting past analysts’ estimates, while wage growth unexpectedly heated up, the Labor Department reported.

The added signs of economic vigor made it more likely that the U.S. central bank will delay cutting its key policy rate until much later than many had hoped. Fed Chair Jerome Powell on Wednesday pushed back against the notion of a March rate cut.

Financial markets are pricing in a 20.5% likelihood of a 25 basis point rate cut at the Fed’s March meeting, down from 69.6% a month ago, according to CME’s FedWatch tool.
…
U.S. Treasury yields surged, with the 10-year Treasury yield marking its largest one-day advance since Sept. 2022.
…
The 10-year Treasury note yield was up 16.3 basis points to 4.026%, one day after reaching a new 2024 low. On the week, however, the 10-year was still down 29.7 basis points, the largest weekly decline since the week of Dec. 11.

Canadian bond yields were also sharply higher, with the closely watched five-year bond yield up 15 basis points.
…
Implied interest rate probabilities in the swaps market, which capture bets for future monetary policy moves, now suggest only about a 25 per cent chance of a Bank of Canada rate cut at its April 10 meeting, down from 36 per cent prior the 0830 am ET jobs report. Earlier this week, prior to Canada releasing an unexpectedly strong gross domestic product reading, those odds were pegged at near 50-50.

A 69 per cent chance of a quarter-point interest rate cut is now priced in for the June 5 policy meeting, down from 82 per cent. The market is putting near-zero odds on a cut at the bank’s next meeting in March.

The market is still pricing in BoC cuts totaling nearly a full percentage point by year-end.

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 0.2128 % 2,275.5
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.2128 % 4,364.5
Floater 10.70 % 10.93 % 34,553 8.81 2 0.2128 % 2,515.3
OpRet 0.00 % 0.00 % 0 0.00 0 -0.2517 % 3,417.1
SplitShare 4.93 % 7.10 % 49,196 1.93 7 -0.2517 % 4,080.8
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.2517 % 3,184.0
Perpetual-Premium 0.00 % 0.00 % 0 0.00 0 -0.0777 % 2,692.5
Perpetual-Discount 6.38 % 6.54 % 50,916 13.15 34 -0.0777 % 2,936.0
FixedReset Disc 5.57 % 7.49 % 120,898 12.22 59 0.0083 % 2,370.5
Insurance Straight 6.26 % 6.45 % 70,295 13.24 20 -0.4448 % 2,895.8
FloatingReset 10.06 % 10.25 % 31,223 9.24 5 0.0666 % 2,670.5
FixedReset Prem 6.89 % 6.41 % 173,792 3.32 1 0.0000 % 2,534.2
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 0.0083 % 2,423.2
FixedReset Ins Non 5.37 % 7.00 % 101,367 12.59 14 0.2229 % 2,647.9
Performance Highlights
Issue Index Change Notes
GWO.PR.I Insurance Straight -5.58 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 17.10
Evaluated at bid price : 17.10
Bid-YTW : 6.68 %
BIP.PR.A FixedReset Disc -3.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 17.40
Evaluated at bid price : 17.40
Bid-YTW : 9.91 %
BN.PF.G FixedReset Disc -2.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 17.31
Evaluated at bid price : 17.31
Bid-YTW : 8.92 %
CU.PR.I FixedReset Disc -1.84 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 22.60
Evaluated at bid price : 22.95
Bid-YTW : 7.56 %
PVS.PR.K SplitShare -1.76 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2029-05-31
Maturity Price : 25.00
Evaluated at bid price : 22.32
Bid-YTW : 7.10 %
BIP.PR.F FixedReset Disc -1.66 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 20.75
Evaluated at bid price : 20.75
Bid-YTW : 7.94 %
BMO.PR.S FixedReset Disc -1.64 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 21.05
Evaluated at bid price : 21.05
Bid-YTW : 7.03 %
SLF.PR.D Insurance Straight -1.61 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 18.92
Evaluated at bid price : 18.92
Bid-YTW : 5.96 %
PWF.PR.G Perpetual-Discount -1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 22.24
Evaluated at bid price : 22.51
Bid-YTW : 6.60 %
BN.PF.F FixedReset Disc -1.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 18.25
Evaluated at bid price : 18.25
Bid-YTW : 8.83 %
CU.PR.G Perpetual-Discount -1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 17.93
Evaluated at bid price : 17.93
Bid-YTW : 6.29 %
FFH.PR.F FloatingReset -1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 17.30
Evaluated at bid price : 17.30
Bid-YTW : 10.75 %
TD.PF.E FixedReset Disc -1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 20.45
Evaluated at bid price : 20.45
Bid-YTW : 7.49 %
GWO.PR.Y Insurance Straight 1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 18.10
Evaluated at bid price : 18.10
Bid-YTW : 6.31 %
SLF.PR.G FixedReset Ins Non 1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 14.95
Evaluated at bid price : 14.95
Bid-YTW : 7.92 %
MFC.PR.M FixedReset Ins Non 1.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 19.45
Evaluated at bid price : 19.45
Bid-YTW : 7.60 %
BN.PR.T FixedReset Disc 1.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 15.50
Evaluated at bid price : 15.50
Bid-YTW : 8.84 %
FFH.PR.C FixedReset Disc 1.46 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 20.90
Evaluated at bid price : 20.90
Bid-YTW : 8.03 %
BN.PF.J FixedReset Disc 1.46 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 20.85
Evaluated at bid price : 20.85
Bid-YTW : 7.99 %
MIC.PR.A Perpetual-Discount 1.51 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 19.50
Evaluated at bid price : 19.50
Bid-YTW : 7.03 %
CM.PR.Q FixedReset Disc 1.88 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 20.00
Evaluated at bid price : 20.00
Bid-YTW : 7.55 %
BIP.PR.E FixedReset Disc 2.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 21.49
Evaluated at bid price : 21.75
Bid-YTW : 7.70 %
BN.PF.I FixedReset Disc 3.66 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 21.25
Evaluated at bid price : 21.25
Bid-YTW : 8.31 %
CU.PR.H Perpetual-Discount 4.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 21.30
Evaluated at bid price : 21.30
Bid-YTW : 6.17 %
PWF.PR.P FixedReset Disc 7.40 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 14.07
Evaluated at bid price : 14.07
Bid-YTW : 8.45 %
Volume Highlights
Issue Index Shares
Traded		 Notes
CM.PR.Q FixedReset Disc 124,550 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 20.00
Evaluated at bid price : 20.00
Bid-YTW : 7.55 %
BMO.PR.Y FixedReset Disc 111,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 19.75
Evaluated at bid price : 19.75
Bid-YTW : 7.57 %
RY.PR.J FixedReset Disc 95,800 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 20.00
Evaluated at bid price : 20.00
Bid-YTW : 7.60 %
SLF.PR.G FixedReset Ins Non 62,700 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 14.95
Evaluated at bid price : 14.95
Bid-YTW : 7.92 %
RY.PR.Z FixedReset Disc 59,580 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 20.43
Evaluated at bid price : 20.43
Bid-YTW : 7.10 %
FTS.PR.M FixedReset Disc 52,500 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 19.10
Evaluated at bid price : 19.10
Bid-YTW : 7.93 %
There were 17 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
BN.PF.F FixedReset Disc Quote: 18.25 – 22.00
Spot Rate : 3.7500
Average : 2.2416

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 18.25
Evaluated at bid price : 18.25
Bid-YTW : 8.83 %
GWO.PR.I Insurance Straight Quote: 17.10 – 18.40
Spot Rate : 1.3000
Average : 0.7963

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 17.10
Evaluated at bid price : 17.10
Bid-YTW : 6.68 %
BIP.PR.A FixedReset Disc Quote: 17.40 – 18.51
Spot Rate : 1.1100
Average : 0.6718

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 17.40
Evaluated at bid price : 17.40
Bid-YTW : 9.91 %
MFC.PR.L FixedReset Ins Non Quote: 19.55 – 21.00
Spot Rate : 1.4500
Average : 1.0989

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 19.55
Evaluated at bid price : 19.55
Bid-YTW : 7.42 %
BN.PF.H FixedReset Disc Quote: 21.12 – 22.60
Spot Rate : 1.4800
Average : 1.1471

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 21.12
Evaluated at bid price : 21.12
Bid-YTW : 8.84 %
GWO.PR.Q Insurance Straight Quote: 20.16 – 21.48
Spot Rate : 1.3200
Average : 1.0817

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-02
Maturity Price : 20.16
Evaluated at bid price : 20.16
Bid-YTW : 6.48 %

Posted in Market Action | 1 Comment »

AX: Trend-Negative Says DBRS

February 2nd, 2024

DBRS Limited (Morningstar DBRS) has announced that it:

changed the trend to Negative from Stable and confirmed the Issuer Rating and Senior Unsecured Debentures rating of Artis Real Estate Investment Trust (Artis or the REIT) at BBB (low) and its Preferred Trust Units rating at Pfd-3 (low).

KEY CREDIT RATING CONSIDERATIONS
The Negative trend reflects the sustained deterioration of EBITDA interest coverage beyond Morningstar DBRS’ prior year expectation of 2.7 times (x) or above because of the REIT’s high proportion of variable rate debt. Morningstar DBRS anticipates a modest improvement in the coverage in the medium term as the REIT continues to execute its Business Transformation Plan through monetizing assets and using the proceeds to repay further variable rate debt. However, Morningstar DBRS notes that, given the increased variable rate debt in an elevated interest rate environment and an already weakened coverage ratio, Artis has less cushion for the current leverage at the given rating level. Morningstar DBRS has also revised its assessment of the REIT’s portfolio size lower as the REIT continues to shrink in size following the asset dispositions carried out in the last 12 months ended (LTM) September 30, 2023. Morningstar DBRS believes that the weakening of the REIT’s financial risk metrics and declining market presence, coupled with its relatively smaller size for the current rating category, increase the possibility of a downgrade action in the near future.

CREDIT RATING DRIVERS
All else equal, Morningstar DBRS would consider downgrading Artis should it fail to achieve a Morningstar DBRS EBITDA interest coverage ratio of 1.83x or better on a sustained basis, or should the Morningstar DBRS total debt-to-EBITDA not improve to 8.6x or better on a sustained basis in the near term. Also, further negative rating actions could occur if the REIT’s debt maturity profile remains short on a sustained basis in the near term. Conversely, Morningstar DBRS would consider restoring a Stable trend should either of these metrics be comfortably achieved on a sustained basis, all else equal.

FINANCIAL OUTLOOK
Morningstar DBRS projects the Morningstar DBRS EBITDA interest coverage metrics to weaken and fluctuate in the 1.6x range by YE2023 and YE2024, primarily because of the REIT’s greater cost of debt as a result of its high variable debt exposure. The Morningstar DBRS debt-to-EBITDA is forecast to increase in the high 9x range at YE2023 because of the loss of EBITDA from recent asset sales carried out in 2023 before showing modest improvement to the high 8x range at YE2024. This improvement will be largely driven by the REIT’s asset monetization plans as demonstrated by the recent sale of its Calgary/Winnipeg Retail portfolio for aggregate proceeds of $222 million, which is expected to close in H1 2024. Morningstar DBRS understands the net disposition proceeds will be used to repay further debt. For comparative purposes, the REIT had Morningstar DBRS total debt-to-EBITDA and EBITDA interest coverage ratios of 9.2x and 1.84x, respectively, as of the LTM ended September 30, 2023.

CREDIT RATING RATIONALE
The rating confirmation is supported by (1) Artis’ well-diversified, albeit reduced, stable and recurrent income-producing portfolio through economic cycles; (2) strong tenant and property diversification; and (3) lack of aggressive expansion and development activities. The rating is constrained by (1) Artis’ weak interest coverage amid a high interest rate environment and elevated leverage for the REIT’s portfolio size and EBITDA; (2) lack of scale in any markets that it operates; and (3) the smaller portfolio size on both EBITDA and square footage bases relative to the BBB (low) rating category.

Affected issues are AX.PR.E AND AX.PR.I.

Posted in Issue Comments | No Comments »

FTS.PR.K To Reset To 5.469%

February 1st, 2024

Fortis Investor Relations has advised:

Good evening,

Thank you for contacting Investor Relations at Fortis Inc.

This notice went out through our CDS yesterday, January 31st, for distribution.

The new rate will be $0.3418125 per Series K Share, payable quarterly on the first day of March, June, September and December of each year during the five-year period from and including March 1, 2024 to but excluding March 1, 2029; and payable if, as and when declared by the board of directors.

As a reminder, holders of Series K pref shares have until February 15, 2024 to provide notice of their election to convert their Series K shares to Series L shares.

Please let us know if you have any additional questions.

Regards,
Investor Relations

The new rate implies a GOC-5 rate of 3.419%, which is consistent with the PPL.PR.C reset.

FTS.PR.K was issued as a FixedReset, 4.00%+205, that commenced trading 2013-7-13 after being announced 2013-7-9. It reset to 3.929% effective 2019-3-1, after some confusion. I recommended against conversion and there was no conversion. The issue is tracked by HIMIPref™ but relegated to the Scraps – FixedResets (Discount) subindex on credit concerns. and has been assigned to the FixedReset (Discount) subindex since its upgrade to Pfd-2(low) by DBRS.

The little sweethearts believe that informing CDS is good enough.

Update, 2024-2-2: I have received the following communication from FTS Investor Relations, after chiming in on an investor complaint about their secrecy:

Good morning [REDACTED],

Thank you for contacting Investor Relations at Fortis Inc.

You can find the rate reset information on our website under Investor Relation > Preference Shares. Below is the direct link to the notice in question that is dated January 31st.

Notice for Series K Rate Resets

Please let us know if you have any further questions. We appreciate your feedback and will take it into consideration going forward.

Regards,

Investor Relations

Posted in Better Communication, Please!, Issue Comments | 3 Comments »

February 1, 2024

February 1st, 2024

TXPR closed at 573.33, up 0.86% on the day. Volume today was 3.40-million, second-highest of the past 21 trading days.

CPD closed at 11.46, up 1.33% on the day. Volume was 113,640, highest of the past 21 trading days.

ZPR closed at 9.72, up 0.41% on the day. Volume was 117,890, near the median of the past 21 trading days.

Five-year Canada yields were down to 3.38%.

The G&M comments:

A raft of economic data showed rising productivity helping to cap U.S. labour costs, while an increase in announced layoffs and weekly U.S. jobless claims provided further evidence of softening in the labour market, which is viewed by the Fed as a precondition to assuring a sustainable downward path for inflation. U.S. manufacturing stabilized in January amid a rebound in new orders, while Canadian manufacturing data also offered encouragement. It showed a slowdown in the pace of contraction in the sector as inflation pressures eased and firms grew more confident about the outlook.

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 0.7719 % 2,270.7
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.7719 % 4,355.2
Floater 10.72 % 10.97 % 34,188 8.78 2 0.7719 % 2,509.9
OpRet 0.00 % 0.00 % 0 0.00 0 0.2343 % 3,425.8
SplitShare 4.91 % 7.22 % 48,879 1.93 7 0.2343 % 4,091.1
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.2343 % 3,192.0
Perpetual-Premium 0.00 % 0.00 % 0 0.00 0 0.5828 % 2,694.6
Perpetual-Discount 6.37 % 6.49 % 52,792 13.21 34 0.5828 % 2,938.3
FixedReset Disc 5.57 % 7.47 % 120,718 12.12 59 0.3441 % 2,370.3
Insurance Straight 6.23 % 6.42 % 70,847 13.29 20 0.1677 % 2,908.7
FloatingReset 10.07 % 10.35 % 29,460 9.23 5 0.1445 % 2,668.7
FixedReset Prem 6.89 % 6.41 % 175,284 3.32 1 -0.1566 % 2,534.2
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 0.3441 % 2,423.0
FixedReset Ins Non 5.38 % 7.03 % 102,564 12.60 14 0.7138 % 2,642.0
Performance Highlights
Issue Index Change Notes
PWF.PR.P FixedReset Disc -6.76 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 13.10
Evaluated at bid price : 13.10
Bid-YTW : 9.03 %
BN.PF.H FixedReset Disc -5.50 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 21.12
Evaluated at bid price : 21.12
Bid-YTW : 8.84 %
BN.PR.X FixedReset Disc -3.50 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 14.91
Evaluated at bid price : 14.91
Bid-YTW : 8.83 %
GWO.PR.N FixedReset Ins Non -1.73 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 14.16
Evaluated at bid price : 14.16
Bid-YTW : 7.95 %
FTS.PR.K FixedReset Disc -1.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 19.27
Evaluated at bid price : 19.27
Bid-YTW : 7.46 %
GWO.PR.Y Insurance Straight -1.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 17.92
Evaluated at bid price : 17.92
Bid-YTW : 6.37 %
PWF.PR.O Perpetual-Discount 1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 21.98
Evaluated at bid price : 22.22
Bid-YTW : 6.57 %
CU.PR.G Perpetual-Discount 1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 18.14
Evaluated at bid price : 18.14
Bid-YTW : 6.21 %
BMO.PR.Y FixedReset Disc 1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 19.76
Evaluated at bid price : 19.76
Bid-YTW : 7.56 %
MIC.PR.A Perpetual-Discount 1.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 19.21
Evaluated at bid price : 19.21
Bid-YTW : 7.14 %
IFC.PR.C FixedReset Ins Non 1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 19.96
Evaluated at bid price : 19.96
Bid-YTW : 7.27 %
FTS.PR.M FixedReset Disc 1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 7.97 %
POW.PR.D Perpetual-Discount 1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 19.50
Evaluated at bid price : 19.50
Bid-YTW : 6.48 %
PWF.PR.G Perpetual-Discount 1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 22.62
Evaluated at bid price : 22.87
Bid-YTW : 6.49 %
SLF.PR.D Insurance Straight 1.21 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 19.23
Evaluated at bid price : 19.23
Bid-YTW : 5.86 %
CM.PR.P FixedReset Disc 1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 18.90
Evaluated at bid price : 18.90
Bid-YTW : 7.56 %
BMO.PR.T FixedReset Disc 1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 19.97
Evaluated at bid price : 19.97
Bid-YTW : 7.24 %
BN.PR.N Perpetual-Discount 1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 18.24
Evaluated at bid price : 18.24
Bid-YTW : 6.61 %
CU.PR.J Perpetual-Discount 1.34 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 18.92
Evaluated at bid price : 18.92
Bid-YTW : 6.29 %
FTS.PR.G FixedReset Disc 1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 21.43
Evaluated at bid price : 21.43
Bid-YTW : 6.95 %
BN.PF.C Perpetual-Discount 1.64 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 18.55
Evaluated at bid price : 18.55
Bid-YTW : 6.63 %
BN.PF.F FixedReset Disc 1.65 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 18.50
Evaluated at bid price : 18.50
Bid-YTW : 8.70 %
BN.PF.D Perpetual-Discount 1.74 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 18.68
Evaluated at bid price : 18.68
Bid-YTW : 6.66 %
BN.PR.M Perpetual-Discount 1.80 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 18.68
Evaluated at bid price : 18.68
Bid-YTW : 6.45 %
CIU.PR.A Perpetual-Discount 1.99 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 17.95
Evaluated at bid price : 17.95
Bid-YTW : 6.42 %
CU.PR.I FixedReset Disc 2.10 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 23.01
Evaluated at bid price : 23.38
Bid-YTW : 7.42 %
BN.PF.G FixedReset Disc 2.43 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 17.72
Evaluated at bid price : 17.72
Bid-YTW : 8.72 %
BIP.PR.F FixedReset Disc 2.93 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 21.10
Evaluated at bid price : 21.10
Bid-YTW : 7.80 %
NA.PR.W FixedReset Disc 3.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 18.85
Evaluated at bid price : 18.85
Bid-YTW : 7.60 %
BMO.PR.W FixedReset Disc 7.94 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 19.16
Evaluated at bid price : 19.16
Bid-YTW : 7.48 %
IFC.PR.A FixedReset Ins Non 8.60 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 19.44
Evaluated at bid price : 19.44
Bid-YTW : 6.76 %
Volume Highlights
Issue Index Shares
Traded		 Notes
TD.PF.J FixedReset Disc 215,396 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 21.66
Evaluated at bid price : 21.99
Bid-YTW : 7.01 %
CM.PR.S FixedReset Disc 164,427 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 21.85
Evaluated at bid price : 21.85
Bid-YTW : 6.91 %
PWF.PR.P FixedReset Disc 106,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 13.10
Evaluated at bid price : 13.10
Bid-YTW : 9.03 %
RY.PR.H FixedReset Disc 90,116 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 19.80
Evaluated at bid price : 19.80
Bid-YTW : 7.33 %
TD.PF.B FixedReset Disc 89,300 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 21.45
Evaluated at bid price : 21.45
Bid-YTW : 6.81 %
TD.PF.L FixedReset Disc 86,266 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 23.91
Evaluated at bid price : 24.76
Bid-YTW : 6.93 %
There were 37 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
MFC.PR.F FixedReset Ins Non Quote: 15.06 – 19.38
Spot Rate : 4.3200
Average : 2.4164

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 15.06
Evaluated at bid price : 15.06
Bid-YTW : 7.65 %
FTS.PR.M FixedReset Disc Quote: 19.00 – 21.22
Spot Rate : 2.2200
Average : 1.2726

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 7.97 %
BIP.PR.E FixedReset Disc Quote: 21.25 – 22.90
Spot Rate : 1.6500
Average : 1.1011

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 21.25
Evaluated at bid price : 21.25
Bid-YTW : 7.89 %
BN.PF.H FixedReset Disc Quote: 21.12 – 22.45
Spot Rate : 1.3300
Average : 0.7821

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 21.12
Evaluated at bid price : 21.12
Bid-YTW : 8.84 %
CU.PR.H Perpetual-Discount Quote: 20.40 – 22.05
Spot Rate : 1.6500
Average : 1.1787

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 20.40
Evaluated at bid price : 20.40
Bid-YTW : 6.45 %
PWF.PR.P FixedReset Disc Quote: 13.10 – 14.74
Spot Rate : 1.6400
Average : 1.1730

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-02-01
Maturity Price : 13.10
Evaluated at bid price : 13.10
Bid-YTW : 9.03 %

Posted in Market Action | No Comments »

PPL.PR.C To Reset To 6.019%

January 31st, 2024

Pembina Pipeline Corporation has announced:

that it does not intend to exercise its right to redeem the currently outstanding Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 3 (“Series 3 Shares”) (TSX: PPL.PR.C) on March 1, 2024.

As a result of the decision not to redeem the Series 3 Shares, and subject to certain terms of the Series 3 Shares, the holders of the Series 3 Shares will have the right to elect to convert all or part of their Series 3 Shares on a one-for-one basis into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 4 of Pembina (“Series 4 Shares”) on March 1, 2024 (the “Conversion Date”). Holders who do not exercise their right to convert their Series 3 Shares into Series 4 Shares will retain their Series 3 Shares.

As provided in the terms of the Series 3 Shares: (i) if Pembina determines that there would remain outstanding immediately following the conversion less than 1,000,000 Series 3 Shares, then all remaining Series 3 Shares will be automatically converted into Series 4 Shares on a one-for-one basis effective as of the Conversion Date; or (ii) if Pembina determines that there would be less than 1,000,000 Series 4 Shares outstanding immediately following the conversion, no Series 3 Shares will be converted into Series 4 Shares on the Conversion Date. There are currently 6,000,000 Series 3 Shares outstanding.

With respect to any Series 3 Shares that remain outstanding after the Conversion Date, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, if, as and when declared by the Board of Directors of Pembina. The annual dividend rate for the Series 3 Shares for the five-year period from and including March 1, 2024, to, but excluding, March 1, 2029, will be 6.019 percent, being equal to the five-year Government of Canada bond yield of 3.419 percent determined as of today plus 2.60 percent, in accordance with the terms of the Series 3 Shares.

With respect to any Series 4 Shares that may be issued on the Conversion Date, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, if, as and when declared by the Board of Directors of Pembina. The annual dividend rate applicable to the Series 4 Shares for the three-month floating rate period from and including March 1, 2024, to, but excluding, June 1, 2024, will be 7.631 percent, being equal to the annual rate of interest for the most recent auction of 90-day Government of Canada treasury bills of 5.031 percent plus 2.60 percent, in accordance with the terms of the Series 4 Shares (the “Floating Quarterly Dividend Rate”). The Floating Quarterly Dividend Rate will be reset on the first day of March, June, September and December in each year.

Beneficial holders of Series 3 Shares who wish to exercise their right of conversion during the conversion period, which runs from January 31, 2024, until 3:00 pm (MT) / 5:00 pm (ET) on February 15, 2024, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary with the time to complete the necessary steps. Any notices received after this deadline will not be valid.

As previously announced, the dividend payable on March 1, 2024, to holders of the Series 3 Shares of record on February 1, 2024, will be $0.279875 per Series 3 Share. For more information on the terms of the Series 3 Shares and the Series 4 Shares, please see the prospectus supplement dated September 25, 2013, which can be found on SEDAR+ at www.sedarplus.ca.

PPL.PR.C was issued as a FixedReset, 4.70%+260, that commenced trading 2013-10-2 after being announced 2013-9-23. Notice of the reset to 4.478% was given 2019-1-30. I recommended against conversion and there was no conversion. The issue is tracked by HIMIPref™ but is relegated to the Scraps – FixedReset (Discount) subindex on credit concerns.

Thanks to Assiduous Reader avocado for bringing this to my attention!

Update, 2024-2-21: No conversion:

Pembina Pipeline Corporation (“Pembina”) (TSX: PPL; NYSE: PBA) announced today that none of Pembina’s Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 3 (“Series 3 Shares”) (TSX: PPL.PR.C) will be converted into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 4 of Pembina (“Series 4 Shares”) on March 1, 2024.

After taking into account all the conversion notices received from holders of its outstanding Series 3 Shares by the February 15, 2024 deadline for the conversion of the Series 3 Shares into Series 4 Shares, less than the 1,000,000 Series 3 Shares required to give effect to conversions into Series 4 Shares were tendered for conversion.

Posted in Issue Comments | 1 Comment »

ENB.PR.P To Reset To 5.918%

January 31st, 2024

Enbridge Inc. has announced:

that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series P (Series P Shares) (TSX: ENB.PR.P) on March 1, 2024. As a result, subject to certain conditions, the holders of the Series P Shares have the right to convert all or part of their Series P Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series Q of Enbridge (Series Q Shares) on March 1, 2024. Holders who do not exercise their right to convert their Series P Shares into Series Q Shares will retain their Series P Shares.

The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series P Shares outstanding after March 1, 2024, then all remaining Series P Shares will automatically be converted into Series Q Shares on a one-for-one basis on March 1, 2024; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series Q Shares outstanding after March 1, 2024, no Series P Shares will be converted into Series Q Shares. There are currently 16,000,000 Series P Shares outstanding.

With respect to any Series P Shares that remain outstanding after March 1, 2024, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series P Shares for the five-year period commencing on March 1, 2024 to, but excluding, March 1, 2029 will be 5.918 percent, being equal to the five-year Government of Canada bond yield of 3.418 percent determined as of today plus 2.50 percent in accordance with the terms of the Series P Shares.

With respect to any Series Q Shares that may be issued on March 1, 2024, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series Q Shares for the three-month floating rate period commencing on March 1, 2024 to, but excluding, June 1, 2024 will be 1.89279 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 5.03 percent plus 2.50 percent in accordance with the terms of the Series Q Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.

Beneficial holders of Series P Shares who wish to exercise their right of conversion during the conversion period, which runs from January 31, 2024 until 5:00 p.m. (EST) on February 15, 2024, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.

ENB.PR.P was issued as a FixedReset, 4.00%+250, that commenced trading 2012-9-14 after being announced 2012-9-4. Notice of the reset to 4.379% was published 2019-1-30. I recommended against conversion and there was no conversion. It is tracked by HIMIPref™ but is relegated to the Scraps FixedReset Discount index on credit concerns.

Thanks to Assiduous Reader newbiepref for bringing this to my attention!

Update, 2024-2-28: No conversion:

Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) announced today that none of its outstanding Cumulative Redeemable Preference Shares, Series P (Series P Shares) will be converted into Cumulative Redeemable Preference Shares, Series Q (Series Q Shares) on March 1, 2024.

After taking into account all conversion notices received from holders of its outstanding Series P Shares by the February 15, 2024 deadline for the conversion of the Series P Shares into Series Q Shares, less than the 1,000,000 Series P Shares required to give effect to conversions into Series Q Shares were tendered for conversion.

Posted in Issue Comments | No Comments »

ENB.PF.V To Reset To 6.683%

January 31st, 2024

Enbridge Inc. has announced:

that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series 5 (Series 5 Shares) (TSX: ENB.PF.V) on March 1, 2024. As a result, subject to certain conditions, the holders of the Series 5 Shares have the right to convert all or part of their Series 5 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 6 of Enbridge (Series 6 Shares) on March 1, 2024. Holders who do not exercise their right to convert their Series 5 Shares into Series 6 Shares will retain their Series 5 Shares.

The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series 5 Shares outstanding after March 1, 2024, then all remaining Series 5 Shares will automatically be converted into Series 6 Shares on a one-for-one basis on March 1, 2024; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 6 Shares outstanding after March 1, 2024, no Series 5 Shares will be converted into Series 6 Shares. There are currently 8,000,000 Series 5 Shares outstanding.

With respect to any Series 5 Shares that remain outstanding after March 1, 2024, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series 5 Shares for the five-year period commencing on March 1, 2024 to, but excluding, March 1, 2029 will be 6.683 percent, being equal to the five-year United States Treasury bond yield of 3.863 percent determined as of today plus 2.82 percent in accordance with the terms of the Series 5 Shares.

With respect to any Series 6 Shares that may be issued on March 1, 2024, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series 6 Shares for the three-month floating rate period commencing on March 1, 2024 to, but excluding, June 1, 2024 will be 2.05869 percent, based on the annual rate on three month United States Government treasury bills for the most recent treasury bills auction of 5.37 percent plus 2.82 percent in accordance with the terms of the Series 6 Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.

Beneficial holders of Series 5 Shares who wish to exercise their right of conversion during the conversion period, which runs from January 31, 2024 until 5:00 p.m. (EST) on February 15, 2024, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.

ENB.PF.V was issued as a US-Pay FixedReset, 4.40%+282, that commenced trading 2013-9-27 after being announced 2013-9-19. It reset to 5.3753% effective 2019-3-1. There was no conversion in 2019. The issue is not tracked by HIMIPref™.

Thanks to Assiduous Reader newbiepref for bringing this to my attention!

Update, 2024-2-18: No conversion:

Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) announced today that none of its outstanding Cumulative Redeemable Preference Shares, Series 5 (Series 5 Shares) will be converted into Cumulative Redeemable Preference Shares, Series 6 (Series 6 Shares) on March 1, 2024.

After taking into account all conversion notices received from holders of its outstanding Series 5 Shares by the February 15, 2024 deadline for the conversion of the Series 5 Shares into Series 6 Shares, less than the 1,000,000 Series 5 Shares required to give effect to conversions into Series 6 Shares were tendered for conversion.

Posted in Issue Comments, US Pay | 2 Comments »

ENB.PR.J To Reset At 5.988%

January 31st, 2024

Enbridge Inc. has announced:

that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series 7 (Series 7 Shares) (TSX: ENB.PR.J) on March 1, 2024. As a result, subject to certain conditions, the holders of the Series 7 Shares have the right to convert all or part of their Series 7 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 8 of Enbridge (Series 8 Shares) on March 1, 2024. Holders who do not exercise their right to convert their Series 7 Shares into Series 8 Shares will retain their Series 7 Shares.

The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series 7 Shares outstanding after March 1, 2024, then all remaining Series 7 Shares will automatically be converted into Series 8 Shares on a one-for-one basis on March 1, 2024; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 8 Shares outstanding after March 1, 2024, no Series 7 Shares will be converted into Series 8 Shares. There are currently 10,000,000 Series 7 Shares outstanding.

With respect to any Series 7 Shares that remain outstanding after March 1, 2024, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series 7 Shares for the five-year period commencing on March 1, 2024 to, but excluding, March 1, 2029 will be 5.988 percent, being equal to the five-year Government of Canada bond yield of 3.418 percent determined as of today plus 2.57 percent in accordance with the terms of the Series 7 Shares.

With respect to any Series 8 Shares that may be issued on March 1, 2024, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series 8 Shares for the three-month floating rate period commencing on March 1, 2024 to, but excluding, June 1, 2024 will be 1.91038 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 5.03 percent plus 2.57 percent in accordance with the terms of the Series 8 Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.

Beneficial holders of Series 7 Shares who wish to exercise their right of conversion during the conversion period, which runs from January 31, 2024 until 5:00 p.m. (EST) on February 15, 2024, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.

ENB.PR.J was issued as a FixedReset, 4.40%+257, that commenced trading 2013-12-12 after being announced 2013-12-3. Notice of the reset to 4.449% was published 2019-1-30. I recommended against conversion and there was no conversion. The issue is tracked by HIMIPref™ but relegated to the Scraps – FixedResets (Discount) subindex on credit concerns.

Thanks to Assiduous Reader newbiepref for bringing this to my attention!

Update, 2024-2-18: No conversion.

Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) announced today that none of its outstanding Cumulative Redeemable Preference Shares, Series 7 (Series 7 Shares) will be converted into Cumulative Redeemable Preference Shares, Series 8 (Series 8 Shares) on March 1, 2024.

After taking into account all conversion notices received from holders of its outstanding Series 7 Shares by the February 15, 2024 deadline for the conversion of the Series 7 Shares into Series 8 Shares, less than the 1,000,000 Series 7 Shares required to give effect to conversions into Series 8 Shares were tendered for conversion.

Posted in Issue Comments | No Comments »

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