I have been advised that the underwriters are seeking to get this issue off their books at $21.50.<\/p>\n
I mentioned this issue’s new low on July 23<\/a>. It commenced trading May 25<\/a> … bang smack in the middle of the decline in the overall preferred share market.<\/p>\n At 21.50, this issue has a yield in excess of 5.75% … very attractive, but remember that it is rated only Pfd-3(high) by DBRS<\/a> and should not comprise more than about 5% of a diversified preferred share portfolio.<\/p>\n Update<\/strong>: It should be noted that the issue is rated by S&P<\/a> as BBB-, or P-2(low) on their Canadian Preferred Share Scale.<\/p>\n Update #2, 3:40pm<\/b>: I don’t think the underwriters are having a very nice time. Now quoted at 20.30-00, 3×5, with 9,550 shares traded, new low of 20.10. Ouch! CIBC has been on the sell side of the last ten trades. With an annual dividend of $1.2125, a price of 20.21 corresponds to a yield of 6% … grossed up<\/a>, that’s the equivalent of 8.4% interest!\n<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" I have been advised that the underwriters are seeking to get this issue off their books at $21.50. I mentioned this issue’s new low on July 23. It commenced trading May 25 … bang smack …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-1002","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1002"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1002\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}