{"id":1008,"date":"2007-07-26T12:39:10","date_gmt":"2007-07-26T16:39:10","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1008"},"modified":"2007-07-26T12:39:10","modified_gmt":"2007-07-26T16:39:10","slug":"epppra-valuation-and-comparables","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1008","title":{"rendered":"EPP.PR.A Valuation and Comparables"},"content":{"rendered":"

I thought it would be fun to look at the valuation of EPP.PR.A, given what I’ve\u00a0heard about the underwriters getting impatient<\/a>.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
EPP.PR.A\u00a0& Comparatives<\/td>\n<\/tr>\n
Data<\/td>\nEPP.PR.A<\/td>\nWN.PR.E<\/td>\nYPG.PR.B<\/td>\n<\/tr>\n
Price due to base-rate<\/td>\n22.42<\/td>\n21.88<\/td>\n24.26<\/td>\n<\/tr>\n
Price due to short-term<\/td>\n-0.62<\/td>\n-0.61<\/td>\n-0.91<\/td>\n<\/tr>\n
Price due to long-term<\/td>\n2.17<\/td>\n2.12<\/td>\n2.18<\/td>\n<\/tr>\n
Price due to Cumulative Dividends<\/td>\n0.31<\/td>\n0.30<\/td>\n0.18<\/td>\n<\/tr>\n
Price due to Retractibility<\/td>\n0.00<\/td>\n0.00<\/td>\n0.92<\/td>\n<\/tr>\n
Price due to Credit Spread (3)<\/td>\n-2.83<\/td>\n-2.76<\/td>\n-1.56<\/td>\n<\/tr>\n
Price due to Liquidity<\/td>\n0.00<\/td>\n0.00<\/td>\n0.00<\/td>\n<\/tr>\n
Price due to error<\/td>\n0.36<\/td>\n0.35<\/td>\n0.18<\/td>\n<\/tr>\n
Price due to Credit Spread (high)<\/td>\n0.00<\/td>\n0.00<\/td>\n0.00<\/td>\n<\/tr>\n
Curve Price (Taxable Curve)<\/td>\n21.81<\/td>\n21.28<\/td>\n25.25<\/td>\n<\/tr>\n
Dividend Rate<\/td>\n1.2125<\/td>\n1.1875<\/td>\n1.25<\/td>\n<\/tr>\n
Quote 7\/25<\/td>\n20.80-20<\/td>\n20.31-68<\/td>\n23.05-15<\/td>\n<\/tr>\n
YTW (at bid, after tax)<\/td>\n4.72%<\/td>\n4.72%<\/td>\n4.94%<\/td>\n<\/tr>\n
YTW Date<\/td>\nInfinite<\/td>\nInfinite<\/td>\n2017-6-29<\/td>\n<\/tr>\n
Credit Rating (DBRS)<\/td>\nPfd-3(high)<\/td>\nPfd-3(high)<\/td>\nPfd-3(high)<\/td>\n<\/tr>\n
Credit Rating (S&P)<\/td>\nP-2(low)<\/td>\nP-3(high)<\/td>\nP-3<\/td>\n<\/tr>\n
YTW (Pre-Tax)<\/td>\n5.94%<\/td>\n5.92%\u00a0<\/td>\n6.19%\u00a0<\/td>\n<\/tr>\n
YTW Modified Duration (Pre-Tax)<\/td>\n13.92\u00a0<\/td>\n14.02<\/td>\n7.60<\/td>\n<\/tr>\n
YTW Pseudo-Convexity (Pre-Tax)<\/td>\n1.03<\/td>\n1.02<\/td>\n0.24<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

For those who are curious … Pfd-3 (& (high)) issues (using DBRS ratings)\u00a0trading above their curve price are from BPO, FTS & LB.<\/p>\n

As always with issues of this quality, choice of investment is as much a matter of credit anticipation as it is of cash-flow analysis … so before jumping in, do the work and make your own mind up! HIMIPref\u2122’s accuracy is nothing special with these lower-grade credits … but I thought it would be fun to look!<\/p>\n","protected":false},"excerpt":{"rendered":"

I thought it would be fun to look at the valuation of EPP.PR.A, given what I’ve\u00a0heard about the underwriters getting impatient. EPP.PR.A\u00a0& Comparatives Data EPP.PR.A WN.PR.E YPG.PR.B Price due to base-rate 22.42 21.88 24.26 Price …<\/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-1008","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1008","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=1008"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1008\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}