I’m not entirely sure that this is the first time it’s happened, because I don’t keep track of such things … but at the very least, it’s one of the first times this has happened!<\/p>\n
RY.PR.R is a 6.25%+450 FixedReset, announced 2009-1-21<\/a>. It is callable 2014-2-24 at par<\/a> and was most recently mentioned in the volume highlights for 2010-3-22<\/a>.<\/p>\n It traded 5,593 shares today in a range of 28.24-43 before closing at 28.31-40, 20×35.<\/p>\n HIMIPref™ reports that the yield to a call 2014-3-26 at par is now 2.93% (pre-tax, bond-equivalent); recall that a slight inaccuracy in HIMIPref™ conventions means that the calculated call date is maturityNoticePeriod days after the actual call date<\/a>.<\/p>\n That’s a pretty low yield! The reset to +450bp makes it almost certain to be called at the first opportunity, but one of the words that can hurt in the investment game is “almost”!<\/p>\n I have uploaded two charts for your edification and amusement:<\/p>\n