{"id":1030,"date":"2007-08-01T15:13:48","date_gmt":"2007-08-01T19:13:48","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1030"},"modified":"2007-08-01T15:13:48","modified_gmt":"2007-08-01T19:13:48","slug":"gwo-reports-no-purchases-in-2q07-of-gwopre-gwoprx","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1030","title":{"rendered":"GWO Reports: No purchases in 2Q07 of GWO.PR.E \/ GWO.PR.X"},"content":{"rendered":"<p>I have <a href=\"http:\/\/www.prefblog.com\/?p=995\">mentioned earlier<\/a> that I was looking forward to <a href=\"http:\/\/www.greatwestlifeco.com\/english\/news\/lifeco_08_01_2007.pdf\">today&#8217;s GWO Earnings Release<\/a> for hints of what they will be doing with preferreds.<\/p>\n<p>No news! And no purchases through the <a href=\"http:\/\/www.prefblog.com\/?p=619\">GWO.PR.E \/ GWO.PR.X Issuer Bid<\/a> so far this year either. These two issues are currently trading at what I consider to be elevated levels, with pre-tax bid-YTWs in the 3.8% range. This is an interest equivalent (at a factor of 1.4x) of about 5.3%, which in turn is about where Great-West bond paper is trading. Given all the current uncertainty in the credit markets, there is not much incentive for them to purchase on the open market from a strictly financial point of view &#8211; there may be regulatory considerations of which I am not aware), so I think we can write off the next few months in terms of hoping for purchases and cancellations of these issues.<\/p>\n<p>As far as <a href=\"http:\/\/www.prefblog.com\/?p=801\">CL.PR.B is concerned<\/a> &#8230; who knows? It pays $1.5625, is currently callable at $26.00 and the redemption price declines by $0.25 p.a. every December 1 until 2010-12-31, after which it is callable at $25.00. Thus, net cost to the company of leaving it out is only $1.3125 p.a., which is 5.25% of par, which is probably what it would take to issue a new perpetual in size in this market. I suspect the window of opportunity for redemption of this issue has closed &#8211; at least for now.<\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I have mentioned earlier that I was looking forward to today&#8217;s GWO Earnings Release for hints of what they will be doing with preferreds. No news! And no purchases through the GWO.PR.E \/ GWO.PR.X Issuer &hellip;<\/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-1030","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1030","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=1030"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1030\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1030"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1030"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1030"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}