{"id":134,"date":"2006-09-28T18:42:08","date_gmt":"2006-09-28T22:42:08","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=134"},"modified":"2006-09-28T18:42:08","modified_gmt":"2006-09-28T22:42:08","slug":"ftsprf-holds-its-own","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=134","title":{"rendered":"FTS.PR.F Holds its Own!"},"content":{"rendered":"

The Fortis perpetuals, mentioned earlier<\/a> as a new issue seemed determined to prove me wrong on their opening day: 152,035 shares traded at prices between $25.05 and $25.25, closing at $25.10-14.
\nThis comes on top of the news that Sunlife is bringing out another<\/a> new issue, paying 4.45% compared to Fortis’ 4.90%. The funny thing is, I think the Sunlife new issue is also expensive. And I think – on the other hand – that 45bp is actually a pretty reasonable spread between issues with these two credit ratings.
\nBut look, for instance, at the PerpetualDiscount index (as it stands today! Rebalancing is tomorrow, and there may be changes!)<\/p>\n

\n\n\n\n\n\n\n\n\n
Issue<\/td>\nPre-Tax YTW<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\n4.52%<\/td>\n<\/tr>\n
WN.PR.E<\/td>\n4.82%<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\n4.56%<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\n4.64%<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\n4.54%<\/td>\n<\/tr>\n
RY.PR.A<\/td>\n4.50%<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

These are good traders and accumulating a stake would certainly take more than a day, but work pays off! These things have an average Modified Duration (of their YTW scenario, which is the 30-year HIMIPref\u2122 limit) of about 16.25 years. Which means that every basis-point of yield is worth 16 basis-points of price \u2026 and 16bp on $25 is four cents.<\/p>\n

It doesn\u2019t sound like much, I know \u2026 but this is FIXED-INCOME analysis! This is the site where we CARE about our pennies \u2026 because four cents is nearly two week\u2019s coupon.<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

The Fortis perpetuals, mentioned earlier as a new issue seemed determined to prove me wrong on their opening day: 152,035 shares traded at prices between $25.05 and $25.25, closing at $25.10-14. This comes on top …<\/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-134","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/134","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=134"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/134\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}