{"id":1409,"date":"2007-11-01T21:15:49","date_gmt":"2007-11-02T01:15:49","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1409"},"modified":"2007-11-01T21:15:49","modified_gmt":"2007-11-02T01:15:49","slug":"tdprp-avoids-opening-day-debacle","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1409","title":{"rendered":"TD.PR.P Avoids Opening Day Debacle"},"content":{"rendered":"

Against all odds, the new TD issues, announced October 9<\/a>, managed to make it through its first trading day without embarrassment. From the press release<\/a> announcing closing, it does not appear that the underwriters’ greenshoe option was exercised.<\/p>\n

It closed at 24.60-70, 7×10, on volume of 75,785 shares.<\/p>\n

It may be compared with the other two recent new issues:<\/p>\n

\n\n\n\n\n\n\n
Recent New Issues<\/td>\n<\/tr>\n
Issue<\/td>\nQuote, 11\/1<\/td>\nPre-Tax
\nbid-YTW<\/td>\n		Fair Value<\/td>\n<\/tr>\n
TD.PR.P<\/td>\n24.60-70<\/td>\n\u00a05.36%<\/td>\n\u00a023.93<\/td>\n<\/tr>\n
BNS.PR.N<\/a><\/td>\n24.55-57<\/td>\n\u00a05.39%<\/td>\n\u00a024.01<\/td>\n<\/tr>\n
BMO.PR.K<\/a><\/td>\n24.25-29<\/td>\n\u00a05.46%<\/td>\n\u00a024.04<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

So I don’t get it. Comparing to\u00a0the most recent (and much lower coupon) issues for each issuer:<\/p>\n

\n\n\n\n\n\n\n
Penultimate\u00a0Issues<\/td>\n<\/tr>\n
Issue<\/td>\nQuote, 11\/1<\/td>\nPre-Tax
\nbid-YTW<\/td>\n		Fair Value<\/td>\n<\/tr>\n
TD.PR.O<\/td>\n22.30-35\u00a0<\/td>\n\u00a05.47%<\/td>\n22.73\u00a0<\/td>\n<\/tr>\n
BNS.PR.M<\/td>\n20.95-18\u00a0<\/td>\n\u00a05.41%<\/td>\n21.42\u00a0<\/td>\n<\/tr>\n
BMO.PR.J<\/td>\n20.75-85\u00a0<\/td>\n\u00a05.43%<\/td>\n21.28\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

Yields are basically comparable, although the TD issue looks expensive even on this basis. So:<\/p>\n