{"id":1461,"date":"2007-11-14T22:27:01","date_gmt":"2007-11-15T02:27:01","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1461"},"modified":"2007-11-14T22:27:01","modified_gmt":"2007-11-15T02:27:01","slug":"tdprp-inventory-blow-out-sale","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1461","title":{"rendered":"TD.PR.P Inventory Blow-Out Sale"},"content":{"rendered":"<p>The underwriters unloaded all (? Well,\u00a0I don&#8217;t know for sure. But a big chunk, anyway!)\u00a0of their unsold inventory of TD.PR.P today;\u00a0819,021 shares (of a 10-million share issue)\u00a0traded in a range of 24.00-23, closing at 24.10-13, 12&#215;11. I am advised that the blow-out price was $24.00.<\/p>\n<p>I don&#8217;t get it. Who, except maybe for those willing to pay up-up-UP for the privilege of buying a big piece, would be willing to buy it at $24.00? Let&#8217;s look at a recent comparable &#8211; the same comparable I wrote about when <a href=\"http:\/\/www.prefblog.com\/?p=1409\">I reported on the opening day<\/a>: TD.PR.O.<\/p>\n<div align=\"center\">\n<table border=\"1\">\n<tr>\n<td colspan=\"4\">TD Comparables<\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Quote, 11\/14<\/td>\n<td>Pre-Tax<br \/>\nbid-YTW<\/td>\n<td>Fair Value<\/td>\n<\/tr>\n<tr>\n<td>TD.PR.P<\/td>\n<td>24.10-13<\/td>\n<td>5.49%<\/td>\n<td>\u00a024.03<\/td>\n<\/tr>\n<tr>\n<td>TD.PR.O<\/td>\n<td>22.20-23<\/td>\n<td>5.51%<\/td>\n<td>\u00a022.75<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<p>All I can really do is repeat the following from my previous post:<\/p>\n<blockquote><p>Yields are basically comparable, although the TD issue looks expensive even on this basis. So:<\/p>\n<ul>\n<li>If yields go up and prices go down, old &#038; new will return about the same.<\/li>\n<li>If yields are unchanged, old and new will return about the same.<\/li>\n<li>If yields go down, the new issues will get called away just as things start to get fun, while the old issues will rack up big gains.<\/li>\n<\/ul>\n<p>Doesn&#8217;t anybody do scenario analysis any more?<\/p><\/blockquote>\n<p>If I repeat myself often enough, maybe enough people will listen that we&#8217;ll start seeing more\u00a0preferred shares issued that actually have a concession to market &#8230; or maybe I&#8217;ll just be dismissed as a crank. You can never be sure&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The underwriters unloaded all (? Well,\u00a0I don&#8217;t know for sure. But a big chunk, anyway!)\u00a0of their unsold inventory of TD.PR.P today;\u00a0819,021 shares (of a 10-million share issue)\u00a0traded in a range of 24.00-23, closing at 24.10-13, &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-1461","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1461","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=1461"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1461\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}