{"id":15581,"date":"2011-07-06T00:28:13","date_gmt":"2011-07-06T04:28:13","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=15581"},"modified":"2011-07-06T00:28:13","modified_gmt":"2011-07-06T04:28:13","slug":"july-5-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=15581","title":{"rendered":"July 5, 2011"},"content":{"rendered":"

FixedResets and new issuers got some ink in the Globe<\/a>:<\/p>\n

BCE Inc. (BCE-T38.220.230.61%), which has long history with these shares, is one of the latest firms to tap into this demand, closing a $345-million offering on Tuesday. These shares pay a fixed yield of 4.15 per cent for the first five years, and then investors have the choice to either take a rate equal to the Government of Canada 5-year yield plus 1.88 per cent, or a floating three-month T-bill rate plus 1.88 per cent.<\/p>\n

Yet BCE isn\u2019t alone. Intact Financial also just sold $225-million of these securities, as did Canaccord Financial. These two issues were a bit more surprising because both deals were the first time these firms offered this type of security.<\/p>\n

Still, it makes a lot of sense. Much like Intact and Canaccord, firms such as GMP Capital and Bell Alliant also recently sold their first issue of rate reset preferred shares. If sales continue to be strong, don’t be surprised if more first-time issuers jump on the bandwagon.<\/p><\/blockquote>\n

Moody’s says Portugal is junk after a four-notch downgrade<\/a>:<\/p>\n

Moody’s Investors Service on Tuesday cut Portugal’s credit rating by four levels to Ba2, two notches into junk territory, saying there is great risk the country will need a second round of official financing before it can return to capital markets.<\/p><\/blockquote>\n

It was a mixed day on the Canadian preferred share market, with PerpetualDiscounts down 4bp, FixedResets winning 15bp and DeemedRetractibles gaining 5bp. Volatility was muted. Volume was average and dominated by FixedResets – perhaps due to portfolio reshuffling with the closing of the BCE.PR.K new issue<\/a>.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.4394 %<\/td>\n2,416.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.4394 %<\/td>\n3,634.4<\/td>\n<\/tr>\n
Floater<\/td>\n2.51 %<\/td>\n2.29 %<\/td>\n41,405<\/td>\n21.50<\/td>\n4<\/td>\n-0.4394 %<\/td>\n2,609.2<\/td>\n<\/tr>\n
OpRet<\/td>\n4.86 %<\/td>\n2.54 %<\/td>\n64,684<\/td>\n0.24<\/td>\n9<\/td>\n0.2017 %<\/td>\n2,440.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.24 %<\/td>\n1.95 %<\/td>\n55,062<\/td>\n0.64<\/td>\n6<\/td>\n-0.0400 %<\/td>\n2,507.2<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2017 %<\/td>\n2,231.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.67 %<\/td>\n5.17 %<\/td>\n140,058<\/td>\n2.14<\/td>\n13<\/td>\n0.0777 %<\/td>\n2,085.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.45 %<\/td>\n5.47 %<\/td>\n114,563<\/td>\n14.65<\/td>\n17<\/td>\n-0.0423 %<\/td>\n2,187.1<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.16 %<\/td>\n3.20 %<\/td>\n218,541<\/td>\n2.69<\/td>\n57<\/td>\n0.1547 %<\/td>\n2,315.4<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.08 %<\/td>\n4.86 %<\/td>\n276,298<\/td>\n8.15<\/td>\n47<\/td>\n0.0482 %<\/td>\n2,157.0<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n-1.62 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-07-05
\nMaturity Price : 18.84
\nEvaluated at bid price : 18.84
\nBid-YTW : 2.80 %<\/td>\n<\/tr>\n
PWF.PR.P<\/td>\nFixedReset<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.01
\nBid-YTW : 3.64 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\n1.63 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.90
\nBid-YTW : 5.09 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
MFC.PR.D<\/td>\nFixedReset<\/td>\n237,393<\/td>\nRBC crossed blocks of 149,900 and 79,900, both at 27.25.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.22
\nBid-YTW : 3.54 %<\/td>\n<\/tr>\n
TD.PR.S<\/td>\nFixedReset<\/td>\n212,291<\/td>\nRBC crossed blocks of 150,000 shares, 30,000 and 25,000, all at 26.15.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.15
\nBid-YTW : 3.15 %<\/td>\n<\/tr>\n
RY.PR.Y<\/td>\nFixedReset<\/td>\n106,996<\/td>\nNesbitt crossed 100,000 at 27.57.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-11-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.52
\nBid-YTW : 3.18 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n106,463<\/td>\nNesbitt crossed 100,000 at 26.20.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.17
\nBid-YTW : 3.37 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n105,784<\/td>\nTD crossed blocks of 23,900 and 75,000, both at 25.90.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.88
\nBid-YTW : 2.81 %<\/td>\n<\/tr>\n
MFC.PR.A<\/td>\nOpRet<\/td>\n85,929<\/td>\nTD crossed 75,000 at 25.40.
\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2015-12-18
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.51
\nBid-YTW : 3.66 %<\/td>\n<\/tr>\n
There were 31 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
PWF.PR.A<\/td>\nFloater<\/td>\nQuote: 22.75 – 23.60
\nSpot Rate : 0.8500
\nAverage : 0.6469<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-07-05
\nMaturity Price : 22.49
\nEvaluated at bid price : 22.75
\nBid-YTW : 2.29 %<\/td>\n<\/tr>\n

FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.00 – 24.59
\nSpot Rate : 0.5900
\nAverage : 0.3873<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-07-05
\nMaturity Price : 23.52
\nEvaluated at bid price : 24.00
\nBid-YTW : 5.14 %<\/td>\n<\/tr>\n

POW.PR.D<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.76 – 24.08
\nSpot Rate : 0.3200
\nAverage : 0.2103<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-07-05
\nMaturity Price : 23.31
\nEvaluated at bid price : 23.76
\nBid-YTW : 5.26 %<\/td>\n<\/tr>\n

BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\nQuote: 21.63 – 21.93
\nSpot Rate : 0.3000
\nAverage : 0.2008<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-07-05
\nMaturity Price : 21.63
\nEvaluated at bid price : 21.63
\nBid-YTW : 5.53 %<\/td>\n<\/tr>\n

BAM.PR.H<\/td>\nOpRet<\/td>\nQuote: 25.21 – 25.44
\nSpot Rate : 0.2300
\nAverage : 0.1608<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.21
\nBid-YTW : 2.54 %<\/td>\n<\/tr>\n

BNS.PR.Z<\/td>\nFixedReset<\/td>\nQuote: 24.88 – 25.50
\nSpot Rate : 0.6200
\nAverage : 0.5526<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.88
\nBid-YTW : 3.68 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

FixedResets and new issuers got some ink in the Globe: BCE Inc. (BCE-T38.220.230.61%), which has long history with these shares, is one of the latest firms to tap into this demand, closing a $345-million offering …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-15581","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15581","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=15581"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15581\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}