{"id":16711,"date":"2011-10-20T00:56:40","date_gmt":"2011-10-20T04:56:40","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=16711"},"modified":"2011-10-20T00:56:40","modified_gmt":"2011-10-20T04:56:40","slug":"october-19-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=16711","title":{"rendered":"October 19, 2011"},"content":{"rendered":"

BAM levered up a little more<\/a>:<\/p>\n

Brookfield-family companies are hot commodities in new-issue markets.<\/p>\n

After launching a bought deal late on Tuesday, Brookfield Infrastructure (BIP.UN-T25.63-0.22-0.85%) announced on Wednesday that its offering has been upsized to a total of $588-million. About 70 per cent of that comes from public investors, and the remainder comes from parent company Brookfield Asset Management Inc., which bought more shares to keep its 30 per interest in the subsidiary.<\/p><\/blockquote>\n

I’m not sure I’m too happy about this. More assets means more fees, but more investment means more leverage.<\/p>\n

DBRS confirmed L.PR.A at Pfd-3<\/a>:<\/p>\n

DBRS has today confirmed Loblaw Companies Limited\u2019s (Loblaw or the Company) Medium-Term Notes and Debentures ratings at BBB, its Cumulative Redeemable Second Preferred Shares, Series A rating at Pfd-3, and its Commercial Paper rating at R-2 (middle). All trends remain Stable. The ratings reflect Loblaw\u2019s strong market position, large scale and national diversification, balanced by the mature nature of the core business.<\/p><\/blockquote>\n

The WN.PR.A, WN.PR.C, WN.PR.D & WN.PR.E issues of Weston were confirmed at Pfd-3 by DBRS<\/a>:<\/p>\n

DBRS has today confirmed the ratings of the Notes & Debentures of George Weston Limited (Weston or the Company) at BBB, the Preferred Shares at Pfd-3 and the Commercial Paper at R-2 (high), all with Stable trends. Weston\u2019s business risk profile remains well placed in the BBB rating category based on the Company\u2019s strong brands and above-average operating efficiency. The Stable trend reflects DBRS\u2019s expectation that Weston will continue to achieve growth in EBITDA from further brand development, operational efficiency gains and new investments. Weston has been successful at maintaining its market position while passing on price increases, at least partially offsetting the effects of a rising input cost environment. The significant increase in the Company\u2019s pro forma adjusted EBITDA in 2010 (approximately $280 million versus approximately $225 million in 2009) was primarily the result of improved operational efficiencies as well as acquisitions (e.g., Ace Bakery Ltd. and Keystone Bakery Holdings, LLC). Weston used approximately $300 million of its cash on hand to finance the acquisition of the aforementioned EBITDA generating businesses. In addition, the Company used $1 billion of cash to fund a special dividend to shareholders in January 2011.<\/p><\/blockquote>\n

The Assistant Croupier went to BMO<\/a>:<\/p>\n

The mystery of what happened to Mark White, who had been one of the top three individuals in command at Canada\u2019s banking and insurance regulator, has been solved.<\/p>\n

Bank of Montreal chief financial officer Tom Flynn sent a note to the bank\u2019s employees Wednesday announcing that Mr. White is joining BMO effective Nov. 1 as senior vice-president of capital management and optimization. The rumour since this summer had been that Mr. White was going to BMO (BMO-T58.49-0.32-0.54%) , but all parties involved had remained mum.<\/p><\/blockquote>\n

After screwing up the preferred share market, now he can work on more general projects, as revolving door regulation continues to be the norm.<\/p>\n

At Ivey School of Business, professors lie to students<\/a>. For their own good, of course.<\/p>\n

It was a quiet day for the Canadian preferred share market, with PerpetualDiscounts up 4bp, FixedResets gaining 6bp and DeemedRetractibles winning 7bp. Volatility was dominated by BAM and related issuers.<\/p>\n

PerpetualDiscounts now yield 5.42%, equivalent to 7.05% interest at the standard equivalency factor of 1.3x. Long Corporates<\/a> now yield about 5.0%, so the pre-tax interest-equivalent spread is now 205bp, unchanged from the number reported October 12<\/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>\n1.3072 %<\/td>\n2,018.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n1.3072 %<\/td>\n3,035.0<\/td>\n<\/tr>\n
Floater<\/td>\n3.57 %<\/td>\n3.58 %<\/td>\n155,620<\/td>\n18.34<\/td>\n2<\/td>\n1.3072 %<\/td>\n2,178.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.87 %<\/td>\n3.23 %<\/td>\n62,891<\/td>\n1.55<\/td>\n8<\/td>\n-0.3600 %<\/td>\n2,439.5<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.43 %<\/td>\n0.72 %<\/td>\n54,322<\/td>\n0.36<\/td>\n4<\/td>\n0.4245 %<\/td>\n2,471.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.3600 %<\/td>\n2,230.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.69 %<\/td>\n4.10 %<\/td>\n106,142<\/td>\n0.36<\/td>\n13<\/td>\n-0.0152 %<\/td>\n2,126.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.35 %<\/td>\n5.42 %<\/td>\n111,840<\/td>\n14.78<\/td>\n17<\/td>\n0.0393 %<\/td>\n2,253.1<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.15 %<\/td>\n3.23 %<\/td>\n198,430<\/td>\n2.47<\/td>\n61<\/td>\n0.0559 %<\/td>\n2,327.8<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.08 %<\/td>\n4.57 %<\/td>\n213,178<\/td>\n5.82<\/td>\n46<\/td>\n0.0730 %<\/td>\n2,192.5<\/td>\n<\/tr>\n<\/table>\n\n\n\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.J<\/td>\nOpRet<\/td>\n-2.48 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2018-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : 5.04 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-10-19
\nMaturity Price : 14.75
\nEvaluated at bid price : 14.75
\nBid-YTW : 3.58 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-10-19
\nMaturity Price : 23.50
\nEvaluated at bid price : 26.10
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
BNA.PR.E<\/td>\nSplitShare<\/td>\n1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2017-12-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.40
\nBid-YTW : 7.13 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n1.46 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.29
\nBid-YTW : 6.10 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n1.59 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-10-19
\nMaturity Price : 14.70
\nEvaluated at bid price : 14.70
\nBid-YTW : 3.59 %<\/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
CU.PR.C<\/td>\nFixedReset<\/td>\n151,125<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.33
\nBid-YTW : 3.82 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset<\/td>\n81,145<\/td>\nRecent secondary offering<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.67
\nBid-YTW : 3.44 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n69,750<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-10-19
\nMaturity Price : 23.61
\nEvaluated at bid price : 25.83
\nBid-YTW : 3.44 %<\/td>\n<\/tr>\n
RY.PR.E<\/td>\nDeemed-Retractible<\/td>\n64,093<\/td>\nRBC crossed 50,000 at 25.00.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.98
\nBid-YTW : 4.62 %<\/td>\n<\/tr>\n
BNS.PR.Q<\/td>\nFixedReset<\/td>\n53,181<\/td>\nTD crossed blocks of 32,400 and 15,000, both at 25.85.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-10-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.90
\nBid-YTW : 3.08 %<\/td>\n<\/tr>\n
SLF.PR.H<\/td>\nFixedReset<\/td>\n49,800<\/td>\nTD sold 12,500 to anonymous at 24.77.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.65
\nBid-YTW : 4.11 %<\/td>\n<\/tr>\n
There were 28 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
TCA.PR.Y<\/td>\nPerpetual-Premium<\/td>\nQuote: 51.61 – 52.09
\nSpot Rate : 0.4800
\nAverage : 0.3824<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-05
\nMaturity Price : 50.00
\nEvaluated at bid price : 51.61
\nBid-YTW : 4.10 %<\/td>\n<\/tr>\n

BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.11 – 22.38
\nSpot Rate : 0.2700
\nAverage : 0.1914<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-10-19
\nMaturity Price : 21.83
\nEvaluated at bid price : 22.11
\nBid-YTW : 5.41 %<\/td>\n<\/tr>\n

GWO.PR.L<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.17 – 25.43
\nSpot Rate : 0.2600
\nAverage : 0.1857<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.17
\nBid-YTW : 5.64 %<\/td>\n<\/tr>\n

FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.80 – 25.00
\nSpot Rate : 0.2000
\nAverage : 0.1406<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-10-19
\nMaturity Price : 24.50
\nEvaluated at bid price : 24.80
\nBid-YTW : 4.99 %<\/td>\n<\/tr>\n

HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.64 – 24.90
\nSpot Rate : 0.2600
\nAverage : 0.2050<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.64
\nBid-YTW : 5.25 %<\/td>\n<\/tr>\n

PWF.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.28 – 24.51
\nSpot Rate : 0.2300
\nAverage : 0.1751<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-10-19
\nMaturity Price : 24.03
\nEvaluated at bid price : 24.28
\nBid-YTW : 5.42 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

BAM levered up a little more: Brookfield-family companies are hot commodities in new-issue markets. After launching a bought deal late on Tuesday, Brookfield Infrastructure (BIP.UN-T25.63-0.22-0.85%) announced on Wednesday that its offering has been upsized to …<\/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-16711","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16711","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=16711"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16711\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}