{"id":172,"date":"2006-10-17T20:42:37","date_gmt":"2006-10-18T00:42:37","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=172"},"modified":"2006-10-17T20:42:37","modified_gmt":"2006-10-18T00:42:37","slug":"strong-opening-for-lbspra","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=172","title":{"rendered":"Strong Opening for LBS.PR.A"},"content":{"rendered":"<p>As readers of my <a href=\"http:\/\/www.prefblog.com\/?p=122\">earlier post<\/a> may have expected, LBS.PR.A had a very strong opening day, with 1,671,290 shares trading and closing at 10.55-59.<\/p>\n<p>There may be more to come, as the following HIMIPref\u2122 analysis indicates:<\/p>\n<table border=\"1\">\n<tr>\n<td colspan=\"3\"><strong>Curve Price Analysis of LBS.PR.A<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Component<\/td>\n<td>Taxable Curve<\/td>\n<td>Non-taxable Curve<\/td>\n<\/tr>\n<tr>\n<td>Base-Rate<\/td>\n<td>10.35<\/td>\n<td>10.26<\/td>\n<\/tr>\n<tr>\n<td>Short-Term<\/td>\n<td>0.13<\/td>\n<td>0.56<\/td>\n<\/tr>\n<tr>\n<td>Long-Term<\/td>\n<td>0.33<\/td>\n<td>0.01<\/td>\n<\/tr>\n<tr>\n<td>Split-Share<\/td>\n<td>-0.26<\/td>\n<td>-0.32<\/td>\n<\/tr>\n<tr>\n<td>Retractible<\/td>\n<td>0.34<\/td>\n<td>0.44<\/td>\n<\/tr>\n<tr>\n<td>Credit Spread (2)<\/td>\n<td>-0.08<\/td>\n<td>-0.11<\/td>\n<\/tr>\n<tr>\n<td>Error<\/td>\n<td>-0.01<\/td>\n<td>0.00<\/td>\n<\/tr>\n<tr>\n<td><strong>Intrinsic Price<\/strong><\/td>\n<td><strong>10.80<\/strong><\/td>\n<td><strong>10.84<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Liquidity<\/td>\n<td>0.23<\/td>\n<td>0.25<\/td>\n<\/tr>\n<tr>\n<td><strong>Total Curve Price<\/strong><\/td>\n<td><strong>11.03<\/strong><\/td>\n<td><strong>11.09<\/strong><\/td>\n<\/tr>\n<\/table>\n<p>The estimate for the liquidity value is, as with all new issues, a little dicey &#8211; especially for a split-share issue, there is no guarantee that a huge liquidity premium will be sustained in the long run &#8230; in fact, there is a strong possibility of the opposite! But with an intrinsic value in the neighborhood of $10.80, it would appear there&#8217;s still some value left in the issue.<\/p>\n<p>For those interested in more traditional measures, the pre-tax YTW of this issue is 4.34%, with a modified duration of 5.97, both measurements based on a maturity on 2013-11-29.<\/p>\n<p>The issue has been added to the HIMIPref\u2122 database with a security code of A47800, replacing the pre-issue code of P50004. It has also been added to the SplitShare Index.\n<\/p>\n<p><!--1d10ca50bee7b283df984826372a10f1--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As readers of my earlier post may have expected, LBS.PR.A had a very strong opening day, with 1,671,290 shares trading and closing at 10.55-59. There may be more to come, as the following HIMIPref\u2122 analysis &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33,10,13],"tags":[],"class_list":["post-172","post","type-post","status-publish","format-standard","hentry","category-data-fixes","category-index-construction-and-reporting","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/172","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=172"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/172\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}