{"id":1918,"date":"2008-03-12T21:06:32","date_gmt":"2008-03-13T01:06:32","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1918"},"modified":"2008-03-12T21:06:32","modified_gmt":"2008-03-13T01:06:32","slug":"tdprr-settles-too-much-hot-money","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1918","title":{"rendered":"TD.PR.R Settles: Too Much Hot Money?"},"content":{"rendered":"<p>TD.PR.R, <a href=\"http:\/\/www.prefblog.com\/?p=1870\">announced March 3<\/a>, settled today and was unable to trade above par, with volume of 771,292 in a range of 24.85-97. The closing quotation was 24.88-90, 29&#215;2.<\/p>\n<p>This is particularly surprising since the very similar TD.PR.Q (the only difference is a three month shift in redemption schedule and a long first coupon for TD.PR.R), which had been trading around 25.60 prior to the TD.PR.R announcement, closed at 25.10-15, 20&#215;8 today.<\/p>\n<p>Given the volume for TD.PR.R and the fact that the take-up of the greenshoe was announced on the day following the new issue announcement, I can only assume that the underwriting was a success but that, unfortunately for some, there were a great many players who decided that the new issue would instantly trade at a sixty-cent premium and resolved to subscribe to the issue and sell at the opening.<\/p>\n<p>Too many cooks spoil the broth! We are now in the fairly unusual situation in which one member of a <a href=\"http:\/\/www.prefblog.com\/?p=1378\">Preferred Pair<\/a> is in the PerpetualDiscount index, and the other is a PerpetualPremium!<\/p>\n<p>It is also noteworthy that the similar TD.PR.P, which pays a dividend of $1.3125 compared to $1.40 for the other two, closed at 24.40-44, 6&#215;7, with a pre-tax bid-YTW of 5.45%.<\/p>\n<p>Curve Prices (that is to say, fair values as estimated by HIMIPref&trade;) were: TD.PR.P = 24.10; TD.PR.Q = 25.26; TD.PR.R = 25.14.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>TD.PR.R, announced March 3, settled today and was unable to trade above par, with volume of 771,292 in a range of 24.85-97. The closing quotation was 24.88-90, 29&#215;2. This is particularly surprising since the very &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-1918","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1918","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=1918"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1918\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}