{"id":25475,"date":"2014-06-06T01:13:27","date_gmt":"2014-06-06T06:13:27","guid":{"rendered":"http:\/\/prefblog.com\/?p=25475"},"modified":"2014-06-06T01:13:27","modified_gmt":"2014-06-06T06:13:27","slug":"bam-pf-f-settles-firm-on-decent-volume","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=25475","title":{"rendered":"BAM.PF.F Settles Firm on Decent Volume"},"content":{"rendered":"

Brookfield Asset Management Inc. has announced<\/a>:<\/p>\n

the completion of its previously announced Class A Preference Shares, Series 40 issue in the amount of C$300,000,000. The offering was underwritten by a syndicate led by RBC Capital Markets, CIBC, Scotiabank and TD Securities Inc.<\/p>\n

Brookfield issued 12,000,000 Series 40 Shares at a price of C$25.00 per share, for total gross proceeds of C$300,000,000. Holders of the Series 40 Shares will be entitled to receive a cumulative quarterly fixed dividend yielding 4.50% annually for the initial period ending September 30, 2019. Thereafter, the dividend rate will be reset every five years at a rate equal to the 5-year Government of Canada bond yield plus 2.86%. The Series 40 Shares will commence trading on the Toronto Stock Exchange this morning under the ticker symbol BAM.PF.F.<\/p><\/blockquote>\n

BAM.PF.F is a FixedReset, 4.50%+286, announced May 27<\/a>.<\/p>\n

BAM.PF.F traded 760,707 (consolidated exchanges) shares today in a range of 24.80-97 before closing at 24.94-95, 194×19. It will be tracked by HIMIPref™ and has been added to the FixedResets subindex.<\/p>\n

Vital statistics are:<\/p>\n

\n\n\n
BAM.PF.F<\/td>\nFixedReset<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-05
\nMaturity Price : 23.12
\nEvaluated at bid price : 24.94
\nBid-YTW : 4.36 %<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

The issue is trading comparatively with its siblings, according to Implied Volatility Theory:<\/p>\n

\"ImpVolatility_BAM_140605\"<\/a>
Click for Big<\/i><\/div>\n

The highest spread issue is BAM.PR.P, a FixedReset 7.00%+445, which has been called for redemption<\/a>. It is of interest that the implied volatility is greater than 40%, which implies that Black-Scholes has broken down, presumably due to a marketplace assumption of directionality in prices.<\/p>\n","protected":false},"excerpt":{"rendered":"

Brookfield Asset Management Inc. has announced: the completion of its previously announced Class A Preference Shares, Series 40 issue in the amount of C$300,000,000. The offering was underwritten by a syndicate led by RBC Capital …<\/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-25475","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/25475","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=25475"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/25475\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}