{"id":27329,"date":"2015-01-01T00:11:36","date_gmt":"2015-01-01T05:11:36","guid":{"rendered":"http:\/\/prefblog.com\/?p=27329"},"modified":"2015-01-01T00:11:36","modified_gmt":"2015-01-01T05:11:36","slug":"trp-pr-f","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=27329","title":{"rendered":"TRP.PR.F Extremely Rich On Opening Day"},"content":{"rendered":"<p>There are now about 12.0-million shares of TRP.PR.F outstanding following a <a href=\"http:\/\/prefblog.com\/?p=27316\">57% conversion from TRP.PR.A<\/a>.<\/p>\n<p>TRP.PR.F is a FloatingReset, paying the three-month bill rate +192bp, reset quarterly. It is convertible back to TRP.PR.A on 2019-12-31 at the option of the holder.<\/p>\n<p>This issue will be tracked by HIMIPref&trade; and is assigned to the FloatingReset subindex.<\/p>\n<p>The Toronto Stock Exchange reports 37,925 shares trading on its debut in a range of 22.41-85 before closing at 22.26-75.<\/p>\n<p>Vital statistics are:<\/p>\n<div align=\"center\">\n<table border=\"1\">\n<tr>\n<td>TRP.PR.F<\/td>\n<td>FloatingReset<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2044-12-31<br \/>\nMaturity Price  : 22.00<br \/>\nEvaluated at bid price : 22.26<br \/>\nBid-YTW : 3.11 %<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<p>The <a href=\"http:\/\/prefblog.com\/?p=1378\">Pair Equivalency<\/a> of TRP.PR.F to its FixedReset sibling TRP.PR.A shows it to be very rich at 22.26, compared to the 20.65 bid on the latter issue; but potential sellers in retail won&#8217;t have received access to their shares yet. At the bid prices, three-month bills will have to average 2.89% over the next five years to achieve equivalent total returns.<\/p>\n<div align=\"center\"><a href=\"http:\/\/prefblog.com\/wp-content\/uploads\/2015\/01\/pairs_FR_141231.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/prefblog.com\/wp-content\/uploads\/2015\/01\/pairs_FR_141231-300x222.jpg\" alt=\"pairs_FR_141231\" width=\"400\" height=\"296\" class=\"alignnone size-medium wp-image-27342\" \/><\/a><br \/><i>Click for Big<\/i><\/div>\n<p>I must emphasize that the headline judgement of &#8220;extremely rich&#8221; applies only within the TRP.PR.A \/ TRP.PR.F pair: with a yield to perpetuity of 3.11%, the issue looks reasonably priced, if not a little cheap, against other investment-grade Floating Rate perpetuals (BAM.PR.B, BAM.PR.C, BAM.PR.K and PWF.PR.A). Note that the only other investment grade FloatingResets at this time are NVCC non-compliant banks; the presumption of a Deemed Maturity makes them not particularly comparable to TRP.PR.F.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are now about 12.0-million shares of TRP.PR.F outstanding following a 57% conversion from TRP.PR.A. TRP.PR.F is a FloatingReset, paying the three-month bill rate +192bp, reset quarterly. It is convertible back to TRP.PR.A on 2019-12-31 &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-27329","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/27329","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=27329"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/27329\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}