{"id":27640,"date":"2015-01-31T04:05:33","date_gmt":"2015-01-31T09:05:33","guid":{"rendered":"http:\/\/prefblog.com\/?p=27640"},"modified":"2015-01-31T04:05:33","modified_gmt":"2015-01-31T09:05:33","slug":"ry-pr-j-firm-on-excellent-volume","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=27640","title":{"rendered":"RY.PR.J Firm On Excellent Volume"},"content":{"rendered":"

Royal Bank of Canada has announced<\/a>:<\/p>\n

it has closed its domestic public offering of Non-Cumulative, 5-Year Rate Reset Preferred Shares Series BD. Royal Bank of Canada issued 24 million Preferred Shares Series BD at a price of $25 per share to raise gross proceeds of $600 million.<\/p>\n

The offering was underwritten by a syndicate led by RBC Capital Markets. The Preferred Shares Series BD will commence trading on the Toronto Stock Exchange today under the ticker symbol RY.PR.J.<\/p>\n

The Preferred Shares Series BD were issued under a prospectus supplement dated January 27, 2015 to the bank\u2019s short form base shelf prospectus dated December 20, 2013.<\/p><\/blockquote>\n

RY.PR.J is a FixedReset, 3.60%+274, NVCC-compliant, announced January 26<\/a>. The issue will be tracked by HIMIPref™ and has been assigned to the FixedReset subindex.<\/p>\n

Note that since this issue is NVCC-compliant, there is no Deemed Maturity entry in the call schedule<\/b> analyzed by HIMIPref™. It is, and is analyzed by HIMIPref™ as, a true perpetual … at least until the morons at OSFI change the rules again, since the ‘legitimate expectations of investors’ now include early redemption.<\/p>\n

The issue traded 1,383,496 shares today (consolidated exchanges) in a range of 24.82-98 before closing at 24.95-96. Vital statistics are:<\/p>\n

\n\n\n
RY.PR.J<\/td>\nFixedReset<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-01-30
\nMaturity Price : 23.12
\nEvaluated at bid price : 24.95
\nBid-YTW : 3.42 %<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

Implied Volatility theory shows the issue should be considered cheap against its peers – not only is the issue’s Expected Future Current Yield well over the ‘best fit’ theoretical estimates (in which implied volatility is capped at 40%) but the fit of 40% should decline as the market realizes that RY issues are no more immune from the laws of economics than any other series, which will result in underperformance of lower-spread issues.<\/p>\n

\"impVol_RY_150129\"<\/a>
Click for Big<\/i><\/div>\n","protected":false},"excerpt":{"rendered":"

Royal Bank of Canada has announced: it has closed its domestic public offering of Non-Cumulative, 5-Year Rate Reset Preferred Shares Series BD. Royal Bank of Canada issued 24 million Preferred Shares Series BD at a …<\/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-27640","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/27640","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=27640"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/27640\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}