{"id":30775,"date":"2015-10-02T23:46:38","date_gmt":"2015-10-03T04:46:38","guid":{"rendered":"http:\/\/prefblog.com\/?p=30775"},"modified":"2015-10-02T23:46:38","modified_gmt":"2015-10-03T04:46:38","slug":"bam-pf-h","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=30775","title":{"rendered":"BAM.PF.H Firm On Good Volume"},"content":{"rendered":"<p>Brookfield Asset Management Inc. <a href=\"http:\/\/brookfield.com\/content\/2015_press_releases\/brookfield_completes_cdn250_million_preferred_sha-42994.html\">has announced<\/a>:<\/p>\n<blockquote><p>the completion of its previously announced Class A Preference Shares, Series 44 issue in the amount of C$250,000,000. The offering was underwritten by a syndicate led by Scotiabank, CIBC, RBC Capital Markets, and TD Securities Inc.<\/p>\n<p> Brookfield issued 10,000,000 Series 44 Shares at a price of C$25.00 per share, for total gross proceeds of C$250,000,000. Holders of the Series 44 Shares will be entitled to receive a cumulative quarterly fixed dividend yielding 5.00% annually for the initial period ending December 31, 2020. Thereafter, the dividend rate will be reset every five years at a rate equal to the greater of: (i) the 5-year Government of Canada bond yield plus 4.17%, and (ii) 5.00%. The Series 44 Shares will commence trading on the Toronto Stock Exchange this morning under the ticker symbol BAM.PF.H.<\/p><\/blockquote>\n<p>BAM.PF.H is a FixedReset, 5.00%+417M500, <a href=\"http:\/\/prefblog.com\/?p=30650\">announced September 24<\/a>. It will be tracked by HIMIPref&trade; and has been assigned to the FixedResets subindex.<\/p>\n<p>The issue traded 1,304,995 shares today (consolidated exchanges) in a range of 24.95-03 before closing at 24.96-99, 14&#215;57. Vital statistics are:<\/p>\n<div align=\"center\">\n<table border=\"1\">\n<tr>\n<td>BAM.PF.H<\/td>\n<td>FixedReset<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2045-10-02<br \/>\nMaturity Price  : 23.13<br \/>\nEvaluated at bid price : 24.96<br \/>\nBid-YTW : 4.93 %<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<p>Implied Volatility analysis for the BAM FixedResets is difficult to take seriously, since the fit is so poor &#8211; but it is interesting to compare the following chart with the chart <a href=\"http:\/\/prefblog.com\/?p=30650\">published on the announcement day<\/a>. The issue&#8217;s siblings have been very weak in the intervening time, with the low Expected Future Current Yield moving from about 4.40% to 4.60% and several issues moving to have an EFCY of about 5%, on a level with the new issue. I will point out that this equivalence makes no sense &#8211; lower-spread issues should trade with a lower yield as compensation for their lower risk of call. Mind you, all this ignores the rate floor on the new issue!<\/p>\n<div align=\"center\"><a href=\"http:\/\/prefblog.com\/wp-content\/uploads\/2015\/10\/impVol_BAM_151002.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/prefblog.com\/wp-content\/uploads\/2015\/10\/impVol_BAM_151002-300x246.jpg\" alt=\"impVol_BAM_151002\" width=\"400\" height=\"328\" class=\"alignnone size-medium wp-image-30777\" \/><\/a><br \/><i>Click for Big<\/i><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Brookfield Asset Management Inc. has announced: the completion of its previously announced Class A Preference Shares, Series 44 issue in the amount of C$250,000,000. The offering was underwritten by a syndicate led by Scotiabank, CIBC, &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-30775","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/30775","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=30775"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/30775\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}