{"id":32238,"date":"2006-08-17T13:33:07","date_gmt":"2006-08-17T17:33:07","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=77"},"modified":"2006-08-17T13:33:07","modified_gmt":"2006-08-17T17:33:07","slug":"wprj","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=32238","title":{"rendered":"W.PR.J"},"content":{"rendered":"<p>This is an interesting issue, a member of the PerpetualPremium index. It&#8217;s rated Pfd-2(low) by <a href=\"http:\/\/www.dbrs.com\">DBRS<\/a>, where it was confirmed in their latest review of 2005-09-20. The issue had a closing quotation of 25.22-35 on the <a href=\"http:\/\/www.tsx.com\">TSX<\/a> on 2006-08-16.<\/p>\n<p>The redemption schedule is:<\/p>\n<ul>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2004-07-15\u00a0\u00a0\u00a0\u00a0\u00a0 2005-07-14\u00a0 26.000000<\/li>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2005-07-15\u00a0\u00a0\u00a0\u00a0\u00a0 2006-07-14\u00a0 25.750000<\/li>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2006-07-15\u00a0\u00a0\u00a0\u00a0\u00a0 2007-07-14\u00a0 25.500000<\/li>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2007-07-15\u00a0\u00a0\u00a0\u00a0\u00a0 2008-07-14\u00a0 25.250000<\/li>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2008-07-15\u00a0\u00a0\u00a0\u00a0\u00a0 2999-12-29\u00a0 25.000000<\/li>\n<\/ul>\n<p>so it is currently trading at a discount to its <em>current<\/em> redemption price, but at a discount to its <em>future<\/em> redemption price.<br \/>\nAnalysis of the schedule and its current price gives this calculation for <a href=\"http:\/\/www.prefshares.com\/glossary.html#portfolioYield\">portfolioYield<\/a> (from the bid-side of the market):<\/p>\n<ul>\n<li>Call\u00a0 2006-09-15 YTM: 26.33 % [Restricted: 2.16 %] (Prob: 10.32 %)<\/li>\n<li>Call\u00a0 2006-10-15 YTM: 15.67 % [Restricted: 2.57 %] (Prob: 5.69 %)<\/li>\n<li>Call\u00a0 2006-12-14 YTM: 10.54 % [Restricted: 3.46 %] (Prob: 5.64 %)<\/li>\n<li>Call\u00a0 2007-04-13 YTM: 8.02 % [Restricted: 5.27 %] (Prob: 5.05 %)<\/li>\n<li>Call\u00a0 2007-08-14 YTM: 6.23 % [Restricted: 6.19 %] (Prob: 7.39 %)<\/li>\n<li>Call\u00a0 2008-08-14 YTM: 5.42 % [Restricted: 5.42 %] (Prob: 7.06 %)\u00a0<\/li>\n<li>Limit Maturity\u00a0 2036-08-16 YTM: 5.60 % [Restricted: 5.60 %] (Prob: 58.87 %)<\/li>\n<\/ul>\n<p>and the cash flow analysis of the YTW scenario is:<\/p>\n<ul>\n<li>2006-10-15\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 DIVIDEND\u00a0\u00a0 0.35\u00a0\u00a0 0.991246\u00a0\u00a0 0.35<\/li>\n<li>2007-01-15\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 DIVIDEND\u00a0\u00a0 0.35\u00a0\u00a0 0.977971\u00a0\u00a0 0.34<\/li>\n<li>2007-04-15\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 DIVIDEND\u00a0\u00a0 0.35\u00a0\u00a0 0.965158\u00a0\u00a0 0.34<\/li>\n<li>2007-07-15\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 DIVIDEND\u00a0\u00a0 0.35\u00a0\u00a0 0.952372\u00a0\u00a0 0.33<\/li>\n<li>2007-10-15\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 DIVIDEND\u00a0\u00a0 0.35\u00a0\u00a0 0.939618\u00a0\u00a0 0.33<\/li>\n<li>2008-01-15\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 DIVIDEND\u00a0\u00a0 0.35\u00a0\u00a0 0.927035\u00a0\u00a0 0.32<\/li>\n<li>2008-04-15\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 DIVIDEND\u00a0\u00a0 0.35\u00a0\u00a0 0.914755\u00a0\u00a0 0.32<\/li>\n<li>2008-07-15\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 DIVIDEND\u00a0\u00a0 0.35\u00a0\u00a0 0.902637\u00a0\u00a0 0.32<\/li>\n<li>2008-08-14\u00a0 FINAL DIVIDEND\u00a0\u00a0 0.11\u00a0\u00a0 0.898677\u00a0\u00a0 0.10<\/li>\n<li>2008-08-14\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 MATURITY\u00a0 25.00\u00a0\u00a0 0.898677\u00a0 22.47<\/li>\n<\/ul>\n<p>The <a href=\"http:\/\/www.prefshares.com\/glossary.html#averageTradingValue\">averageTradingValue<\/a> of the shares (as defined by HIMIPref\u2122) is only 34,088 &#8230; too small to attract institutional players, but quite large enough for the occasional retail purchaser.<\/p>\n<p>The issue now has the highest YTW of any issue in the HIMI Proprietary PerpetualPremium index &#8211; even if we measure the YTW from the ask price of 25.35.<\/p>\n<p>\u00a0\n<\/p>\n<p><!--57a011d9d1ed739aad907975637a7b8e--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This is an interesting issue, a member of the PerpetualPremium index. It&#8217;s rated Pfd-2(low) by DBRS, where it was confirmed in their latest review of 2005-09-20. The issue had a closing quotation of 25.22-35 on &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-32238","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/32238","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=32238"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/32238\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}