{"id":32255,"date":"2006-08-29T21:23:40","date_gmt":"2006-08-30T01:23:40","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=94"},"modified":"2006-08-29T21:23:40","modified_gmt":"2006-08-30T01:23:40","slug":"rypro","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=32255","title":{"rendered":"RY.PR.O"},"content":{"rendered":"<p>This issue drifted into negative-YTW territory today, with a closing quotation of $25.70-78.<\/p>\n<p>The redemption schedule is:<\/p>\n<ul>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2004-08-24\u00a0\u00a0\u00a0\u00a0\u00a0 2005-08-23\u00a0 26.000000<\/li>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2005-08-24\u00a0\u00a0\u00a0\u00a0\u00a0 2006-08-23\u00a0 25.750000<\/li>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2006-08-24\u00a0\u00a0\u00a0\u00a0\u00a0 2007-08-23\u00a0 25.500000<\/li>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2007-08-24\u00a0\u00a0\u00a0\u00a0\u00a0 2008-08-23\u00a0 25.250000<\/li>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2008-08-24\u00a0\u00a0 INFINITE DATE\u00a0 25.000000<\/li>\n<\/ul>\n<p>The redemption scenarios have been calculated by HIMIPref\u2122 as:<\/p>\n<p>\u00a0<\/p>\n<ul>\n<li>Call\u00a0 2006-09-28 YTM: -3.21 % [Restricted: -0.26 %] (Prob: 25.13 %)<\/li>\n<li>Call\u00a0 2006-11-27 YTM: 2.46 % [Restricted: 0.61 %] (Prob: 7.18 %)<\/li>\n<li>Call\u00a0 2007-05-26 YTM: 4.45 % [Restricted: 3.29 %] (Prob: 5.22 %)<\/li>\n<li>Call\u00a0 2007-09-23 YTM: 3.83 % [Restricted: 3.83 %] (Prob: 6.35 %)<\/li>\n<li>Call\u00a0 2008-09-23 YTM: 4.14 % [Restricted: 4.14 %] (Prob: 5.29 %)<\/li>\n<li>Limit Maturity\u00a0 2036-08-29 YTM: 5.38 % [Restricted: 5.38 %] (Prob: 50.82 %)<\/li>\n<\/ul>\n<p>One interesting thing about this analysis is the inclusion of the scenario with the end-date of 2007-05-26. The HIMIPref\u2122 constant <a href=\"http:\/\/www.prefshares.com\/glossary.html#OPTION_EXERCISE_CALCULATION_INCREMENT_PROBABILITY\">OPTION_EXERCISE_CALCULATION_INCREMENT_PROBABILITY<\/a> is currently set to 5% &#8211; therefore, since the Option calculation probability has crept up that much\u00a0higher by 2007-05-26 than it was on the date of the previous entry in the <a href=\"http:\/\/www.prefshares.com\/glossary.html#optionCalculationList\">optionCalculationList<\/a> dated 2006-11-27 (which in turn was sufficiently higher than the previous threshold dated 2006-09-28), the redemption scenario is included in the calculation of <a href=\"http:\/\/www.prefshares.com\/glossary.html#portfolioYield\">portfolioYield<\/a><\/p>\n<p>This issue pays $1.375 and given the $0.25 decline in call price annually, the net annual cost to Royal of the money is $1.125 &#8211; a tad more expensive than their RY.PR.A issue, but cheaper to them than RY.PR.B! I can&#8217;t say I&#8217;d bet much on it being around for more than two more years &#8230; but who knows? Maybe comparable new issues will be paying more than 5.5% dividends at that time.<\/p>\n<p>Which, of course, is what makes this business fun!\n<\/p>\n<p><!--be7ebf5a437a4de086d921d50e23ad4a--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This issue drifted into negative-YTW territory today, with a closing quotation of $25.70-78. The redemption schedule is: Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2004-08-24\u00a0\u00a0\u00a0\u00a0\u00a0 2005-08-23\u00a0 26.000000 Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2005-08-24\u00a0\u00a0\u00a0\u00a0\u00a0 2006-08-23\u00a0 25.750000 Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2006-08-24\u00a0\u00a0\u00a0\u00a0\u00a0 2007-08-23\u00a0 25.500000 Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2007-08-24\u00a0\u00a0\u00a0\u00a0\u00a0 2008-08-23\u00a0 25.250000 Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2008-08-24\u00a0\u00a0 &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-32255","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/32255","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=32255"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/32255\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}