{"id":33070,"date":"2016-05-21T01:27:33","date_gmt":"2016-05-21T06:27:33","guid":{"rendered":"http:\/\/prefblog.com\/?p=33070"},"modified":"2016-05-21T01:27:33","modified_gmt":"2016-05-21T06:27:33","slug":"may-20-2016","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=33070","title":{"rendered":"May 20, 2016"},"content":{"rendered":"

EMA wants to issue new preferreds<\/a>; Barry Critchley points out they’ll have to pay up relative to their last round:<\/p>\n

This week Emera took another step on the way to rounding up the cash need to fund the US$10.4 billion acquisition of TECO Energy.<\/p>\n

Emera, which expects to close the acquisition by mid-year, raised $544 million from the sale of most of its stake in Algonquin Power & Utilities Corp. After the share sale, Emera \u2014 which is expected to receive the second instalment of a $2.185 billion offering of convertible debentures when the TECO deal gets the final green light \u2014 will own about five per cent of Algonquin.<\/p>\n

But lots of capital still needs to be raised \u2014 even if it seems that all the common equity has been obtained. In a presentation unveiled this week, Emera indicated it is seeking between US$3.4 billion and US$3.8 billion of debt (the US$10.4 billion acquisition cost includes US$3.9 billion of assumed debt). It is also after US$0.8 billion to US$1.2 billion in either preferred equity or hybrid securities.
…<\/b>
Emera last issued rate reset preferred shares in May 2014 when it raised $200 million at a yield of 4.25 per cent. At 4.25 per cent, the coupon represented a spread of 263 basis points above comparable five-year Canada bonds.<\/p>\n

Next time out Emera will find that the preferred share market has changed in two ways.<\/p><\/blockquote>\n

IGM Financial has bought a piece of a robo-advisor<\/a>:<\/p>\n

IGM Financial Inc. has closed a $50 million (U.S.) investment in Personal Capital Corporation, a market-leading digital wealth advisor based in the U.S., with an agreement to invest an additional $25 million (U.S.) in the next year for a total of $75 million (U.S.). This would result in an initial 10% ownership stake increasing to 15% within 12 months, with the remaining interest owned by Personal Capital\u2019s management team and existing investors.<\/p>\n

Personal Capital\u2019s approach to wealth management \u2013 combining dedicated financial advisors with innovative customer-facing technology \u2013 is unique in the industry. Led by a market-leading and experienced team with a long track record in financial services, Personal Capital has been growing rapidly in the mass affluent and high net worth investor segments of the market, offering a unique, compelling and valuable proposition for its clients.<\/p><\/blockquote>\n

This is kind of interesting, since IGM’s parent, PWF, already has a piece of WealthSimple, as discussed April 9, 2015<\/a>.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n4.66 %<\/td>\n5.66 %<\/td>\n11,568<\/td>\n17.06<\/td>\n1<\/td>\n0.6944 %<\/td>\n1,693.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n6.74 %<\/td>\n5.85 %<\/td>\n18,988<\/td>\n16.65<\/td>\n1<\/td>\n-2.7586 %<\/td>\n2,999.6<\/td>\n<\/tr>\n
Floater<\/td>\n4.51 %<\/td>\n4.72 %<\/td>\n44,505<\/td>\n15.95<\/td>\n4<\/td>\n0.4317 %<\/td>\n1,720.6<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2390 %<\/td>\n2,818.4<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.97 %<\/td>\n5.28 %<\/td>\n80,228<\/td>\n3.94<\/td>\n7<\/td>\n-0.2390 %<\/td>\n3,298.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2390 %<\/td>\n2,573.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.76 %<\/td>\n-9.92 %<\/td>\n78,517<\/td>\n0.09<\/td>\n6<\/td>\n0.0853 %<\/td>\n2,600.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.48 %<\/td>\n5.57 %<\/td>\n102,014<\/td>\n14.50<\/td>\n33<\/td>\n0.1460 %<\/td>\n2,678.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.21 %<\/td>\n4.64 %<\/td>\n166,452<\/td>\n13.84<\/td>\n88<\/td>\n0.3126 %<\/td>\n1,963.9<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.12 %<\/td>\n5.47 %<\/td>\n132,034<\/td>\n5.01<\/td>\n33<\/td>\n0.1175 %<\/td>\n2,680.1<\/td>\n<\/tr>\n
FloatingReset<\/td>\n3.20 %<\/td>\n5.00 %<\/td>\n26,016<\/td>\n5.27<\/td>\n17<\/td>\n0.0351 %<\/td>\n2,089.6<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
TRP.PR.I<\/td>\nFloatingReset<\/td>\n-4.76 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 11.00
\nEvaluated at bid price : 11.00
\nBid-YTW : 4.79 %<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixedFloater<\/td>\n-2.76 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 25.00
\nEvaluated at bid price : 14.10
\nBid-YTW : 5.85 %<\/td>\n<\/tr>\n
SLF.PR.H<\/td>\nFixedReset<\/td>\n-1.99 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 16.27
\nBid-YTW : 8.94 %<\/td>\n<\/tr>\n
ALB.PR.C<\/td>\nSplitShare<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-02-28
\nMaturity Price : 25.67
\nEvaluated at bid price : 25.76
\nBid-YTW : 4.10 %<\/td>\n<\/tr>\n
TRP.PR.E<\/td>\nFixedReset<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 17.98
\nEvaluated at bid price : 17.98
\nBid-YTW : 4.67 %<\/td>\n<\/tr>\n
TD.PR.S<\/td>\nFixedReset<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.95
\nBid-YTW : 4.48 %<\/td>\n<\/tr>\n
BAM.PF.B<\/td>\nFixedReset<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 17.48
\nEvaluated at bid price : 17.48
\nBid-YTW : 5.13 %<\/td>\n<\/tr>\n
NA.PR.S<\/td>\nFixedReset<\/td>\n1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 18.01
\nEvaluated at bid price : 18.01
\nBid-YTW : 4.64 %<\/td>\n<\/tr>\n
TD.PR.Y<\/td>\nFixedReset<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.25
\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n
BAM.PF.F<\/td>\nFixedReset<\/td>\n1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 19.62
\nEvaluated at bid price : 19.62
\nBid-YTW : 4.91 %<\/td>\n<\/tr>\n
BAM.PF.E<\/td>\nFixedReset<\/td>\n1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 18.16
\nEvaluated at bid price : 18.16
\nBid-YTW : 4.97 %<\/td>\n<\/tr>\n
FTS.PR.K<\/td>\nFixedReset<\/td>\n1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 16.86
\nEvaluated at bid price : 16.86
\nBid-YTW : 4.45 %<\/td>\n<\/tr>\n
HSE.PR.C<\/td>\nFixedReset<\/td>\n1.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 17.54
\nEvaluated at bid price : 17.54
\nBid-YTW : 5.85 %<\/td>\n<\/tr>\n
FTS.PR.M<\/td>\nFixedReset<\/td>\n1.71 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 18.46
\nEvaluated at bid price : 18.46
\nBid-YTW : 4.64 %<\/td>\n<\/tr>\n
BAM.PR.X<\/td>\nFixedReset<\/td>\n1.78 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 13.75
\nEvaluated at bid price : 13.75
\nBid-YTW : 4.98 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n1.86 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 15.35
\nEvaluated at bid price : 15.35
\nBid-YTW : 5.21 %<\/td>\n<\/tr>\n
BAM.PF.A<\/td>\nFixedReset<\/td>\n1.88 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 19.00
\nEvaluated at bid price : 19.00
\nBid-YTW : 5.06 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n2.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 14.31
\nEvaluated at bid price : 14.31
\nBid-YTW : 5.00 %<\/td>\n<\/tr>\n
GWO.PR.O<\/td>\nFloatingReset<\/td>\n3.85 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 13.50
\nBid-YTW : 9.92 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
TRP.PR.J<\/td>\nFixedReset<\/td>\n112,180<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-05-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.76
\nBid-YTW : 4.81 %<\/td>\n<\/tr>\n
FTS.PR.K<\/td>\nFixedReset<\/td>\n28,368<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 16.86
\nEvaluated at bid price : 16.86
\nBid-YTW : 4.45 %<\/td>\n<\/tr>\n
TD.PF.C<\/td>\nFixedReset<\/td>\n25,223<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 18.00
\nEvaluated at bid price : 18.00
\nBid-YTW : 4.44 %<\/td>\n<\/tr>\n
NA.PR.X<\/td>\nFixedReset<\/td>\n23,346<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-05-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.10
\nBid-YTW : 4.64 %<\/td>\n<\/tr>\n
TD.PF.G<\/td>\nFixedReset<\/td>\n17,988<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.12
\nBid-YTW : 4.57 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n17,950<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 14.31
\nEvaluated at bid price : 14.31
\nBid-YTW : 5.00 %<\/td>\n<\/tr>\n
There were 22 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixedFloater<\/td>\nQuote: 14.10 – 14.85
\nSpot Rate : 0.7500
\nAverage : 0.4749<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 25.00
\nEvaluated at bid price : 14.10
\nBid-YTW : 5.85 %<\/td>\n<\/tr>\n

EML.PR.A<\/td>\nFixedReset<\/td>\nQuote: 25.82 – 26.58
\nSpot Rate : 0.7600
\nAverage : 0.4894<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-17
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.82
\nBid-YTW : 5.14 %<\/td>\n<\/tr>\n

HSE.PR.B<\/td>\nFloatingReset<\/td>\nQuote: 10.35 – 11.28
\nSpot Rate : 0.9300
\nAverage : 0.7073<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-05-20
\nMaturity Price : 10.35
\nEvaluated at bid price : 10.35
\nBid-YTW : 5.58 %<\/td>\n<\/tr>\n

ALB.PR.C<\/td>\nSplitShare<\/td>\nQuote: 25.76 – 26.50
\nSpot Rate : 0.7400
\nAverage : 0.5897<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-02-28
\nMaturity Price : 25.67
\nEvaluated at bid price : 25.76
\nBid-YTW : 4.10 %<\/td>\n<\/tr>\n

SLF.PR.J<\/td>\nFloatingReset<\/td>\nQuote: 13.00 – 13.45
\nSpot Rate : 0.4500
\nAverage : 0.3312<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 13.00
\nBid-YTW : 10.60 %<\/td>\n<\/tr>\n

SLF.PR.I<\/td>\nFixedReset<\/td>\nQuote: 19.43 – 19.94
\nSpot Rate : 0.5100
\nAverage : 0.3929<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.43
\nBid-YTW : 7.15 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

EMA wants to issue new preferreds; Barry Critchley points out they’ll have to pay up relative to their last round: This week Emera took another step on the way to rounding up the cash need …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-33070","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33070","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=33070"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33070\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}