{"id":48510,"date":"2017-06-07T20:46:00","date_gmt":"2017-06-08T00:46:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48510"},"modified":"2025-07-21T20:47:14","modified_gmt":"2025-07-22T00:47:14","slug":"june-7-2017","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48510","title":{"rendered":"June 7, 2017"},"content":{"rendered":"<p>PerpetualDiscounts now yield 5.08%, equivalent to 6.60% interest at the standard conversion factor of 1.3x. <a href=\"http:\/\/www.ftse.com\/products\/FTSETMX\/Home\/Indices\">Long corporates<\/a> now yield about 3.60%, so the pre-tax interest-equivalent spread (in this context, the &#8220;Seniority Spread&#8221;) is now about 300bp, a slight (and perhaps spurious) widening from the 295bp reported <a href=\"http:\/\/prefblog.com\/?p=34907\">May 31<\/a>.<\/p>\n<table border=\"1\">\n<tr>\n<td colspan=\"8\"><strong>HIMIPref&trade; Preferred Indices<br \/>These values reflect the December 2008 revision of the HIMIPref&trade; Indices<\/strong><br \/>Values are provisional and are finalized monthly<\/td>\n<\/tr>\n<tr>\n<td>Index<\/td>\n<td>Mean<br \/>Current<br \/>Yield<br \/>(at bid)<\/td>\n<td>Median<br \/>YTW<\/td>\n<td>Median<br \/>Average<br \/>Trading<br \/>Value<\/td>\n<td>Median<br \/>Mod Dur<br \/>(YTW)<\/td>\n<td>Issues<\/td>\n<td>Day&#8217;s Perf.<\/td>\n<td>Index Value<\/td>\n<\/tr>\n<tr>\n<td>Ratchet<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>0.5839 %<\/td>\n<td>2,097.0<\/td>\n<\/tr>\n<tr>\n<td>FixedFloater<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>0.5839 %<\/td>\n<td>3,847.8<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>3.74 %<\/td>\n<td>3.78 %<\/td>\n<td>81,177<\/td>\n<td>17.81<\/td>\n<td>3<\/td>\n<td>0.5839 %<\/td>\n<td>2,217.5<\/td>\n<\/tr>\n<tr>\n<td>OpRet<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>0.0393 %<\/td>\n<td>3,050.1<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>4.72 %<\/td>\n<td>4.22 %<\/td>\n<td>73,642<\/td>\n<td>1.53<\/td>\n<td>5<\/td>\n<td>0.0393 %<\/td>\n<td>3,642.4<\/td>\n<\/tr>\n<tr>\n<td>Interest-Bearing<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>0.0393 %<\/td>\n<td>2,842.0<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/td>\n<td>5.28 %<\/td>\n<td>3.77 %<\/td>\n<td>69,539<\/td>\n<td>0.09<\/td>\n<td>25<\/td>\n<td>0.0281 %<\/td>\n<td>2,792.8<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>5.09 %<\/td>\n<td>5.08 %<\/td>\n<td>99,799<\/td>\n<td>15.28<\/td>\n<td>12<\/td>\n<td>-0.1271 %<\/td>\n<td>3,001.3<\/td>\n<\/tr>\n<tr>\n<td>FixedReset<\/td>\n<td>4.56 %<\/td>\n<td>4.17 %<\/td>\n<td>198,449<\/td>\n<td>6.52<\/td>\n<td>95<\/td>\n<td>-0.0885 %<\/td>\n<td>2,270.4<\/td>\n<\/tr>\n<tr>\n<td>Deemed-Retractible<\/td>\n<td>4.98 %<\/td>\n<td>4.99 %<\/td>\n<td>124,444<\/td>\n<td>6.27<\/td>\n<td>30<\/td>\n<td>-0.0789 %<\/td>\n<td>2,901.2<\/td>\n<\/tr>\n<tr>\n<td>FloatingReset<\/td>\n<td>2.52 %<\/td>\n<td>3.16 %<\/td>\n<td>48,809<\/td>\n<td>4.39<\/td>\n<td>10<\/td>\n<td>0.1080 %<\/td>\n<td>2,519.0<\/td>\n<\/tr>\n<\/table>\n<table border=\"1\">\n<tr>\n<td colspan=\"4\"><strong>Performance Highlights<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Index<\/td>\n<td>Change<\/td>\n<td>Notes<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.A<\/td>\n<td>FixedReset<\/td>\n<td>-2.93 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2025-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 16.56<br \/>\nBid-YTW : 9.25 %<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.C<\/td>\n<td>FixedReset<\/td>\n<td>-1.44 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2025-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 20.60<br \/>\nBid-YTW : 6.53 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PR.X<\/td>\n<td>FixedReset<\/td>\n<td>-1.27 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-06-07<br \/>\nMaturity Price  : 15.51<br \/>\nEvaluated at bid price : 15.51<br \/>\nBid-YTW : 4.48 %<\/td>\n<\/tr>\n<\/table>\n<table border=\"1\">\n<tr>\n<td colspan=\"4\"><strong>Volume Highlights<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Index<\/td>\n<td>Shares<br \/>Traded<\/td>\n<td>Notes<\/td>\n<\/tr>\n<tr>\n<td>CM.PR.R<\/td>\n<td>FixedReset<\/td>\n<td>241,253<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-06-07<br \/>\nMaturity Price  : 23.13<br \/>\nEvaluated at bid price : 24.94<br \/>\nBid-YTW : 4.25 %<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.E<\/td>\n<td>Deemed-Retractible<\/td>\n<td>135,585<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2025-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.01<br \/>\nBid-YTW : 5.26 %<\/td>\n<\/tr>\n<tr>\n<td>BNS.PR.G<\/td>\n<td>FixedReset<\/td>\n<td>130,030<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-07-25<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.97<br \/>\nBid-YTW : 3.62 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.H<\/td>\n<td>FixedReset<\/td>\n<td>122,924<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-10-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.04<br \/>\nBid-YTW : 3.96 %<\/td>\n<\/tr>\n<tr>\n<td>TRP.PR.E<\/td>\n<td>FixedReset<\/td>\n<td>72,610<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-06-07<br \/>\nMaturity Price  : 20.36<br \/>\nEvaluated at bid price : 20.36<br \/>\nBid-YTW : 4.23 %<\/td>\n<\/tr>\n<tr>\n<td>TRP.PR.K<\/td>\n<td>FixedReset<\/td>\n<td>58,234<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2022-05-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.94<br \/>\nBid-YTW : 4.10 %<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">There were 40 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n<table border=\"1\">\n<tr>\n<td colspan=\"3\"><strong>Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Index<\/td>\n<td>Quote Data and Yield Notes<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.A<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 16.56 &#8211; 17.01<br \/>\nSpot Rate  :  0.4500<br \/>\nAverage  :  0.3105<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2025-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 16.56<br \/>\nBid-YTW : 9.25 %<\/td>\n<\/tr>\n<tr>\n<td>VNR.PR.A<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 20.48 &#8211; 20.79<br \/>\nSpot Rate  :  0.3100<br \/>\nAverage  :  0.2319<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-06-07<br \/>\nMaturity Price  : 20.48<br \/>\nEvaluated at bid price : 20.48<br \/>\nBid-YTW : 4.65 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.O<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 26.70 &#8211; 26.94<br \/>\nSpot Rate  :  0.2400<br \/>\nAverage  :  0.1680<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-06-19<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.70<br \/>\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n<tr>\n<td>POW.PR.D<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 24.91 &#8211; 25.09<br \/>\nSpot Rate  :  0.1800<br \/>\nAverage  :  0.1118<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-06-07<br \/>\nMaturity Price  : 24.65<br \/>\nEvaluated at bid price : 24.91<br \/>\nBid-YTW : 5.08 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PF.H<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 26.20 &#8211; 26.44<br \/>\nSpot Rate  :  0.2400<br \/>\nAverage  :  0.1734<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2020-12-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.20<br \/>\nBid-YTW : 3.85 %<\/td>\n<\/tr>\n<tr>\n<td>IAG.PR.A<\/td>\n<td>Deemed-Retractible<\/td>\n<td>Quote: 22.90 &#8211; 23.14<br \/>\nSpot Rate  :  0.2400<br \/>\nAverage  :  0.1829<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2025-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 22.90<br \/>\nBid-YTW : 5.97 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>PerpetualDiscounts now yield 5.08%, equivalent to 6.60% interest at the standard conversion factor of 1.3x. Long corporates now yield about 3.60%, so the pre-tax interest-equivalent spread (in this context, the &#8220;Seniority Spread&#8221;) is now about &hellip;<\/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-48510","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48510","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=48510"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48510\/revisions"}],"predecessor-version":[{"id":48511,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48510\/revisions\/48511"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}