{"id":48740,"date":"2017-09-06T22:45:00","date_gmt":"2017-09-07T02:45:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48740"},"modified":"2025-07-24T22:47:01","modified_gmt":"2025-07-25T02:47:01","slug":"september-6-2017","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48740","title":{"rendered":"September 6, 2017"},"content":{"rendered":"<p>A strong day today in the <a href=\"https:\/\/prefblog.com\/?p=35410\">wake of the BoC rate hike<\/a>.<\/p>\n<p>PerpetualDiscounts now yield 5.35%, equivalent to 6.96% interest at the standard equivalency factor of 1.3x. <a href=\"http:\/\/www.ftse.com\/products\/FTSETMX\/Home\/Indices\">Long corporates<\/a> now yield a little less than 3.95%, so the pre-tax interest-equivalent spread (in this context, the &#8220;Seniority Spread&#8221;) is now about 300bp, significantly narrower than the 310bp reported <a href=\"https:\/\/prefblog.com\/?p=35367\">August 30<\/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>2.0819 %<\/td>\n<td>2,411.8<\/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>2.0819 %<\/td>\n<td>4,425.5<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>3.59 %<\/td>\n<td>3.63 %<\/td>\n<td>109,641<\/td>\n<td>18.16<\/td>\n<td>3<\/td>\n<td>2.0819 %<\/td>\n<td>2,550.5<\/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>0.0472 %<\/td>\n<td>3,086.2<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>4.72 %<\/td>\n<td>4.13 %<\/td>\n<td>51,828<\/td>\n<td>1.30<\/td>\n<td>5<\/td>\n<td>0.0472 %<\/td>\n<td>3,685.6<\/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>0.0472 %<\/td>\n<td>2,875.6<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/td>\n<td>5.41 %<\/td>\n<td>4.79 %<\/td>\n<td>58,005<\/td>\n<td>5.85<\/td>\n<td>16<\/td>\n<td>0.0320 %<\/td>\n<td>2,782.5<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>5.31 %<\/td>\n<td>5.35 %<\/td>\n<td>69,322<\/td>\n<td>14.84<\/td>\n<td>19<\/td>\n<td>-0.1330 %<\/td>\n<td>2,915.5<\/td>\n<\/tr>\n<tr>\n<td>FixedReset<\/td>\n<td>4.35 %<\/td>\n<td>4.41 %<\/td>\n<td>147,190<\/td>\n<td>6.30<\/td>\n<td>98<\/td>\n<td>0.3864 %<\/td>\n<td>2,399.6<\/td>\n<\/tr>\n<tr>\n<td>Deemed-Retractible<\/td>\n<td>5.12 %<\/td>\n<td>5.51 %<\/td>\n<td>99,209<\/td>\n<td>6.08<\/td>\n<td>31<\/td>\n<td>-0.2897 %<\/td>\n<td>2,860.2<\/td>\n<\/tr>\n<tr>\n<td>FloatingReset<\/td>\n<td>2.72 %<\/td>\n<td>3.09 %<\/td>\n<td>42,005<\/td>\n<td>4.14<\/td>\n<td>8<\/td>\n<td>0.2379 %<\/td>\n<td>2,623.4<\/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>SLF.PR.A<\/td>\n<td>Deemed-Retractible<\/td>\n<td>-1.29 %<\/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 : 22.27<br \/>\nBid-YTW : 6.63 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PF.I<\/td>\n<td>FixedReset<\/td>\n<td>-1.24 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2022-03-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.58<br \/>\nBid-YTW : 4.48 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.T<\/td>\n<td>FixedReset<\/td>\n<td>1.05 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 22.66<br \/>\nEvaluated at bid price : 23.10<br \/>\nBid-YTW : 4.30 %<\/td>\n<\/tr>\n<tr>\n<td>CM.PR.Q<\/td>\n<td>FixedReset<\/td>\n<td>1.07 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 22.79<br \/>\nEvaluated at bid price : 23.59<br \/>\nBid-YTW : 4.48 %<\/td>\n<\/tr>\n<tr>\n<td>HSE.PR.C<\/td>\n<td>FixedReset<\/td>\n<td>1.14 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 22.57<br \/>\nEvaluated at bid price : 23.07<br \/>\nBid-YTW : 5.04 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.M<\/td>\n<td>FixedReset<\/td>\n<td>1.21 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 22.60<br \/>\nEvaluated at bid price : 23.33<br \/>\nBid-YTW : 4.37 %<\/td>\n<\/tr>\n<tr>\n<td>BMO.PR.T<\/td>\n<td>FixedReset<\/td>\n<td>1.23 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 21.69<br \/>\nEvaluated at bid price : 22.14<br \/>\nBid-YTW : 4.31 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.Z<\/td>\n<td>FixedReset<\/td>\n<td>1.24 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 21.60<br \/>\nEvaluated at bid price : 22.00<br \/>\nBid-YTW : 4.32 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.E<\/td>\n<td>FixedReset<\/td>\n<td>1.25 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 23.10<br \/>\nEvaluated at bid price : 24.33<br \/>\nBid-YTW : 4.40 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.P<\/td>\n<td>FixedReset<\/td>\n<td>1.25 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 16.96<br \/>\nEvaluated at bid price : 16.96<br \/>\nBid-YTW : 4.49 %<\/td>\n<\/tr>\n<tr>\n<td>BMO.PR.Y<\/td>\n<td>FixedReset<\/td>\n<td>1.36 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 22.91<br \/>\nEvaluated at bid price : 23.85<br \/>\nBid-YTW : 4.38 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.F<\/td>\n<td>FixedReset<\/td>\n<td>1.42 %<\/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 : 17.14<br \/>\nBid-YTW : 8.31 %<\/td>\n<\/tr>\n<tr>\n<td>TRP.PR.G<\/td>\n<td>FixedReset<\/td>\n<td>1.48 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 22.94<br \/>\nEvaluated at bid price : 24.00<br \/>\nBid-YTW : 4.55 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PR.B<\/td>\n<td>Floater<\/td>\n<td>1.91 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 14.40<br \/>\nEvaluated at bid price : 14.40<br \/>\nBid-YTW : 3.63 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PR.K<\/td>\n<td>Floater<\/td>\n<td>2.14 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 14.35<br \/>\nEvaluated at bid price : 14.35<br \/>\nBid-YTW : 3.64 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PR.C<\/td>\n<td>Floater<\/td>\n<td>2.20 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 14.40<br \/>\nEvaluated at bid price : 14.40<br \/>\nBid-YTW : 3.63 %<\/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>TRP.PR.J<\/td>\n<td>FixedReset<\/td>\n<td>242,117<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-05-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.60<br \/>\nBid-YTW : 3.70 %<\/td>\n<\/tr>\n<tr>\n<td>NA.PR.C<\/td>\n<td>FixedReset<\/td>\n<td>212,189<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2022-11-15<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.25<br \/>\nBid-YTW : 4.48 %<\/td>\n<\/tr>\n<tr>\n<td>BMO.PR.C<\/td>\n<td>FixedReset<\/td>\n<td>125,835<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2022-05-25<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.40<br \/>\nBid-YTW : 4.18 %<\/td>\n<\/tr>\n<tr>\n<td>TRP.PR.K<\/td>\n<td>FixedReset<\/td>\n<td>118,549<\/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 : 26.00<br \/>\nBid-YTW : 4.01 %<\/td>\n<\/tr>\n<tr>\n<td>TRP.PR.D<\/td>\n<td>FixedReset<\/td>\n<td>109,616<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 21.63<br \/>\nEvaluated at bid price : 22.05<br \/>\nBid-YTW : 4.51 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PR.Z<\/td>\n<td>FixedReset<\/td>\n<td>92,600<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 23.14<br \/>\nEvaluated at bid price : 24.05<br \/>\nBid-YTW : 4.74 %<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">There were 49 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>GWO.PR.N<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 17.15 &#8211; 17.74<br \/>\nSpot Rate  :  0.5900<br \/>\nAverage  :  0.4433<\/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 : 17.15<br \/>\nBid-YTW : 8.25 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.H<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 24.80 &#8211; 25.22<br \/>\nSpot Rate  :  0.4200<br \/>\nAverage  :  0.3284<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 24.38<br \/>\nEvaluated at bid price : 24.80<br \/>\nBid-YTW : 5.31 %<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.A<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 19.75 &#8211; 20.05<br \/>\nSpot Rate  :  0.3000<br \/>\nAverage  :  0.2151<\/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 : 19.75<br \/>\nBid-YTW : 7.23 %<\/td>\n<\/tr>\n<tr>\n<td>W.PR.M<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 26.16 &#8211; 26.40<br \/>\nSpot Rate  :  0.2400<br \/>\nAverage  :  0.1620<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-10-15<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.16<br \/>\nBid-YTW : 4.19 %<\/td>\n<\/tr>\n<tr>\n<td>IAG.PR.A<\/td>\n<td>Deemed-Retractible<\/td>\n<td>Quote: 22.36 &#8211; 22.63<br \/>\nSpot Rate  :  0.2700<br \/>\nAverage  :  0.1957<\/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 : 22.36<br \/>\nBid-YTW : 6.40 %<\/td>\n<\/tr>\n<tr>\n<td>TRP.PR.F<\/td>\n<td>FloatingReset<\/td>\n<td>Quote: 19.20 &#8211; 19.60<br \/>\nSpot Rate  :  0.4000<br \/>\nAverage  :  0.3264<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-09-06<br \/>\nMaturity Price  : 19.20<br \/>\nEvaluated at bid price : 19.20<br \/>\nBid-YTW : 3.58 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>A strong day today in the wake of the BoC rate hike. PerpetualDiscounts now yield 5.35%, equivalent to 6.96% interest at the standard equivalency factor of 1.3x. Long corporates now yield a little less than &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-48740","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48740","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=48740"}],"version-history":[{"count":2,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48740\/revisions"}],"predecessor-version":[{"id":48742,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48740\/revisions\/48742"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}