{"id":48796,"date":"2017-10-18T20:30:00","date_gmt":"2017-10-19T00:30:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48796"},"modified":"2025-07-25T20:31:22","modified_gmt":"2025-07-26T00:31:22","slug":"october-18-2017","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48796","title":{"rendered":"October 18, 2017"},"content":{"rendered":"<p>PerpetualDiscounts now yield 5.32%, equivalent to 6.92% interest at the standard equivalency factor of 1.3x. <a href=\"http:\/\/www.ftse.com\/products\/FTSETMX\/Home\/Indices\">Long corporates<\/a> now yield about 3.95% so the pre-tax interest-equivalent spread (in this context, the &#8220;Seniority Spread&#8221;) is now about 295bp, a significant widening from the 285bp reported <a href=\"https:\/\/prefblog.com\/?p=35590\">October 11<\/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>-0.0168 %<\/td>\n<td>2,421.6<\/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>-0.0168 %<\/td>\n<td>4,443.6<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>3.77 %<\/td>\n<td>3.92 %<\/td>\n<td>34,731<\/td>\n<td>17.60<\/td>\n<td>4<\/td>\n<td>-0.0168 %<\/td>\n<td>2,560.9<\/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>0.0660 %<\/td>\n<td>3,072.2<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>4.75 %<\/td>\n<td>4.73 %<\/td>\n<td>72,414<\/td>\n<td>4.37<\/td>\n<td>6<\/td>\n<td>0.0660 %<\/td>\n<td>3,668.8<\/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>0.0660 %<\/td>\n<td>2,862.6<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/td>\n<td>5.35 %<\/td>\n<td>1.21 %<\/td>\n<td>62,163<\/td>\n<td>0.20<\/td>\n<td>17<\/td>\n<td>-0.0370 %<\/td>\n<td>2,821.4<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>5.33 %<\/td>\n<td>5.32 %<\/td>\n<td>60,858<\/td>\n<td>14.96<\/td>\n<td>19<\/td>\n<td>0.0788 %<\/td>\n<td>2,953.8<\/td>\n<\/tr>\n<tr>\n<td>FixedReset<\/td>\n<td>4.24 %<\/td>\n<td>4.21 %<\/td>\n<td>149,735<\/td>\n<td>4.54<\/td>\n<td>99<\/td>\n<td>0.0784 %<\/td>\n<td>2,481.2<\/td>\n<\/tr>\n<tr>\n<td>Deemed-Retractible<\/td>\n<td>5.08 %<\/td>\n<td>5.54 %<\/td>\n<td>98,703<\/td>\n<td>6.00<\/td>\n<td>30<\/td>\n<td>-0.1049 %<\/td>\n<td>2,899.3<\/td>\n<\/tr>\n<tr>\n<td>FloatingReset<\/td>\n<td>2.80 %<\/td>\n<td>2.87 %<\/td>\n<td>44,857<\/td>\n<td>4.04<\/td>\n<td>8<\/td>\n<td>0.1796 %<\/td>\n<td>2,676.4<\/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>HSE.PR.A<\/td>\n<td>FixedReset<\/td>\n<td>-1.14 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-18<br \/>\nMaturity Price  : 17.30<br \/>\nEvaluated at bid price : 17.30<br \/>\nBid-YTW : 4.72 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.K<\/td>\n<td>FixedReset<\/td>\n<td>1.15 %<\/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 : 22.85<br \/>\nBid-YTW : 5.45 %<\/td>\n<\/tr>\n<tr>\n<td>GWO.PR.N<\/td>\n<td>FixedReset<\/td>\n<td>1.54 %<\/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 : 17.82<br \/>\nBid-YTW : 7.88 %<\/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.K<\/td>\n<td>FixedReset<\/td>\n<td>196,079<\/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 : 26.01<br \/>\nBid-YTW : 4.11 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.R<\/td>\n<td>FixedReset<\/td>\n<td>129,455<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2022-03-19<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.91<br \/>\nBid-YTW : 4.06 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PF.J<\/td>\n<td>FixedReset<\/td>\n<td>101,414<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2022-12-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.52<br \/>\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.I<\/td>\n<td>FixedReset<\/td>\n<td>64,200<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2022-09-19<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.00<br \/>\nBid-YTW : 4.46 %<\/td>\n<\/tr>\n<tr>\n<td>BMO.PR.C<\/td>\n<td>FixedReset<\/td>\n<td>64,000<\/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 : 25.57<br \/>\nBid-YTW : 4.13 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.G<\/td>\n<td>FixedReset<\/td>\n<td>57,066<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-04-30<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.65<br \/>\nBid-YTW : 3.46 %<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">There were 22 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.R<\/td>\n<td>Deemed-Retractible<\/td>\n<td>Quote: 22.99 &#8211; 23.35<br \/>\nSpot Rate  :  0.3600<br \/>\nAverage  :  0.2725<\/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 : 22.99<br \/>\nBid-YTW : 6.27 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.G<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 21.70 &#8211; 22.00<br \/>\nSpot Rate  :  0.3000<br \/>\nAverage  :  0.2198<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-18<br \/>\nMaturity Price  : 21.42<br \/>\nEvaluated at bid price : 21.70<br \/>\nBid-YTW : 5.24 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PF.G<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 24.30 &#8211; 24.48<br \/>\nSpot Rate  :  0.1800<br \/>\nAverage  :  0.1070<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-18<br \/>\nMaturity Price  : 23.16<br \/>\nEvaluated at bid price : 24.30<br \/>\nBid-YTW : 4.65 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.H<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 25.10 &#8211; 25.39<br \/>\nSpot Rate  :  0.2900<br \/>\nAverage  :  0.2201<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-18<br \/>\nMaturity Price  : 24.67<br \/>\nEvaluated at bid price : 25.10<br \/>\nBid-YTW : 5.28 %<\/td>\n<\/tr>\n<tr>\n<td>BNS.PR.Y<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 23.07 &#8211; 23.29<br \/>\nSpot Rate  :  0.2200<br \/>\nAverage  :  0.1583<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2022-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 23.07<br \/>\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.M<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 23.65 &#8211; 24.02<br \/>\nSpot Rate  :  0.3700<br \/>\nAverage  :  0.3150<\/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 : 23.65<br \/>\nBid-YTW : 4.99 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>PerpetualDiscounts now yield 5.32%, equivalent to 6.92% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 3.95% 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-48796","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48796","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=48796"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48796\/revisions"}],"predecessor-version":[{"id":48797,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48796\/revisions\/48797"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}