{"id":48820,"date":"2017-10-04T20:51:00","date_gmt":"2017-10-05T00:51:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48820"},"modified":"2025-07-25T20:51:56","modified_gmt":"2025-07-26T00:51:56","slug":"october-4-2017","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48820","title":{"rendered":"October 4, 2017"},"content":{"rendered":"<p>PerpetualDiscounts now yield 5.40%, equivalent to 7.02% 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 under 4.10%, so the pre-tax interest-equivalent spread (in this context, the &#8220;Seniority Spread&#8221; is now about 295bp, a narrowing from the 305bp reported <a href=\"https:\/\/prefblog.com\/?p=35511\">September 27<\/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>-0.0511 %<\/td>\n<td>2,392.3<\/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>-0.0511 %<\/td>\n<td>4,389.7<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>3.82 %<\/td>\n<td>3.97 %<\/td>\n<td>26,672<\/td>\n<td>17.53<\/td>\n<td>4<\/td>\n<td>-0.0511 %<\/td>\n<td>2,529.8<\/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>-0.0132 %<\/td>\n<td>3,074.8<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>4.74 %<\/td>\n<td>4.51 %<\/td>\n<td>83,434<\/td>\n<td>1.22<\/td>\n<td>6<\/td>\n<td>-0.0132 %<\/td>\n<td>3,672.0<\/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>-0.0132 %<\/td>\n<td>2,865.0<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/td>\n<td>5.37 %<\/td>\n<td>4.84 %<\/td>\n<td>59,592<\/td>\n<td>5.77<\/td>\n<td>17<\/td>\n<td>-0.0232 %<\/td>\n<td>2,795.1<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>5.38 %<\/td>\n<td>5.40 %<\/td>\n<td>61,738<\/td>\n<td>14.73<\/td>\n<td>19<\/td>\n<td>0.0659 %<\/td>\n<td>2,915.6<\/td>\n<\/tr>\n<tr>\n<td>FixedReset<\/td>\n<td>4.29 %<\/td>\n<td>4.40 %<\/td>\n<td>150,877<\/td>\n<td>4.61<\/td>\n<td>99<\/td>\n<td>0.2722 %<\/td>\n<td>2,447.9<\/td>\n<\/tr>\n<tr>\n<td>Deemed-Retractible<\/td>\n<td>5.12 %<\/td>\n<td>5.64 %<\/td>\n<td>99,211<\/td>\n<td>6.03<\/td>\n<td>30<\/td>\n<td>0.2572 %<\/td>\n<td>2,874.0<\/td>\n<\/tr>\n<tr>\n<td>FloatingReset<\/td>\n<td>2.85 %<\/td>\n<td>3.09 %<\/td>\n<td>51,335<\/td>\n<td>4.06<\/td>\n<td>8<\/td>\n<td>-0.2453 %<\/td>\n<td>2,656.1<\/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>BAM.PR.T<\/td>\n<td>FixedReset<\/td>\n<td>-2.33 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-04<br \/>\nMaturity Price  : 20.15<br \/>\nEvaluated at bid price : 20.15<br \/>\nBid-YTW : 4.90 %<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.C<\/td>\n<td>FixedReset<\/td>\n<td>-1.36 %<\/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 : 22.50<br \/>\nBid-YTW : 5.51 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PR.T<\/td>\n<td>FloatingReset<\/td>\n<td>-1.05 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2022-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 24.50<br \/>\nBid-YTW : 3.06 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.A<\/td>\n<td>FixedReset<\/td>\n<td>1.05 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-04<br \/>\nMaturity Price  : 22.72<br \/>\nEvaluated at bid price : 23.04<br \/>\nBid-YTW : 4.38 %<\/td>\n<\/tr>\n<tr>\n<td>CM.PR.O<\/td>\n<td>FixedReset<\/td>\n<td>1.10 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-04<br \/>\nMaturity Price  : 22.56<br \/>\nEvaluated at bid price : 22.91<br \/>\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n<tr>\n<td>BMO.PR.S<\/td>\n<td>FixedReset<\/td>\n<td>1.21 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-04<br \/>\nMaturity Price  : 22.98<br \/>\nEvaluated at bid price : 23.38<br \/>\nBid-YTW : 4.40 %<\/td>\n<\/tr>\n<tr>\n<td>NA.PR.W<\/td>\n<td>FixedReset<\/td>\n<td>1.26 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-04<br \/>\nMaturity Price  : 22.15<br \/>\nEvaluated at bid price : 22.46<br \/>\nBid-YTW : 4.50 %<\/td>\n<\/tr>\n<tr>\n<td>CM.PR.Q<\/td>\n<td>FixedReset<\/td>\n<td>1.28 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2020-07-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 24.46<br \/>\nBid-YTW : 4.35 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.T<\/td>\n<td>FixedReset<\/td>\n<td>1.50 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-04<br \/>\nMaturity Price  : 23.28<br \/>\nEvaluated at bid price : 23.75<br \/>\nBid-YTW : 4.40 %<\/td>\n<\/tr>\n<tr>\n<td>NA.PR.S<\/td>\n<td>FixedReset<\/td>\n<td>1.53 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-04<br \/>\nMaturity Price  : 22.86<br \/>\nEvaluated at bid price : 23.26<br \/>\nBid-YTW : 4.51 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.C<\/td>\n<td>Deemed-Retractible<\/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 : 21.75<br \/>\nBid-YTW : 6.86 %<\/td>\n<\/tr>\n<tr>\n<td>SLF.PR.B<\/td>\n<td>Deemed-Retractible<\/td>\n<td>1.56 %<\/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 : 6.33 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.F<\/td>\n<td>FixedReset<\/td>\n<td>1.56 %<\/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 : 17.60<br \/>\nBid-YTW : 8.10 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.P<\/td>\n<td>FixedReset<\/td>\n<td>1.80 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-04<br \/>\nMaturity Price  : 17.56<br \/>\nEvaluated at bid price : 17.56<br \/>\nBid-YTW : 4.59 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.K<\/td>\n<td>FixedReset<\/td>\n<td>1.99 %<\/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 : 22.00<br \/>\nBid-YTW : 6.08 %<\/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>TD.PF.I<\/td>\n<td>FixedReset<\/td>\n<td>166,110<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2022-10-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.95<br \/>\nBid-YTW : 3.90 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.Q<\/td>\n<td>FixedReset<\/td>\n<td>137,136<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-05-24<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.79<br \/>\nBid-YTW : 3.58 %<\/td>\n<\/tr>\n<tr>\n<td>CM.PR.R<\/td>\n<td>FixedReset<\/td>\n<td>95,508<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2022-07-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.25<br \/>\nBid-YTW : 4.13 %<\/td>\n<\/tr>\n<tr>\n<td>BMO.PR.C<\/td>\n<td>FixedReset<\/td>\n<td>65,050<\/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 : 25.50<br \/>\nBid-YTW : 4.16 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.I<\/td>\n<td>Perpetual-Premium<\/td>\n<td>62,928<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2017-11-03<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.68<br \/>\nBid-YTW : -13.50 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.I<\/td>\n<td>FixedReset<\/td>\n<td>55,600<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2022-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.00<br \/>\nBid-YTW : 3.76 %<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">There were 25 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>BAM.PR.T<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 20.15 &#8211; 20.85<br \/>\nSpot Rate  :  0.7000<br \/>\nAverage  :  0.4336<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-04<br \/>\nMaturity Price  : 20.15<br \/>\nEvaluated at bid price : 20.15<br \/>\nBid-YTW : 4.90 %<\/td>\n<\/tr>\n<tr>\n<td>TRP.PR.F<\/td>\n<td>FloatingReset<\/td>\n<td>Quote: 19.80 &#8211; 20.40<br \/>\nSpot Rate  :  0.6000<br \/>\nAverage  :  0.4275<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-04<br \/>\nMaturity Price  : 19.80<br \/>\nEvaluated at bid price : 19.80<br \/>\nBid-YTW : 3.68 %<\/td>\n<\/tr>\n<tr>\n<td>NA.PR.Q<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 25.18 &#8211; 25.50<br \/>\nSpot Rate  :  0.3200<br \/>\nAverage  :  0.1762<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2017-11-15<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.18<br \/>\nBid-YTW : 2.06 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PR.T<\/td>\n<td>FloatingReset<\/td>\n<td>Quote: 24.50 &#8211; 24.85<br \/>\nSpot Rate  :  0.3500<br \/>\nAverage  :  0.2127<\/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 : 24.50<br \/>\nBid-YTW : 3.06 %<\/td>\n<\/tr>\n<tr>\n<td>HSE.PR.A<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 16.90 &#8211; 17.40<br \/>\nSpot Rate  :  0.5000<br \/>\nAverage  :  0.3744<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-04<br \/>\nMaturity Price  : 16.90<br \/>\nEvaluated at bid price : 16.90<br \/>\nBid-YTW : 4.88 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.S<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 22.75 &#8211; 23.08<br \/>\nSpot Rate  :  0.3300<br \/>\nAverage  :  0.2215<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-10-04<br \/>\nMaturity Price  : 22.42<br \/>\nEvaluated at bid price : 22.75<br \/>\nBid-YTW : 5.35 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>PerpetualDiscounts now yield 5.40%, equivalent to 7.02% interest at the standard equivalency factor of 1.3x. Long corporates now yield a little under 4.10%, so the pre-tax interest-equivalent spread (in this context, the &#8220;Seniority Spread&#8221; is &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-48820","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48820","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=48820"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48820\/revisions"}],"predecessor-version":[{"id":48821,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48820\/revisions\/48821"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}