{"id":48880,"date":"2017-11-22T19:49:00","date_gmt":"2017-11-23T00:49:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48880"},"modified":"2025-07-30T19:51:05","modified_gmt":"2025-07-30T23:51:05","slug":"november-22-2017","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48880","title":{"rendered":"November 22, 2017"},"content":{"rendered":"<p>PerpetualDiscounts now yield 5.23%, equivalent to 6.80% 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 3.80%, so the pre-tax, interest-equivalent spread (in this context, the &#8220;Seniority Spread&#8221;) is now about 300bp, a slight (and perhaps spurious) narrowing from the 305bp reported <a href=\"https:\/\/prefblog.com\/?p=35723\">November 15<\/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>0.0876 %<\/td>\n<td>2,458.4<\/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>0.0876 %<\/td>\n<td>4,511.1<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>3.68 %<\/td>\n<td>3.90 %<\/td>\n<td>98,567<\/td>\n<td>17.57<\/td>\n<td>3<\/td>\n<td>0.0876 %<\/td>\n<td>2,599.8<\/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>0.0593 %<\/td>\n<td>3,114.1<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>4.74 %<\/td>\n<td>4.52 %<\/td>\n<td>66,104<\/td>\n<td>4.33<\/td>\n<td>6<\/td>\n<td>0.0593 %<\/td>\n<td>3,718.9<\/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>0.0593 %<\/td>\n<td>2,901.7<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/td>\n<td>5.34 %<\/td>\n<td>2.46 %<\/td>\n<td>44,925<\/td>\n<td>0.11<\/td>\n<td>20<\/td>\n<td>0.1275 %<\/td>\n<td>2,843.3<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>5.19 %<\/td>\n<td>5.23 %<\/td>\n<td>64,539<\/td>\n<td>15.04<\/td>\n<td>15<\/td>\n<td>0.0734 %<\/td>\n<td>3,024.8<\/td>\n<\/tr>\n<tr>\n<td>FixedReset<\/td>\n<td>4.21 %<\/td>\n<td>4.19 %<\/td>\n<td>155,101<\/td>\n<td>4.41<\/td>\n<td>98<\/td>\n<td>0.1274 %<\/td>\n<td>2,508.4<\/td>\n<\/tr>\n<tr>\n<td>Deemed-Retractible<\/td>\n<td>5.01 %<\/td>\n<td>5.28 %<\/td>\n<td>88,488<\/td>\n<td>5.91<\/td>\n<td>30<\/td>\n<td>0.1625 %<\/td>\n<td>2,948.4<\/td>\n<\/tr>\n<tr>\n<td>FloatingReset<\/td>\n<td>2.70 %<\/td>\n<td>2.74 %<\/td>\n<td>43,079<\/td>\n<td>3.96<\/td>\n<td>8<\/td>\n<td>0.1463 %<\/td>\n<td>2,690.1<\/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>VNR.PR.A<\/td>\n<td>FixedReset<\/td>\n<td>-1.03 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-11-22<br \/>\nMaturity Price  : 22.78<br \/>\nEvaluated at bid price : 24.00<br \/>\nBid-YTW : 4.68 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.B<\/td>\n<td>Deemed-Retractible<\/td>\n<td>1.46 %<\/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 : 22.94<br \/>\nBid-YTW : 6.06 %<\/td>\n<\/tr>\n<tr>\n<td>HSE.PR.A<\/td>\n<td>FixedReset<\/td>\n<td>1.54 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-11-22<br \/>\nMaturity Price  : 17.84<br \/>\nEvaluated at bid price : 17.84<br \/>\nBid-YTW : 4.57 %<\/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>RY.PR.I<\/td>\n<td>FixedReset<\/td>\n<td>466,895<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2019-02-24<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.01<br \/>\nBid-YTW : 3.49 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.Q<\/td>\n<td>FixedReset<\/td>\n<td>289,136<\/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 : 26.90<br \/>\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n<tr>\n<td>TRP.PR.J<\/td>\n<td>FixedReset<\/td>\n<td>257,205<\/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 : 26.67<br \/>\nBid-YTW : 3.45 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.G<\/td>\n<td>FixedReset<\/td>\n<td>187,549<\/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 : 27.00<br \/>\nBid-YTW : 3.14 %<\/td>\n<\/tr>\n<tr>\n<td>NA.PR.A<\/td>\n<td>FixedReset<\/td>\n<td>178,206<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-08-15<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.89<br \/>\nBid-YTW : 3.29 %<\/td>\n<\/tr>\n<tr>\n<td>SLF.PR.H<\/td>\n<td>FixedReset<\/td>\n<td>76,912<\/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 : 22.41<br \/>\nBid-YTW : 5.11 %<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">There were 23 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>VNR.PR.A<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 24.00 &#8211; 24.40<br \/>\nSpot Rate  :  0.4000<br \/>\nAverage  :  0.2975<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2047-11-22<br \/>\nMaturity Price  : 22.78<br \/>\nEvaluated at bid price : 24.00<br \/>\nBid-YTW : 4.68 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.R<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 26.18 &#8211; 26.39<br \/>\nSpot Rate  :  0.2100<br \/>\nAverage  :  0.1517<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2022-03-19<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.18<br \/>\nBid-YTW : 3.59 %<\/td>\n<\/tr>\n<tr>\n<td>BMO.PR.Y<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 24.79 &#8211; 25.00<br \/>\nSpot Rate  :  0.2100<br \/>\nAverage  :  0.1523<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2020-08-25<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 24.79<br \/>\nBid-YTW : 4.14 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.I<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 26.00 &#8211; 26.25<br \/>\nSpot Rate  :  0.2500<br \/>\nAverage  :  0.1956<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2020-12-01<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.00<br \/>\nBid-YTW : 3.08 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.A<\/td>\n<td>Deemed-Retractible<\/td>\n<td>Quote: 25.42 &#8211; 25.58<br \/>\nSpot Rate  :  0.1600<br \/>\nAverage  :  0.1106<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2017-12-22<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.42<br \/>\nBid-YTW : -15.50 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PF.J<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 25.88 &#8211; 26.15<br \/>\nSpot Rate  :  0.2700<br \/>\nAverage  :  0.2217<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2022-12-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.88<br \/>\nBid-YTW : 4.20 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>PerpetualDiscounts now yield 5.23%, equivalent to 6.80% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 3.80%, 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-48880","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48880","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=48880"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48880\/revisions"}],"predecessor-version":[{"id":48881,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48880\/revisions\/48881"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}