{"id":49055,"date":"2018-01-19T20:49:00","date_gmt":"2018-01-20T01:49:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=49055"},"modified":"2025-08-05T20:51:28","modified_gmt":"2025-08-06T00:51:28","slug":"cm-pr-s-settles-firm-on-good-volume","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=49055","title":{"rendered":"CM.PR.S Settles Firm on Good Volume"},"content":{"rendered":"

Canadian Imperial Bank of Commerce has announced<\/a>:<\/p>\n

\n

that it has completed the offering of 18 million Basel III-compliant Non-cumulative Rate Reset Class A Preferred Shares Series 47 (Non-Viability Contingent Capital (NVCC)) (the “Series 47 Shares”) priced at $25.00 per share to raise gross proceeds of $450 million. <\/p>\n

The offering was made through a syndicate of underwriters led by CIBC Capital Markets. The Series 47 Shares commence trading on the Toronto Stock Exchange today under the ticker symbol CM.PR.S. <\/p>\n

The Series 47 Shares were issued under a prospectus supplement dated January 11, 2018, to CIBC’s short form base shelf prospectus dated March 16, 2016. <\/p>\n

CIBC has designated the Series 47 Shares as eligible to participate in the CIBC Shareholder Investment Plan along with Series 41, 43 and 45. Holders of eligible shares may elect to have dividends on those preferred shares reinvested in common shares if they reside in Canada, or may elect stock dividends if they reside in the U.S. See “CIBC Shareholder Investment Plan” at www.cibc.com for more information.<\/p>\n<\/blockquote>\n

The CIBC Shareholder Investment Plan – hard to find on their website! – is described here<\/a>.<\/p>\n

CM.PR.S is a FixedReset, 4.50%+245, NVCC-compliant, announced January 10<\/a>. It will be tracked by HIMIPref™ and is assigned to the FixedReset subindex.<\/p>\n

The issue traded 734,395 shares today in a range of 24.94-00 before closing at 24.96-97. Vital statistics are:<\/p>\n

\n\n\n
CM.PR.S<\/td>\nFixedReset<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2048-01-18
\nMaturity Price : 23.15
\nEvaluated at bid price : 24.96
\nBid-YTW : 4.36 %<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

This issue looks quite expensive to me, but quantifying the degree of richness is difficult. According to Implied Volatility Analysis<\/a>:<\/p>\n

\"impvol_cm_180118\"<\/a>
Click for Big<\/i><\/div>\n

Well, it’s starting to get monotonous, but we see in this chart many of the same features we saw when reviewing the recent BIP new issue<\/a> as well as last week’s BEP.PR.M issue<\/a>, the CM issue<\/a> and NA issue<\/a>:<\/p>\n