{"id":49134,"date":"2018-02-21T19:20:00","date_gmt":"2018-02-22T00:20:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=49134"},"modified":"2025-08-07T19:20:52","modified_gmt":"2025-08-07T23:20:52","slug":"february-21-2018","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=49134","title":{"rendered":"February 21, 2018"},"content":{"rendered":"<p>PerpetualDiscounts now yield 5.40%, equivalent to 7.02% interest at the standard equivalency factor of 1.3x. <a href=\"https:\/\/www.bmo.com\/gam\/ca\/advisor\/products\/etfs?fundUrl=\/fundProfile\/ZLC#fundUrl=%2FfundProfile%2FZLC\">Long corporates<\/a> now yield about 3.99%, so the pre-tax interest-equivalent spread (in this context, the &#8220;Seniority Spread&#8221;) is now about 300bp, unchanged from <a href=\"http:\/\/prefblog.com\/?p=36240\">February 14<\/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>1.1782 %<\/td>\n<td>3,037.7<\/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>1.1782 %<\/td>\n<td>5,574.1<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>3.27 %<\/td>\n<td>3.48 %<\/td>\n<td>93,144<\/td>\n<td>18.51<\/td>\n<td>4<\/td>\n<td>1.1782 %<\/td>\n<td>3,212.4<\/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>0.5281 %<\/td>\n<td>3,158.9<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>4.69 %<\/td>\n<td>3.99 %<\/td>\n<td>66,014<\/td>\n<td>3.34<\/td>\n<td>5<\/td>\n<td>0.5281 %<\/td>\n<td>3,772.4<\/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>0.5281 %<\/td>\n<td>2,943.4<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/td>\n<td>5.45 %<\/td>\n<td>4.95 %<\/td>\n<td>65,142<\/td>\n<td>14.38<\/td>\n<td>20<\/td>\n<td>-0.1455 %<\/td>\n<td>2,829.8<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>5.42 %<\/td>\n<td>5.40 %<\/td>\n<td>85,128<\/td>\n<td>14.77<\/td>\n<td>14<\/td>\n<td>-0.0317 %<\/td>\n<td>2,936.3<\/td>\n<\/tr>\n<tr>\n<td>FixedReset<\/td>\n<td>4.25 %<\/td>\n<td>4.62 %<\/td>\n<td>157,756<\/td>\n<td>5.89<\/td>\n<td>102<\/td>\n<td>0.2279 %<\/td>\n<td>2,516.8<\/td>\n<\/tr>\n<tr>\n<td>Deemed-Retractible<\/td>\n<td>5.14 %<\/td>\n<td>5.67 %<\/td>\n<td>89,652<\/td>\n<td>5.73<\/td>\n<td>28<\/td>\n<td>0.0150 %<\/td>\n<td>2,909.3<\/td>\n<\/tr>\n<tr>\n<td>FloatingReset<\/td>\n<td>3.01 %<\/td>\n<td>3.03 %<\/td>\n<td>37,965<\/td>\n<td>3.72<\/td>\n<td>10<\/td>\n<td>-0.0347 %<\/td>\n<td>2,766.8<\/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.Z<\/td>\n<td>FixedReset<\/td>\n<td>1.06 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 23.08<br \/>\nEvaluated at bid price : 24.75<br \/>\nBid-YTW : 4.97 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PR.T<\/td>\n<td>FixedReset<\/td>\n<td>1.08 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 21.53<br \/>\nEvaluated at bid price : 21.53<br \/>\nBid-YTW : 4.92 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.G<\/td>\n<td>FixedReset<\/td>\n<td>1.10 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-12-19<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 24.71<br \/>\nBid-YTW : 4.16 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PR.R<\/td>\n<td>FixedReset<\/td>\n<td>1.11 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 21.03<br \/>\nEvaluated at bid price : 21.03<br \/>\nBid-YTW : 4.97 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.P<\/td>\n<td>FixedReset<\/td>\n<td>1.22 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 19.85<br \/>\nEvaluated at bid price : 19.85<br \/>\nBid-YTW : 4.41 %<\/td>\n<\/tr>\n<tr>\n<td>PVS.PR.F<\/td>\n<td>SplitShare<\/td>\n<td>1.39 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2024-09-30<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.30<br \/>\nBid-YTW : 4.58 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PR.C<\/td>\n<td>Floater<\/td>\n<td>1.45 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 17.50<br \/>\nEvaluated at bid price : 17.50<br \/>\nBid-YTW : 3.48 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.A<\/td>\n<td>Floater<\/td>\n<td>2.09 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 21.27<br \/>\nEvaluated at bid price : 21.54<br \/>\nBid-YTW : 2.79 %<\/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>BNS.PR.Q<\/td>\n<td>FixedReset<\/td>\n<td>176,690<\/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 : 24.97<br \/>\nBid-YTW : 3.88 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.A<\/td>\n<td>FixedReset<\/td>\n<td>118,862<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 23.07<br \/>\nEvaluated at bid price : 23.46<br \/>\nBid-YTW : 4.58 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.D<\/td>\n<td>FixedReset<\/td>\n<td>109,486<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 23.19<br \/>\nEvaluated at bid price : 24.26<br \/>\nBid-YTW : 4.82 %<\/td>\n<\/tr>\n<tr>\n<td>TRP.PR.G<\/td>\n<td>FixedReset<\/td>\n<td>100,525<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 23.01<br \/>\nEvaluated at bid price : 24.00<br \/>\nBid-YTW : 5.00 %<\/td>\n<\/tr>\n<tr>\n<td>W.PR.M<\/td>\n<td>FixedReset<\/td>\n<td>100,300<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-10-15<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.07<br \/>\nBid-YTW : 4.11 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.Q<\/td>\n<td>FixedReset<\/td>\n<td>71,660<\/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 : 24.95<br \/>\nBid-YTW : 4.75 %<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">There were 31 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>BIP.PR.D<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 25.07 &#8211; 25.49<br \/>\nSpot Rate  :  0.4200<br \/>\nAverage  :  0.2601<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2022-03-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.07<br \/>\nBid-YTW : 5.15 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PF.G<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 24.29 &#8211; 24.66<br \/>\nSpot Rate  :  0.3700<br \/>\nAverage  :  0.2231<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 23.22<br \/>\nEvaluated at bid price : 24.29<br \/>\nBid-YTW : 5.02 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PR.K<\/td>\n<td>Floater<\/td>\n<td>Quote: 17.32 &#8211; 17.73<br \/>\nSpot Rate  :  0.4100<br \/>\nAverage  :  0.2633<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 17.32<br \/>\nEvaluated at bid price : 17.32<br \/>\nBid-YTW : 3.52 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PF.D<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 21.76 &#8211; 22.25<br \/>\nSpot Rate  :  0.4900<br \/>\nAverage  :  0.3531<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 21.48<br \/>\nEvaluated at bid price : 21.76<br \/>\nBid-YTW : 5.71 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PR.M<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 21.26 &#8211; 21.71<br \/>\nSpot Rate  :  0.4500<br \/>\nAverage  :  0.3336<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 21.26<br \/>\nEvaluated at bid price : 21.26<br \/>\nBid-YTW : 5.68 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PF.E<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 23.56 &#8211; 24.04<br \/>\nSpot Rate  :  0.4800<br \/>\nAverage  :  0.3757<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-02-21<br \/>\nMaturity Price  : 23.24<br \/>\nEvaluated at bid price : 23.56<br \/>\nBid-YTW : 4.94 %<\/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 about 3.99%, 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-49134","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49134","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=49134"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49134\/revisions"}],"predecessor-version":[{"id":49135,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49134\/revisions\/49135"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}