{"id":49549,"date":"2018-08-22T21:15:00","date_gmt":"2018-08-23T01:15:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=49549"},"modified":"2025-08-21T21:16:14","modified_gmt":"2025-08-22T01:16:14","slug":"august-22-2018","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=49549","title":{"rendered":"August 22, 2018"},"content":{"rendered":"<p>PerpetualDiscounts now yield 5.54%, equivalent to 7.20% interest at the standard equivalency factor of 1.3x. <a href=\"https:\/\/www.ftse.com\/products\/FTSETMX\/Home\/Indices\">Long corporates<\/a> now yield about 3.90%, so the pre-tax interest-equivalent spread (in this context, the &#8220;Seniority Spread&#8221;) is now about 330bp, a slight (and perhaps spurious) widening from the 325bp reported <a href=\"https:\/\/prefblog.com\/?p=37053\">August 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>0.4303 %<\/td>\n<td>3,116.4<\/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>0.4303 %<\/td>\n<td>5,718.4<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>3.47 %<\/td>\n<td>3.68 %<\/td>\n<td>45,954<\/td>\n<td>18.07<\/td>\n<td>4<\/td>\n<td>0.4303 %<\/td>\n<td>3,295.5<\/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>0.2216 %<\/td>\n<td>3,240.8<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>4.59 %<\/td>\n<td>4.11 %<\/td>\n<td>50,305<\/td>\n<td>4.87<\/td>\n<td>5<\/td>\n<td>0.2216 %<\/td>\n<td>3,870.2<\/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>0.2216 %<\/td>\n<td>3,019.6<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/td>\n<td>5.62 %<\/td>\n<td>-9.47 %<\/td>\n<td>60,793<\/td>\n<td>0.08<\/td>\n<td>10<\/td>\n<td>0.0433 %<\/td>\n<td>2,913.3<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>5.41 %<\/td>\n<td>5.54 %<\/td>\n<td>56,118<\/td>\n<td>14.56<\/td>\n<td>25<\/td>\n<td>-0.0259 %<\/td>\n<td>2,991.8<\/td>\n<\/tr>\n<tr>\n<td>FixedReset<\/td>\n<td>4.31 %<\/td>\n<td>4.70 %<\/td>\n<td>117,678<\/td>\n<td>4.08<\/td>\n<td>107<\/td>\n<td>0.0454 %<\/td>\n<td>2,575.3<\/td>\n<\/tr>\n<tr>\n<td>Deemed-Retractible<\/td>\n<td>5.13 %<\/td>\n<td>5.94 %<\/td>\n<td>63,927<\/td>\n<td>5.37<\/td>\n<td>26<\/td>\n<td>0.1404 %<\/td>\n<td>2,988.3<\/td>\n<\/tr>\n<tr>\n<td>FloatingReset<\/td>\n<td>3.43 %<\/td>\n<td>3.68 %<\/td>\n<td>37,978<\/td>\n<td>5.68<\/td>\n<td>7<\/td>\n<td>-0.0130 %<\/td>\n<td>2,841.3<\/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>GWO.PR.N<\/td>\n<td>FixedReset<\/td>\n<td>-3.27 %<\/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 : 18.33<br \/>\nBid-YTW : 8.46 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PF.G<\/td>\n<td>FixedReset<\/td>\n<td>-1.01 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-22<br \/>\nMaturity Price  : 23.43<br \/>\nEvaluated at bid price : 24.51<br \/>\nBid-YTW : 5.08 %<\/td>\n<\/tr>\n<tr>\n<td>NA.PR.E<\/td>\n<td>FixedReset<\/td>\n<td>1.05 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-22<br \/>\nMaturity Price  : 22.87<br \/>\nEvaluated at bid price : 24.17<br \/>\nBid-YTW : 4.83 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.M<\/td>\n<td>FixedReset<\/td>\n<td>1.50 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-22<br \/>\nMaturity Price  : 23.25<br \/>\nEvaluated at bid price : 24.33<br \/>\nBid-YTW : 4.74 %<\/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.E<\/td>\n<td>FixedReset<\/td>\n<td>127,724<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-22<br \/>\nMaturity Price  : 21.99<br \/>\nEvaluated at bid price : 22.59<br \/>\nBid-YTW : 5.00 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.J<\/td>\n<td>FixedReset<\/td>\n<td>59,700<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2023-03-19<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 24.98<br \/>\nBid-YTW : 4.71 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.W<\/td>\n<td>Perpetual-Discount<\/td>\n<td>59,300<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-22<br \/>\nMaturity Price  : 24.49<br \/>\nEvaluated at bid price : 24.72<br \/>\nBid-YTW : 4.97 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.O<\/td>\n<td>FixedReset<\/td>\n<td>53,050<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-06-19<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.25<br \/>\nBid-YTW : 3.59 %<\/td>\n<\/tr>\n<tr>\n<td>GWO.PR.N<\/td>\n<td>FixedReset<\/td>\n<td>40,559<\/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 : 18.33<br \/>\nBid-YTW : 8.46 %<\/td>\n<\/tr>\n<tr>\n<td>NA.PR.E<\/td>\n<td>FixedReset<\/td>\n<td>37,425<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-22<br \/>\nMaturity Price  : 22.87<br \/>\nEvaluated at bid price : 24.17<br \/>\nBid-YTW : 4.83 %<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">There were 20 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.N<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 18.33 &#8211; 19.15<br \/>\nSpot Rate  :  0.8200<br \/>\nAverage  :  0.4825<\/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 : 18.33<br \/>\nBid-YTW : 8.46 %<\/td>\n<\/tr>\n<tr>\n<td>VNR.PR.A<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 24.81 &#8211; 25.32<br \/>\nSpot Rate  :  0.5100<br \/>\nAverage  :  0.3278<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-22<br \/>\nMaturity Price  : 23.17<br \/>\nEvaluated at bid price : 24.81<br \/>\nBid-YTW : 4.91 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PF.G<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 24.51 &#8211; 24.90<br \/>\nSpot Rate  :  0.3900<br \/>\nAverage  :  0.2367<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-22<br \/>\nMaturity Price  : 23.43<br \/>\nEvaluated at bid price : 24.51<br \/>\nBid-YTW : 5.08 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PF.F<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 24.80 &#8211; 25.10<br \/>\nSpot Rate  :  0.3000<br \/>\nAverage  :  0.1727<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-22<br \/>\nMaturity Price  : 24.43<br \/>\nEvaluated at bid price : 24.80<br \/>\nBid-YTW : 5.10 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.L<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 22.80 &#8211; 23.11<br \/>\nSpot Rate  :  0.3100<br \/>\nAverage  :  0.2398<\/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 : 22.80<br \/>\nBid-YTW : 5.93 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.P<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 19.30 &#8211; 19.80<br \/>\nSpot Rate  :  0.5000<br \/>\nAverage  :  0.4325<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-22<br \/>\nMaturity Price  : 19.30<br \/>\nEvaluated at bid price : 19.30<br \/>\nBid-YTW : 4.69 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>PerpetualDiscounts now yield 5.54%, equivalent to 7.20% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 3.90%, 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-49549","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49549","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=49549"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49549\/revisions"}],"predecessor-version":[{"id":49550,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49549\/revisions\/49550"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}