{"id":49601,"date":"2018-08-15T22:16:00","date_gmt":"2018-08-16T02:16:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=49601"},"modified":"2025-08-21T22:17:31","modified_gmt":"2025-08-22T02:17:31","slug":"august-15-2018","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=49601","title":{"rendered":"August 15, 2018"},"content":{"rendered":"<p>PerpetualDiscounts now yield 5.53%, equivalent to 7.19% 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 3.95%, so the pre-tax interest-equivalent spread (in this context, the &#8220;Seniority Spread&#8221;) is now about 325bp, a slight (and perhaps spurious) widening from the 320bp reported <a href=\"http:\/\/prefblog.com\/?p=37014\">August 8<\/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>-0.2965 %<\/td>\n<td>3,086.8<\/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>-0.2965 %<\/td>\n<td>5,664.0<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>3.50 %<\/td>\n<td>3.71 %<\/td>\n<td>50,096<\/td>\n<td>18.00<\/td>\n<td>4<\/td>\n<td>-0.2965 %<\/td>\n<td>3,264.2<\/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>0.0157 %<\/td>\n<td>3,212.1<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>4.57 %<\/td>\n<td>4.72 %<\/td>\n<td>49,063<\/td>\n<td>4.83<\/td>\n<td>5<\/td>\n<td>0.0157 %<\/td>\n<td>3,835.9<\/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>0.0157 %<\/td>\n<td>2,992.9<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/td>\n<td>5.62 %<\/td>\n<td>-11.35 %<\/td>\n<td>55,271<\/td>\n<td>0.09<\/td>\n<td>10<\/td>\n<td>0.0590 %<\/td>\n<td>2,914.2<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>5.41 %<\/td>\n<td>5.53 %<\/td>\n<td>56,587<\/td>\n<td>14.58<\/td>\n<td>25<\/td>\n<td>0.0778 %<\/td>\n<td>2,991.4<\/td>\n<\/tr>\n<tr>\n<td>FixedReset<\/td>\n<td>4.31 %<\/td>\n<td>4.78 %<\/td>\n<td>117,599<\/td>\n<td>3.92<\/td>\n<td>107<\/td>\n<td>-0.0795 %<\/td>\n<td>2,572.4<\/td>\n<\/tr>\n<tr>\n<td>Deemed-Retractible<\/td>\n<td>5.13 %<\/td>\n<td>6.04 %<\/td>\n<td>56,919<\/td>\n<td>5.39<\/td>\n<td>26<\/td>\n<td>0.0952 %<\/td>\n<td>2,983.3<\/td>\n<\/tr>\n<tr>\n<td>FloatingReset<\/td>\n<td>3.43 %<\/td>\n<td>3.77 %<\/td>\n<td>34,813<\/td>\n<td>5.70<\/td>\n<td>7<\/td>\n<td>-0.1496 %<\/td>\n<td>2,840.2<\/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>EMA.PR.H<\/td>\n<td>FixedReset<\/td>\n<td>-1.37 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-15<br \/>\nMaturity Price  : 23.21<br \/>\nEvaluated at bid price : 25.15<br \/>\nBid-YTW : 4.78 %<\/td>\n<\/tr>\n<tr>\n<td>SLF.PR.H<\/td>\n<td>FixedReset<\/td>\n<td>-1.05 %<\/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 : 21.77<br \/>\nBid-YTW : 6.19 %<\/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>BMO.PR.C<\/td>\n<td>FixedReset<\/td>\n<td>106,600<\/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 : 25.28<br \/>\nBid-YTW : 4.16 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.B<\/td>\n<td>FixedReset<\/td>\n<td>85,800<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-15<br \/>\nMaturity Price  : 22.93<br \/>\nEvaluated at bid price : 23.50<br \/>\nBid-YTW : 4.82 %<\/td>\n<\/tr>\n<tr>\n<td>TRP.PR.E<\/td>\n<td>FixedReset<\/td>\n<td>79,037<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-15<br \/>\nMaturity Price  : 21.85<br \/>\nEvaluated at bid price : 22.36<br \/>\nBid-YTW : 5.17 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.P<\/td>\n<td>Perpetual-Premium<\/td>\n<td>64,880<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2025-02-24<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.10<br \/>\nBid-YTW : 5.18 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.H<\/td>\n<td>Perpetual-Discount<\/td>\n<td>47,700<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-15<br \/>\nMaturity Price  : 23.85<br \/>\nEvaluated at bid price : 24.30<br \/>\nBid-YTW : 5.40 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.C<\/td>\n<td>Deemed-Retractible<\/td>\n<td>45,575<\/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 : 21.23<br \/>\nBid-YTW : 7.68 %<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">There were 19 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>IAG.PR.I<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 25.25 &#8211; 26.25<br \/>\nSpot Rate  :  1.0000<br \/>\nAverage  :  0.7497<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2023-03-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.25<br \/>\nBid-YTW : 4.73 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.L<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 22.88 &#8211; 23.68<br \/>\nSpot Rate  :  0.8000<br \/>\nAverage  :  0.5684<\/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 : 22.88<br \/>\nBid-YTW : 6.14 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.R<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 26.07 &#8211; 26.42<br \/>\nSpot Rate  :  0.3500<br \/>\nAverage  :  0.2057<\/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 : 26.07<br \/>\nBid-YTW : 3.81 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.K<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 23.00 &#8211; 23.50<br \/>\nSpot Rate  :  0.5000<br \/>\nAverage  :  0.3586<\/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 : 23.00<br \/>\nBid-YTW : 6.19 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PR.T<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 21.11 &#8211; 21.48<br \/>\nSpot Rate  :  0.3700<br \/>\nAverage  :  0.2669<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-15<br \/>\nMaturity Price  : 21.11<br \/>\nEvaluated at bid price : 21.11<br \/>\nBid-YTW : 5.22 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.A<\/td>\n<td>Floater<\/td>\n<td>Quote: 21.21 &#8211; 21.55<br \/>\nSpot Rate  :  0.3400<br \/>\nAverage  :  0.2412<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2048-08-15<br \/>\nMaturity Price  : 21.21<br \/>\nEvaluated at bid price : 21.21<br \/>\nBid-YTW : 3.05 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>PerpetualDiscounts now yield 5.53%, equivalent to 7.19% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 3.95%, 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-49601","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49601","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=49601"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49601\/revisions"}],"predecessor-version":[{"id":49602,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49601\/revisions\/49602"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}