{"id":49723,"date":"2018-09-24T20:24:00","date_gmt":"2018-09-25T00:24:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=49723"},"modified":"2025-08-25T20:25:43","modified_gmt":"2025-08-26T00:25:43","slug":"september-24-2018","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=49723","title":{"rendered":"September 24, 2018"},"content":{"rendered":"

Royal Bank issued bail-in debt today<\/a>:<\/p>\n

\n

Royal Bank of Canada has set the bar for bail-in debt, issuing the first in a new class of bonds intended to keep taxpayers from having to bail out distressed banks in the event of a crisis.<\/p>\n

On Monday, RBC began selling $2-billion of five-year bonds, priced at 95 basis points above government bonds, maturing in 2023. The sale comes one day after new rules came into force, and creates an early benchmark for the premium other large banks can expect to pay as they begin to issue their own bail-in notes.<\/p>\n<\/blockquote>\n

This step has been discussed extensively on PrefBlog, most recently in the post DBRS: Canadian Banks\u2019 Trends Now Stable on Bail-In Approval<\/a>.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-1.0874 %<\/td>\n3,090.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-1.0874 %<\/td>\n5,671.2<\/td>\n<\/tr>\n
Floater<\/td>\n3.52 %<\/td>\n3.71 %<\/td>\n35,622<\/td>\n18.05<\/td>\n4<\/td>\n-1.0874 %<\/td>\n3,268.3<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0238 %<\/td>\n3,229.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.61 %<\/td>\n4.64 %<\/td>\n54,858<\/td>\n4.79<\/td>\n5<\/td>\n0.0238 %<\/td>\n3,856.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0238 %<\/td>\n3,008.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.56 %<\/td>\n-1.72 %<\/td>\n53,892<\/td>\n0.10<\/td>\n12<\/td>\n0.0526 %<\/td>\n2,920.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.44 %<\/td>\n5.54 %<\/td>\n58,769<\/td>\n14.52<\/td>\n22<\/td>\n0.0711 %<\/td>\n2,996.0<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n4.19 %<\/td>\n5.05 %<\/td>\n138,581<\/td>\n15.48<\/td>\n42<\/td>\n0.0219 %<\/td>\n2,573.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.17 %<\/td>\n5.95 %<\/td>\n60,071<\/td>\n5.35<\/td>\n27<\/td>\n-0.0768 %<\/td>\n2,993.0<\/td>\n<\/tr>\n
FloatingReset<\/td>\n3.41 %<\/td>\n4.18 %<\/td>\n43,912<\/td>\n5.64<\/td>\n5<\/td>\n-0.0454 %<\/td>\n2,843.0<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n4.83 %<\/td>\n4.18 %<\/td>\n172,158<\/td>\n3.06<\/td>\n35<\/td>\n0.0703 %<\/td>\n2,569.4<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n3.19 %<\/td>\n3.64 %<\/td>\n66,422<\/td>\n0.41<\/td>\n9<\/td>\n0.0226 %<\/td>\n2,572.1<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n4.33 %<\/td>\n5.21 %<\/td>\n88,909<\/td>\n5.42<\/td>\n22<\/td>\n0.0895 %<\/td>\n2,580.6<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n-2.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2048-09-24
\nMaturity Price : 17.13
\nEvaluated at bid price : 17.13
\nBid-YTW : 3.78 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n-1.69 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2048-09-24
\nMaturity Price : 17.45
\nEvaluated at bid price : 17.45
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n-1.47 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2048-09-24
\nMaturity Price : 17.40
\nEvaluated at bid price : 17.40
\nBid-YTW : 3.72 %<\/td>\n<\/tr>\n
IFC.PR.C<\/td>\nFixedReset Ins Non<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.40
\nBid-YTW : 5.40 %<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset Ins Non<\/td>\n1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.10
\nBid-YTW : 7.53 %<\/td>\n<\/tr>\n
TD.PF.J<\/td>\nFixedReset Prem<\/td>\n1.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2023-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 4.41 %<\/td>\n<\/tr>\n
BAM.PR.Z<\/td>\nFixedReset Disc<\/td>\n1.61 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2048-09-24
\nMaturity Price : 23.05
\nEvaluated at bid price : 24.54
\nBid-YTW : 5.18 %<\/td>\n<\/tr>\n
IFC.PR.G<\/td>\nFixedReset Ins Non<\/td>\n1.63 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.91
\nBid-YTW : 4.98 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
RY.PR.J<\/td>\nFixedReset Disc<\/td>\n61,971<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2048-09-24
\nMaturity Price : 24.13
\nEvaluated at bid price : 24.45
\nBid-YTW : 5.08 %<\/td>\n<\/tr>\n
TD.PF.K<\/td>\nFixedReset Disc<\/td>\n57,315<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2048-09-24
\nMaturity Price : 23.14
\nEvaluated at bid price : 24.95
\nBid-YTW : 4.82 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset Bank Non<\/td>\n51,455<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.77
\nBid-YTW : 4.23 %<\/td>\n<\/tr>\n
BMO.PR.Y<\/td>\nFixedReset Bank Non<\/td>\n51,260<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2048-09-24
\nMaturity Price : 23.37
\nEvaluated at bid price : 24.42
\nBid-YTW : 5.02 %<\/td>\n<\/tr>\n
BMO.PR.S<\/td>\nFixedReset Disc<\/td>\n37,732<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2048-09-24
\nMaturity Price : 22.73
\nEvaluated at bid price : 23.39
\nBid-YTW : 4.97 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset Ins Non<\/td>\n32,203<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.07
\nBid-YTW : 5.06 %<\/td>\n<\/tr>\n
There were 14 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\nQuote: 17.45 – 18.00
\nSpot Rate : 0.5500
\nAverage : 0.3584<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2048-09-24
\nMaturity Price : 17.45
\nEvaluated at bid price : 17.45
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n

BAM.PR.K<\/td>\nFloater<\/td>\nQuote: 17.13 – 17.85
\nSpot Rate : 0.7200
\nAverage : 0.5396<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2048-09-24
\nMaturity Price : 17.13
\nEvaluated at bid price : 17.13
\nBid-YTW : 3.78 %<\/td>\n<\/tr>\n

MFC.PR.Q<\/td>\nFixedReset Ins Non<\/td>\nQuote: 24.41 – 24.79
\nSpot Rate : 0.3800
\nAverage : 0.2423<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.41
\nBid-YTW : 5.23 %<\/td>\n<\/tr>\n

IFC.PR.F<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.65 – 25.00
\nSpot Rate : 0.3500
\nAverage : 0.2299<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.65
\nBid-YTW : 5.59 %<\/td>\n<\/tr>\n

MFC.PR.O<\/td>\nFixedReset Ins Non<\/td>\nQuote: 26.17 – 26.50
\nSpot Rate : 0.3300
\nAverage : 0.2173<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-06-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.17
\nBid-YTW : 3.84 %<\/td>\n<\/tr>\n

EMA.PR.H<\/td>\nFixedReset Prem<\/td>\nQuote: 25.11 – 25.47
\nSpot Rate : 0.3600
\nAverage : 0.2624<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2048-09-24
\nMaturity Price : 23.21
\nEvaluated at bid price : 25.11
\nBid-YTW : 4.83 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Royal Bank issued bail-in debt today: Royal Bank of Canada has set the bar for bail-in debt, issuing the first in a new class of bonds intended to keep taxpayers from having to bail out …<\/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-49723","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49723","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=49723"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49723\/revisions"}],"predecessor-version":[{"id":49724,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49723\/revisions\/49724"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}