{"id":51134,"date":"2024-12-24T21:20:00","date_gmt":"2024-12-25T02:20:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=51134"},"modified":"2025-11-28T21:20:55","modified_gmt":"2025-11-29T02:20:55","slug":"december-24-2024","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=51134","title":{"rendered":"December 24, 2024"},"content":{"rendered":"<p>Merry Christmas, everybody!<\/p>\n<p>PerpetualDiscounts now yield 6.13%, equivalent to 7.97% interest at the standard equivalency factor of 1.3x. <a href=\"https:\/\/www.bmogam.com\/ca-en\/products\/exchange-traded-fund\/bmo-long-corporate-bond-index-etf-zlc#fund-details\">Long corporates<\/a> yielded 4.61% on 2024-12-24. Therefore, the pre-tax interest-equivalent spread (in this context, the \u201cSeniority Spread\u201d) has widened slightly (and perhaps spuriously) to 335bp from the 330bp reported <a href=\"https:\/\/prefblog.com\/?p=47710\">December 11<\/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>-0.1604 %<\/td>\n<td>2,275.9<\/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>-0.1604 %<\/td>\n<td>4,365.1<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>7.66 %<\/td>\n<td>7.90 %<\/td>\n<td>40,099<\/td>\n<td>11.54<\/td>\n<td>4<\/td>\n<td>-0.1604 %<\/td>\n<td>2,515.7<\/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>0.2223 %<\/td>\n<td>3,630.6<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>4.76 %<\/td>\n<td>4.41 %<\/td>\n<td>60,161<\/td>\n<td>2.05<\/td>\n<td>7<\/td>\n<td>0.2223 %<\/td>\n<td>4,335.7<\/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>0.2223 %<\/td>\n<td>3,382.9<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/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>-0.2511 %<\/td>\n<td>2,861.3<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>6.00 %<\/td>\n<td>6.13 %<\/td>\n<td>55,945<\/td>\n<td>13.70<\/td>\n<td>32<\/td>\n<td>-0.2511 %<\/td>\n<td>3,120.1<\/td>\n<\/tr>\n<tr>\n<td>FixedReset Disc<\/td>\n<td>5.39 %<\/td>\n<td>6.62 %<\/td>\n<td>100,213<\/td>\n<td>12.57<\/td>\n<td>53<\/td>\n<td>0.1431 %<\/td>\n<td>2,791.0<\/td>\n<\/tr>\n<tr>\n<td>Insurance Straight<\/td>\n<td>5.95 %<\/td>\n<td>6.03 %<\/td>\n<td>65,298<\/td>\n<td>13.86<\/td>\n<td>21<\/td>\n<td>0.0386 %<\/td>\n<td>3,040.5<\/td>\n<\/tr>\n<tr>\n<td>FloatingReset<\/td>\n<td>6.43 %<\/td>\n<td>6.37 %<\/td>\n<td>37,750<\/td>\n<td>13.39<\/td>\n<td>4<\/td>\n<td>-0.1167 %<\/td>\n<td>3,336.3<\/td>\n<\/tr>\n<tr>\n<td>FixedReset Prem<\/td>\n<td>6.03 %<\/td>\n<td>5.65 %<\/td>\n<td>191,638<\/td>\n<td>13.68<\/td>\n<td>9<\/td>\n<td>-0.0521 %<\/td>\n<td>2,597.0<\/td>\n<\/tr>\n<tr>\n<td>FixedReset Bank Non<\/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>0.1431 %<\/td>\n<td>2,853.0<\/td>\n<\/tr>\n<tr>\n<td>FixedReset Ins Non<\/td>\n<td>5.30 %<\/td>\n<td>6.08 %<\/td>\n<td>80,009<\/td>\n<td>13.71<\/td>\n<td>14<\/td>\n<td>0.0576 %<\/td>\n<td>2,850.9<\/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>IFC.PR.E<\/td>\n<td>Insurance Straight<\/td>\n<td>-4.01 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 21.05<br \/>\nEvaluated at bid price : 21.05<br \/>\nBid-YTW : 6.22 %<\/td>\n<\/tr>\n<tr>\n<td>ENB.PF.E<\/td>\n<td>FixedReset Disc<\/td>\n<td>-2.27 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 18.52<br \/>\nEvaluated at bid price : 18.52<br \/>\nBid-YTW : 7.70 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.D<\/td>\n<td>Perpetual-Discount<\/td>\n<td>-1.67 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 20.67<br \/>\nEvaluated at bid price : 20.67<br \/>\nBid-YTW : 6.00 %<\/td>\n<\/tr>\n<tr>\n<td>BN.PF.G<\/td>\n<td>FixedReset Disc<\/td>\n<td>-1.48 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 20.70<br \/>\nEvaluated at bid price : 20.70<br \/>\nBid-YTW : 7.07 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.Z<\/td>\n<td>Perpetual-Discount<\/td>\n<td>-1.45 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 21.00<br \/>\nEvaluated at bid price : 21.00<br \/>\nBid-YTW : 6.24 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.J<\/td>\n<td>FixedReset Prem<\/td>\n<td>-1.39 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 23.29<br \/>\nEvaluated at bid price : 24.90<br \/>\nBid-YTW : 5.81 %<\/td>\n<\/tr>\n<tr>\n<td>BN.PF.A<\/td>\n<td>FixedReset Disc<\/td>\n<td>-1.28 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 22.85<br \/>\nEvaluated at bid price : 23.94<br \/>\nBid-YTW : 6.43 %<\/td>\n<\/tr>\n<tr>\n<td>FTS.PR.M<\/td>\n<td>FixedReset Disc<\/td>\n<td>-1.14 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 20.76<br \/>\nEvaluated at bid price : 20.76<br \/>\nBid-YTW : 6.75 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.H<\/td>\n<td>Perpetual-Discount<\/td>\n<td>-1.06 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 23.03<br \/>\nEvaluated at bid price : 23.30<br \/>\nBid-YTW : 6.27 %<\/td>\n<\/tr>\n<tr>\n<td>FFH.PR.G<\/td>\n<td>FixedReset Disc<\/td>\n<td>1.16 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 21.44<br \/>\nEvaluated at bid price : 21.75<br \/>\nBid-YTW : 6.33 %<\/td>\n<\/tr>\n<tr>\n<td>FFH.PR.I<\/td>\n<td>FixedReset Disc<\/td>\n<td>1.34 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 22.09<br \/>\nEvaluated at bid price : 22.75<br \/>\nBid-YTW : 6.31 %<\/td>\n<\/tr>\n<tr>\n<td>POW.PR.A<\/td>\n<td>Perpetual-Discount<\/td>\n<td>1.52 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 22.71<br \/>\nEvaluated at bid price : 23.00<br \/>\nBid-YTW : 6.09 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.L<\/td>\n<td>Perpetual-Discount<\/td>\n<td>1.55 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 21.02<br \/>\nEvaluated at bid price : 21.02<br \/>\nBid-YTW : 6.18 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.C<\/td>\n<td>FixedReset Disc<\/td>\n<td>1.99 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2025-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.14<br \/>\nBid-YTW : 3.94 %<\/td>\n<\/tr>\n<tr>\n<td>BIP.PR.B<\/td>\n<td>FixedReset Disc<\/td>\n<td>2.19 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2025-12-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.16<br \/>\nBid-YTW : 4.78 %<\/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>PWF.PR.A<\/td>\n<td>Floater<\/td>\n<td>102,500<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 13.35<br \/>\nEvaluated at bid price : 13.35<br \/>\nBid-YTW : 7.27 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.C<\/td>\n<td>FixedReset Disc<\/td>\n<td>32,850<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2025-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.14<br \/>\nBid-YTW : 3.94 %<\/td>\n<\/tr>\n<tr>\n<td>NA.PR.W<\/td>\n<td>FixedReset Disc<\/td>\n<td>14,800<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2025-02-15<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.09<br \/>\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">There were 0 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>CU.PR.G<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 19.25 &#8211; 20.93<br \/>\nSpot Rate  :  1.6800<br \/>\nAverage  :  0.9790<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 19.25<br \/>\nEvaluated at bid price : 19.25<br \/>\nBid-YTW : 5.91 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.D<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 20.67 &#8211; 22.00<br \/>\nSpot Rate  :  1.3300<br \/>\nAverage  :  0.9325<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 20.67<br \/>\nEvaluated at bid price : 20.67<br \/>\nBid-YTW : 6.00 %<\/td>\n<\/tr>\n<tr>\n<td>SLF.PR.G<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>Quote: 15.75 &#8211; 17.10<br \/>\nSpot Rate  :  1.3500<br \/>\nAverage  :  1.0176<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 15.75<br \/>\nEvaluated at bid price : 15.75<br \/>\nBid-YTW : 7.00 %<\/td>\n<\/tr>\n<tr>\n<td>BN.PR.R<\/td>\n<td>FixedReset Disc<\/td>\n<td>Quote: 17.75 &#8211; 18.80<br \/>\nSpot Rate  :  1.0500<br \/>\nAverage  :  0.7635<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 17.75<br \/>\nEvaluated at bid price : 17.75<br \/>\nBid-YTW : 7.27 %<\/td>\n<\/tr>\n<tr>\n<td>BN.PF.G<\/td>\n<td>FixedReset Disc<\/td>\n<td>Quote: 20.70 &#8211; 21.50<br \/>\nSpot Rate  :  0.8000<br \/>\nAverage  :  0.5346<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 20.70<br \/>\nEvaluated at bid price : 20.70<br \/>\nBid-YTW : 7.07 %<\/td>\n<\/tr>\n<tr>\n<td>FTS.PR.K<\/td>\n<td>FixedReset Disc<\/td>\n<td>Quote: 20.42 &#8211; 21.10<br \/>\nSpot Rate  :  0.6800<br \/>\nAverage  :  0.4435<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2054-12-24<br \/>\nMaturity Price  : 20.42<br \/>\nEvaluated at bid price : 20.42<br \/>\nBid-YTW : 6.47 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Merry Christmas, everybody! PerpetualDiscounts now yield 6.13%, equivalent to 7.97% interest at the standard equivalency factor of 1.3x. Long corporates yielded 4.61% on 2024-12-24. Therefore, the pre-tax interest-equivalent spread (in this context, the \u201cSeniority Spread\u201d) &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-51134","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/51134","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=51134"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/51134\/revisions"}],"predecessor-version":[{"id":51135,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/51134\/revisions\/51135"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}