{"id":51363,"date":"2026-01-07T21:08:46","date_gmt":"2026-01-08T02:08:46","guid":{"rendered":"https:\/\/prefblog.com\/?p=51363"},"modified":"2026-01-08T11:05:03","modified_gmt":"2026-01-08T16:05:03","slug":"january-7-2026","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=51363","title":{"rendered":"January 7, 2026"},"content":{"rendered":"<p>PerpetualDiscounts now yield 5.55%, equivalent to 7.22% interest at the standard conversion 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 4.91% on 2026-1-7. Therefore the pre-tax interest-equivalent spread (in this context, the &#8220;Seniority Spread&#8221;) has narrowed to 230bp from the 240bp reported <a href=\"https:\/\/prefblog.com\/?p=51309\">December 31<\/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>0.1520 %<\/td>\n<td>2,437.5<\/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>0.1520 %<\/td>\n<td>4,621.9<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>5.91 %<\/td>\n<td>6.12 %<\/td>\n<td>53,075<\/td>\n<td>13.75<\/td>\n<td>3<\/td>\n<td>0.1520 %<\/td>\n<td>2,663.6<\/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>0.1725 %<\/td>\n<td>3,685.8<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>4.74 %<\/td>\n<td>4.19 %<\/td>\n<td>73,521<\/td>\n<td>1.10<\/td>\n<td>5<\/td>\n<td>0.1725 %<\/td>\n<td>4,401.6<\/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>0.1725 %<\/td>\n<td>3,434.3<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/td>\n<td>5.62 %<\/td>\n<td>5.53 %<\/td>\n<td>95,668<\/td>\n<td>6.87<\/td>\n<td>9<\/td>\n<td>-0.2535 %<\/td>\n<td>3,110.4<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>5.49 %<\/td>\n<td>5.55 %<\/td>\n<td>47,351<\/td>\n<td>14.43<\/td>\n<td>25<\/td>\n<td>0.9929 %<\/td>\n<td>3,441.9<\/td>\n<\/tr>\n<tr>\n<td>FixedReset Disc<\/td>\n<td>5.87 %<\/td>\n<td>6.01 %<\/td>\n<td>101,464<\/td>\n<td>13.81<\/td>\n<td>29<\/td>\n<td>-0.0813 %<\/td>\n<td>3,166.7<\/td>\n<\/tr>\n<tr>\n<td>Insurance Straight<\/td>\n<td>5.45 %<\/td>\n<td>5.49 %<\/td>\n<td>54,578<\/td>\n<td>14.62<\/td>\n<td>22<\/td>\n<td>-0.0689 %<\/td>\n<td>3,338.6<\/td>\n<\/tr>\n<tr>\n<td>FloatingReset<\/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>-0.0813 %<\/td>\n<td>3,767.1<\/td>\n<\/tr>\n<tr>\n<td>FixedReset Prem<\/td>\n<td>5.94 %<\/td>\n<td>4.35 %<\/td>\n<td>88,662<\/td>\n<td>2.21<\/td>\n<td>19<\/td>\n<td>0.0080 %<\/td>\n<td>2,663.5<\/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>-0.0813 %<\/td>\n<td>3,237.0<\/td>\n<\/tr>\n<tr>\n<td>FixedReset Ins Non<\/td>\n<td>5.28 %<\/td>\n<td>5.46 %<\/td>\n<td>76,056<\/td>\n<td>14.44<\/td>\n<td>14<\/td>\n<td>-0.1530 %<\/td>\n<td>3,132.5<\/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.C<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>-3.42 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 23.35<br \/>\nEvaluated at bid price : 24.00<br \/>\nBid-YTW : 5.74 %<\/td>\n<\/tr>\n<tr>\n<td>GWO.PR.Y<\/td>\n<td>Insurance Straight<\/td>\n<td>-3.22 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 20.13<br \/>\nEvaluated at bid price : 20.13<br \/>\nBid-YTW : 5.64 %<\/td>\n<\/tr>\n<tr>\n<td>ENB.PF.A<\/td>\n<td>FixedReset Disc<\/td>\n<td>-3.04 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 21.90<br \/>\nEvaluated at bid price : 22.30<br \/>\nBid-YTW : 6.39 %<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.G<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>-1.76 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 23.51<br \/>\nEvaluated at bid price : 25.10<br \/>\nBid-YTW : 5.52 %<\/td>\n<\/tr>\n<tr>\n<td>POW.PR.A<\/td>\n<td>Perpetual-Premium<\/td>\n<td>-1.31 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 24.64<br \/>\nEvaluated at bid price : 24.90<br \/>\nBid-YTW : 5.64 %<\/td>\n<\/tr>\n<tr>\n<td>SLF.PR.D<\/td>\n<td>Insurance Straight<\/td>\n<td>-1.15 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 21.50<br \/>\nEvaluated at bid price : 21.50<br \/>\nBid-YTW : 5.22 %<\/td>\n<\/tr>\n<tr>\n<td>SLF.PR.G<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>1.06 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 19.95<br \/>\nEvaluated at bid price : 19.95<br \/>\nBid-YTW : 5.46 %<\/td>\n<\/tr>\n<tr>\n<td>PVS.PR.L<\/td>\n<td>SplitShare<\/td>\n<td>1.15 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2026-02-06<br \/>\nMaturity Price  : 26.00<br \/>\nEvaluated at bid price : 26.50<br \/>\nBid-YTW : -12.10 %<\/td>\n<\/tr>\n<tr>\n<td>ENB.PR.J<\/td>\n<td>FixedReset Disc<\/td>\n<td>1.47 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 22.25<br \/>\nEvaluated at bid price : 22.72<br \/>\nBid-YTW : 6.26 %<\/td>\n<\/tr>\n<tr>\n<td>GWO.PR.I<\/td>\n<td>Insurance Straight<\/td>\n<td>1.95 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 20.95<br \/>\nEvaluated at bid price : 20.95<br \/>\nBid-YTW : 5.41 %<\/td>\n<\/tr>\n<tr>\n<td>SLF.PR.H<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>2.11 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 22.08<br \/>\nEvaluated at bid price : 22.72<br \/>\nBid-YTW : 5.52 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.P<\/td>\n<td>FixedReset Disc<\/td>\n<td>3.02 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 20.11<br \/>\nEvaluated at bid price : 20.11<br \/>\nBid-YTW : 5.71 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.S<\/td>\n<td>Perpetual-Discount<\/td>\n<td>32.53 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 21.75<br \/>\nEvaluated at bid price : 22.00<br \/>\nBid-YTW : 5.55 %<\/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>BN.PF.M<\/td>\n<td>FixedReset Prem<\/td>\n<td>61,488<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2031-01-01<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.30<br \/>\nBid-YTW : 4.64 %<\/td>\n<\/tr>\n<tr>\n<td>PVS.PR.J<\/td>\n<td>SplitShare<\/td>\n<td>53,041<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2027-02-28<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.11<br \/>\nBid-YTW : 4.37 %<\/td>\n<\/tr>\n<tr>\n<td>FFH.PR.K<\/td>\n<td>FixedReset Prem<\/td>\n<td>52,200<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2027-03-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.52<br \/>\nBid-YTW : 3.42 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.L<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>43,305<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 23.24<br \/>\nEvaluated at bid price : 24.80<br \/>\nBid-YTW : 5.26 %<\/td>\n<\/tr>\n<tr>\n<td>SLF.PR.D<\/td>\n<td>Insurance Straight<\/td>\n<td>30,938<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 21.50<br \/>\nEvaluated at bid price : 21.50<br \/>\nBid-YTW : 5.22 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.H<\/td>\n<td>Perpetual-Premium<\/td>\n<td>24,100<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2026-02-06<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.29<br \/>\nBid-YTW : 4.33 %<\/td>\n<\/tr>\n<tr>\n<td colspan='4'>There were 12 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 colspan='3'>See <a href='https:\/\/prefblog.com\/?p=13456'>TMX DataLinx: &#8216;Last&#8217; != &#8216;Close&#8217;<\/a> and the posts linked therein for an idea of why these quotes are so horrible.<\/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>IFC.PR.C<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>Quote: 24.00 &#8211; 25.00<br \/>\nSpot Rate  :  1.0000<br \/>\nAverage  :  0.5699<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 23.35<br \/>\nEvaluated at bid price : 24.00<br \/>\nBid-YTW : 5.74 %<\/td>\n<\/tr>\n<tr>\n<td>GWO.PR.Y<\/td>\n<td>Insurance Straight<\/td>\n<td>Quote: 20.13 &#8211; 21.13<br \/>\nSpot Rate  :  1.0000<br \/>\nAverage  :  0.7258<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 20.13<br \/>\nEvaluated at bid price : 20.13<br \/>\nBid-YTW : 5.64 %<\/td>\n<\/tr>\n<tr>\n<td>ENB.PF.A<\/td>\n<td>FixedReset Disc<\/td>\n<td>Quote: 22.30 &#8211; 23.15<br \/>\nSpot Rate  :  0.8500<br \/>\nAverage  :  0.5768<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 21.90<br \/>\nEvaluated at bid price : 22.30<br \/>\nBid-YTW : 6.39 %<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.G<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>Quote: 25.10 &#8211; 25.90<br \/>\nSpot Rate  :  0.8000<br \/>\nAverage  :  0.5714<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 23.51<br \/>\nEvaluated at bid price : 25.10<br \/>\nBid-YTW : 5.52 %<\/td>\n<\/tr>\n<tr>\n<td>BN.PR.Z<\/td>\n<td>FixedReset Disc<\/td>\n<td>Quote: 25.00 &#8211; 25.75<br \/>\nSpot Rate  :  0.7500<br \/>\nAverage  :  0.5350<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2056-01-07<br \/>\nMaturity Price  : 23.59<br \/>\nEvaluated at bid price : 25.00<br \/>\nBid-YTW : 5.92 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.J<\/td>\n<td>FixedReset Prem<\/td>\n<td>Quote: 26.05 &#8211; 26.60<br \/>\nSpot Rate  :  0.5500<br \/>\nAverage  :  0.3684<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2028-04-30<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.05<br \/>\nBid-YTW : 4.35 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>PerpetualDiscounts now yield 5.55%, equivalent to 7.22% interest at the standard conversion factor of 1.3x. Long corporates yielded 4.91% on 2026-1-7. Therefore the pre-tax interest-equivalent spread (in this context, the &#8220;Seniority Spread&#8221;) has narrowed to &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-51363","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/51363","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=51363"}],"version-history":[{"count":2,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/51363\/revisions"}],"predecessor-version":[{"id":51366,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/51363\/revisions\/51366"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}