{"id":575,"date":"2007-02-13T23:06:20","date_gmt":"2007-02-14T03:06:20","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=575"},"modified":"2007-02-13T23:06:20","modified_gmt":"2007-02-14T03:06:20","slug":"february-13-2007","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=575","title":{"rendered":"February 13, 2007"},"content":{"rendered":"
\n\n\n\n\n\n\n\n\n\n\n\n
Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version. In this version, index values are based at 1,000.0 on 2006-6-30<\/strong><\/td>\n<\/tr>\n
Index<\/td>\nMean Current Yield (at bid)<\/td>\nMean YTW<\/td>\nMean Average Trading Value<\/td>\nMean Mod Dur (YTW)<\/td>\nIssues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n4.07%<\/td>\n4.08%<\/td>\n30,505<\/td>\n17.29<\/td>\n1<\/td>\n-0.2790%<\/td>\n1,040.3<\/td>\n<\/tr>\n
Fixed-Floater<\/td>\n4.81%<\/td>\n3.53%<\/td>\n91,487<\/td>\n8.17<\/td>\n7<\/td>\n-0.2171%<\/td>\n1,041.4<\/td>\n<\/tr>\n
Floater<\/td>\n4.46%<\/td>\n-25.92%<\/td>\n55,802<\/td>\n6.55<\/td>\n5<\/td>\n+0.0062%<\/td>\n1,052.2<\/td>\n<\/tr>\n
Op. Retract<\/td>\n4.71%<\/td>\n2.44%<\/td>\n76,596<\/td>\n2.11<\/td>\n18<\/td>\n+0.0443%<\/td>\n1,029.7<\/td>\n<\/tr>\n
Split-Share<\/td>\n5.09%<\/td>\n1.43%<\/td>\n281,421<\/td>\n2.65<\/td>\n14<\/td>\n-0.0596%<\/td>\n1,044.2<\/td>\n<\/tr>\n
Interest Bearing<\/td>\n6.69%<\/td>\n4.32%<\/td>\n75,321<\/td>\n3.86<\/td>\n6<\/td>\n-0.0161%<\/td>\n1,036.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.04%<\/td>\n3.70%<\/td>\n228,848<\/td>\n5.10<\/td>\n51<\/td>\n-0.0565%<\/td>\n1,051.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.53%<\/td>\n4.57%<\/td>\n1,041,992<\/td>\n16.24<\/td>\n10<\/td>\n+0.1088%<\/td>\n1,057.1<\/td>\n<\/tr>\n<\/table>\n<\/div>\n\n\n\n\n\n\n
Major Price Changes<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
WN.PR.C<\/td>\nPerpetualPremium<\/td>\n-1.0903%<\/td>\nOn credit watch negative<\/a>. This happened on volume of 12,400 shares, fairly high for this issue. Now with a pre-tax bid-YTW of 5.08% based on a bid of $25.40 and a call 2014-7-31 at $25.00<\/td>\n<\/tr>\n
SXT.PR.A<\/td>\nSplitShare<\/td>\n-1.0728%<\/td>\nWell – who knows? Maybe somebody noticed that the pre-tax bid-YTW on this issue is negative – and not by just a little bit, seeing as it’s callable 2007-3-15 at $25.00. Now with a pre-tax bid-YTW of -8.12% based on a bid of $25.82 and a call 2007-4-14 (allowing for the MATURITY_NOTICE_PERIOD<\/a>) at $25.00. Who knows? This issue has been discussed before<\/a> and what I said then still goes!<\/td>\n<\/tr>\n
AL.PR.E<\/td>\nFloatingRate<\/td>\n+1.4981%<\/td>\nThis is a strange issue, defying logic. In the first place, it has a strange dividend calculation: Greater of a & b, where b is lesser of c and d; a is 72% of index, c is 100% of index, d is Flat Rate 7.5% (#6)”. So it pays 100% of Canadian Prime. Pretty good, except it’s currently callable, and has been callable since January 1, 1993. It’s not like they’re short of money – they spent $466-million repurchasing common shares in 2006<\/a>, and had net debt issuance of $179-million. According to a DBRS<\/a> comment dated October 3, 2006, “Following the Pechiney acquisition in 2003, when leverage (gross debt-to-capital) reached a peak level of 50.6%, Alcan has aggressively reduced debt and attained the Company\u2019s stated leverage target of 35% as of June 30, 2006”. So why are these prefs still alive? And why is anybody willing to take a chance and pay $27.00 for them? Sometimes this world doesn’t make any sense to me.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nVolume<\/td>\nNotes<\/td>\n<\/tr>\n
WN.PR.B<\/td>\nOpRet<\/td>\n247,886<\/td>\nCredit watch negative! RBC crossed 50,000 at $26.02, TD crossed 121,900 at $26.02, Desjardins crossed 25,000 at $26.02 and finally TD crossed 50,000 at $26.02. Now with a pre-tax bid-YTW of 3.67% based on a bid of $26.00 and a softMaturity<\/a> 2009-06-30. Sure, the credit watch isn’t pleasant … but the interest-equivalent is 5.14% at an equivalency factor of 1.40<\/a>. Loblaws bonds (maturing 2010) are trading at about 36bp over Canadas, call it 4.46%. Seems a little disconnected to me. But sometime soon I’ll be discussing the Weston issues in comparison with what happened to poor old Bombardier … the pref market can over-react like crazy!<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nPerpetualDiscount<\/td>\n111,075<\/td>\nNow with a pre-tax bid-YTW of 4.54% based on a bid of $24.76 and a limitMaturity<\/a>.<\/td>\n<\/tr>\n
CM.PR.I<\/td>\nPerpetualPremium<\/td>\n83,925<\/td>\nCanaccord crossed 50,000 at $25.45 and followed up with another 16,600 at the same price. Now with a pre-tax bid-YTW of 4.49% based on a bid of $25.49 and a call 2016-3-1 at 4.49%.<\/td>\n<\/tr>\n
GWO.PR.H<\/td>\nPerpetualPremium<\/td>\n71,500<\/td>\nNow with a pre-tax bid-YTW of 4.45% based on a bid of $25.85 and a call 2014-10-30 at $25.00.<\/td>\n<\/tr>\n
GWO.PR.X<\/td>\nOpRet<\/td>\n66,728<\/td>\nNow with a pre-tax bid-YTW of 2.60% based on a bid of $27.52 and a call 2009-10-30 at $26.00. Even if it lasts until the softMaturity of 2013-9-29, the yield is only 3.22%. Putnam or no Putnam<\/a>, GWO has paid $27.37 for these in the past year<\/a>, so making it past the first call date seems a little iffy to me. If only I understood about CL.PR.B<\/a> … then I’d be happier …<\/td>\n<\/tr>\n<\/table>\n

There were twenty-one other “$25 p.v. equivalent” index-included issues with over 10,000 shares traded today.\n<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version. In this version, index values are based at 1,000.0 on 2006-6-30 Index Mean Current Yield …<\/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-575","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/575","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=575"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/575\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}