{"id":5893,"date":"2009-03-14T14:12:11","date_gmt":"2009-03-14T18:12:11","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=5893"},"modified":"2009-03-14T14:12:11","modified_gmt":"2009-03-14T18:12:11","slug":"rpqpra-underlying-note-now-rated-ccc-by-sp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=5893","title":{"rendered":"RPQ.PR.A: Underlying Note Now Rated CCC by S&amp;P (?)"},"content":{"rendered":"<p>RPQ.PR.A is a stuctured product which <a href=\"http:\/\/www.prefblog.com\/?p=3838\">was last discussed on PrefBlog<\/a> when dividends were suspended and the rating withdrawn.<\/p>\n<p>Essentially, holders of this issue have written a &#8220;financial disaster insurance policy&#8221; &#8211; they get paid coupons as a premium on their money, but have to make a massive payment if there are too many defaults in the bonds comprising the reference portfolio.<\/p>\n<p>The deal was structured via a Credit Linked Note issued by the Bank of Nova Scotia; I see that this Credit Linked Note &#8211; <a href=\"http:\/\/www.cclgroup.com\/portals\/3\/documents\/CCLROC\/CCLROCPrefCorpProspectus.pdf\">orginally rated A- by S&#038;P<\/a> &#8211; is now rated CCC, with a rating date of March 10. I note that the <a href=\"http:\/\/www.cclgroup.com\/portals\/3\/documents\/CCLROC\/CCLROCPrefFourthQuarter2008PerformanceUpdate.pdf\">December &#8217;08 Performance Update<\/a> for RPQ.PR.A (published by CC&#038;L group, the sponsor) states that the rating for the Credit Linked Note has been withdrawn &#8211; I&#8217;m not sure what&#8217;s going on. It is possible that BNS originally had two credit linked notes with the stated maturity, and that it is an unrelated issue that is now rated CCC &#8230; but I suggest that those potentially affected by this change contact CC&#038;L, BNS and S&#038;P &#8230; and let me know what you find out!<\/p>\n<p>I confess to a certain morbid curiosity regarding this and <a href=\"http:\/\/www.prefblog.com\/?p=4383\">its related issues<\/a>. RPQ.PR.A is not tracked by HIMIPref&trade;.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>RPQ.PR.A is a stuctured product which was last discussed on PrefBlog when dividends were suspended and the rating withdrawn. Essentially, holders of this issue have written a &#8220;financial disaster insurance policy&#8221; &#8211; they get paid &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-5893","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/5893","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=5893"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/5893\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}