{"id":685,"date":"2007-03-14T21:35:07","date_gmt":"2007-03-15T01:35:07","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=685"},"modified":"2007-03-14T21:35:07","modified_gmt":"2007-03-15T01:35:07","slug":"ryprf-another-new-issue-staggers-to-market","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=685","title":{"rendered":"RY.PR.F : Another New Issue Staggers to Market"},"content":{"rendered":"

The issuers and their salesmen must be trying to extract every dollar from this market since the new Royal Bank issue announced nine days ago<\/a> staggered to market, trading 395,889 shares and closing at $24.75-80, 73×29. It opened at $24.90, the high for the day.<\/p>\n

It seems buyers of new issues only get rewarded by Split Shares nowadays! And, of course, when you buy a split share new issue, you generally get saddled with a capital unit as well.<\/p>\n

This issue has been added to the HIMIPref\u2122 database with a securityCode<\/a> of A45015, replacing the preIssue<\/a> code of P37500. A reorgDataEntry<\/a> has been processed.<\/p>\n

The issue has been added to the HIMIPref\u2122 PerpetualDiscount Index<\/a>.<\/p>\n

More later.<\/p>\n

Later, more<\/strong><\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Royal Bank 4.45% Perp New Issue & Comparatives<\/td>\n<\/tr>\n
Data<\/td>\nRY.PR.F<\/td>\nRY.PR.A<\/td>\nRY.PR.E<\/td>\n<\/tr>\n
Price due to base-rate<\/td>\n\u00a022.65<\/td>\n22.65\u00a0<\/td>\n22.90\u00a0<\/td>\n<\/tr>\n
Price due to short-term<\/td>\n-0.34\u00a0<\/td>\n-0.34\u00a0<\/td>\n-0.34\u00a0<\/td>\n<\/tr>\n
Price due to long-term<\/td>\n1.27\u00a0<\/td>\n1.27\u00a0<\/td>\n1.28\u00a0<\/td>\n<\/tr>\n
Price to to Cumulative Dividends<\/td>\n0\u00a0<\/td>\n0\u00a0<\/td>\n0\u00a0<\/td>\n<\/tr>\n
Price due to Liquidity<\/td>\n1.66\u00a0<\/td>\n1.66\u00a0<\/td>\n1.67\u00a0<\/td>\n<\/tr>\n
Price due to error<\/td>\n-0.04\u00a0<\/td>\n-0.04\u00a0<\/td>\n-0.04\u00a0<\/td>\n<\/tr>\n
Curve Price (Taxable Curve)<\/td>\n25.20\u00a0<\/td>\n25.20\u00a0<\/td>\n25.47\u00a0<\/td>\n<\/tr>\n
Dividend Rate<\/td>\n$1.1125<\/td>\n$1.1125<\/td>\n$1.125<\/td>\n<\/tr>\n
Quote 3\/14<\/td>\n\u00a024.75-80<\/td>\n24.89-95\u00a0<\/td>\n25.11-15\u00a0<\/td>\n<\/tr>\n
YTW (after tax)<\/td>\n3.58%\u00a0<\/td>\n3.57%\u00a0<\/td>\n\u00a03.60%<\/td>\n<\/tr>\n
YTW Date<\/td>\n2037-3-14\u00a0<\/td>\n2037-3-14\u00a0<\/td>\n\u00a02037-3-14<\/td>\n<\/tr>\n
Credit Rating (DBRS)<\/td>\nPfd-1<\/td>\nPfd-1<\/td>\nPfd-1<\/td>\n<\/tr>\n
YTW (Pre-Tax)<\/td>\n4.51%\u00a0<\/td>\n4.50%\u00a0<\/td>\n4.53%\u00a0<\/td>\n<\/tr>\n
YTW Modified Duration (Pre-Tax)<\/td>\n16.42\u00a0<\/td>\n16.40\u00a0<\/td>\n16.29\u00a0<\/td>\n<\/tr>\n
YTW Pseudo-Convexity (Pre-Tax)<\/td>\n-21.37\u00a0<\/td>\n-33.51\u00a0<\/td>\n-54.33\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

Observant readers will note that there have been large changes in the YTW Modified Duration<\/a> and the YTW Pseudo-Convexity<\/a>. This will be a common occurance when the issue’s price is near its inflection point, as shown on the following graphs:<\/p>\n