{"id":801,"date":"2007-04-25T23:29:44","date_gmt":"2007-04-26T03:29:44","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=801"},"modified":"2007-04-25T23:29:44","modified_gmt":"2007-04-26T03:29:44","slug":"clprb-ytw-returns-to-positive-territory","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=801","title":{"rendered":"CL.PR.B : YTW Returns to Positive Territory!"},"content":{"rendered":"

Readers will remember that I have been fascinated by CL.PR.B and its negative yield-to-worst<\/a> for some time. Apart from very particular portfolio-management factors, there hasn’t seemed to be much rationale for holding it, other than a hope that it would continue to pay an annual dividend of 1.5625 forever.<\/p>\n

The chance of this has never seemed too large to me, given that CL (Canada Life)<\/a> is part of the GWO (Great-West)<\/a> group of companies which is in turn controlled by PWF (Power Financial)<\/a> … a conglomerate that has something of a reputation for knowing how many beans make five.<\/p>\n

Even four months after I expected them to be redeemed, I am still a little confused, since paying 1.5625 on a perp when new perps are paying 1.125 – and I can’t see a GWO issue having to pay more that 1.30, no matter how sick the Street is of seeing the name – doesn’t make a lot of sense to me. However, as I have mentioned numerous times, the purchase of Putnam<\/a> still needs to be financed and maybe they’re just delaying a little until they’ve got all that stuff squared away.<\/p>\n

Today, however, the bid broke down and while the trading range was 26.31-42 (on volume of 1,950 shares), the closing quotation was 26.09-40, 5×25. So, in celebration, I’ve uploaded a few graphs:<\/p>\n