{"id":8076,"date":"2009-09-30T21:29:29","date_gmt":"2009-10-01T01:29:29","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=8076"},"modified":"2009-09-30T21:29:29","modified_gmt":"2009-10-01T01:29:29","slug":"september-30-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=8076","title":{"rendered":"September 30, 2009"},"content":{"rendered":"

I’ve been wondering when there would be some more news on CIT! Here’s a rumour<\/a>:<\/p>\n

Citigroup Inc. and Barclays Capital are offering to provide financing to CIT Group Inc., the commercial lender that\u2019s struggling to avert bankruptcy, according to people familiar with the situation.<\/p>\n

The 101-year-old company\u2019s bondholders are also seeking to provide about $2 billion in loans as a restructuring deadline approaches tomorrow, said the people, who declined to be identified because the negotiations are private. New York-based CIT may choose other options, the people said.<\/p>\n

CIT said in July it may seek court protection from creditors after Chief Executive Officer Jeffrey Peek failed to win a second government bailout and had to turn to bondholders for $3 billion in rescue financing. The company said in an Aug. 17 regulatory filing that it has to come up with a plan \u201cacceptable\u201d to the majority of a bondholder steering committee that provided it with the emergency cash by Oct. 1.<\/p><\/blockquote>\n

More rumours<\/a>:<\/p>\n

CIT Group Inc., the 101-year-old commercial lender, is planning to start a debt exchange offer that will include a so-called pre-packaged bankruptcy option, a person familiar with the matter said.<\/p>\n

The company plans to start a voluntary swap \u201cwithin days,\u201d said the person, who declined to be identified because talks are private. At the same time, New York-based CIT proposes that debt holders vote on a pre-packaged bankruptcy plan in case the exchange fails, the person said.<\/p><\/blockquote>\n

The preferred share market closed the month on a sour note, with PerpetualDiscounts down 13bp and FixedResets losing 7bp. Index figures are still unofficial, but I make PerpetualDiscounts down 1.20% total return for the month and FixedResets up 0.21%. Volume was good on the day, led by the TRP new issue<\/a> and dominated by other FixedResets.<\/p>\n

PerpetualDiscounts closed yielding 5.80%, equivalent to 8.12% interest at the standard equivalency factor of 1.4x. Long Corporates<\/a> now yield a smidgen under 6.0%, so the pre-tax interest-equivalent spread is now about 215 bp, a widening of 10bp from the 205bp reported September 23<\/a> and at the high end of “Credit Crunch Normal”.<\/p>\n

Congratulations to Assiduous Reader beluga<\/i>, who won yesterday<\/a>‘s over\/under contest on the TRP new issue volume!<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.9401 %<\/td>\n1,524.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.78 %<\/td>\n4.02 %<\/td>\n50,922<\/td>\n18.56<\/td>\n1<\/td>\n-0.1062 %<\/td>\n2,657.7<\/td>\n<\/tr>\n
Floater<\/td>\n2.40 %<\/td>\n2.05 %<\/td>\n36,609<\/td>\n22.32<\/td>\n4<\/td>\n0.9401 %<\/td>\n1,904.6<\/td>\n<\/tr>\n
OpRet<\/td>\n4.87 %<\/td>\n-6.23 %<\/td>\n131,619<\/td>\n0.09<\/td>\n15<\/td>\n-0.0128 %<\/td>\n2,285.0<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.39 %<\/td>\n6.58 %<\/td>\n792,219<\/td>\n4.00<\/td>\n2<\/td>\n-0.1980 %<\/td>\n2,069.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0128 %<\/td>\n2,089.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.79 %<\/td>\n5.70 %<\/td>\n149,116<\/td>\n13.70<\/td>\n12<\/td>\n-0.0331 %<\/td>\n1,873.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.77 %<\/td>\n5.80 %<\/td>\n205,631<\/td>\n14.21<\/td>\n59<\/td>\n-0.1349 %<\/td>\n1,790.7<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.48 %<\/td>\n4.11 %<\/td>\n453,721<\/td>\n4.09<\/td>\n41<\/td>\n-0.0711 %<\/td>\n2,108.8<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nPerpetual-Discount<\/td>\n-1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-09-30
\nMaturity Price : 18.63
\nEvaluated at bid price : 18.63
\nBid-YTW : 6.02 %<\/td>\n<\/tr>\n
PWF.PR.K<\/td>\nPerpetual-Discount<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-09-30
\nMaturity Price : 21.45
\nEvaluated at bid price : 21.45
\nBid-YTW : 5.88 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nPerpetual-Discount<\/td>\n1.47 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-09-30
\nMaturity Price : 19.35
\nEvaluated at bid price : 19.35
\nBid-YTW : 5.87 %<\/td>\n<\/tr>\n
BMO.PR.M<\/td>\nFixedReset<\/td>\n1.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-09-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.01
\nBid-YTW : 4.00 %<\/td>\n<\/tr>\n
TRI.PR.B<\/td>\nFloater<\/td>\n2.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-09-30
\nMaturity Price : 19.60
\nEvaluated at bid price : 19.60
\nBid-YTW : 2.00 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n896,387<\/td>\nNew issue settled today<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-09-30
\nMaturity Price : 24.93
\nEvaluated at bid price : 24.98
\nBid-YTW : 4.50 %<\/td>\n<\/tr>\n
CM.PR.M<\/td>\nFixedReset<\/td>\n69,600<\/td>\nRBC crossed 45,000 at 27.55.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.39
\nBid-YTW : 4.25 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n59,930<\/td>\nScotia bought 12,500 from Merrill at 25.75.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-09-30
\nMaturity Price : 23.45
\nEvaluated at bid price : 25.83
\nBid-YTW : 4.32 %<\/td>\n<\/tr>\n
CM.PR.L<\/td>\nFixedReset<\/td>\n58,886<\/td>\nNesbitt crossed 40,000 at 27.51.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.50
\nBid-YTW : 4.05 %<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nPerpetual-Discount<\/td>\n52,385<\/td>\nNesbitt crossed 38,700 at 22.35.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-09-30
\nMaturity Price : 22.21
\nEvaluated at bid price : 22.35
\nBid-YTW : 5.52 %<\/td>\n<\/tr>\n
BMO.PR.M<\/td>\nFixedReset<\/td>\n49,980<\/td>\nNesbitt bought 10,000 from Blackmont at 25.69.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-09-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.01
\nBid-YTW : 4.00 %<\/td>\n<\/tr>\n
There were 51 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

I’ve been wondering when there would be some more news on CIT! Here’s a rumour: Citigroup Inc. and Barclays Capital are offering to provide financing to CIT Group Inc., the commercial lender that\u2019s struggling to …<\/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-8076","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/8076","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=8076"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/8076\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}