{"id":860,"date":"2007-05-19T19:42:49","date_gmt":"2007-05-19T23:42:49","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=860"},"modified":"2007-05-19T19:42:49","modified_gmt":"2007-05-19T23:42:49","slug":"fearless-prediction-epcor-power-equity-485-issue-will-crash","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=860","title":{"rendered":"Fearless Prediction : Epcor Power Equity 4.85% Issue will Crash!"},"content":{"rendered":"

This issue was announced May 7<\/a>. It seemed reasonable –\u00a0if aggressive – at the time … but the credit ratings aren’t all that great AND it’s a perp.<\/p>\n

The HIMI PerpetualDiscount index is down 0.66% since the announcement date AND credit spreads have widened.<\/p>\n

The curvePrice<\/a> of this issue, measured against the taxable curve, is now $24.34.<\/p>\n

\n

Price due to base-rate :\u00a0 23.52
\nPrice due to short-term :\u00a0 -0.50
\nPrice due to long-term :\u00a0\u00a0 1.63
\nPrice due to Interest Income :\u00a0\u00a0 0.00
\nPrice to to Cumulative Dividends :\u00a0\u00a0 0.00
\nPrice due to SplitShareCorp :\u00a0\u00a0 0.00
\nPrice due to Retractibility :\u00a0\u00a0 0.00
\nPrice due to Credit Spread (2) :\u00a0\u00a0 0.00
\nPrice due to Liquidity :\u00a0\u00a0 1.21
\nPrice due to Floating Rate :\u00a0\u00a0 0.00
\nPrice due to Credit Spread (3) :\u00a0 -1.69
\nPrice due to error :\u00a0\u00a0 0.17
\nPrice due to Credit Spread (High) :\u00a0\u00a0 0.00
\nPrice due to Credit Spread (Low) :\u00a0\u00a0 0.00<\/p>\n<\/blockquote>\n

Now, Pfd-3 issues are very hard to analyze … they behave less like fixed-income instruments than higher rated issues. And this issue has a “split rating” – S&P<\/a> rates them\u00a0P-2(low),\u00a0higher than does DBRS<\/a> (Pfd-3(high)) – which makes things even more difficult.<\/p>\n

When the issue was announced, the curve price was $24.66:<\/p>\n

\n

Price due to base-rate :\u00a0 23.43
\nPrice due to short-term :\u00a0 -0.24
\nPrice due to long-term :\u00a0\u00a0 1.42
\nPrice due to Interest Income :\u00a0\u00a0 0.00
\nPrice to to Cumulative Dividends :\u00a0\u00a0 0.00
\nPrice due to SplitShareCorp :\u00a0\u00a0 0.00
\nPrice due to Retractibility :\u00a0\u00a0 0.00
\nPrice due to Credit Spread (2) :\u00a0\u00a0 0.00
\nPrice due to Liquidity :\u00a0\u00a0 1.48
\nPrice due to Floating Rate :\u00a0\u00a0 0.00
\nPrice due to Credit Spread (3) :\u00a0 -1.57
\nPrice due to error :\u00a0\u00a0 0.14
\nPrice due to Credit Spread (High) :\u00a0\u00a0 0.00
\nPrice due to Credit Spread (Low) :\u00a0\u00a0 0.00<\/p>\n<\/blockquote>\n

I will be glued to my screen on the projected closing date of May 25, eager to see how this one plays out!<\/p>\n

Update, 2007-5-22<\/strong>: Curve Price now 24.22.<\/p>\n

Update, 2007-5-23:<\/strong> Curve Price now 24.08.<\/p>\n

Update, 2007-5-24:<\/b> Will commence trading tomorrow, with the symbol EPP.PR.A<\/a>. Curve Price now 23.81. We shall see!<\/p>\n

\n

\n<\/p>\n

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

This issue was announced May 7. It seemed reasonable –\u00a0if aggressive – at the time … but the credit ratings aren’t all that great AND it’s a perp. The HIMI PerpetualDiscount index is down 0.66% …<\/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-860","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/860","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=860"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/860\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}