{"id":9473,"date":"2010-01-20T19:48:21","date_gmt":"2010-01-20T23:48:21","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=9473"},"modified":"2010-01-20T19:48:21","modified_gmt":"2010-01-20T23:48:21","slug":"bpoprn-settles-flat-on-good-volume","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=9473","title":{"rendered":"BPO.PR.N Settles Flat on Good Volume"},"content":{"rendered":"

Brookfield Properties announced a FixedReset 6.15%+307 issue on January 11<\/a>.<\/p>\n

It will not have escaped notice that the initial fixed-rate period on this issue is six and a half years, just as was the slightly earlier BAM.PR.R new issue<\/a>. In distinction to other commenters<\/a>, I feel that the longer term has a lot more to do with the reset rate than the initial rate lock-in period … by extending term the reset can be set against the longer term Canadas rather than the five-year (or five-and-a-half year, as most of the banks did).<\/p>\n

This is becoming a much more important consideration now that the chances that this and future issues will indeed be perpetual are increasing.<\/p>\n

There’s no necessity for this: the banks have to calculate their reset in such a way or else OSFI will determine that a step-up exists and possibly disallow the issue as Tier 1 Capital. OSFI’s rules do not apply to BPO or BAM – they could set the reset to negative 20bp if they felt like it and thought it would sell – but presumably the dealers are trying to maintain the integrity of the FixedReset structure.<\/p>\n

One way or the other, BPO.PR.N traded 333,903 shares on the TMX in a range of 24.90-09 before closing at 24.95-01, 25×30. Vital Statistics are:<\/p>\n

\n\n\n
BPO.PR.N<\/td>\nFixedReset<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-01-20
\nMaturity Price : 23.09
\nEvaluated at bid price : 24.98
\nBid-YTW : 5.70 %<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

BPO.PR.N is tracked by HIMIPref™ but is relegated to the Scraps subindex on credit concerns.<\/p>\n","protected":false},"excerpt":{"rendered":"

Brookfield Properties announced a FixedReset 6.15%+307 issue on January 11. It will not have escaped notice that the initial fixed-rate period on this issue is six and a half years, just as was the slightly …<\/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-9473","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/9473","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=9473"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/9473\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9473"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}