As reported here previously, RY.PR.K is a FloatingReset, 3-Month Bills + 193, that forms a Strong Pair with RY.PR.I.
Neither is NVCC compliant, so both have a Deemed Maturity in their call schedules dated 2022-1-31, at par.
RY.PR.K was posted for trading today, but there were no trades. This issue will be tracked by HIMIPref™ but due to low initial and anticipated volume, will be relegated to the Scraps index on volume concerns.
Vital statistics are:
| RY.PR.K |
FloatingReset |
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.00
Bid-YTW : 2.75 % |
The following FixedReset/FloatingReset Strong Pairs now exist and the schedule of implied 3-Month bill rates according to the Pairs Equivalency Calculator is:
| FixedReset/FloatingReset Pairs, 2014-2-24 |
| FixedReset |
FloatingReset |
Next Exchange Date |
Implied 3-Month Bills |
| BNS.PR.P |
BNS.PR.A |
2018-4-26 |
1.36% |
| TD.PR.S |
TD.PR.T |
2018-7-31 |
1.59% |
| BMO.PR.M |
BMO.PR.R |
2018-8-25 |
1.63% |
| BNS.PR.Q |
BNS.PR.B |
2018-10-31 |
1.51% |
| TD.PR.Y |
TD.PR.Z |
2018-10-31 |
1.64% |
| BNS.PR.R |
BNS.PR.C |
2019-1-25 |
1.24% |
| RY.PR.I |
RY.PR.K |
2019-2-24 |
1.74% |
Update, 2016-2-25: I should have included the following paragraph:
Note that since the issue is issued by a bank, is not compliant with OSFI’s Non-Viability Contingent Capital (NVCC) rules and is not convertible into common at the option of the issuer, I consider it to have a “Deemed Maturity” 2022-1-31 (this date may change in the future). This is an approximation (they will probably be called on an Exchange Date at par, not on precisely 2022-1-31) and is the result of analysis, not due to any legally binding commitment by the issuer – although I will note that this analysis with respect to bank issues has wide acceptance in the market. There is a brief explanation of this on the PrefLetter website (under the heading “DeemedRetractibles”) and with more detailed argument and progress reports on international negotiations in every edition of PrefLetter.
This entry was posted on Tuesday, February 25th, 2014 at 12:11 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
RY.PR.K Posted for Trading; Zero Volume
As reported here previously, RY.PR.K is a FloatingReset, 3-Month Bills + 193, that forms a Strong Pair with RY.PR.I.
Neither is NVCC compliant, so both have a Deemed Maturity in their call schedules dated 2022-1-31, at par.
RY.PR.K was posted for trading today, but there were no trades. This issue will be tracked by HIMIPref™ but due to low initial and anticipated volume, will be relegated to the Scraps index on volume concerns.
Vital statistics are:
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.00
Bid-YTW : 2.75 %
The following FixedReset/FloatingReset Strong Pairs now exist and the schedule of implied 3-Month bill rates according to the Pairs Equivalency Calculator is:
Update, 2016-2-25: I should have included the following paragraph:
Note that since the issue is issued by a bank, is not compliant with OSFI’s Non-Viability Contingent Capital (NVCC) rules and is not convertible into common at the option of the issuer, I consider it to have a “Deemed Maturity” 2022-1-31 (this date may change in the future). This is an approximation (they will probably be called on an Exchange Date at par, not on precisely 2022-1-31) and is the result of analysis, not due to any legally binding commitment by the issuer – although I will note that this analysis with respect to bank issues has wide acceptance in the market. There is a brief explanation of this on the PrefLetter website (under the heading “DeemedRetractibles”) and with more detailed argument and progress reports on international negotiations in every edition of PrefLetter.
This entry was posted on Tuesday, February 25th, 2014 at 12:11 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.