So the Toronto real estate market is on fire and, as usual, there are those who consider this a bad thing. So far we’re blaming foreigners and speculators … we only need to bring short sellers into the mix to complete the trifecta! But I found the following chart in an otherwise unexceptional puff-piece to be fascinating:
PerpetualDiscounts now yield 5.08%, equivalent to 6.60% interest at the standard equivalency factor of 1.3x. Long corporates now yield a little under 3.75% so the pre-tax interest equivalent spread is now about 285bp, a significant widening from the 275bp reported April 12.
HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3184 % | 2,156.1 |
FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3184 % | 3,956.3 |
Floater | 3.53 % | 3.65 % | 43,093 | 18.20 | 4 | 0.3184 % | 2,280.0 |
OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0913 % | 3,027.6 |
SplitShare | 4.93 % | 4.05 % | 55,999 | 0.63 | 6 | 0.0913 % | 3,615.6 |
Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0913 % | 2,821.1 |
Perpetual-Premium | 5.29 % | -4.57 % | 73,214 | 0.09 | 23 | -0.1881 % | 2,782.3 |
Perpetual-Discount | 5.08 % | 5.08 % | 109,989 | 15.35 | 13 | -0.2323 % | 2,997.4 |
FixedReset | 4.38 % | 3.98 % | 239,148 | 6.63 | 94 | -0.0844 % | 2,357.3 |
Deemed-Retractible | 4.99 % | 4.37 % | 144,791 | 0.10 | 31 | -0.0654 % | 2,888.4 |
FloatingReset | 2.55 % | 3.11 % | 54,014 | 4.51 | 9 | -0.1985 % | 2,535.4 |
Performance Highlights | |||
Issue | Index | Change | Notes |
SLF.PR.J | FloatingReset | -1.63 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.72 Bid-YTW : 8.67 % |
BIP.PR.A | FixedReset | -1.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-19 Maturity Price : 23.02 Evaluated at bid price : 24.16 Bid-YTW : 4.71 % |
MFC.PR.M | FixedReset | -1.33 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.51 Bid-YTW : 5.93 % |
TRP.PR.C | FixedReset | -1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-19 Maturity Price : 15.78 Evaluated at bid price : 15.78 Bid-YTW : 4.00 % |
BAM.PR.R | FixedReset | -1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-19 Maturity Price : 19.75 Evaluated at bid price : 19.75 Bid-YTW : 4.17 % |
BAM.PR.Z | FixedReset | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-19 Maturity Price : 22.81 Evaluated at bid price : 23.46 Bid-YTW : 4.28 % |
TRP.PR.B | FixedReset | -1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-19 Maturity Price : 14.63 Evaluated at bid price : 14.63 Bid-YTW : 3.95 % |
Volume Highlights | |||
Issue | Index | Shares Traded |
Notes |
CM.PR.Q | FixedReset | 356,802 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-19 Maturity Price : 22.56 Evaluated at bid price : 23.26 Bid-YTW : 4.03 % |
BMO.PR.K | Deemed-Retractible | 208,288 | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-05-19 Maturity Price : 25.00 Evaluated at bid price : 25.29 Bid-YTW : 0.40 % |
TRP.PR.K | FixedReset | 146,214 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-05-31 Maturity Price : 25.00 Evaluated at bid price : 26.15 Bid-YTW : 4.07 % |
TD.PF.D | FixedReset | 122,198 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-04-19 Maturity Price : 22.50 Evaluated at bid price : 23.16 Bid-YTW : 4.05 % |
SLF.PR.I | FixedReset | 111,866 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.40 Bid-YTW : 4.84 % |
BMO.PR.C | FixedReset | 103,728 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-05-25 Maturity Price : 25.00 Evaluated at bid price : 25.69 Bid-YTW : 4.02 % |
There were 46 other index-included issues trading in excess of 10,000 shares. |
Wide Spread Highlights | ||
Issue | Index | Quote Data and Yield Notes |
IFC.PR.A | FixedReset | Quote: 18.50 – 18.89 Spot Rate : 0.3900 Average : 0.2661 YTW SCENARIO |
MFC.PR.M | FixedReset | Quote: 21.51 – 21.87 Spot Rate : 0.3600 Average : 0.2567 YTW SCENARIO |
BAM.PF.G | FixedReset | Quote: 23.80 – 24.06 Spot Rate : 0.2600 Average : 0.1795 YTW SCENARIO |
W.PR.M | FixedReset | Quote: 26.36 – 26.58 Spot Rate : 0.2200 Average : 0.1406 YTW SCENARIO |
SLF.PR.J | FloatingReset | Quote: 15.72 – 16.00 Spot Rate : 0.2800 Average : 0.2019 YTW SCENARIO |
IAG.PR.A | Deemed-Retractible | Quote: 23.12 – 23.45 Spot Rate : 0.3300 Average : 0.2597 YTW SCENARIO |