November 1, 2019

HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices

Values are provisional and are finalized monthly
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 0.3200 % 1,918.1
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.3200 % 3,519.7
Floater 6.30 % 6.49 % 45,695 13.17 4 0.3200 % 2,028.4
OpRet 0.00 % 0.00 % 0 0.00 0 -0.1070 % 3,381.4
SplitShare 4.66 % 4.72 % 50,082 3.90 7 -0.1070 % 4,038.2
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.1070 % 3,150.7
Perpetual-Premium 5.50 % -20.78 % 55,761 0.09 8 0.0343 % 3,029.9
Perpetual-Discount 5.36 % 5.40 % 63,098 14.72 25 -0.0120 % 3,236.1
FixedReset Disc 5.68 % 5.70 % 177,819 14.32 66 0.2053 % 2,070.4
Deemed-Retractible 5.19 % 5.73 % 64,474 7.81 27 0.1303 % 3,181.5
FloatingReset 6.23 % 6.76 % 90,827 12.81 2 0.7505 % 2,454.4
FixedReset Prem 5.13 % 3.96 % 125,211 1.65 20 0.1255 % 2,609.3
FixedReset Bank Non 1.96 % 4.08 % 91,914 2.18 3 -0.0138 % 2,693.8
FixedReset Ins Non 5.48 % 8.28 % 114,313 7.83 21 -0.0966 % 2,109.4
Performance Highlights
Issue Index Change Notes
BNS.PR.I FixedReset Disc -2.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 18.50
Evaluated at bid price : 18.50
Bid-YTW : 5.58 %
IAF.PR.G FixedReset Ins Non -1.69 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.58
Bid-YTW : 7.90 %
CU.PR.C FixedReset Disc -1.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 16.56
Evaluated at bid price : 16.56
Bid-YTW : 5.77 %
IFC.PR.A FixedReset Ins Non -1.11 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 14.22
Bid-YTW : 10.22 %
TD.PF.E FixedReset Disc -1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 18.81
Evaluated at bid price : 18.81
Bid-YTW : 5.70 %
PWF.PR.T FixedReset Disc 1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 16.87
Evaluated at bid price : 16.87
Bid-YTW : 5.82 %
BIP.PR.E FixedReset Disc 1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 22.11
Evaluated at bid price : 22.55
Bid-YTW : 5.59 %
TD.PF.I FixedReset Disc 1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 20.87
Evaluated at bid price : 20.87
Bid-YTW : 5.36 %
BIP.PR.A FixedReset Disc 1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 19.60
Evaluated at bid price : 19.60
Bid-YTW : 6.42 %
TRP.PR.A FixedReset Disc 1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 13.56
Evaluated at bid price : 13.56
Bid-YTW : 6.24 %
PWF.PR.P FixedReset Disc 1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 12.70
Evaluated at bid price : 12.70
Bid-YTW : 5.89 %
MFC.PR.J FixedReset Ins Non 1.21 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.45
Bid-YTW : 8.28 %
BAM.PR.C Floater 1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 10.77
Evaluated at bid price : 10.77
Bid-YTW : 6.51 %
TD.PF.A FixedReset Disc 1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 16.82
Evaluated at bid price : 16.82
Bid-YTW : 5.48 %
BAM.PR.T FixedReset Disc 1.42 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 15.03
Evaluated at bid price : 15.03
Bid-YTW : 6.22 %
TRP.PR.C FixedReset Disc 1.48 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 11.66
Evaluated at bid price : 11.66
Bid-YTW : 6.29 %
HSE.PR.A FixedReset Disc 1.49 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 10.93
Evaluated at bid price : 10.93
Bid-YTW : 7.12 %
BAM.PR.R FixedReset Disc 1.56 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 14.95
Evaluated at bid price : 14.95
Bid-YTW : 6.18 %
EMA.PR.E Perpetual-Discount 1.64 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 21.10
Evaluated at bid price : 21.10
Bid-YTW : 5.35 %
HSE.PR.E FixedReset Disc 2.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 17.52
Evaluated at bid price : 17.52
Bid-YTW : 7.21 %
Volume Highlights
Issue Index Shares
Traded
Notes
BAM.PF.I FixedReset Prem 100,633 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.37
Bid-YTW : 4.36 %
TRP.PR.K FixedReset Prem 77,428 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-31
Maturity Price : 25.00
Evaluated at bid price : 25.45
Bid-YTW : 4.53 %
TD.PF.M FixedReset Disc 49,675 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 22.99
Evaluated at bid price : 24.47
Bid-YTW : 5.06 %
TRP.PR.J FixedReset Prem 42,756 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-31
Maturity Price : 25.00
Evaluated at bid price : 26.17
Bid-YTW : 3.07 %
BAM.PF.C Perpetual-Discount 30,900 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 21.80
Evaluated at bid price : 21.80
Bid-YTW : 5.63 %
HSE.PR.A FixedReset Disc 30,200 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 10.93
Evaluated at bid price : 10.93
Bid-YTW : 7.12 %
There were 39 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
BNS.PR.I FixedReset Disc Quote: 18.50 – 18.93
Spot Rate : 0.4300
Average : 0.2785

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 18.50
Evaluated at bid price : 18.50
Bid-YTW : 5.58 %

MFC.PR.R FixedReset Ins Non Quote: 24.30 – 24.70
Spot Rate : 0.4000
Average : 0.2568

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.30
Bid-YTW : 5.62 %

BNS.PR.Y FixedReset Bank Non Quote: 24.63 – 24.99
Spot Rate : 0.3600
Average : 0.2347

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.63
Bid-YTW : 3.05 %

IFC.PR.G FixedReset Ins Non Quote: 18.15 – 18.48
Spot Rate : 0.3300
Average : 0.2135

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.15
Bid-YTW : 8.55 %

MFC.PR.I FixedReset Ins Non Quote: 18.50 – 18.98
Spot Rate : 0.4800
Average : 0.3729

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.50
Bid-YTW : 8.23 %

BAM.PR.R FixedReset Disc Quote: 14.95 – 15.34
Spot Rate : 0.3900
Average : 0.2939

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-11-01
Maturity Price : 14.95
Evaluated at bid price : 14.95
Bid-YTW : 6.18 %

5 Responses to “November 1, 2019”

  1. skeptical says:

    Not the best place for this, but an interesting story about Pengrowth.
    https://business.financialpost.com/commodities/energy/pengrowth-energy-to-be-acquired-by-cona-resources-for-740-million
    So debtholders will be made whole and shareholders get pennies.
    Where would the preferred stock holders rank here, if Pengrowth had any?
    Assuming Husky goes through this (not likely at all given their strong position, but hypothetically), how would the preferreds fare?
    I assume that since common stockholders are getting something, means there’s room to get something for the Preferred shareholders, perhaps everything common stock holders are getting.

  2. stusclues says:

    Simplistically, if the shareholders get something then the preferred shares remain whole. That can mean they get redeemed at par, stay extant (even if the acquirer is private – see Capstone Infrastructure CSE.PR.A), or be made subject to an (probably abusive) offer (see lots of commentary at Prefblog re RONA for example).

  3. skeptical says:

    Simplistically, if the shareholders get something then the preferred shares remain whole.

    Possibly, but not necessarily. Let’s say Pengrowth had 100 million in preferred stock and the offer was for $740 million debt and $50 million for equity. In that case, preferred stock holders would only get $50 million and common get zero.

  4. stusclues says:

    Right. $101M for equity in your example means $1M for commons and $100M for preferreds unless the preferred shareholders agree to something different.

  5. jiHymas says:

    I see from the Pengrowth press release that:

    The proposed transaction (the “Transaction”) is to be completed by way of plan of arrangement under the Business Corporations Act (Alberta).

    In the PPL / KML Plan of Arrangement, there was initially no provision for a preferred shareholder vote, which was later amended to include a vote regarding whether KML preferred shareholders wanted to retain the shares of KML or exchange them into obligations of PPL, with no influence on the actual change of control.

    I don’t believe they could be bought out at less than par without either a bankruptcy or a shareholder vote; but if the company was run down, they would be put in the place of Aimia preferred shareholders.

Leave a Reply

You must be logged in to post a comment.