SLF.PR.E Sinks on First Day of Trading

In the announcement of this new issue I claimed that the curvePrice of this issue was $24.73 and I am pleased to announce that the close on the first day of trading was $24.73, bang on. The closing quotation was $24.68-72, 8×66.

(Note: The link to “first day of trading” may not work as desired. It’s just a link to the SunLife press release on the SunLife site announcing completion of the issue. SunLife has some kind of bizarre script in place, presumably to ensure that their press releases remain secret.) 

Rather odd trading in this issue today, actually. The volume was 450,415, but there were only four trades after noon, totalling 6,420 shares. The trading range for the day was $24.64-75.

The issue has been added to HIMIPref™ and a reorgDataEntry processed to reflect the change from the preIssue securityCode of P50010 to the new security code of A48984.

6 Responses to “SLF.PR.E Sinks on First Day of Trading”

  1. […] Recent new issue. Now with a pre-tax bid-YTW of 4.58% based on a bid of $24.66 and a limitMaturity. […]

  2. […] Recent new issue. Now with a pre-tax bid-YTW of 4.55% based on a bid of $24.82 and a limitMaturity. […]

  3. […] Recent new issue. Now with a pre-tax bid-YTW of 4.52% based on a bid of $24.84 and a limitMaturity. […]

  4. […] the prospectus for the recent Sun Life Financial issue, the phrase “par value” is not found […]

  5. skeptical says:

    A question to all the assiduous readers here.
    Way back in 2007, when several of the extant perpetuals were issued, e.g. SLF.PR.E, the 5 year bond rate was close to today’s levels. That is about 4%, plus minus.
    At that time these 4.5% perpetuals were received favourably that is, the companies could actually issue these and sell them successfully. After the issue was released, they would trade close to par with 23 or 24 handle.
    The credit rating hasn’t changed much since then for lots of issuers(other than banks with different categories). GIC rates are now higher, but not by a whole lot.
    The dividend treatment might have changed a bit, but not a whole lot.
    What has changed now?
    The spreads? But the corporate bonds trade as if it’s smooth sailing everywhere.
    So the only reason could be that preferreds have become a very hated asset class.
    I’m not complaining because lots of complaining here historically has meant that either we end up with more complaining or soon things will be better. I just don’t know which they will go 🙂

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