BNS.PR.A is the new FloatingReset that resulted from a partial exchange of BNS.PR.P on the latter issue’s first Exchange Date.
BNS.PR.A is the first FloatingReset to exist, paying 205bp over 3-Month Canada Treasury Bills. It will be tracked by HIMIPref™ and will be assigned to the FixedReset index until there are ten Floating Resets (of investment grade and non-derisory volume), at which point a new FloatingReset index will be created.
Vital statistics are:
| BNS.PR.A | FixedReset | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-05-26 Maturity Price : 25.50 Evaluated at bid price : 25.65 Bid-YTW : -5.53 % |
[…] PrefBlog Canadian Preferred Shares – Data and Discussion « BNS.PR.A Rockets to Premium on Debut […]
At the risk of getting lost in older posts, now is a good time to look back to March 27 when the reset was first discussed. At that time a drop in price due to fixed yield falling from 5% to 3.35% was quite reasonably anticipated. However, a month later we find the price higher by 60 cents instead.
Liquidity increase around the reset? Market Irrationality? Indexing?
How are investors to analyze prefs in this new world of fixed resets??
Previous discussion here.
It’s wild. Every day, something weird happens with preferred share relative pricing.
I just try to discount expected cash flows …
[…] Recently exchanged issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-06-01 Maturity Price : 25.50 Evaluated at bid price : 25.67 Bid-YTW : -6.45 % […]