SBC.PR.A Added to HIMIPref™ Universe

The preferred shares of Brompton Split Banc Corp. have been added to the HIMIPref™ universe.

Details (as reported on PrefInfo) are:

Name:

• SBC.PR.A

• Brompton Splt Bnc Pr
• Brompton Split Banc Corp. Pr

Redemptions: None

Retraction / Maturity : 2012-11-30 at 10.00

Other data:

• Payments are Dividends : Yes
• Cumulative Dividends : Yes
• SplitShare Corp : Yes

The issue has been rated Pfd-2 by DBRS since its listing 2005-11-21. Asset coverage as of May 15, 2008, was just under 2.2:1, according to the company.

The issue was noted by Assiduous Reader cowboylutrell in the comments to May 22. The more I thought about the issue, the fewer good reasons I could think of to justify its continued exclusion.

The main argument against inclusion is that, by backdated additions of issues due to their continued good credit quality and liquidity, a certain amount of survivor bias is incorporated into HIMIPref™. I take the view that this sad fact is outweighed by the opportunity of having another tradeable issue.