Best & Worst Performers: November 2008

These are total returns, with dividends presumed to have been reinvested at the bid price on the ex-date. The list has been restricted to issues in the HIMIPref™ indices.

November, 2008
Issue Index DBRS Rating Monthly Performance Notes (“Now” means “November 28”)
BAM.PR.K Floater Pfd-2(low) -35.0649% Was also the worst performer in September and second worst in October – it has been hit not just by the general downdraft in BAM issues, but by expectations of continuing drops in prime. Is it any wonder it is starting to attract interest? Worthy of note is the fact that the BAM floaters are trading through the BPP floaters; similar terms, issued by a subsidiary with an even higher proportion of commercial property exposure, lower rating, extremely illiquid … and have been trading through them for months.
BAM.PR.B Floater Pfd-2(low) -30.8081% Also a poor performer in September and October.
BAM.PR.J OpRet Pfd-2(low) -30.1646% Now with a pre-tax bid-YTW of 15.43% based on a bid of 13.15 and a softMaturity 2018-3-30 at 25.00.
BNA.PR.C SplitShare Pfd-2(low) -25.9396% Asset coverage of 1.8+:1 based on BAM.A at 19.09 and 2.4 BAM.A per unit. Now with a pre-tax bid-YTW of 18.61% based on a bid of 9.10 and a hardMaturity 2019-1-10 at 25.00.
FFN.PR.A SplitShare Pfd-2(low) -25.4771% Asset coverage of 1.4+:1 as of November 14 according to the company. Now with a pre-tax bid-YTW of 17.40% based on a bid of 5.63 and a hardMaturity 2014-12-1 at 10.00. XFN may be used as a proxy (albeit not a terribly good one) for the holdings and is down 7.2% since Nov. 14, so estimate the month-end asset coverage as $13.00. Given that the ask price of the FFN capital units was 4.10 at month-end, this implies a retraction price of $8.43 … although retractions are tricky with this issue in this environment because the company requires ten notice days prior to the month-end retraction valuation date. Still, it’s tempting!
WFS.PR.A SplitShare Pfd-2(low) -0.0971% Asset coverage of 1.1+:1 as of November 20 according to Mulvihill. The company announced an issuer bid and is under credit review negative. Now with a pre-tax bid-YTW of 16.59% based on a bid of 7.80 and a hardMaturity 2011-6-30 at 10.00. Estimated retraction price of 8.54 using NAV of 11.27 and Capital Units of 2.37.
TD.PR.N OpRet Pfd-1 +1.2500% Now with a pre-tax bid-YTW of 4.60% based on a bid of 25.11 and a softMaturity 2014-1-30 at 25.00.
IGM.PR.A OpRet Pfd-2(high) +1.4289% Now with a pre-tax bid-YTW of 5.56% based on a bid of 25.10 and a softMaturity 2013-6-29 at 25.00.
TD.PR.M OpRet Pfd-1 +3.4666% Now with a pre-tax bid-YTW of 4.47% based on a bid of 25.37 and a softMaturity 2013-10-30 at 25.00.
GWO.PR.E OpRet Pfd-1(low) +3.6653% Now with a pre-tax bid-YTW of 4.85% based on a bid of 24.75 and a softMaturity 2014-3-30 at 25.00.

Just as in August 2007, BAM issues are over-represented in the poor performers’ list … and I am just as unable to find a convincing rationale for this.

4 Responses to “Best & Worst Performers: November 2008”

  1. […] was one of November’s worst performers: Asset coverage of 1.4+:1 as of November 14 according to the company. Now with a pre-tax bid-YTW of […]

  2. adrian2 says:

    You compare the BAM issues poor performance with August 2007.

    November 2008 was almost an order of magnitude worst (-35.1%, -30.8% and -30.2% vs. -4%, -3.75% and -3.64% last year). I know, I know, it’s a relative game, but I thought it’s an interesting factoid to note.

    Rhymes with the unprecedented volatility values (VIX) that seem to go on, and on, and on…

    Adrian

  3. jiHymas says:

    November 2008 was almost an order of magnitude worse by many, many measures!

  4. […] the worst performer in November, with a return of […]

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