On Monday, the S&P 500 was up 0.4% and Toronto was up 0.1%.
Cameco was up 3.6%.
TD Bank announced that it will redeem one of its rate reset preferred shares on October 31 at $25 rather than having it reset. This was TDB.PF.K It was up 15.4% today on this news. It was recently trading at about $22.
Banks may have special reasons to redeem these shares since as bank regulations change other forms of “capital” may better suit their needs. Lately they have issued very long term bonds (Limited Recourse Capital Notes) that rest every five years and that may be better for them than rate reset shares.
Other bank rate reset preferred shares were also up a little today on this news.
I’m not sure if CWB is in a position to issue those Limited Recourse Capital Notes, but if they can, perhaps they will also redeem their rate reset shares on the next reset date, April 30. CWP.PR. D is now at $24.73 and is very likely to be redeemed simply because of its high “spread”. (Results in a high dividend unless they redeem). CWB.PR.B is at $17.70 and it might be wishful thinking to think it might be redeemed at $25 but it is possible.
At $24.73 I would be tempted to think about selling CWB.PR.D rather than buy.
In any case this move by TD is good news for the rate reset shares and hopefully there will be more redemptions.