MikeMang
Active Member
There is this huge amount of pressure to get their tier I capital above 10x.
Remember that these CaTS aren't true debt (although they are bought by typical debt purchases). Failure to pay the coupon doesn't trigger bankruptcy. To that end they are more like prefs.
Also remember that the interest is tax deductible, so they coupon is really only costing them ~6%. Common equity is doing a 5.5% div right now, so it's slightly less shocking when put in that context.
Remember that these CaTS aren't true debt (although they are bought by typical debt purchases). Failure to pay the coupon doesn't trigger bankruptcy. To that end they are more like prefs.
Also remember that the interest is tax deductible, so they coupon is really only costing them ~6%. Common equity is doing a 5.5% div right now, so it's slightly less shocking when put in that context.
Hi Adam, do you know the details for the above?
CUSIP or sec. ###?
When is the first callable date?
That's a crazy rate ... are there issues with TD's deposit reserves to be offering such a premium ??!!??