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Friday, October 25, 2024
 

MANAGING DIRECTOR:
Scott Carrithers
 
PORTFOLIO SALES AND SERVICE:
Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino • Brian Schaff
Natalie Regan • Aaron Stoffer • David Farris • Jeff Macy • Stanley Strecker
Josh Kiefer • Tom Toburen • Todd Czinege • Trey Valentine • Cody Kreutziger

US Treasury Market
Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
10/18/24 4.76 4.63 4.44 4.19 3.94 3.85 3.87 3.97 4.08 4.45 4.39
10/21/24 4.77 4.63 4.49 4.25 4.03 3.96 3.98 4.08 4.19 4.56 4.50
10/22/24 4.75 4.63 4.47 4.25 4.03 3.98 4.00 4.10 4.20 4.56 4.49
10/23/24 4.74 4.63 4.49 4.27 4.08 4.03 4.05 4.14 4.24 4.59 4.52
10/24/24 4.75 4.61 4.48 4.25 4.03 3.98 4.00 4.09 4.19 4.54 4.46

The data in the table above is static as of the time it was pulled, so rates may have changed. Treat all data in this table and PMR as indications only and availability is always subject to change. This information was pulled manually from sources we believe to be reliable. New source, as of 12/12/2022, Bloomberg, L.L.P.  As of: close of business 10/24/2024.

                                                                                                                                                                                        

Understanding Corporate Actions
 

Mandatory vs Voluntary
 
Broadly speaking, there are two main categories of corporate actions: Mandatory and Voluntary. Despite the name, mandatory corporate actions do not require anything of the shareholder. These corporate actions execute regardless of shareholder activity or preference. Voluntary corporate actions, by contrast, require an affirmative action or response from the shareholder.

Examples of mandatory corporate actions

These are the common corporate actions that do not require action from shareholders.

Name change or CUSIP change. Companies will occasionally change their name or identification number.

Bond calls. When a company decides to pay back bonds early, this is called a bond call. Bond calls can be either a full call or a partial call.  Usually the bond is paid back at face value with interest to date. After the bond call interest is no longer paid on the principal portion that has been called. 

Mergers and acquisitions. When two companies join into one, the shares of one company will automatically be exchanged into shares of the other company at a set ratio.

Examples of voluntary corporate actions 

These are common types of corporate actions that do require action from shareholders.

Tender offer. In order to increase the value of outstanding shares, companies may elect to “buy back” their own shares. They can either purchase shares on the open market, or they can make a “tender offer” to buy shares from existing shareholders, usually at a higher-than-market price. Shareholders do not have to participate and may decline the tender offer.

Rights offer. The inverse of a tender offer is a “rights offer,” which gives shareholders the option to buy shares at a predetermined price. Usually shares are offered below market price.

Bond consent. Occasionally companies will ask bond holders to restructure the terms of the bond.


Please reach out to your Capital Markets Group Representative should you have further questions.




This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.

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