TD Extendible Note | Page 3 | Investing | Discussion forum

hwyc said

There is much to learn in bonds for me! After some searching, I found the same bond on TDDI with a price of $96.443 but still cannot recognize they are comparable.

TD Bank 2.496% 2024/12/02 bond at 96.443 would give a yield to maturity of 4.98%.

Get a TDDI price for $25,000 of the bonds to make it comparable to the Scotia iTRADE price.

Scotia iTRADE charges $1 commission per $1,000 bond with a minimum of $24.99. If TDDI has a minimum commission embedded, then the net price per bond will be worse for smaller orders.

TD Direct Investing would like to inform you that the following New Issue has just been announced.

TD Bank Semi-Annual Pay Step Up Extendible Notes June 14, 2024 to June 14, 2028

Short Description: Offering of Extendible (at Issuer's Option) Notes

Maturity: June 14, 2024
Coupon: Year 1: 5.20%
Year 2: 5.30%
Year 3: 5.60%
Year 4: 5.80%
Year 5: 6.00%
Rates per annum, payable semi-annually in arrears(equal payments)
Price: $100.00 CND per $100 par value.
Yield to Maturity: 5.56% semi-annual; 5.63% annual
Settlement: June 14, 2023

TD Direct Investing would like to inform you that the following New Issue has just been announced.

TD Bank Semi-Annual Pay Step Up Extendible Notes June 19, 2024 to June 19, 2028

Short Description: Offering of Extendible (at Issuer's Option) Notes

Maturity: June 19, 2024
Coupon: Year 1: 5.50%
Year 2: 5.55%
Year 3: 5.60%
Year 4: 5.65%
Year 5: 6.00%
Rates per annum, payable semi-annually in arrears(equal payments)
Price: $100.00 CND per $100 par value.
Yield to Maturity: 5.65% semi-annual; 5.72% annual
Settlement: June 19, 2023

Rail Baron said
Is TDDI the only brokerage that one can use to purchase and hold these notes?

I haven't seen any of these TD interest rate rate notes at Scotia iTRADE or at BMO InvestorLine.

The August 2022 shelf prospectus for the notes mentions five other dealers:

The Notes may be sold through one or more of TDSI, Desjardins Securities Inc., iA Private Wealth Inc., Laurentian Bank Securities Inc., Manulife Securities Incorporated and Richardson Wealth Limited and through such other Investment Dealers as may be selected from time to time by the Bank. … The Notes may also be sold by the Bank directly pursuant to applicable statutory exemptions, from time to time. The Bank has entered into a dealer agreement dated August 9, 2022 with the Investment Dealers named in this Prospectus and may enter into one or more agreements with other Investment Dealers in connection with offerings of Notes from time to time. …

One could try contacting the other dealers mentioned. However, TD Securities Inc. may be able to sell out each issue of the notes through its related brokerage TD Waterhouse Canada Inc., which includes the TD Direct Investing division. If that's the case, TD Securities may not be inclined to share the notes and the 0.2% selling commission with other brokerages.

"The notes may also be sold by the Bank directly pursuant to applicable statutory exemptions from time to time".

Has anyone tried just walking into their local high street branch of TD bank and requesting these things ?

Jowett said
"The notes may also be sold by the Bank directly pursuant to applicable statutory exemptions from time to time".

Has anyone tried just walking into their local high street branch of TD bank and requesting these things?

One will likely need to talk with a TD Waterhouse broker stationed in the TD Canada Trust branch. I don't think one can purchase the notes through regular branch staff.

October 2021 IIROC guidance Sale of Principal Protected Notes by Approved Persons of IIROC Dealer Members mentions the

… expectation that banks or other federal or provincial deposit-taking institutions that distribute PPNs that are not Specified PPNs will do so only through registered dealers in order to ensure the application of the usual know your client and suitability obligations.

The definition of "Specified PPN" is in Footnote #2:

… a specified principal protected note (“Specified PPN”) is a PPN with the following features: (i) a term to maturity of five years or less; and (ii) eligibility for coverage by the Canada Deposit Insurance Corporation (or a provincial equivalent).

I don't think the extensible notes mentioned have any deposit insurance coverage to make them a "Specified PPN".

The two-year Canadian dollar one is 5.61%:

TD C$ 2nc1 Extendible 5.61%, 2024-2025
CUSIP: 89117GJ57
ISM: X13PB1
Issue Date: Jul 04, 2023
Maturity Date: Jul 04, 2025
Maximum Term (years): 2
Extension Frequency: Semi-Annually
Coupon Frequency: Semi-Annually
Product Type: Rate-Linked
Product Category: Extendible Notes
Coupon Rate: 5.61%

TD Direct Investing would like to inform you that the following New Issue has just been announced.

TD Bank Semi-Annual Pay Step Up Extendible Notes July 18, 2024 to July 18, 2028

Short Description: Offering of Extendible (at Issuer's Option) Notes

Maturity: July 18, 2024
Coupon: Year 1: 5.70%
Year 2: 5.95%
Year 3: 6.20%
Year 4: 6.45%
Year 5: 6.70%
Rates per annum, payable semi-annually in arrears(equal payments)
Price: $100.00 CND per $100 par value.
Yield to Maturity: 5.70% semi-annual; 5.78% annual
Settlement: July 18 2023