Page 4
Fixed Income Quarterly—Pipelines
Table 4: Indicative Spread Changes
5 Yr. Indicative Spreads 10 Yr. Indicative Spreads 30 Yr. Indicative Spreads
Absolute Spread as of Change
31-Mar-14 Q1/14
Percentage Change Q1/14
Absolute Spread as of Change
31-Mar-14 Q1/14
Percentage Change Q1/14
Absolute Spread as of Change
31-Mar-14 Q1/14
Percentage Change Q1/14
Alliance Pipeline Limited Partnership Enbridge Inc.
Enbridge Income Fund
Enbridge Pipelines
126 -5 -3% 92 -7 -7% 117 3 2% 67 -5 -6%
158 -1 -1% 130 -3 -2% 155 -6 -4% 103 -1 -1%
- NA NA 154 -11 -6% - NA NA 130 -4 -3%
Inter Pipeline Ltd. Pembina Pipeline
99 -8 -7% 103 -8 -7%
132 -12 -8% 141 -8 -5%
170 -19 -10% 177 -12 -6%
TransCanada Pipelines Westcoast Energy Inc.
74 -7 -8% 100 -12 -10%
110 -1 -1% 129 -12 -9%
142 -3 -2% 157 -9 -5%
Pipelines Average
103 -7 -6%
141 -5 -4%
155 -9 -6%
As at March 31, 2014
Source: BMO Capital Markets
Table 5: Pipeline Credit Curve
16 26 27 29 23 42
16 20 32 18 18 32 18 19 26
16 26 38 21
9 33 19 38 19 43
2's - 5's Curve 5's - 10's Curve 10's - 30's Curve
Historical Thresholds 31-Mar-14 31-Dec-13 31-Dec-12 Narrow Wide
Historical Thresholds 31-Mar-14 31-Dec-13 31-Dec-12 Narrow Wide
Historical Thresholds 31-Mar-14 31-Dec-13 31-Dec-12 Narrow Wide
Alliance Pipeline Enbridge Inc. Enbridge Income Fund
20 21 21
11 30 11 34 14 47
33 29 33 22 45 39 35 43 25 43 39 47 55 31 63
32 33 38 32 61 24 31 35 30 65 40 98 153 34 114
Enbridge Pipelines Inter Pipeline Fund Pembina Pipeline
37 33 40 17 37 34 38 50 24 48 39 39 36 26 40
27 29 30 18 44 38 44 45 34 54 36 39 67 35 72
TransCanada Pipelines Westcoast Energy Inc.
18 36
9 30 10 32
37 31 33 22 47 30 30 42 20 38
32 33 38 32 61 28 24 30 21 57
Group Average
21 22 29 13 36
36 35 42 23 45
32 41 54 29 66
* Thresholds are based on the historical 10th (low) and 90th (high) percentile of weekly spreads. Source: BMO Capital Markets
As at March 31, 2014