Portuguese Prime Minister Jose Socrates tendered his resignation after plans to cut the budget were rejected by parliament, pushing the country closer to an international bailout.
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Portugal has already raised taxes and implemented the deepest spending cuts in more than three decades to convince investors it can reduce its budget shortfall. Additional cuts, announced on March 11, prompted a political backlash and failed to persuade investors.The spread between Portuguese and German 10-year bond yields widened 16 basis points to 438 basis points yesterday after reaching a euro-era record of 484 on Nov. 11.
It was another positive day on the Canadian preferred share market,with PerpetualDiscounts up 17bp, FixedResets up 2bp and DeemedRetractibles winning 9bp. Volume was average.
PerpetualDiscounts now yiel 5.59%, equivalent to 7.27% interest at the now standard equivalency factor of 1.3x. Long corporates now yield about 5.5% (OK, maybe a little bit less) so the pre-tax interest-equivalent spread is now about 180bp, not much different from the 175bp reported on March 9.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1805 % | 2,385.7 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1805 % | 3,588.1 |
| Floater | 2.52 % | 2.33 % | 43,783 | 21.40 | 4 | 0.1805 % | 2,575.9 |
| OpRet | 4.89 % | 3.62 % | 57,306 | 1.15 | 9 | 0.1380 % | 2,398.8 |
| SplitShare | 5.09 % | 3.04 % | 148,036 | 0.99 | 5 | 0.1249 % | 2,483.9 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1380 % | 2,193.5 |
| Perpetual-Premium | 5.74 % | 5.57 % | 137,172 | 6.21 | 10 | 0.0278 % | 2,035.8 |
| Perpetual-Discount | 5.51 % | 5.59 % | 124,979 | 14.52 | 14 | 0.1694 % | 2,129.5 |
| FixedReset | 5.16 % | 3.50 % | 233,993 | 2.95 | 57 | 0.0225 % | 2,281.1 |
| Deemed-Retractible | 5.22 % | 5.16 % | 338,534 | 8.27 | 53 | 0.0935 % | 2,086.2 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.X | FixedReset | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-03-23 Maturity Price : 22.83 Evaluated at bid price : 24.26 Bid-YTW : 4.44 % |
| GWO.PR.I | Deemed-Retractible | -1.45 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.82 Bid-YTW : 6.14 % |
| BMO.PR.J | Deemed-Retractible | -1.06 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.18 Bid-YTW : 4.96 % |
| GWO.PR.M | Deemed-Retractible | 1.16 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2019-04-30 Maturity Price : 25.00 Evaluated at bid price : 25.39 Bid-YTW : 5.58 % |
| FTS.PR.F | Perpetual-Discount | 1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-03-23 Maturity Price : 23.14 Evaluated at bid price : 23.35 Bid-YTW : 5.29 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| HSE.PR.A | FixedReset | 126,131 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-03-23 Maturity Price : 24.95 Evaluated at bid price : 25.00 Bid-YTW : 4.30 % |
| W.PR.H | Perpetual-Discount | 103,400 | RBC crossed blocks of 50,000 and 45,000, both at 24.30. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-03-23 Maturity Price : 23.83 Evaluated at bid price : 24.13 Bid-YTW : 5.80 % |
| TD.PR.I | FixedReset | 54,523 | TD crossed 50,000 at 27.55. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-08-30 Maturity Price : 25.00 Evaluated at bid price : 27.56 Bid-YTW : 3.38 % |
| TD.PR.N | OpRet | 51,400 | Nesbitt crossd 50,000 at 25.66. YTW SCENARIO Maturity Type : Call Maturity Date : 2012-05-30 Maturity Price : 25.25 Evaluated at bid price : 25.66 Bid-YTW : 3.72 % |
| RY.PR.X | FixedReset | 46,853 | Desjardins bought 18,300 from National at 27.41, then crossed 20,000 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-09-23 Maturity Price : 25.00 Evaluated at bid price : 27.45 Bid-YTW : 3.48 % |
| TD.PR.A | FixedReset | 40,271 | RBC crossed 24,800 at 26.16. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-03-02 Maturity Price : 25.00 Evaluated at bid price : 26.09 Bid-YTW : 3.70 % |
| There were 32 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| SLF.PR.G | FixedReset | Quote: 25.35 – 26.15 Spot Rate : 0.8000 Average : 0.4881 YTW SCENARIO |
| FTS.PR.F | Perpetual-Discount | Quote: 23.35 – 23.70 Spot Rate : 0.3500 Average : 0.2506 YTW SCENARIO |
| IAG.PR.E | Deemed-Retractible | Quote: 25.50 – 25.85 Spot Rate : 0.3500 Average : 0.2510 YTW SCENARIO |
| BAM.PR.X | FixedReset | Quote: 24.26 – 24.58 Spot Rate : 0.3200 Average : 0.2241 YTW SCENARIO |
| ALB.PR.B | SplitShare | Quote: 22.12 – 22.39 Spot Rate : 0.2700 Average : 0.1772 YTW SCENARIO |
| CIU.PR.B | FixedReset | Quote: 27.44 – 27.95 Spot Rate : 0.5100 Average : 0.4354 YTW SCENARIO |