How ’bout them US house prices, eh?:
The S&P/Case-Shiller index of property values in 20 cities fell 3.1 percent from January 2010, the biggest year-over-year decrease since December 2009, the group said today in New York. The decline was in line with the 3.2 percent median forecast by economists in a Bloomberg News survey.
Rising foreclosures are swelling the number of houses on the market, which may put additional pressure on prices in coming months. At the same time, a further decline in home values may keep potential buyers on the sidelines as they foresee better deals, hurting construction and consumer spending as owners’ equity evaporates.
It’s an ill wind that blows nobody any good. We may be witnessing the birth of a few residential real-estate empires:
Delavaco Properties LP plans to spend as much as $30 million this year and $40 million in 2012 to buy bank-owned houses and condominiums in foreclosure-ridden South Florida. The private-equity fund will pay cash.
As lenders tighten mortgage standards and consumers stay on the sidelines amid a five-year slide in home prices, all-cash purchases are surging. The deals are done mostly by investors who can get properties for less than buyers needing loans, fix them up and resell or rent them.
But there’s finally a start to the eventual wind-down of Fannie & Freddie:
U.S. House Republicans proposed legislation that would begin reducing the influence of government-run mortgage companies Fannie Mae and Freddie Mac.
…
Representative Scott Garrett, a New Jersey Republican and chairman of the capital markets panel of the House Financial Services Committee, is leading the effort. Most of the Republican proposals line up with a list of recommendations put forth in February by the Treasury Department and the Department of Housing and Urban Development. Garrett’s panel will hold a hearing on March 31 on the proposals.When it comes to the Treasury, “at the end of the day, we have the same ultimate goal to achieve here,” Garrett said at a press conference today. “If you look through their white paper, if you look at what we have, in essence we’re on the same page.”
Won’t last though – politicians love loan guarantees. ‘We can Do Good, and it doesn’t even cost anything!’
Europe’s politicians might find it harder to get co-investors:
Portugal and Greece were downgraded by Standard & Poor’s, which said the European Union’s new bailout rules may mean that both nations eventually renege on their debt obligations.
S&P cut Portugal for the second time in a week to the lowest investment-grade rating of BBB-, three steps below Ireland. Greece’s rating fell two grades to BB-, three levels below investment grade. S&P cited concerns that both countries may be forced to restructure debt after seeking European aid and that governments will be paid back before other creditors.
It was a strong day on the Canadian preferred share market, with PerpetualDiscounts winning 38bp, FixedResets up 13bp and DeemedRetractibles gaining 9bp. Volume was good and volatility jumped.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| 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 | -0.1312 % | 2,399.4 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1312 % | 3,608.7 |
| Floater | 2.51 % | 2.29 % | 41,501 | 21.51 | 4 | -0.1312 % | 2,590.8 |
| OpRet | 4.87 % | 3.67 % | 58,412 | 1.13 | 9 | 0.1288 % | 2,409.6 |
| SplitShare | 5.08 % | 2.67 % | 129,342 | 0.98 | 5 | -0.0547 % | 2,487.5 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1288 % | 2,203.3 |
| Perpetual-Premium | 5.75 % | 5.53 % | 132,112 | 1.20 | 10 | 0.1163 % | 2,041.0 |
| Perpetual-Discount | 5.49 % | 5.54 % | 125,407 | 14.51 | 14 | 0.3768 % | 2,142.0 |
| FixedReset | 5.14 % | 3.42 % | 234,918 | 2.93 | 57 | 0.1267 % | 2,290.6 |
| Deemed-Retractible | 5.22 % | 5.15 % | 320,219 | 8.25 | 53 | 0.0918 % | 2,090.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| HSB.PR.D | Deemed-Retractible | -1.19 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.05 Bid-YTW : 5.50 % |
| IAG.PR.F | Deemed-Retractible | -1.09 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2019-04-30 Maturity Price : 25.00 Evaluated at bid price : 25.38 Bid-YTW : 5.70 % |
| W.PR.J | Perpetual-Discount | 1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-03-29 Maturity Price : 24.25 Evaluated at bid price : 24.55 Bid-YTW : 5.71 % |
| ELF.PR.G | Deemed-Retractible | 1.50 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.52 Bid-YTW : 7.16 % |
| W.PR.H | Perpetual-Discount | 1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-03-29 Maturity Price : 23.35 Evaluated at bid price : 24.35 Bid-YTW : 5.61 % |
| ELF.PR.F | Deemed-Retractible | 1.70 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.50 Bid-YTW : 6.61 % |
| PWF.PR.K | Perpetual-Discount | 1.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-03-29 Maturity Price : 23.84 Evaluated at bid price : 24.11 Bid-YTW : 5.20 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PR.Q | Deemed-Retractible | 68,065 | TD bought 20,000 from Nesbitt at 25.85, then crossed the same number at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2017-03-02 Maturity Price : 25.00 Evaluated at bid price : 25.81 Bid-YTW : 5.17 % |
| MFC.PR.B | Deemed-Retractible | 54,997 | RBC crossed 50,000 at 21.95. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.87 Bid-YTW : 6.31 % |
| POW.PR.B | Perpetual-Discount | 51,590 | RBC crossed 50,000 at 23.96. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-03-29 Maturity Price : 23.68 Evaluated at bid price : 23.95 Bid-YTW : 5.59 % |
| SLF.PR.F | FixedReset | 45,110 | Desjardins crossed 40,000 at 26.82. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-30 Maturity Price : 25.00 Evaluated at bid price : 26.90 Bid-YTW : 3.60 % |
| BAM.PR.M | Perpetual-Discount | 42,665 | Nesbitt crossed 10,000 at 20.90. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-03-29 Maturity Price : 20.91 Evaluated at bid price : 20.91 Bid-YTW : 5.72 % |
| BNS.PR.Z | FixedReset | 39,568 | Nesbitt bought 25,000 from RBC at 24.50. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.45 Bid-YTW : 4.16 % |
| There were 37 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| POW.PR.A | Perpetual-Discount | Quote: 24.35 – 24.71 Spot Rate : 0.3600 Average : 0.2364 YTW SCENARIO |
| GWO.PR.L | Deemed-Retractible | Quote: 25.07 – 25.44 Spot Rate : 0.3700 Average : 0.2613 YTW SCENARIO |
| IAG.PR.C | FixedReset | Quote: 26.95 – 28.25 Spot Rate : 1.3000 Average : 1.1936 YTW SCENARIO |
| HSB.PR.D | Deemed-Retractible | Quote: 24.05 – 24.30 Spot Rate : 0.2500 Average : 0.1565 YTW SCENARIO |
| POW.PR.B | Perpetual-Discount | Quote: 23.95 – 24.22 Spot Rate : 0.2700 Average : 0.1872 YTW SCENARIO |
| HSB.PR.C | Deemed-Retractible | Quote: 24.37 – 24.69 Spot Rate : 0.3200 Average : 0.2422 YTW SCENARIO |