A deal on Greece may have been reached:
Greek creditors may be headed toward an agreement to roll over 70 percent of their bonds into longer maturity debt to prevent a default and meet politicians’ calls that they contribute to Greece’s second rescue in as many years.
…
Under the French plan, 50 percent of the Greek debt held would be rolled over into 30-year bonds. The remaining 20 percent would go into a special purpose vehicle used to guarantee the 30-year debt, a person familiar with the plan said yesterday.
Thirty years will allow banks to slowly take reserves against their inevitable losses, while the current crop of politicians will have all retired by the time the bill comes due. Win-win!
A bit of good news on the TMX-LSE front:
TMX Group (X-T44.46-0.74-1.64%) and London Stock Exchange Group PLC got a big endorsement for their merger plan as a group of senior Canadian financial executives gave their support, saying the rival Maple Group plan to buy TMX would leave the capital markets too concentrated.
The 11-member group includes representatives of some large TMX shareholders, including Bill Holland, chairman of mutual fund company CI Financial Corp., as well as the heads of independent brokerages including Raymond James’ Canadian operations and Haywood Securities.
How ’bout that Yellow Media, eh?:
Yellow Media Inc. (YLO-T2.30-0.69-23.08%) was again being lambasted in trading, falling nearly 19 per cent in late morning trading on Monday. The stock has been suffering a lot recently, and this recent downturn seems connected to a change of opinion by Credit Suisse. Analysts there cut their recommendation to “underperform” from “neutral”, with a $2 price target, down from $5 previously.
18.2-million shares as of 2pm! Wow! Further details came available later:
“Our analysis suggests that print declines are accelerating while print conversion to digital remains gradual,” [Credit Suisse Canada analyst] Mr. [Colin] Moore wrote in the Monday note, titled “Raising a Yellow Flag”.
…
“We believe investors want to see a ‘de-risking’ of the story with respect to debt repayment and levels of [free cash flow] available after dividends,” analyst Drew McReynolds of RBC Dominion Securities said in a June 26 note to clients.“We would not disagree, and we believe a more conservative capital structure and payout policy that provides greater financial flexibility and more certainty during the business transformation would go a long way toward achieving this end and ‘reflating’ both equity and debt values.”
The YLO prefs got hammmered again; losing between 8.21% at best (YLO.PR.B) and 14.21% at worst (YLO.PR.C).
It was a mixed day on the Canadian preferred share market, with PerpetualDiscounts gaining 14bp, FixedResets down 1bp and DeemedRetractibles up 2bp. Not much volatility (surprisingly, confined to bad days for BAM and related issues) and volume was average.
| 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 | -0.5602 % | 2,456.3 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.5602 % | 3,694.2 |
| Floater | 2.46 % | 2.23 % | 42,127 | 21.70 | 4 | -0.5602 % | 2,652.1 |
| OpRet | 4.87 % | 2.43 % | 64,964 | 0.26 | 9 | -0.0214 % | 2,437.4 |
| SplitShare | 5.25 % | 1.95 % | 58,484 | 0.66 | 6 | -0.1189 % | 2,502.5 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0214 % | 2,228.8 |
| Perpetual-Premium | 5.67 % | 5.18 % | 140,340 | 1.30 | 12 | 0.0742 % | 2,076.5 |
| Perpetual-Discount | 5.47 % | 5.53 % | 123,263 | 14.62 | 18 | 0.1408 % | 2,182.1 |
| FixedReset | 5.17 % | 3.29 % | 208,028 | 2.71 | 57 | -0.0080 % | 2,307.7 |
| Deemed-Retractible | 5.08 % | 4.93 % | 279,818 | 8.17 | 47 | 0.0181 % | 2,152.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.K | Floater | -1.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-06-27 Maturity Price : 19.11 Evaluated at bid price : 19.11 Bid-YTW : 2.74 % |
| BAM.PR.J | OpRet | -1.18 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-03-31 Maturity Price : 26.00 Evaluated at bid price : 26.78 Bid-YTW : 4.04 % |
| BNA.PR.E | SplitShare | -1.03 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2017-12-10 Maturity Price : 25.00 Evaluated at bid price : 24.12 Bid-YTW : 5.59 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BMO.PR.M | FixedReset | 107,020 | Nesbitt crossed 100,000 at 26.24. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-08-25 Maturity Price : 25.00 Evaluated at bid price : 26.13 Bid-YTW : 3.06 % |
| CM.PR.K | FixedReset | 59,303 | RBC crossed 49,900 at 26.44. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-31 Maturity Price : 25.00 Evaluated at bid price : 26.36 Bid-YTW : 3.33 % |
| TD.PR.C | FixedReset | 41,650 | RBC crossed 25,000 at 26.70, then bought 12,200 from National at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-01-31 Maturity Price : 25.00 Evaluated at bid price : 26.70 Bid-YTW : 3.22 % |
| RY.PR.Y | FixedReset | 41,234 | RBC crossed 22,000 at 27.27. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-11-24 Maturity Price : 25.00 Evaluated at bid price : 27.27 Bid-YTW : 3.45 % |
| TD.PR.M | OpRet | 40,600 | RBC crossed 39,500 at 25.70. YTW SCENARIO Maturity Type : Call Maturity Date : 2011-07-27 Maturity Price : 25.50 Evaluated at bid price : 25.75 Bid-YTW : 1.57 % |
| RY.PR.T | FixedReset | 39,320 | RBC crossed 15,000 at 27.30; Desjardins crossed 10,000 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-08-24 Maturity Price : 25.00 Evaluated at bid price : 27.30 Bid-YTW : 3.38 % |
| There were 30 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BNA.PR.E | SplitShare | Quote: 24.12 – 24.58 Spot Rate : 0.4600 Average : 0.3138 YTW SCENARIO |
| BAM.PR.J | OpRet | Quote: 26.78 – 27.10 Spot Rate : 0.3200 Average : 0.2185 YTW SCENARIO |
| BAM.PR.R | FixedReset | Quote: 25.30 – 25.55 Spot Rate : 0.2500 Average : 0.1587 YTW SCENARIO |
| FTS.PR.F | Perpetual-Discount | Quote: 23.89 – 24.20 Spot Rate : 0.3100 Average : 0.2495 YTW SCENARIO |
| BMO.PR.K | Deemed-Retractible | Quote: 25.79 – 25.97 Spot Rate : 0.1800 Average : 0.1236 YTW SCENARIO |
| BAM.PR.K | Floater | Quote: 19.11 – 19.35 Spot Rate : 0.2400 Average : 0.1915 YTW SCENARIO |