The Greek austerity measures passed:
Greek Prime Minister Lucas Papademos won parliamentary approval for austerity measures to secure an international bailout after rioters protesting the measures battled police and set fire to buildings in downtown Athens.
A total of 199 lawmakers voted in favor and 74 against, Parliament Speaker Filippos Petsalnikos said in remarks carried live on state-run Vouli TV. When, on Nov. 16, Papademos won a mandate from the Parliament to implement budget measures and secure the bailout of 130 billion euros ($172 billion) he received the support of 255 lawmakers in the 300-strong chamber.
“It is up to us, our vote, whether the country will remain in the euro or be led to a disorderly default,” Papademos told parliament. “Voting for the economic program and opening the road for a loan accord sets the basis for the modernization and recovery of the economy.”
OK, so parliament’s voted for it and all the senior party leaders are on board. So what? There will be elections soon – will any of the major parties now be major parties in June? There really needs to be a referendum on this, because I’m not convinced the political class can deliver.
Meanwhile Moody’s used its knife:
Moody’s Investors Service cut the debt ratings of six European countries including Italy, Spain and Portugal and revised its outlook on the U.K.’s and France’s top Aaa rating to “negative.”
Spain was downgraded to A3 from A1 with a negative outlook, Italy was downgraded to A3 from A2 with a negative outlook and Portugal was downgraded to Ba3 from Ba2 with a negative outlook, Moody’s said. It also cut Slovakia’s, Slovenia’s and Malta’s ratings.
“The uncertainty over the euro area’s prospects for institutional reform of its fiscal and economic framework” and the resources that will be made available to deal with the crisis, are among the main drivers of Moody’s action, the ratings company said.
“Europe’s increasingly weak macroeconomic prospects, which threaten the implementation of domestic austerity programs and the structural reforms that are needed to promote competitiveness,” are also factors, it said. These factors will continue to affect market confidence, “which is likely to remain fragile, with a high potential for further shocks to funding conditions for stressed sovereigns and banks.”
Call the papers! There’s been an outbreak of common sense in Europe!
The European Parliament may scrap plans to force firms that use algorithmic-trading programs to continue trading throughout the day, said Markus Ferber, the lawmaker writing the assembly’s response to the proposals. The measure was meant to prevent them creating volatility by diving in and out of the markets.
“We are really rethinking on the whole approach the European Commission has proposed,” Ferber said in an interview. The all-day trading rule was intended to promote market liquidity by ensuring a steady supply of buyers and sellers. “No one can answer me” why such firms should be expected to provide liquidity throughout the trading day, Ferber said.
Sorry, folks, but PrefLetter Weekend knocked me for a loop this time ’round. I’ll update with Monday’s performance when I get a chance.
| 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 | -0.1040 % | 2,442.8 |
| FixedFloater | 4.56 % | 3.93 % | 39,291 | 17.45 | 1 | -0.3828 % | 3,417.4 |
| Floater | 2.73 % | 2.99 % | 62,283 | 19.72 | 3 | -0.1040 % | 2,637.6 |
| OpRet | 4.86 % | 2.46 % | 60,536 | 1.32 | 6 | 0.0423 % | 2,515.7 |
| SplitShare | 5.28 % | -0.53 % | 81,644 | 0.82 | 4 | 0.0448 % | 2,651.4 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0423 % | 2,300.4 |
| Perpetual-Premium | 5.36 % | -0.19 % | 119,357 | 0.21 | 26 | -0.5674 % | 2,210.6 |
| Perpetual-Discount | 5.03 % | 4.85 % | 197,597 | 15.70 | 4 | 0.0926 % | 2,459.6 |
| FixedReset | 5.02 % | 2.68 % | 217,220 | 2.29 | 65 | -0.0838 % | 2,393.5 |
| Deemed-Retractible | 4.90 % | 3.54 % | 225,355 | 1.77 | 45 | -0.0959 % | 2,312.5 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PWF.PR.K | Perpetual-Premium | -2.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-02-13 Maturity Price : 24.21 Evaluated at bid price : 24.73 Bid-YTW : 5.02 % |
| PWF.PR.O | Perpetual-Premium | -2.27 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2018-10-31 Maturity Price : 25.00 Evaluated at bid price : 26.25 Bid-YTW : 4.99 % |
| PWF.PR.L | Perpetual-Premium | -1.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-02-13 Maturity Price : 24.50 Evaluated at bid price : 25.02 Bid-YTW : 5.11 % |
| POW.PR.D | Perpetual-Premium | -1.76 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.15 Bid-YTW : 4.95 % |
| PWF.PR.F | Perpetual-Premium | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-02-13 Maturity Price : 24.67 Evaluated at bid price : 24.93 Bid-YTW : 5.30 % |
| GWO.PR.I | Deemed-Retractible | -1.11 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.95 Bid-YTW : 5.14 % |
| FTS.PR.E | OpRet | -1.06 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-06-01 Maturity Price : 25.75 Evaluated at bid price : 27.01 Bid-YTW : 0.80 % |
| IAG.PR.A | Deemed-Retractible | -1.06 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.22 Bid-YTW : 5.10 % |
| PWF.PR.E | Perpetual-Premium | -1.05 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.37 Bid-YTW : 4.14 % |
| FTS.PR.C | OpRet | 1.34 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2012-03-14 Maturity Price : 25.50 Evaluated at bid price : 26.16 Bid-YTW : -26.82 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BNS.PR.Z | FixedReset | 342,950 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.15 Bid-YTW : 3.12 % |
| CU.PR.C | FixedReset | 85,400 | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-06-01 Maturity Price : 25.00 Evaluated at bid price : 25.91 Bid-YTW : 3.23 % |
| ENB.PR.F | FixedReset | 80,046 | YTW SCENARIO Maturity Type : Call Maturity Date : 2018-06-01 Maturity Price : 25.00 Evaluated at bid price : 25.45 Bid-YTW : 3.75 % |
| BNS.PR.K | Deemed-Retractible | 41,770 | YTW SCENARIO Maturity Type : Call Maturity Date : 2012-04-28 Maturity Price : 25.50 Evaluated at bid price : 25.89 Bid-YTW : -1.95 % |
| GWO.PR.M | Deemed-Retractible | 35,466 | YTW SCENARIO Maturity Type : Call Maturity Date : 2015-03-31 Maturity Price : 26.00 Evaluated at bid price : 26.75 Bid-YTW : 4.83 % |
| BNS.PR.Y | FixedReset | 34,975 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.32 Bid-YTW : 2.80 % |
| There were 34 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| GWO.PR.L | Deemed-Retractible | Quote: 26.08 – 26.48 Spot Rate : 0.4000 Average : 0.2803 YTW SCENARIO |
| BAM.PR.X | FixedReset | Quote: 25.18 – 25.44 Spot Rate : 0.2600 Average : 0.1695 YTW SCENARIO |
| RY.PR.C | Deemed-Retractible | Quote: 25.78 – 25.96 Spot Rate : 0.1800 Average : 0.1009 YTW SCENARIO |
| BMO.PR.L | Deemed-Retractible | Quote: 27.22 – 27.44 Spot Rate : 0.2200 Average : 0.1480 YTW SCENARIO |
| BAM.PR.B | Floater | Quote: 17.70 – 17.91 Spot Rate : 0.2100 Average : 0.1383 YTW SCENARIO |
| SLF.PR.G | FixedReset | Quote: 24.76 – 24.97 Spot Rate : 0.2100 Average : 0.1394 YTW SCENARIO |