Wholesale prices in the U.S. declined for a third month in November, reflecting lower costs for energy and cars.
The 0.1 percent drop in the producer-price index followed a 0.2 percent decrease the prior month, a Labor Department report showed today in Washington. The median estimate in a Bloomberg survey of 77 economists called for no change. The so-called core measure, which excludes food and energy, rose 0.1 percent.
Prices of goods and materials used in the earlier stages of production fell for a second month as slow improvement in global markets limited demand. Scant signs of accelerating inflation indicate Federal Reserve policy makers meeting next week have more room to maintain their unprecedented $85 billion in monthly asset purchases in order to help spur the expansion.
DBRS confirmed SLF at Pfd-2(high):
Sun Life’s risk management platform, while extensive and established, has mitigated much of the market sensitivity for earnings. Future market events will be watched to see if the Company is able to execute its risk mitigation programs within its declared sensitivities. The financial leverage ratio of debt plus preferred shares relative to total capitalization has improved to 28.2% as at September 30, 2013. A ratio less than 25% would be favourable for the rating. Also, a return to profitability levels that generate fixed charge coverage ratios of at least seven times on a total company basis is anticipated and within reach for the Company.
SLF is the proud issuer of SLF.PR.A, SLF.PR.B, SLF.PR.C, SLF.PR.D and SLF.PR.E (DeemedRetractibles) and SLF.PR.F, SLF.PR.G, SLF.PR.H and SLF.PR.I (FixedResets).
DBRS confirmed BNA at Pfd-2(low):
The downside protection available to the Class AA Preferred Shares is approximately 77%, based on the market value of the BAM Shares as of November 29, 2013. The current Class AA Preferred Share dividend coverage ratio is approximately 1.3 times. As a result, the Company continues to be able to fund the Class AA Preferred Shares distributions without relying on other methods for generating income or reverting to the sale of common shares in the Portfolio. In the event of a shortfall, the Company may sell some of the BAM Shares, engage in securities lending or write covered call options to generate sufficient income to satisfy its obligations to pay the Class AA Preferred Shares dividends.
The Pfd-2 (low) ratings of the Class AA Preferred Shares are primarily based on the downside protection and dividend coverage available to the Class AA Preferred Shares.
BNA is the proud issuer of BNA.PR.B, BNA.PR.C, BNA.PR.D and BNA.PR.E (all SplitShares).
It was a mixed day of mostly recovery for the Canadian preferred share market, with PerpetualDiscounts gaining 11bp, FixedResets up 17bp and DeemedRetractibles off 1bp. FixedResets were notable on both sides of the modest Performance Highlights table.
| 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 | -0.1873 % | 2,529.6 |
| FixedFloater | 4.40 % | 3.68 % | 40,457 | 17.94 | 1 | -0.0926 % | 3,811.1 |
| Floater | 2.95 % | 2.95 % | 61,430 | 19.87 | 3 | -0.1873 % | 2,731.3 |
| OpRet | 4.65 % | 2.11 % | 83,662 | 0.29 | 3 | -0.2704 % | 2,656.7 |
| SplitShare | 4.89 % | 4.79 % | 76,553 | 4.51 | 5 | -0.0647 % | 2,990.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2704 % | 2,429.3 |
| Perpetual-Premium | 5.63 % | 5.44 % | 135,838 | 13.92 | 13 | 0.0689 % | 2,297.1 |
| Perpetual-Discount | 5.71 % | 5.71 % | 174,210 | 14.24 | 25 | 0.1052 % | 2,307.6 |
| FixedReset | 5.00 % | 3.59 % | 234,578 | 3.46 | 84 | 0.1735 % | 2,467.3 |
| Deemed-Retractible | 5.15 % | 4.35 % | 203,544 | 2.30 | 42 | -0.0069 % | 2,391.9 |
| FloatingReset | 2.64 % | 2.37 % | 303,643 | 4.41 | 5 | -0.0316 % | 2,462.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| HSE.PR.A | FixedReset | -2.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-12-13 Maturity Price : 22.38 Evaluated at bid price : 22.77 Bid-YTW : 3.99 % |
| PWF.PR.P | FixedReset | -1.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-12-13 Maturity Price : 22.28 Evaluated at bid price : 22.59 Bid-YTW : 3.92 % |
| FTS.PR.E | OpRet | -1.08 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2016-08-31 Maturity Price : 25.00 Evaluated at bid price : 25.64 Bid-YTW : 3.98 % |
| POW.PR.D | Perpetual-Discount | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-12-13 Maturity Price : 22.29 Evaluated at bid price : 22.65 Bid-YTW : 5.60 % |
| TRP.PR.A | FixedReset | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-12-13 Maturity Price : 22.96 Evaluated at bid price : 23.50 Bid-YTW : 3.99 % |
| TRP.PR.B | FixedReset | 1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-12-13 Maturity Price : 20.34 Evaluated at bid price : 20.34 Bid-YTW : 3.90 % |
| BAM.PR.T | FixedReset | 1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-12-13 Maturity Price : 23.11 Evaluated at bid price : 24.40 Bid-YTW : 4.22 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| RY.PR.P | FixedReset | 214,422 | Called for redemption. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-02-24 Maturity Price : 25.00 Evaluated at bid price : 25.30 Bid-YTW : 1.86 % |
| ENB.PR.J | FixedReset | 174,614 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-12-13 Maturity Price : 23.15 Evaluated at bid price : 25.00 Bid-YTW : 4.29 % |
| POW.PR.D | Perpetual-Discount | 113,550 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-12-13 Maturity Price : 22.29 Evaluated at bid price : 22.65 Bid-YTW : 5.60 % |
| RY.PR.L | FixedReset | 42,570 | Not called for redemption. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-02-24 Maturity Price : 25.00 Evaluated at bid price : 25.41 Bid-YTW : -1.13 % |
| BAM.PR.X | FixedReset | 40,533 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-12-13 Maturity Price : 20.75 Evaluated at bid price : 20.75 Bid-YTW : 4.60 % |
| FTS.PR.H | FixedReset | 40,302 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-12-13 Maturity Price : 21.05 Evaluated at bid price : 21.05 Bid-YTW : 3.99 % |
| There were 57 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| CU.PR.E | Perpetual-Discount | Quote: 22.46 – 22.98 Spot Rate : 0.5200 Average : 0.3240 YTW SCENARIO |
| CU.PR.G | Perpetual-Discount | Quote: 20.50 – 20.99 Spot Rate : 0.4900 Average : 0.3111 YTW SCENARIO |
| HSE.PR.A | FixedReset | Quote: 22.77 – 23.29 Spot Rate : 0.5200 Average : 0.3416 YTW SCENARIO |
| MFC.PR.G | FixedReset | Quote: 25.60 – 25.92 Spot Rate : 0.3200 Average : 0.1797 YTW SCENARIO |
| RY.PR.F | Deemed-Retractible | Quote: 25.12 – 25.42 Spot Rate : 0.3000 Average : 0.1773 YTW SCENARIO |
| CGI.PR.D | SplitShare | Quote: 24.20 – 24.74 Spot Rate : 0.5400 Average : 0.4177 YTW SCENARIO |