There is growing fear that Canadian housing is a momentum play:
The Bank of Canada is concerned that the acceleration in housing prices in Toronto and Vancouver may be partly due to purchases based solely on the expectation that prices will keep going up, Deputy Governor Lawrence Schembri said on Thursday.
Schembri said that Canadians moving away from resource-producing regions to the major cities of Toronto and Vancouver in order to find jobs has created a huge demand for housing in those cities, driving prices up as supply remains relatively limited.
But he expressed concern that such fundamentals are not the only reason for rising prices.
“The concern that we have at the Bank of Canada is these price increases may reflect in part the fact that certain people (are) buying housing on (speculation), expecting this price increase to continue,” said Schembri.
“People should not be buying housing based on the expectation these prices are going to continue” as the demand from the influx of workers into those regions will not continue at the same rate, Schembri said.
He was speaking during a question-and-answer session following a presentation on the outlook for the economy.
| 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 | -1.1698 % | 1,674.0 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -1.1698 % | 3,058.0 |
| Floater | 4.53 % | 4.59 % | 61,290 | 16.17 | 3 | -1.1698 % | 1,762.4 |
| OpRet | 4.86 % | -4.12 % | 46,260 | 0.08 | 1 | 0.0000 % | 2,835.8 |
| SplitShare | 4.90 % | 5.02 % | 82,104 | 4.70 | 7 | 0.2140 % | 3,325.5 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2140 % | 2,594.7 |
| Perpetual-Premium | 5.63 % | 4.83 % | 80,753 | 0.09 | 9 | -0.0436 % | 2,611.4 |
| Perpetual-Discount | 5.40 % | 5.51 % | 110,887 | 14.60 | 28 | -0.0169 % | 2,711.6 |
| FixedReset | 5.09 % | 4.65 % | 162,745 | 7.44 | 87 | -0.3804 % | 2,003.9 |
| Deemed-Retractible | 5.12 % | 5.31 % | 129,686 | 4.98 | 33 | 0.0454 % | 2,700.1 |
| FloatingReset | 3.14 % | 5.02 % | 23,834 | 5.24 | 17 | 0.2978 % | 2,121.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.T | FixedReset | -2.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 15.35 Evaluated at bid price : 15.35 Bid-YTW : 5.26 % |
| TRP.PR.D | FixedReset | -2.59 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 17.68 Evaluated at bid price : 17.68 Bid-YTW : 4.73 % |
| IFC.PR.A | FixedReset | -2.17 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.81 Bid-YTW : 9.30 % |
| BAM.PR.R | FixedReset | -2.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 15.08 Evaluated at bid price : 15.08 Bid-YTW : 5.22 % |
| NA.PR.Q | FixedReset | -2.02 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.81 Bid-YTW : 4.39 % |
| NA.PR.S | FixedReset | -1.95 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 18.14 Evaluated at bid price : 18.14 Bid-YTW : 4.64 % |
| FTS.PR.F | Perpetual-Discount | -1.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 22.79 Evaluated at bid price : 23.07 Bid-YTW : 5.33 % |
| BAM.PF.G | FixedReset | -1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 20.27 Evaluated at bid price : 20.27 Bid-YTW : 4.80 % |
| BNS.PR.Z | FixedReset | -1.79 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.33 Bid-YTW : 6.08 % |
| RY.PR.J | FixedReset | -1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 19.58 Evaluated at bid price : 19.58 Bid-YTW : 4.56 % |
| CU.PR.C | FixedReset | -1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 17.95 Evaluated at bid price : 17.95 Bid-YTW : 4.52 % |
| BAM.PR.C | Floater | -1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 10.34 Evaluated at bid price : 10.34 Bid-YTW : 4.63 % |
| TRP.PR.C | FixedReset | -1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 12.35 Evaluated at bid price : 12.35 Bid-YTW : 4.74 % |
| CM.PR.Q | FixedReset | -1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 20.10 Evaluated at bid price : 20.10 Bid-YTW : 4.51 % |
| NA.PR.W | FixedReset | -1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 17.54 Evaluated at bid price : 17.54 Bid-YTW : 4.62 % |
| BAM.PR.B | Floater | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 10.48 Evaluated at bid price : 10.48 Bid-YTW : 4.57 % |
| FTS.PR.G | FixedReset | -1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 16.76 Evaluated at bid price : 16.76 Bid-YTW : 4.55 % |
| TRP.PR.E | FixedReset | -1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 18.30 Evaluated at bid price : 18.30 Bid-YTW : 4.62 % |
| FTS.PR.J | Perpetual-Discount | -1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 22.24 Evaluated at bid price : 22.56 Bid-YTW : 5.28 % |
| MFC.PR.M | FixedReset | -1.14 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.00 Bid-YTW : 6.56 % |
| BNS.PR.Y | FixedReset | -1.11 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.41 Bid-YTW : 5.69 % |
| BAM.PF.F | FixedReset | -1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 4.85 % |
| HSE.PR.C | FixedReset | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 17.90 Evaluated at bid price : 17.90 Bid-YTW : 5.66 % |
| TRP.PR.A | FixedReset | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 15.20 Evaluated at bid price : 15.20 Bid-YTW : 4.65 % |
| BMO.PR.R | FloatingReset | 1.09 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.25 Bid-YTW : 4.36 % |
| FTS.PR.H | FixedReset | 1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 13.35 Evaluated at bid price : 13.35 Bid-YTW : 4.32 % |
| TRP.PR.H | FloatingReset | 1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 10.45 Evaluated at bid price : 10.45 Bid-YTW : 4.35 % |
| FTS.PR.M | FixedReset | 1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 19.30 Evaluated at bid price : 19.30 Bid-YTW : 4.46 % |
| HSE.PR.B | FloatingReset | 1.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 10.57 Evaluated at bid price : 10.57 Bid-YTW : 5.36 % |
| TRP.PR.I | FloatingReset | 1.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 11.65 Evaluated at bid price : 11.65 Bid-YTW : 4.51 % |
| HSE.PR.A | FixedReset | 1.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 11.62 Evaluated at bid price : 11.62 Bid-YTW : 5.36 % |
| TRP.PR.F | FloatingReset | 1.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 14.06 Evaluated at bid price : 14.06 Bid-YTW : 4.37 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| NA.PR.S | FixedReset | 226,216 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 18.14 Evaluated at bid price : 18.14 Bid-YTW : 4.64 % |
| NA.PR.X | FixedReset | 130,483 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-15 Maturity Price : 25.00 Evaluated at bid price : 25.96 Bid-YTW : 4.81 % |
| RY.PR.A | Deemed-Retractible | 102,800 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 4.49 % |
| BNS.PR.G | FixedReset | 74,200 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-07-25 Maturity Price : 25.00 Evaluated at bid price : 26.30 Bid-YTW : 4.65 % |
| TRP.PR.J | FixedReset | 70,531 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-31 Maturity Price : 25.00 Evaluated at bid price : 25.71 Bid-YTW : 4.89 % |
| CU.PR.C | FixedReset | 58,795 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-06-02 Maturity Price : 17.95 Evaluated at bid price : 17.95 Bid-YTW : 4.52 % |
| There were 27 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| NA.PR.Q | FixedReset | Quote: 23.81 – 24.39 Spot Rate : 0.5800 Average : 0.3808 YTW SCENARIO |
| BAM.PR.T | FixedReset | Quote: 15.35 – 15.91 Spot Rate : 0.5600 Average : 0.3752 YTW SCENARIO |
| GWO.PR.O | FloatingReset | Quote: 13.10 – 13.95 Spot Rate : 0.8500 Average : 0.6814 YTW SCENARIO |
| FTS.PR.F | Perpetual-Discount | Quote: 23.07 – 23.49 Spot Rate : 0.4200 Average : 0.2575 YTW SCENARIO |
| HSE.PR.G | FixedReset | Quote: 19.50 – 20.00 Spot Rate : 0.5000 Average : 0.3652 YTW SCENARIO |
| BAM.PF.G | FixedReset | Quote: 20.27 – 20.65 Spot Rate : 0.3800 Average : 0.2690 YTW SCENARIO |