September 27, 2016

Here’s a US story we probably won’t see in Canada!

In a startling development, almost unheard of outside a recession, food prices have fallen for nine straight months in the U.S. It’s the longest streak of food deflation since 1960 — with the exception of 2009, when the financial crisis was winding down. Analysts credit low oil and grain prices, as well as cutthroat competition from discounters. Consumers are winning out; grocery chains, not so much. Their margins and, in some cases, their stock prices, are taking a hit.

Eggs and beef have have grown especially inexpensive, and it isn’t only an American phenomenon: In England, Aldi recently offered its prized 8-ounce wagyu steaks from New Zealand for about $6.50 — a little more than the price of a pint of beer.

[Analyst at Wolfe Research Scott] Mushkin, who researches local markets, recently found that prices of a typical basket of grocery items in Houston, had fallen almost 5 percent over the past year.

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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 0.1429 % 1,698.3
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.1429 % 3,102.4
Floater 4.87 % 4.59 % 86,171 16.25 4 0.1429 % 1,787.9
OpRet 0.00 % 0.00 % 0 0.00 0 0.0953 % 2,883.6
SplitShare 5.05 % 4.59 % 77,227 2.16 5 0.0953 % 3,443.6
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0953 % 2,686.8
Perpetual-Premium 5.50 % 4.63 % 65,665 1.95 12 -0.0293 % 2,686.0
Perpetual-Discount 5.12 % 5.08 % 87,153 15.08 26 0.1092 % 2,912.1
FixedReset 4.98 % 4.26 % 149,058 6.98 92 -0.0016 % 2,045.3
Deemed-Retractible 5.02 % 4.85 % 111,042 0.33 32 0.0178 % 2,799.8
FloatingReset 2.85 % 4.43 % 32,492 4.97 12 0.1934 % 2,195.5
Performance Highlights
Issue Index Change Notes
BMO.PR.A FloatingReset -1.13 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.01
Bid-YTW : 5.13 %
TRP.PR.C FixedReset -1.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-09-27
Maturity Price : 13.24
Evaluated at bid price : 13.24
Bid-YTW : 4.12 %
W.PR.K FixedReset 1.55 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-01-15
Maturity Price : 25.00
Evaluated at bid price : 26.17
Bid-YTW : 4.34 %
Volume Highlights
Issue Index Shares
Traded
Notes
BNS.PR.H FixedReset 305,167 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-01-26
Maturity Price : 25.00
Evaluated at bid price : 25.60
Bid-YTW : 4.40 %
RY.PR.L FixedReset 92,319 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.08
Bid-YTW : 3.75 %
W.PR.M FixedReset 57,560 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-15
Maturity Price : 25.00
Evaluated at bid price : 25.85
Bid-YTW : 4.56 %
BMO.PR.S FixedReset 54,230 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-09-27
Maturity Price : 19.26
Evaluated at bid price : 19.26
Bid-YTW : 4.01 %
TD.PF.H FixedReset 52,355 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.52
Bid-YTW : 4.50 %
HSB.PR.C Deemed-Retractible 42,100 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2016-10-27
Maturity Price : 25.00
Evaluated at bid price : 24.99
Bid-YTW : 5.13 %
There were 37 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
FTS.PR.M FixedReset Quote: 19.32 – 19.65
Spot Rate : 0.3300
Average : 0.2061

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-09-27
Maturity Price : 19.32
Evaluated at bid price : 19.32
Bid-YTW : 4.22 %

GWO.PR.N FixedReset Quote: 14.27 – 14.58
Spot Rate : 0.3100
Average : 0.2047

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 14.27
Bid-YTW : 9.71 %

SLF.PR.G FixedReset Quote: 14.04 – 14.45
Spot Rate : 0.4100
Average : 0.3078

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 14.04
Bid-YTW : 10.05 %

BAM.PR.K Floater Quote: 10.35 – 10.60
Spot Rate : 0.2500
Average : 0.1592

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-09-27
Maturity Price : 10.35
Evaluated at bid price : 10.35
Bid-YTW : 4.57 %

TRP.PR.G FixedReset Quote: 20.27 – 20.65
Spot Rate : 0.3800
Average : 0.2983

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-09-27
Maturity Price : 20.27
Evaluated at bid price : 20.27
Bid-YTW : 4.48 %

GWO.PR.L Deemed-Retractible Quote: 25.35 – 25.64
Spot Rate : 0.2900
Average : 0.2089

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2017-12-31
Maturity Price : 25.25
Evaluated at bid price : 25.35
Bid-YTW : 5.27 %

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