July 18, 2017

It is my belief that many of today’s economic problems are the result of disruption; we are experiencing change at a historically unprecedented pace. The Industrial Revolution and the Renaissance combined weren’t NUTHIN’ compared to what’s been happening since 1980. And usually the effects of disruption are difficult to foresee:

Japan thought it was on track to beat deflation. Then came the Amazon effect.

The country’s retailers have been cutting prices in response to the rise of online rivals like Amazon.com Inc., disrupting what had seemed like perfect conditions for Japan to get the stable dose of inflation it has long been looking for.

In part as a result, Japan’s central bank is likely to lower its price forecast for the current financial year at its policy meeting on Thursday, said people familiar with its thinking. That reflects continued resistance to price rises, despite Japan’s longest economic expansion in 11 years and its tightest labor market in decades. The Bank of Japan is also likely to raise its view on the economy while keeping its policy settings on hold, the people said.

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 1.5911 % 2,391.1
FixedFloater 0.00 % 0.00 % 0 0.00 0 1.5911 % 4,387.6
Floater 3.62 % 3.64 % 105,677 18.21 3 1.5911 % 2,528.6
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0078 % 3,070.2
SplitShare 4.69 % 4.29 % 57,784 1.42 5 -0.0078 % 3,666.5
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0078 % 2,860.7
Perpetual-Premium 5.39 % 4.75 % 71,802 6.11 21 -0.1283 % 2,767.9
Perpetual-Discount 5.31 % 5.30 % 89,828 14.99 15 0.2154 % 2,910.4
FixedReset 4.33 % 4.32 % 180,336 6.39 98 0.0083 % 2,398.9
Deemed-Retractible 5.09 % 5.42 % 116,888 6.15 30 -0.0028 % 2,842.7
FloatingReset 2.59 % 2.93 % 44,881 4.29 10 -0.0767 % 2,626.9
Performance Highlights
Issue Index Change Notes
TRP.PR.H FloatingReset -1.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 15.06
Evaluated at bid price : 15.06
Bid-YTW : 3.27 %
BAM.PR.X FixedReset -1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 17.33
Evaluated at bid price : 17.33
Bid-YTW : 4.58 %
IAG.PR.G FixedReset -1.07 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.05
Bid-YTW : 5.28 %
GWO.PR.S Deemed-Retractible 1.21 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.00
Bid-YTW : 5.33 %
BAM.PR.C Floater 1.49 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 14.26
Evaluated at bid price : 14.26
Bid-YTW : 3.64 %
BAM.PR.B Floater 1.50 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 14.22
Evaluated at bid price : 14.22
Bid-YTW : 3.65 %
BAM.PR.K Floater 1.78 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 14.30
Evaluated at bid price : 14.30
Bid-YTW : 3.63 %
ELF.PR.G Perpetual-Discount 2.43 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 22.48
Evaluated at bid price : 22.74
Bid-YTW : 5.24 %
Volume Highlights
Issue Index Shares
Traded
Notes
BMO.PR.Q FixedReset 301,045 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.55
Bid-YTW : 5.44 %
TD.PF.I FixedReset 106,693 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 23.17
Evaluated at bid price : 25.08
Bid-YTW : 4.39 %
TRP.PR.D FixedReset 106,633 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 22.10
Evaluated at bid price : 22.41
Bid-YTW : 4.33 %
RY.PR.M FixedReset 90,612 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 22.54
Evaluated at bid price : 23.25
Bid-YTW : 4.34 %
RY.PR.H FixedReset 54,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 21.75
Evaluated at bid price : 22.23
Bid-YTW : 4.27 %
BAM.PR.K Floater 41,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 14.30
Evaluated at bid price : 14.30
Bid-YTW : 3.63 %
There were 16 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
GWO.PR.Q Deemed-Retractible Quote: 24.25 – 24.81
Spot Rate : 0.5600
Average : 0.3671

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.25
Bid-YTW : 5.72 %

ELF.PR.F Perpetual-Discount Quote: 24.41 – 24.97
Spot Rate : 0.5600
Average : 0.4088

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 24.16
Evaluated at bid price : 24.41
Bid-YTW : 5.45 %

PWF.PR.F Perpetual-Premium Quote: 24.33 – 24.75
Spot Rate : 0.4200
Average : 0.3021

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 24.07
Evaluated at bid price : 24.33
Bid-YTW : 5.40 %

VNR.PR.A FixedReset Quote: 22.45 – 22.77
Spot Rate : 0.3200
Average : 0.2058

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 21.93
Evaluated at bid price : 22.45
Bid-YTW : 4.80 %

EIT.PR.A SplitShare Quote: 25.80 – 26.20
Spot Rate : 0.4000
Average : 0.3003

YTW SCENARIO
Maturity Type : Soft Maturity
Maturity Date : 2024-03-14
Maturity Price : 25.00
Evaluated at bid price : 25.80
Bid-YTW : 4.34 %

TRP.PR.H FloatingReset Quote: 15.06 – 15.69
Spot Rate : 0.6300
Average : 0.5483

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-07-18
Maturity Price : 15.06
Evaluated at bid price : 15.06
Bid-YTW : 3.27 %

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