The federal budget has brought at least one good thing with it – deferred annuities:
The federal government is permitting annuities that would allow retirees to move some savings out of their registered retirement funds to an annuity deferred until age 85.
The tax rules generally require an annuity purchased with registered funds to begin after the annuitant turns 71.
The Liberal government is amending the rules to permit seniors to purchase an advanced life deferred annuity (ALDA) under certain registered plans—an annuity whose commencement can be deferred until age 85. The plan was introduced Tuesday in the federal budget.
…
Lifetime limits will be 25% of a specific amount of a qualifying plan, calculated as:
•the value of all property (other than most annuities, including ALDAs) held in the qualifying plan as at the end of the previous year; and
•any amounts from the qualifying plan used to purchase ALDAs in previous years.If the value of an ALDA purchased in previous years exceeds the 25% limit for a particular year due a decline in qualifying plan assets, the retiree won’t be forced to surrender or dispose of the annuity, the budget says.
ALDAs will also have a lifetime limit of $150,000 from all qualifying plans, indexed to inflation for taxation years after 2020, rounded to the nearest $10,000.
| 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 | -0.2650 % | 2,124.9 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2650 % | 3,899.0 |
| Floater | 5.51 % | 5.70 % | 44,792 | 14.37 | 3 | -0.2650 % | 2,247.0 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0545 % | 3,282.1 |
| SplitShare | 4.87 % | 4.53 % | 76,913 | 3.89 | 8 | 0.0545 % | 3,919.5 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0545 % | 3,058.2 |
| Perpetual-Premium | 5.67 % | -4.76 % | 70,851 | 0.08 | 7 | 0.1025 % | 2,926.9 |
| Perpetual-Discount | 5.41 % | 5.52 % | 71,654 | 14.48 | 26 | 0.3143 % | 3,079.1 |
| FixedReset Disc | 5.20 % | 5.33 % | 190,212 | 14.87 | 64 | -0.4792 % | 2,192.7 |
| Deemed-Retractible | 5.25 % | 5.87 % | 104,049 | 8.20 | 27 | 0.2625 % | 3,055.1 |
| FloatingReset | 4.18 % | 4.14 % | 41,836 | 2.73 | 5 | 0.1938 % | 2,415.7 |
| FixedReset Prem | 5.08 % | 3.84 % | 340,241 | 2.24 | 19 | -0.1081 % | 2,566.2 |
| FixedReset Bank Non | 1.98 % | 3.97 % | 147,778 | 2.75 | 3 | -0.0694 % | 2,635.6 |
| FixedReset Ins Non | 4.96 % | 6.55 % | 110,599 | 8.36 | 22 | -0.1040 % | 2,271.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| NA.PR.W | FixedReset Disc | -2.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 17.59 Evaluated at bid price : 17.59 Bid-YTW : 5.56 % |
| TRP.PR.B | FixedReset Disc | -2.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 12.25 Evaluated at bid price : 12.25 Bid-YTW : 5.82 % |
| BAM.PR.R | FixedReset Disc | -2.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 16.21 Evaluated at bid price : 16.21 Bid-YTW : 5.87 % |
| RY.PR.M | FixedReset Disc | -2.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 20.35 Evaluated at bid price : 20.35 Bid-YTW : 5.18 % |
| CU.PR.C | FixedReset Disc | -2.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 18.17 Evaluated at bid price : 18.17 Bid-YTW : 5.42 % |
| BAM.PR.Z | FixedReset Disc | -1.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 20.40 Evaluated at bid price : 20.40 Bid-YTW : 5.66 % |
| BAM.PF.G | FixedReset Disc | -1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 19.53 Evaluated at bid price : 19.53 Bid-YTW : 5.73 % |
| RY.PR.S | FixedReset Disc | -1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 21.57 Evaluated at bid price : 21.90 Bid-YTW : 4.83 % |
| MFC.PR.J | FixedReset Ins Non | -1.60 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.95 Bid-YTW : 6.59 % |
| MFC.PR.L | FixedReset Ins Non | -1.59 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.96 Bid-YTW : 7.68 % |
| NA.PR.C | FixedReset Disc | -1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 22.06 Evaluated at bid price : 22.50 Bid-YTW : 5.51 % |
| BAM.PR.T | FixedReset Disc | -1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 16.40 Evaluated at bid price : 16.40 Bid-YTW : 5.88 % |
| BAM.PF.F | FixedReset Disc | -1.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 5.62 % |
| BAM.PF.E | FixedReset Disc | -1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 18.00 Evaluated at bid price : 18.00 Bid-YTW : 5.83 % |
| BNS.PR.I | FixedReset Disc | -1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 22.23 Evaluated at bid price : 22.91 Bid-YTW : 4.68 % |
| PWF.PR.Q | FloatingReset | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 14.44 Evaluated at bid price : 14.44 Bid-YTW : 5.73 % |
| BMO.PR.S | FixedReset Disc | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 19.37 Evaluated at bid price : 19.37 Bid-YTW : 5.14 % |
| HSE.PR.A | FixedReset Disc | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 12.99 Evaluated at bid price : 12.99 Bid-YTW : 6.24 % |
| BMO.PR.C | FixedReset Disc | -1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 22.91 Evaluated at bid price : 23.92 Bid-YTW : 5.07 % |
| BAM.PF.J | FixedReset Disc | -1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 22.81 Evaluated at bid price : 23.85 Bid-YTW : 4.93 % |
| CM.PR.O | FixedReset Disc | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 18.90 Evaluated at bid price : 18.90 Bid-YTW : 5.28 % |
| TRP.PR.C | FixedReset Disc | -1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 13.00 Evaluated at bid price : 13.00 Bid-YTW : 5.96 % |
| BMO.PR.E | FixedReset Disc | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 22.06 Evaluated at bid price : 22.61 Bid-YTW : 4.92 % |
| SLF.PR.J | FloatingReset | 1.02 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.85 Bid-YTW : 9.01 % |
| PWF.PR.E | Perpetual-Discount | 1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 24.66 Evaluated at bid price : 24.92 Bid-YTW : 5.59 % |
| TD.PF.D | FixedReset Disc | 1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 5.18 % |
| CCS.PR.C | Deemed-Retractible | 1.19 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.91 Bid-YTW : 6.08 % |
| PWF.PR.S | Perpetual-Discount | 1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 21.75 Evaluated at bid price : 22.01 Bid-YTW : 5.52 % |
| BIP.PR.E | FixedReset Disc | 1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 21.72 Evaluated at bid price : 22.05 Bid-YTW : 5.68 % |
| TRP.PR.G | FixedReset Disc | 1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 19.30 Evaluated at bid price : 19.30 Bid-YTW : 5.87 % |
| GWO.PR.R | Deemed-Retractible | 1.84 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.66 Bid-YTW : 6.00 % |
| CU.PR.E | Perpetual-Discount | 2.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-21 Maturity Price : 22.67 Evaluated at bid price : 22.90 Bid-YTW : 5.39 % |
| SLF.PR.I | FixedReset Ins Non | 2.31 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.80 Bid-YTW : 6.36 % |
| GWO.PR.T | Deemed-Retractible | 2.32 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.85 Bid-YTW : 5.74 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| SLF.PR.A | Deemed-Retractible | 281,290 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.91 Bid-YTW : 6.36 % |
| MFC.PR.O | FixedReset Ins Non | 127,200 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-06-19 Maturity Price : 25.00 Evaluated at bid price : 26.15 Bid-YTW : 3.49 % |
| IGM.PR.B | Perpetual-Premium | 102,100 | YTW SCENARIO Maturity Type : Call Maturity Date : 2019-04-20 Maturity Price : 25.00 Evaluated at bid price : 25.32 Bid-YTW : -0.24 % |
| GWO.PR.N | FixedReset Ins Non | 65,583 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.89 Bid-YTW : 8.57 % |
| SLF.PR.I | FixedReset Ins Non | 65,580 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.80 Bid-YTW : 6.36 % |
| TRP.PR.K | FixedReset Disc | 56,877 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-05-31 Maturity Price : 25.00 Evaluated at bid price : 24.89 Bid-YTW : 5.19 % |
| There were 30 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| RY.PR.M | FixedReset Disc | Quote: 20.35 – 20.91 Spot Rate : 0.5600 Average : 0.3572 YTW SCENARIO |
| CU.PR.C | FixedReset Disc | Quote: 18.17 – 18.58 Spot Rate : 0.4100 Average : 0.2366 YTW SCENARIO |
| BAM.PR.R | FixedReset Disc | Quote: 16.21 – 16.63 Spot Rate : 0.4200 Average : 0.2699 YTW SCENARIO |
| TRP.PR.B | FixedReset Disc | Quote: 12.25 – 12.67 Spot Rate : 0.4200 Average : 0.2774 YTW SCENARIO |
| BAM.PF.G | FixedReset Disc | Quote: 19.53 – 19.91 Spot Rate : 0.3800 Average : 0.2402 YTW SCENARIO |
| NA.PR.C | FixedReset Disc | Quote: 22.50 – 22.85 Spot Rate : 0.3500 Average : 0.2148 YTW SCENARIO |