June 21, 2019

The federal NDP released its platform:

NDP leader Jagmeet Singh said his party would raise corporate taxes to 18% (from 15%) and tax capital gains at a [inclusion] rate of 75%.

The party would maintain the current small business tax rate of 9%.

The NDP would also increase the top marginal tax rate for those making more than $210,000 to 35% from 33%, and implement a 1% wealth tax on “super-rich multi-millionaires with wealth over $20 million.”

Other tax components of the NDP platform include:

A 15% foreign buyers tax on purchases of residential property by foreign corporations or people who are not citizens or permanent residents.
Doubling the Home Buyer’s Tax Credit to a maximum credit of $1,500 from $750.
Allowing income tax averaging for artists and cultural workers.
Ending the stock option deduction.
Ending “the unfair tax treatment of family farm transfers.”
Making the Canada Caregiver Tax Credit refundable.
Expanding the Volunteer Firefighters Tax Credit.

Changing the capital gains inclusion rate is a silly idea; it will simply provide even more encouragement for investors to retain their holdings forever and pay taxes only after death. I have long advocated a change whereby the capital gains and dividends are taxed the same way they are now, but with a cap: allocations into this bucket capped at some high figure, non-cumulative, annually. Say, $1-million a year. This won’t affect Joe Lunchbucket in the slightest, but – in addition to being a more effective tax on the super-rich than a wealth tax – will have the salutary effect of encouraging the super-rich to realize capital gains, in order to fill up their bucket every year of their lives, rather than grossly exceeding the cap upon death.

However, I was pleased to see that they are afraid to propose fiddling with the Dividend Tax credit and Gross-Up!

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 0.5097 % 1,913.7
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.5097 % 3,511.6
Floater 6.19 % 6.52 % 69,589 13.18 3 0.5097 % 2,023.7
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0454 % 3,320.3
SplitShare 4.69 % 4.70 % 73,814 4.21 7 -0.0454 % 3,965.1
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0454 % 3,093.7
Perpetual-Premium 5.60 % -9.56 % 71,323 0.09 7 0.1963 % 2,952.9
Perpetual-Discount 5.50 % 5.62 % 59,690 14.40 26 0.0608 % 3,068.0
FixedReset Disc 5.55 % 5.38 % 161,956 14.67 70 0.5433 % 2,059.5
Deemed-Retractible 5.29 % 5.97 % 76,370 8.02 27 0.0800 % 3,072.9
FloatingReset 4.06 % 4.93 % 47,356 2.50 4 0.7735 % 2,339.7
FixedReset Prem 5.11 % 3.84 % 193,196 1.84 16 0.0242 % 2,584.1
FixedReset Bank Non 1.98 % 4.14 % 153,221 2.52 3 0.0000 % 2,638.3
FixedReset Ins Non 5.38 % 7.56 % 95,540 8.10 22 0.6806 % 2,111.6
Performance Highlights
Issue Index Change Notes
GWO.PR.N FixedReset Ins Non -2.64 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.63
Bid-YTW : 9.44 %
CU.PR.E Perpetual-Discount -1.46 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 22.02
Evaluated at bid price : 22.25
Bid-YTW : 5.55 %
MFC.PR.I FixedReset Ins Non 1.01 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.09
Bid-YTW : 7.58 %
PWF.PR.P FixedReset Disc 1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 13.01
Evaluated at bid price : 13.01
Bid-YTW : 5.60 %
BAM.PF.E FixedReset Disc 1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 15.60
Evaluated at bid price : 15.60
Bid-YTW : 6.32 %
TD.PF.K FixedReset Disc 1.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 20.35
Evaluated at bid price : 20.35
Bid-YTW : 5.17 %
IFC.PR.A FixedReset Ins Non 1.26 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 14.45
Bid-YTW : 9.69 %
SLF.PR.H FixedReset Ins Non 1.29 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 15.70
Bid-YTW : 8.82 %
BIP.PR.B FixedReset Disc 1.41 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-12-31
Maturity Price : 25.00
Evaluated at bid price : 25.10
Bid-YTW : 5.16 %
MFC.PR.G FixedReset Ins Non 1.45 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 18.95
Bid-YTW : 7.53 %
IAF.PR.G FixedReset Ins Non 1.54 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.10
Bid-YTW : 7.30 %
BIP.PR.F FixedReset Disc 1.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 20.90
Evaluated at bid price : 20.90
Bid-YTW : 6.14 %
RY.PR.S FixedReset Disc 1.58 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 21.19
Evaluated at bid price : 21.19
Bid-YTW : 4.76 %
TD.PF.B FixedReset Disc 1.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 17.48
Evaluated at bid price : 17.48
Bid-YTW : 5.25 %
IFC.PR.G FixedReset Ins Non 1.80 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.75
Bid-YTW : 7.23 %
TRP.PR.A FixedReset Disc 1.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 13.50
Evaluated at bid price : 13.50
Bid-YTW : 6.07 %
TRP.PR.D FixedReset Disc 1.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 16.15
Evaluated at bid price : 16.15
Bid-YTW : 5.94 %
TRP.PR.C FixedReset Disc 1.97 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 11.90
Evaluated at bid price : 11.90
Bid-YTW : 6.02 %
BAM.PR.K Floater 2.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 10.63
Evaluated at bid price : 10.63
Bid-YTW : 6.53 %
TRP.PR.B FixedReset Disc 2.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 11.00
Evaluated at bid price : 11.00
Bid-YTW : 5.93 %
SLF.PR.J FloatingReset 2.24 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.72
Bid-YTW : 10.10 %
BIP.PR.E FixedReset Disc 2.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 5.99 %
BIP.PR.A FixedReset Disc 2.43 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 6.46 %
BIP.PR.D FixedReset Disc 2.48 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 22.29
Evaluated at bid price : 22.72
Bid-YTW : 5.61 %
MFC.PR.Q FixedReset Ins Non 2.55 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.34
Bid-YTW : 7.42 %
MFC.PR.F FixedReset Ins Non 2.67 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2030-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.45
Bid-YTW : 9.71 %
CU.PR.C FixedReset Disc 2.72 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 17.00
Evaluated at bid price : 17.00
Bid-YTW : 5.47 %
BAM.PR.R FixedReset Disc 3.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 14.55
Evaluated at bid price : 14.55
Bid-YTW : 6.16 %
TRP.PR.F FloatingReset 3.37 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 13.49
Evaluated at bid price : 13.49
Bid-YTW : 6.64 %
Volume Highlights
Issue Index Shares
Traded
Notes
CM.PR.R FixedReset Disc 194,205 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 21.25
Evaluated at bid price : 21.53
Bid-YTW : 5.48 %
BMO.PR.W FixedReset Disc 148,300 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 16.35
Evaluated at bid price : 16.35
Bid-YTW : 5.51 %
BMO.PR.D FixedReset Disc 139,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 21.40
Evaluated at bid price : 21.40
Bid-YTW : 5.30 %
CM.PR.O FixedReset Disc 71,614 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 16.64
Evaluated at bid price : 16.64
Bid-YTW : 5.60 %
TD.PF.C FixedReset Disc 52,001 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 17.12
Evaluated at bid price : 17.12
Bid-YTW : 5.34 %
BAM.PR.K Floater 50,513 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 10.63
Evaluated at bid price : 10.63
Bid-YTW : 6.53 %
There were 37 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
BIP.PR.A FixedReset Disc Quote: 19.00 – 19.60
Spot Rate : 0.6000
Average : 0.4556

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 6.46 %

RY.PR.Z FixedReset Disc Quote: 17.35 – 17.75
Spot Rate : 0.4000
Average : 0.2599

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 17.35
Evaluated at bid price : 17.35
Bid-YTW : 5.23 %

PWF.PR.A Floater Quote: 12.25 – 12.73
Spot Rate : 0.4800
Average : 0.3453

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 12.25
Evaluated at bid price : 12.25
Bid-YTW : 5.71 %

HSE.PR.C FixedReset Disc Quote: 17.81 – 18.19
Spot Rate : 0.3800
Average : 0.2548

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 17.81
Evaluated at bid price : 17.81
Bid-YTW : 6.31 %

TD.PF.C FixedReset Disc Quote: 17.12 – 17.47
Spot Rate : 0.3500
Average : 0.2354

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 17.12
Evaluated at bid price : 17.12
Bid-YTW : 5.34 %

EMA.PR.H FixedReset Disc Quote: 23.95 – 24.30
Spot Rate : 0.3500
Average : 0.2479

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2049-06-21
Maturity Price : 22.82
Evaluated at bid price : 23.95
Bid-YTW : 5.11 %

One Response to “June 21, 2019”

  1. stusclues says:

    Your no change but cap concept for capital gains and dividends is just too damn logical and pragmatic for adoption. Can you screw it up just a little so one of the main parties can adopt it?

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