Deutsche Bank is marching to a different drummer – worrying about competition, of all things!:
Deutsche Bank AG, Germany’s biggest bank, plans to spread the costs of the U.K. bonus tax to all employees worldwide, risking a backlash from bankers outside of London.
Chief Executive Officer Josef Ackermann, in an interview with the Financial Times, said the bank wouldn’t restrict the cost of the tax to the U.K. bonus pool.
“We will clearly globalize it,” Ackermann said. “If parts are paid out of the bonus pool, we would seek to globalize it. It would be unfair to treat the U.K. bankers differently.”
…
Ackermann told the Financial Times today that governments shouldn’t interfere in setting pay, saying bonuses should be the result of “supply and demand for skilled people.”
The Federal Reserve Bank of Cleveland has published the December edition of Economic Trends. The article on “Supply and Demand Shocks in Residential Mortgages” was interesting, although not noteworthy enough to merit a dedicated post.
A solid, though hardly spectacular, day for preferreds today, with PerpetualDiscounts up 9bp and FixedResets gaining 3bp. This is the eighth consecutive day of gains for FixedResets and they’re up about 78bp on the month-to-date. Volume was good; it should slow down next week, but the pending settlement of the YPG new FixedReset should give the traders something to do.
| 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 | 0.4886 % | 1,570.9 |
| FixedFloater | 5.66 % | 3.81 % | 42,379 | 19.03 | 1 | 0.0000 % | 2,750.7 |
| Floater | 2.50 % | 2.93 % | 101,327 | 19.91 | 3 | 0.4886 % | 1,962.5 |
| OpRet | 4.85 % | -8.55 % | 131,339 | 0.09 | 15 | 0.1173 % | 2,320.8 |
| SplitShare | 6.44 % | -4.88 % | 240,424 | 0.08 | 2 | 0.0222 % | 2,085.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1173 % | 2,122.2 |
| Perpetual-Premium | 5.88 % | 5.83 % | 81,802 | 2.33 | 7 | -0.0909 % | 1,877.5 |
| Perpetual-Discount | 5.78 % | 5.83 % | 198,878 | 14.06 | 68 | 0.0905 % | 1,799.5 |
| FixedReset | 5.40 % | 3.68 % | 350,809 | 3.87 | 41 | 0.0330 % | 2,164.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IAG.PR.C | FixedReset | -1.73 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-01-30 Maturity Price : 25.00 Evaluated at bid price : 27.25 Bid-YTW : 3.77 % |
| BAM.PR.P | FixedReset | 1.03 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-10-30 Maturity Price : 25.00 Evaluated at bid price : 27.35 Bid-YTW : 4.79 % |
| PWF.PR.H | Perpetual-Discount | 1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-12-18 Maturity Price : 24.01 Evaluated at bid price : 24.38 Bid-YTW : 5.98 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| IGM.PR.B | Perpetual-Discount | 207,679 | Inventory blow-out. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-12-18 Maturity Price : 24.10 Evaluated at bid price : 24.29 Bid-YTW : 6.12 % |
| MFC.PR.D | FixedReset | 193,911 | Desjardins crossed two blocks, of 125,000 and 31,300 shares, both at 28.00. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-19 Maturity Price : 25.00 Evaluated at bid price : 27.89 Bid-YTW : 3.87 % |
| IGM.PR.A | OpRet | 102,098 | Called for redemption. YTW SCENARIO Maturity Type : Call Maturity Date : 2010-07-30 Maturity Price : 25.67 Evaluated at bid price : 25.98 Bid-YTW : 3.31 % |
| GWO.PR.J | FixedReset | 53,612 | Nesbitt crossed 50,000 at 27.15. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-01-30 Maturity Price : 25.00 Evaluated at bid price : 27.15 Bid-YTW : 3.67 % |
| BNS.PR.T | FixedReset | 43,160 | TD crossed 17,100 at 28.00. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-25 Maturity Price : 25.00 Evaluated at bid price : 27.84 Bid-YTW : 3.71 % |
| RY.PR.T | FixedReset | 41,200 | RBC crossed 20,000 at 27.80 and 10,000 at 27.90. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-09-23 Maturity Price : 25.00 Evaluated at bid price : 27.80 Bid-YTW : 3.80 % |
| There were 38 other index-included issues trading in excess of 10,000 shares. | |||