Hungary may become a junk credit:
Hungary’s sovereign credit grade may be cut to junk this month after Standard & Poor’s Ratings Services placed the country’s lowest investment grade on “CreditWatch with negative implications.”
S&P is likely to make a decision this month on Hungary’s credit grade, currently at BBB-, the rating company said in a statement today. Fitch Ratings yesterday cut the outlook on Hungary’s lowest investment grade to negative from stable, joining S&P and Moody’s Investors
Milkfare has cost us yet another trade agreement:
“The [Trans Pacific Partnership] will boost our economies, lowering barriers to trade and investment, increasing exports, and creating more jobs for our people,” U.S. President Barack Obama said in announcing the new framework ahead of the start of the formal APEC leader summit in Hawaii on Saturday.
But that won’t be the case for Canada.
While Canada would like to be part of the Trans Pacific Partnership, it doesn’t agree with the cost of membership, particularly the suggestion that it needs to signal a willingness to abandon supply management policies, International Trade Minister Ed Fast said Saturday.
Yellow Media sold some assets:
Yellow Media Inc. (TSX: YLO) announces that it has sold the assets of LesPAC Inc. to Mediagrif Interactive Technologies Inc. for a purchase price of $72.5 million. The transaction is effective immediately.
…
For the year ended December 31, 2010, LesPAC Inc. reported revenues of $12.7M.
Be nice if they could sell the whole damn company for six times revenue!
According to their credit agreement with the banks:
“Prepayment Trigger Event” means any disposition or dispositions of assets of the Restricted Entities in any fiscal year of the Borrower, the aggregate proceeds for which exceed $25,000,000 during such fiscal year.
…
5.2 Mandatory PrepaymentsOn each occasion that a Prepayment Trigger Event occurs, the Borrower shall give written notice thereof to the Administrative Agent and shall, contemporaneously with the occurrence of such Prepayment Trigger Event, prepay outstanding credit granted to the Borrower under the Facilities in an amount equal to 100% of the Net Cash Proceeds. Section 2.11 shall be complied with in connection with any such prepayment. Other than any payments required pursuant to Section 2.11, there are no premiums, penalties or other additional payments associated with any mandatory prepayments under this Section 5.2. Amounts which are prepaid as aforesaid shall be applied firstly to the scheduled instalments under the NRT Facility (including the instalment due and payable on the Maturity Date) in inverse order of maturity and secondly to the Revolving Facility. In each case, any amounts which are prepaid as aforesaid may not be reborrowed.
It was a solid day for the Canadian preferred share market, with PerpetualDiscounts gaining 6bp, FixedResets up 10bp and DeemedRetractibles winning 15bp. Volatility was good. Volume was light, despite a few issues showing some big trades.
| 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 | -0.1942 % | 2,112.6 |
| FixedFloater | 4.80 % | 4.50 % | 26,674 | 17.28 | 1 | 0.0000 % | 3,211.9 |
| Floater | 3.41 % | 3.43 % | 155,419 | 18.64 | 2 | -0.1942 % | 2,281.0 |
| OpRet | 4.96 % | 3.10 % | 55,121 | 1.50 | 7 | 0.1650 % | 2,481.1 |
| SplitShare | 5.75 % | 6.57 % | 58,442 | 5.12 | 3 | 0.1401 % | 2,514.7 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1650 % | 2,268.7 |
| Perpetual-Premium | 5.57 % | 1.83 % | 101,622 | 0.15 | 13 | 0.0780 % | 2,156.2 |
| Perpetual-Discount | 5.31 % | 5.32 % | 107,732 | 14.78 | 17 | 0.0556 % | 2,296.2 |
| FixedReset | 5.10 % | 2.90 % | 221,015 | 2.50 | 63 | 0.0963 % | 2,350.3 |
| Deemed-Retractible | 5.03 % | 4.34 % | 201,217 | 3.45 | 46 | 0.1461 % | 2,224.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| ENB.PR.A | Perpetual-Premium | -1.17 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2011-12-14 Maturity Price : 25.00 Evaluated at bid price : 25.37 Bid-YTW : -14.92 % |
| POW.PR.D | Perpetual-Discount | 1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-11-14 Maturity Price : 24.25 Evaluated at bid price : 24.55 Bid-YTW : 5.13 % |
| IAG.PR.A | Deemed-Retractible | 1.22 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.32 Bid-YTW : 5.58 % |
| SLF.PR.H | FixedReset | 1.25 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.31 Bid-YTW : 4.22 % |
| TCA.PR.X | Perpetual-Premium | 1.27 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-10-15 Maturity Price : 50.00 Evaluated at bid price : 52.66 Bid-YTW : 2.86 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PR.I | FixedReset | 351,635 | Nesbitt crossed blocks of 200,000 shares, 46,000 and 100,000, all at 27.45. Nice tickets! YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-31 Maturity Price : 25.00 Evaluated at bid price : 27.46 Bid-YTW : 2.58 % |
| ENB.PR.B | FixedReset | 296,965 | Scotia sold 11,200 to anonymous at 25.30. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-11-14 Maturity Price : 23.22 Evaluated at bid price : 25.30 Bid-YTW : 3.70 % |
| CM.PR.L | FixedReset | 199,245 | Nesbitt crossed 50,000 and 25,000 at 27.60. RBC crossed blocks of 35,000 and 65,000, both at the same price. TD crossed 20,000 at the same price again. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-04-30 Maturity Price : 25.00 Evaluated at bid price : 27.47 Bid-YTW : 2.46 % |
| CM.PR.E | Perpetual-Discount | 125,750 | RBC crossed 98,500 at 25.05. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-11-14 Maturity Price : 24.73 Evaluated at bid price : 25.04 Bid-YTW : 5.63 % |
| TD.PR.A | FixedReset | 99,914 | RBC crossed 81,000 and 10,000, both at 26.30. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-01-31 Maturity Price : 25.00 Evaluated at bid price : 26.24 Bid-YTW : 2.77 % |
| CM.PR.G | Perpetual-Discount | 90,618 | Desjardins crossed 65,000 at 24.92. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-11-14 Maturity Price : 24.58 Evaluated at bid price : 24.90 Bid-YTW : 5.45 % |
| There were 18 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BAM.PR.O | OpRet | Quote: 25.63 – 26.09 Spot Rate : 0.4600 Average : 0.3200 YTW SCENARIO |
| RY.PR.I | FixedReset | Quote: 26.06 – 26.39 Spot Rate : 0.3300 Average : 0.2175 YTW SCENARIO |
| RY.PR.L | FixedReset | Quote: 26.41 – 26.75 Spot Rate : 0.3400 Average : 0.2345 YTW SCENARIO |
| PWF.PR.I | Perpetual-Premium | Quote: 25.47 – 25.79 Spot Rate : 0.3200 Average : 0.2168 YTW SCENARIO |
| TCA.PR.Y | Perpetual-Premium | Quote: 52.64 – 52.96 Spot Rate : 0.3200 Average : 0.2183 YTW SCENARIO |
| CU.PR.B | Perpetual-Premium | Quote: 25.55 – 25.83 Spot Rate : 0.2800 Average : 0.1901 YTW SCENARIO |