Having destroyed Europe, the politicians are working on banking:
Banks may face tougher bonus curbs including a ban on awards stemming from carry-trade profits on cheap European Central Bank loans under proposed changes to a law on Basel capital rules endorsed by European Union lawmakers.
Lenders should also be forbidden from giving staff bonus awards that exceed fixed salaries, in the proposals approved by members of the European Parliament’s economic and monetary affairs committee in Brussels today. The amendments will be part of the EU assembly’s negotiation position in talks with governments on the legislation.
It was a mixed day for the Canadian preferred share market, with PerpetualPremiums losing 11bp, FixedResets off 8bp and DeemedRetractibles gaining 2bp. Volatility was good, with no clear trend. Volume was extremely low.
| 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 | 0.3336 % | 2,481.3 |
| FixedFloater | 4.45 % | 3.82 % | 28,991 | 17.70 | 1 | -0.8821 % | 3,543.0 |
| Floater | 2.91 % | 2.93 % | 53,651 | 19.87 | 3 | 0.3336 % | 2,679.2 |
| OpRet | 4.76 % | 2.79 % | 53,815 | 1.09 | 5 | 0.1305 % | 2,509.2 |
| SplitShare | 5.24 % | 3.87 % | 62,537 | 0.59 | 4 | -0.1235 % | 2,695.9 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1305 % | 2,294.4 |
| Perpetual-Premium | 5.45 % | 2.59 % | 72,438 | 0.14 | 25 | -0.1062 % | 2,230.2 |
| Perpetual-Discount | 5.06 % | 5.01 % | 158,276 | 15.38 | 8 | -0.1126 % | 2,453.7 |
| FixedReset | 5.04 % | 2.94 % | 175,554 | 2.09 | 68 | -0.0778 % | 2,403.4 |
| Deemed-Retractible | 4.94 % | 3.41 % | 177,768 | 1.40 | 45 | 0.0235 % | 2,332.2 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.M | Perpetual-Discount | -1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-05-14 Maturity Price : 23.36 Evaluated at bid price : 23.63 Bid-YTW : 5.08 % |
| IGM.PR.B | Perpetual-Premium | -1.09 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2018-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.52 Bid-YTW : 5.60 % |
| SLF.PR.I | FixedReset | -1.05 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2016-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.43 Bid-YTW : 3.98 % |
| BAM.PR.B | Floater | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-05-14 Maturity Price : 18.09 Evaluated at bid price : 18.09 Bid-YTW : 2.92 % |
| ELF.PR.F | Perpetual-Discount | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-05-14 Maturity Price : 24.55 Evaluated at bid price : 24.85 Bid-YTW : 5.38 % |
| IAG.PR.E | Deemed-Retractible | 1.15 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 26.30 Bid-YTW : 5.44 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| FTS.PR.C | OpRet | 115,865 | National crossed 107,900 at 25.60. YTW SCENARIO Maturity Type : Call Maturity Date : 2012-07-01 Maturity Price : 25.25 Evaluated at bid price : 25.61 Bid-YTW : 2.79 % |
| RY.PR.B | Deemed-Retractible | 56,732 | Desjardins crossed 40,200 at 26.00. YTW SCENARIO Maturity Type : Call Maturity Date : 2012-08-24 Maturity Price : 25.75 Evaluated at bid price : 25.92 Bid-YTW : 1.74 % |
| BMO.PR.J | Deemed-Retractible | 56,604 | Desjardins crossed 45,200 at 26.20. YTW SCENARIO Maturity Type : Call Maturity Date : 2012-06-13 Maturity Price : 26.00 Evaluated at bid price : 26.06 Bid-YTW : -0.07 % |
| TD.PR.G | FixedReset | 50,064 | Nesbitt crossed 40,000 at 26.80. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-04-30 Maturity Price : 25.00 Evaluated at bid price : 26.76 Bid-YTW : 2.68 % |
| BMO.PR.Q | FixedReset | 39,469 | Nesbitt sold 19,000 to anonymous at 25.60. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.68 Bid-YTW : 2.91 % |
| ENB.PR.F | FixedReset | 36,633 | YTW SCENARIO Maturity Type : Call Maturity Date : 2018-06-01 Maturity Price : 25.00 Evaluated at bid price : 25.35 Bid-YTW : 3.72 % |
| There were 14 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| FBS.PR.C | SplitShare | Quote: 10.69 – 11.88 Spot Rate : 1.1900 Average : 0.7170 YTW SCENARIO |
| PWF.PR.O | Perpetual-Premium | Quote: 26.20 – 26.52 Spot Rate : 0.3200 Average : 0.2190 YTW SCENARIO |
| MFC.PR.H | FixedReset | Quote: 25.60 – 25.81 Spot Rate : 0.2100 Average : 0.1324 YTW SCENARIO |
| BAM.PR.M | Perpetual-Discount | Quote: 23.63 – 23.97 Spot Rate : 0.3400 Average : 0.2708 YTW SCENARIO |
| IGM.PR.B | Perpetual-Premium | Quote: 25.52 – 25.80 Spot Rate : 0.2800 Average : 0.2142 YTW SCENARIO |
| BMO.PR.H | Deemed-Retractible | Quote: 25.69 – 25.85 Spot Rate : 0.1600 Average : 0.1039 YTW SCENARIO |