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Not a pleasant day for global markets:
The global economy is under increasing stress as growth cools and trade tensions take a mounting toll. On Wednesday, the tremors were felt worldwide.
Shares on Wall Street were off sharply, only a day after they had rallied as President Trump narrowed the scope of his next round of tariffs. The S&P 500 was down 2.9 percent. And bond markets offered an ominous warning on American growth prospects, with yields falling to levels not seen in years.
The financial jitters, which continued Thursday as markets in Asia were down in early trading, came after new data showed the German economy hurtling toward a recession and factory output in China growing at its slowest pace in 17 years.
The trouble in two of the world’s manufacturing powerhouses indicated, in part, how hard both have been hit by Mr. Trump’s tariffs. And it increased concern that the United States, too, is headed for an economic reckoning.
Treasuries reaped the benefits:
Investors were intensely attuned Wednesday to downbeat economic signals from the bond market. Yields on long-term United States Treasury securities continue to plumb lows not seen in recent years. The yield on the benchmark 10-year Treasury note fell to 1.58 percent, a level it last reached in late 2016. The yield on the 30-year bond fell to 2.03 percent, the lowest level on record.
The S&P 500 fell 2.9 per cent. The Dow Jones Industrial Average suffered its worst selloff since October, 2018, tumbling 800.49 points or 3.1 per cent.
Canada’s benchmark index, the S&P/TSX Composite, fell 1.9 per cent, also its biggest one-day decline since October and erasing $47-billion from the index’s market capitalization, according to Bloomberg.
But the bond market, which has been sending gloomy economic signals for much of this year, reflected some of the biggest concerns among many investors as the rush into safe holdings raised bond prices and lowered yields.
The yield on the Government of Canada 10-year bond fell to 1.14 per cent, a 3 1/2-year low and down from a yield of 2.6 per cent in October.
TXPR closed at 584.66, down 1.58% on the day after setting a new 52-week low of 583.85. Volume was 3.33-million, second only to July 19 in the past 30 days.
CPD closed at 11.65, a new 52-week low and down 1.31% on the day. Volume of 158,542 was the fourth-highest of the past thirty days.
ZPR closed at 9.26, a new 52-week low and down 1.70% on the day. Volume of 391,261 was the second-highest of the past 30 days, beaten only by the August 13 volume of 557,210.
Five-year Canada yields were down 6bp to 1.19% today.
PerpetualDiscounts now yield 5.59%, equivalent to 7.27% interest at the standard equivalency factor of 1.3x. Long corporates now yield 3.21%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has widened to an astonishing 405bp, a new post-Credit Crunch record (second only to the 445bp recorded November 26, 2008, a day on which
The TXPR index was down 5.94% on the BCE news.
) and significantly wider than the 390bp the reported August 7.
| 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 | -2.1014 % | 1,851.3 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -2.1014 % | 3,397.1 |
| Floater | 6.45 % | 6.68 % | 40,472 | 12.88 | 4 | -2.1014 % | 1,957.8 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0396 % | 3,336.5 |
| SplitShare | 4.67 % | 4.70 % | 66,207 | 4.06 | 7 | 0.0396 % | 3,984.5 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0396 % | 3,108.8 |
| Perpetual-Premium | 5.62 % | -8.34 % | 53,389 | 0.09 | 9 | -0.1315 % | 2,983.9 |
| Perpetual-Discount | 5.46 % | 5.59 % | 55,435 | 14.52 | 25 | -0.2255 % | 3,120.6 |
| FixedReset Disc | 5.85 % | 5.53 % | 146,086 | 14.66 | 66 | -2.3116 % | 1,991.3 |
| Deemed-Retractible | 5.27 % | 6.06 % | 66,616 | 7.88 | 27 | -0.5603 % | 3,093.5 |
| FloatingReset | 4.64 % | 7.30 % | 63,678 | 7.97 | 3 | -1.1938 % | 2,281.0 |
| FixedReset Prem | 5.19 % | 4.54 % | 168,278 | 1.92 | 21 | -0.4201 % | 2,568.8 |
| FixedReset Bank Non | 1.99 % | 4.33 % | 89,417 | 2.39 | 3 | -0.2514 % | 2,641.8 |
| FixedReset Ins Non | 5.54 % | 8.01 % | 99,193 | 7.94 | 21 | -1.6007 % | 2,055.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| HSE.PR.C | FixedReset Disc | -5.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 15.80 Evaluated at bid price : 15.80 Bid-YTW : 7.00 % |
| HSE.PR.E | FixedReset Disc | -5.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 16.82 Evaluated at bid price : 16.82 Bid-YTW : 7.21 % |
| HSE.PR.G | FixedReset Disc | -5.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 16.80 Evaluated at bid price : 16.80 Bid-YTW : 7.16 % |
| HSE.PR.A | FixedReset Disc | -4.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 10.66 Evaluated at bid price : 10.66 Bid-YTW : 6.85 % |
| TD.PF.A | FixedReset Disc | -4.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 16.27 Evaluated at bid price : 16.27 Bid-YTW : 5.35 % |
| EMA.PR.C | FixedReset Disc | -4.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 17.18 Evaluated at bid price : 17.18 Bid-YTW : 5.96 % |
| BMO.PR.W | FixedReset Disc | -4.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 15.57 Evaluated at bid price : 15.57 Bid-YTW : 5.54 % |
| CU.PR.C | FixedReset Disc | -4.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 15.75 Evaluated at bid price : 15.75 Bid-YTW : 5.70 % |
| CM.PR.P | FixedReset Disc | -4.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 15.55 Evaluated at bid price : 15.55 Bid-YTW : 5.62 % |
| TD.PF.C | FixedReset Disc | -4.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 16.21 Evaluated at bid price : 16.21 Bid-YTW : 5.39 % |
| MFC.PR.G | FixedReset Ins Non | -3.90 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.00 Bid-YTW : 8.21 % |
| NA.PR.S | FixedReset Disc | -3.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 16.51 Evaluated at bid price : 16.51 Bid-YTW : 5.68 % |
| TD.PF.I | FixedReset Disc | -3.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 20.84 Evaluated at bid price : 20.84 Bid-YTW : 5.17 % |
| MFC.PR.K | FixedReset Ins Non | -3.52 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.01 Bid-YTW : 8.77 % |
| TRP.PR.A | FixedReset Disc | -3.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 12.37 Evaluated at bid price : 12.37 Bid-YTW : 6.44 % |
| IAF.PR.I | FixedReset Ins Non | -3.41 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.99 Bid-YTW : 7.87 % |
| TRP.PR.E | FixedReset Disc | -3.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 14.20 Evaluated at bid price : 14.20 Bid-YTW : 6.33 % |
| TD.PF.J | FixedReset Disc | -3.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 19.65 Evaluated at bid price : 19.65 Bid-YTW : 5.23 % |
| TRP.PR.F | FloatingReset | -3.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 12.38 Evaluated at bid price : 12.38 Bid-YTW : 7.30 % |
| PWF.PR.P | FixedReset Disc | -3.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 12.50 Evaluated at bid price : 12.50 Bid-YTW : 5.59 % |
| EMA.PR.F | FixedReset Disc | -3.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 15.73 Evaluated at bid price : 15.73 Bid-YTW : 6.16 % |
| TRP.PR.G | FixedReset Disc | -3.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 16.40 Evaluated at bid price : 16.40 Bid-YTW : 6.34 % |
| BAM.PR.B | Floater | -3.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 10.51 Evaluated at bid price : 10.51 Bid-YTW : 6.68 % |
| SLF.PR.I | FixedReset Ins Non | -3.02 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.01 Bid-YTW : 8.00 % |
| BAM.PF.B | FixedReset Disc | -3.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 16.10 Evaluated at bid price : 16.10 Bid-YTW : 6.35 % |
| MFC.PR.M | FixedReset Ins Non | -3.00 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.82 Bid-YTW : 9.26 % |
| IAF.PR.G | FixedReset Ins Non | -2.98 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.87 Bid-YTW : 7.49 % |
| TD.PF.D | FixedReset Disc | -2.90 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 18.40 Evaluated at bid price : 18.40 Bid-YTW : 5.46 % |
| TD.PF.K | FixedReset Disc | -2.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 19.26 Evaluated at bid price : 19.26 Bid-YTW : 5.27 % |
| BMO.PR.C | FixedReset Disc | -2.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 21.33 Evaluated at bid price : 21.33 Bid-YTW : 5.34 % |
| CM.PR.R | FixedReset Disc | -2.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 20.46 Evaluated at bid price : 20.46 Bid-YTW : 5.62 % |
| BAM.PR.K | Floater | -2.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 10.51 Evaluated at bid price : 10.51 Bid-YTW : 6.68 % |
| BIP.PR.A | FixedReset Disc | -2.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 17.60 Evaluated at bid price : 17.60 Bid-YTW : 6.88 % |
| TD.PF.B | FixedReset Disc | -2.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 16.90 Evaluated at bid price : 16.90 Bid-YTW : 5.28 % |
| TRP.PR.C | FixedReset Disc | -2.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 10.70 Evaluated at bid price : 10.70 Bid-YTW : 6.39 % |
| BAM.PR.C | Floater | -2.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 10.51 Evaluated at bid price : 10.51 Bid-YTW : 6.68 % |
| MFC.PR.I | FixedReset Ins Non | -2.68 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.53 Bid-YTW : 8.01 % |
| BAM.PF.E | FixedReset Disc | -2.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 15.00 Evaluated at bid price : 15.00 Bid-YTW : 6.43 % |
| NA.PR.W | FixedReset Disc | -2.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 15.50 Evaluated at bid price : 15.50 Bid-YTW : 5.63 % |
| IFC.PR.A | FixedReset Ins Non | -2.54 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.82 Bid-YTW : 10.34 % |
| TRP.PR.D | FixedReset Disc | -2.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 14.88 Evaluated at bid price : 14.88 Bid-YTW : 6.25 % |
| BIP.PR.D | FixedReset Disc | -2.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 21.38 Evaluated at bid price : 21.70 Bid-YTW : 5.83 % |
| MFC.PR.N | FixedReset Ins Non | -2.44 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.61 Bid-YTW : 9.36 % |
| NA.PR.C | FixedReset Disc | -2.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 20.87 Evaluated at bid price : 20.87 Bid-YTW : 5.55 % |
| BAM.PR.R | FixedReset Disc | -2.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 14.08 Evaluated at bid price : 14.08 Bid-YTW : 6.23 % |
| RY.PR.S | FixedReset Disc | -2.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 19.22 Evaluated at bid price : 19.22 Bid-YTW : 5.09 % |
| BMO.PR.S | FixedReset Disc | -2.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 17.07 Evaluated at bid price : 17.07 Bid-YTW : 5.33 % |
| CM.PR.Q | FixedReset Disc | -2.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 17.64 Evaluated at bid price : 17.64 Bid-YTW : 5.69 % |
| CM.PR.S | FixedReset Disc | -1.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 17.50 Evaluated at bid price : 17.50 Bid-YTW : 5.54 % |
| NA.PR.E | FixedReset Disc | -1.90 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 18.05 Evaluated at bid price : 18.05 Bid-YTW : 5.53 % |
| BAM.PF.J | FixedReset Disc | -1.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 22.68 Evaluated at bid price : 23.51 Bid-YTW : 5.07 % |
| BAM.PF.F | FixedReset Disc | -1.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 16.40 Evaluated at bid price : 16.40 Bid-YTW : 6.31 % |
| EMA.PR.E | Perpetual-Discount | -1.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 20.12 Evaluated at bid price : 20.12 Bid-YTW : 5.62 % |
| BAM.PF.G | FixedReset Disc | -1.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 16.20 Evaluated at bid price : 16.20 Bid-YTW : 6.40 % |
| BMO.PR.T | FixedReset Disc | -1.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 16.30 Evaluated at bid price : 16.30 Bid-YTW : 5.32 % |
| BAM.PR.T | FixedReset Disc | -1.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 14.14 Evaluated at bid price : 14.14 Bid-YTW : 6.31 % |
| RY.PR.Z | FixedReset Disc | -1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 17.50 Evaluated at bid price : 17.50 Bid-YTW : 5.01 % |
| IFC.PR.C | FixedReset Ins Non | -1.76 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 16.75 Bid-YTW : 8.70 % |
| BAM.PR.X | FixedReset Disc | -1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 12.29 Evaluated at bid price : 12.29 Bid-YTW : 6.12 % |
| GWO.PR.S | Deemed-Retractible | -1.74 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.69 Bid-YTW : 6.06 % |
| NA.PR.G | FixedReset Disc | -1.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 19.20 Evaluated at bid price : 19.20 Bid-YTW : 5.53 % |
| MFC.PR.J | FixedReset Ins Non | -1.73 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.19 Bid-YTW : 8.30 % |
| PWF.PR.T | FixedReset Disc | -1.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 17.79 Evaluated at bid price : 17.79 Bid-YTW : 5.30 % |
| RY.PR.H | FixedReset Disc | -1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 17.32 Evaluated at bid price : 17.32 Bid-YTW : 5.03 % |
| BMO.PR.F | FixedReset Disc | -1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 22.84 Evaluated at bid price : 24.12 Bid-YTW : 4.94 % |
| RY.PR.M | FixedReset Disc | -1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 17.52 Evaluated at bid price : 17.52 Bid-YTW : 5.47 % |
| BIP.PR.F | FixedReset Disc | -1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 21.15 Evaluated at bid price : 21.15 Bid-YTW : 6.13 % |
| MFC.PR.F | FixedReset Ins Non | -1.61 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 12.85 Bid-YTW : 10.29 % |
| SLF.PR.G | FixedReset Ins Non | -1.59 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.00 Bid-YTW : 10.24 % |
| BNS.PR.I | FixedReset Disc | -1.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 19.19 Evaluated at bid price : 19.19 Bid-YTW : 5.18 % |
| BMO.PR.E | FixedReset Disc | -1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 19.35 Evaluated at bid price : 19.35 Bid-YTW : 5.35 % |
| CM.PR.T | FixedReset Disc | -1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 22.78 Evaluated at bid price : 23.97 Bid-YTW : 4.87 % |
| CCS.PR.C | Deemed-Retractible | -1.51 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.06 Bid-YTW : 5.59 % |
| MFC.PR.Q | FixedReset Ins Non | -1.51 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.28 Bid-YTW : 8.20 % |
| TD.PF.E | FixedReset Disc | -1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 18.84 Evaluated at bid price : 18.84 Bid-YTW : 5.43 % |
| BIP.PR.E | FixedReset Disc | -1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 21.20 Evaluated at bid price : 21.20 Bid-YTW : 5.99 % |
| GWO.PR.R | Deemed-Retractible | -1.38 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.09 Bid-YTW : 6.46 % |
| CM.PR.O | FixedReset Disc | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 16.40 Evaluated at bid price : 16.40 Bid-YTW : 5.52 % |
| GWO.PR.H | Deemed-Retractible | -1.26 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.92 Bid-YTW : 6.62 % |
| TD.PF.L | FixedReset Disc | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 22.84 Evaluated at bid price : 24.10 Bid-YTW : 4.80 % |
| SLF.PR.D | Deemed-Retractible | -1.19 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.69 Bid-YTW : 6.90 % |
| TD.PF.M | FixedReset Prem | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 22.94 Evaluated at bid price : 24.38 Bid-YTW : 4.99 % |
| SLF.PR.B | Deemed-Retractible | -1.16 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.07 Bid-YTW : 6.47 % |
| PWF.PR.S | Perpetual-Discount | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 21.65 Evaluated at bid price : 21.65 Bid-YTW : 5.59 % |
| BAM.PF.H | FixedReset Prem | -1.13 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2020-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.31 Bid-YTW : 4.54 % |
| IFC.PR.E | Deemed-Retractible | -1.05 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.52 Bid-YTW : 6.09 % |
| CM.PR.Y | FixedReset Disc | -1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 22.97 Evaluated at bid price : 24.45 Bid-YTW : 5.04 % |
| CU.PR.H | Perpetual-Discount | 1.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 24.18 Evaluated at bid price : 24.65 Bid-YTW : 5.32 % |
| IFC.PR.G | FixedReset Ins Non | 2.93 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.00 Bid-YTW : 7.79 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| IFC.PR.A | FixedReset Ins Non | 103,551 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.82 Bid-YTW : 10.34 % |
| RY.PR.Z | FixedReset Disc | 94,183 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 17.50 Evaluated at bid price : 17.50 Bid-YTW : 5.01 % |
| BMO.PR.Y | FixedReset Disc | 71,196 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 18.24 Evaluated at bid price : 18.24 Bid-YTW : 5.39 % |
| RY.PR.Q | FixedReset Prem | 68,728 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-24 Maturity Price : 25.00 Evaluated at bid price : 25.55 Bid-YTW : 4.13 % |
| TRP.PR.C | FixedReset Disc | 61,115 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 10.70 Evaluated at bid price : 10.70 Bid-YTW : 6.39 % |
| TRP.PR.A | FixedReset Disc | 58,267 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-08-14 Maturity Price : 12.37 Evaluated at bid price : 12.37 Bid-YTW : 6.44 % |
| There were 59 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| HSE.PR.E | FixedReset Disc | Quote: 16.82 – 17.75 Spot Rate : 0.9300 Average : 0.5744 YTW SCENARIO |
| BMO.PR.F | FixedReset Disc | Quote: 24.12 – 24.75 Spot Rate : 0.6300 Average : 0.3865 YTW SCENARIO |
| PWF.PR.T | FixedReset Disc | Quote: 17.79 – 18.33 Spot Rate : 0.5400 Average : 0.3465 YTW SCENARIO |
| SLF.PR.I | FixedReset Ins Non | Quote: 18.01 – 18.49 Spot Rate : 0.4800 Average : 0.2934 YTW SCENARIO |
| TRP.PR.G | FixedReset Disc | Quote: 16.40 – 16.86 Spot Rate : 0.4600 Average : 0.2758 YTW SCENARIO |
| GWO.PR.S | Deemed-Retractible | Quote: 23.69 – 24.23 Spot Rate : 0.5400 Average : 0.3719 YTW SCENARIO |
Perpetual discount will be even greater after today’s continued weakness. What are buyers getting wrong ? The drop in share price is simply not covered by the dividends recvd.
Are we heading to a point that the only value in these preferred shares is the income stream and not the $25 value.
Here’s the hierarchy of the smartness of buyers in general:
Bond Market
Currency Market
Stocks
Costco Shoppers
Superstore Shoppers
Comic Collectors
Rare Car Collectors…
..
..
..
Beany Boo Collectors
Preferred Shares Buyers in Canada.
Are we heading to a point that the only value in these preferred shares is the income stream and not the $25 value.
I think that’s always been the motive.
Why even bother looking at the prices when you are getting the dividends. It’s the rate-resets that are the more complicated beasts.
Perpetual discounts have barely taken any fall. The issues I have have fallen by no more than 25 to 50 cents at the most. And that too is likely forced selling. One should be able to take that much beating!
I think when James says spreads are widening, it’s not only because of the yields increasing here, but because of bond yields decreasing and the preferred yields getting slightly higher to stable.
Are we heading to a point that the only value in these preferred shares is the income stream and not the $25 value.
That has always been the case for any PerpetualDiscount. Even with PerpetualPremiums, the $25.00 redemption value is only a possibility – of widely varying probability – in the calculations (since it is entirely at the option of the issuer) and must therefore be compared with a Present Value analysis that does not include redemption.
I think when James says spreads are widening, it’s not only because of the yields increasing here, but because of bond yields decreasing and the preferred yields getting slightly higher to stable.
Yes. Today, August 14, the PerpetualDiscount index yields 5.59%, whereas on October 4, 2018 (the market peak, overall) the yield was … 5.59%.
In the meantime, the yield on long-term corporates has dropped to 3.21% today (August 14) from 4.15% on October 3, 2018.
So that’s a helluva drop in long-term corporate bond yields that has not been reflected at all in the Straight Perpetual market … which doesn’t really make a lot of sense!