This is worth highlighting … How the Wealth Was Won: Factors Shares as Market Fundamentals by Daniel L. Greenwald, Martin Lettau, and Sydney C. Ludvigson, NBER Working Paper No. 25769:
Why do stocks rise and fall? From 1989 to 2017, $34 trillion of real equity wealth (2017:Q4 dollars) was created by the U.S. corporate sector. We estimate that 44% of this increase was attributable to a reallocation of rewards to shareholders in a decelerating economy, primarily at the expense of labor compensation. Economic growth accounted for just 25%, followed by a lower risk price (18%), and lower interest rates (14%). The period 1952 to 1988 experienced less than one third of the growth in market equity, but economic growth accounted for more than 100% of it.
One last trip to the trough for the Baby Boomers? Or is that real estate?
| 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 | 3.24 % | 3.83 % | 51,452 | 19.69 | 1 | -0.3684 % | 2,696.7 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -2.2173 % | 4,971.0 |
| Floater | 3.21 % | 3.27 % | 84,976 | 18.99 | 3 | -2.2173 % | 2,864.8 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3805 % | 3,664.9 |
| SplitShare | 4.68 % | 4.21 % | 51,457 | 3.81 | 5 | -0.3805 % | 4,376.6 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3805 % | 3,414.8 |
| Perpetual-Premium | 5.15 % | 1.00 % | 43,078 | 0.09 | 28 | 0.1252 % | 3,248.2 |
| Perpetual-Discount | 4.78 % | 4.89 % | 65,999 | 15.62 | 6 | -0.6572 % | 3,788.7 |
| FixedReset Disc | 3.93 % | 4.06 % | 125,415 | 17.32 | 37 | 1.8337 % | 2,809.0 |
| Insurance Straight | 5.03 % | 4.52 % | 92,315 | 13.86 | 20 | -0.4658 % | 3,607.7 |
| FloatingReset | 2.50 % | 2.83 % | 30,007 | 20.19 | 2 | -0.9635 % | 2,753.1 |
| FixedReset Prem | 4.73 % | 3.98 % | 117,610 | 3.64 | 33 | 0.0662 % | 2,702.2 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 1.8337 % | 2,871.4 |
| FixedReset Ins Non | 4.14 % | 3.92 % | 92,616 | 17.24 | 19 | -0.0069 % | 2,914.3 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IFC.PR.E | Insurance Straight | -12.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 21.95 Evaluated at bid price : 22.25 Bid-YTW : 5.95 % |
| BAM.PR.K | Floater | -5.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 13.10 Evaluated at bid price : 13.10 Bid-YTW : 3.31 % |
| BAM.PR.X | FixedReset Disc | -5.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 4.87 % |
| CU.PR.G | Perpetual-Discount | -3.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 22.72 Evaluated at bid price : 23.00 Bid-YTW : 4.91 % |
| IFC.PR.A | FixedReset Ins Non | -1.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 19.93 Evaluated at bid price : 19.93 Bid-YTW : 3.96 % |
| BAM.PF.J | FixedReset Prem | -1.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 23.97 Evaluated at bid price : 25.20 Bid-YTW : 4.72 % |
| RS.PR.A | SplitShare | -1.67 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-12-31 Maturity Price : 10.00 Evaluated at bid price : 10.57 Bid-YTW : 4.00 % |
| SLF.PR.J | FloatingReset | -1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 16.75 Evaluated at bid price : 16.75 Bid-YTW : 2.14 % |
| SLF.PR.G | FixedReset Ins Non | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 17.30 Evaluated at bid price : 17.30 Bid-YTW : 3.78 % |
| FTS.PR.F | Perpetual-Premium | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 24.68 Evaluated at bid price : 25.00 Bid-YTW : 4.92 % |
| GWO.PR.Y | Insurance Straight | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 24.38 Evaluated at bid price : 24.76 Bid-YTW : 4.53 % |
| BMO.PR.Y | FixedReset Disc | 1.16 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-08-25 Maturity Price : 25.00 Evaluated at bid price : 24.38 Bid-YTW : 3.82 % |
| TRP.PR.E | FixedReset Disc | 1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 20.42 Evaluated at bid price : 20.42 Bid-YTW : 4.62 % |
| TRP.PR.B | FixedReset Disc | 1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 13.43 Evaluated at bid price : 13.43 Bid-YTW : 4.61 % |
| NA.PR.C | FixedReset Prem | 1.41 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-11-15 Maturity Price : 25.00 Evaluated at bid price : 25.25 Bid-YTW : 3.67 % |
| NA.PR.G | FixedReset Prem | 1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 23.67 Evaluated at bid price : 25.18 Bid-YTW : 4.12 % |
| GWO.PR.T | Insurance Straight | 1.57 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-06-30 Maturity Price : 25.25 Evaluated at bid price : 25.90 Bid-YTW : 4.24 % |
| TD.PF.J | FixedReset Prem | 1.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 23.78 Evaluated at bid price : 25.04 Bid-YTW : 4.07 % |
| MFC.PR.F | FixedReset Ins Non | 1.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 18.15 Evaluated at bid price : 18.15 Bid-YTW : 3.71 % |
| PWF.PR.S | Perpetual-Premium | 1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 24.58 Evaluated at bid price : 24.85 Bid-YTW : 4.87 % |
| TD.PF.D | FixedReset Disc | 2.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 22.95 Evaluated at bid price : 24.13 Bid-YTW : 4.08 % |
| TRP.PR.C | FixedReset Disc | 2.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 14.80 Evaluated at bid price : 14.80 Bid-YTW : 4.60 % |
| CM.PR.O | FixedReset Disc | 3.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 22.98 Evaluated at bid price : 23.90 Bid-YTW : 3.84 % |
| RY.PR.J | FixedReset Disc | 4.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 23.04 Evaluated at bid price : 24.30 Bid-YTW : 4.00 % |
| BAM.PR.R | FixedReset Disc | 5.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 19.66 Evaluated at bid price : 19.66 Bid-YTW : 4.61 % |
| TRP.PR.G | FixedReset Disc | 87.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 22.22 Evaluated at bid price : 22.80 Bid-YTW : 4.50 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| SLF.PR.I | FixedReset Ins Non | 103,300 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-01-30 Maturity Price : 25.00 Evaluated at bid price : 24.97 Bid-YTW : 2.89 % |
| BAM.PR.X | FixedReset Disc | 88,990 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 4.87 % |
| GWO.PR.Y | Insurance Straight | 51,131 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 24.38 Evaluated at bid price : 24.76 Bid-YTW : 4.53 % |
| BAM.PF.I | FixedReset Prem | 39,700 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-03-31 Maturity Price : 25.00 Evaluated at bid price : 25.31 Bid-YTW : 3.73 % |
| TD.PF.J | FixedReset Prem | 29,619 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 23.78 Evaluated at bid price : 25.04 Bid-YTW : 4.07 % |
| NA.PR.E | FixedReset Prem | 28,992 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-12-06 Maturity Price : 24.15 Evaluated at bid price : 24.51 Bid-YTW : 4.08 % |
| There were 20 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| IFC.PR.E | Insurance Straight | Quote: 22.25 – 26.14 Spot Rate : 3.8900 Average : 2.7609 YTW SCENARIO |
| CIU.PR.A | Perpetual-Premium | Quote: 23.80 – 25.20 Spot Rate : 1.4000 Average : 0.8847 YTW SCENARIO |
| BAM.PR.X | FixedReset Disc | Quote: 16.50 – 17.99 Spot Rate : 1.4900 Average : 1.1048 YTW SCENARIO |
| BAM.PR.K | Floater | Quote: 13.10 – 14.30 Spot Rate : 1.2000 Average : 0.8399 YTW SCENARIO |
| NA.PR.E | FixedReset Prem | Quote: 24.51 – 25.30 Spot Rate : 0.7900 Average : 0.4940 YTW SCENARIO |
| CU.PR.G | Perpetual-Discount | Quote: 23.00 – 24.00 Spot Rate : 1.0000 Average : 0.7188 YTW SCENARIO |
Yep Baby boomers in Canadian urban areas are big benefactors of escalated house prices..
Hopefully our kids were old enough to have bought ! Unfortunately mine were not.
Maybe they will benefit from its meltdown !