There was a good US jobs number today:
Employers in the U.S. boosted payrolls more than forecast in February, capping the best six- month streak of job growth since 2006 and sending stocks higher.
The 227,000 increase followed a revised 284,000 gain in January that was bigger than first estimated, Labor Department figures showed today in Washington. The median projection of economists in a Bloomberg News survey called for a 210,000 rise. The jobless rate held at 8.3 percent, even as 476,000 more workers sought employment.
More jobs are helping fuel the wage gains that drive consumer spending, which accounts for about 70 percent of the economy.
Canada, not so much:
Canada’s economy shed 2,800 jobs last month, extending a stretch of meagre job creation that began last summer.
The country’s jobless rate fell two notches to 7.4 per cent in February, but that was due to fewer people seeking work rather than any pickup in the labour market, Statistics Canada said Friday.
But fear not, Canadians! The wise men in Ottawa are exerting every effort to eliminate Twitter posting from government computers.
Amazingly, Greece CDSs reflect reality:
Greece’s use of collective action clauses forcing investors to take losses under its debt restructuring triggers payouts on $3 billion of default insurance, the International Swaps & Derivatives Association said.
A total 4,323 credit-default swap contracts may now be settled after ISDA’s determinations committee ruled the use of CACs is a restructuring credit event, according to a statement distributed today by Business Wire. Before the ruling, Greek swaps rose to a record $7.68 million in advance and $100,000 annually to insure $10 million of debt for five years.
Veresen, proud issuer of VSN.PR.A, issued two series of BBB(high) MTNs:
— $300 million 3.95% unsecured medium-term notes (MTNs) maturing on March 14, 2017.
— $50 million 5.05% unsecured MTNs maturing on March 14, 2022.
The 110bp premium for the extra five years compares with a 55bp relative term premium on Canadas.
Husky Energy, proud issuer of HSE.PR.A, was confirmed at Pfd-2(low) by DBRS:
Husky maintains a conservative financial profile. Its debt-to-capital and debt-to-cash flow ratios improved to 18% and 0.77 times, respectively, in 2011 from 22% and 1.39 times, respectively, in 2010. Common and preferred share issuance totaling $2.0 billion (including dividends paid in shares) strengthened its key credit metrics and liquidity position, with $3.3 billion of bank facility availability and $1.8 billion of cash at December 31, 2011.
DBRS expects Husky to maintain its conservative financial profile, with only modest weakening of its key credit metrics relative to year-end 2010 levels during the high capex period through 2015, as well as making significant progress on its upstream operational targets over the period in order to maintain the current ratings.
It was another day of little direction for the Canadian preferred share market, with PerpetualPremiums down 9bp, FixedResets gaining 3bp and DeemedRetractibles off 5bp. The market was affected by a new issue of ELF 5.50% Straight Perpetuals; given the lack of overall movement, the Performance Highlights table is surprisingly lengthy, with Floaters doing quite well, presumably due to speculation about future increases in the BoC overnight rate. Volume remained 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 |
1.8886 % |
2,430.6 |
FixedFloater |
4.49 % |
3.83 % |
41,533 |
17.48 |
1 |
0.0473 % |
3,473.2 |
Floater |
2.95 % |
2.98 % |
49,530 |
19.69 |
3 |
1.8886 % |
2,624.4 |
OpRet |
4.92 % |
3.66 % |
50,239 |
1.26 |
6 |
-0.3780 % |
2,487.8 |
SplitShare |
5.28 % |
-2.55 % |
89,548 |
0.77 |
4 |
-0.2435 % |
2,676.8 |
Interest-Bearing |
0.00 % |
0.00 % |
0 |
0.00 |
0 |
-0.3780 % |
2,274.9 |
Perpetual-Premium |
5.40 % |
0.61 % |
102,359 |
0.09 |
25 |
-0.0863 % |
2,216.5 |
Perpetual-Discount |
5.08 % |
5.10 % |
180,787 |
15.24 |
7 |
-0.3923 % |
2,422.9 |
FixedReset |
5.04 % |
2.86 % |
196,849 |
2.24 |
66 |
0.0342 % |
2,387.6 |
Deemed-Retractible |
4.93 % |
3.75 % |
212,584 |
2.90 |
46 |
-0.0459 % |
2,311.9 |
Performance Highlights |
Issue |
Index |
Change |
Notes |
FTS.PR.E |
OpRet |
-1.88 % |
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2013-06-01
Maturity Price : 25.75
Evaluated at bid price : 26.10
Bid-YTW : 3.73 % |
BNA.PR.E |
SplitShare |
-1.13 % |
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2017-12-10
Maturity Price : 25.00
Evaluated at bid price : 24.53
Bid-YTW : 5.27 % |
ELF.PR.G |
Perpetual-Discount |
-1.09 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-03-09
Maturity Price : 22.29
Evaluated at bid price : 22.60
Bid-YTW : 5.32 % |
MFC.PR.F |
FixedReset |
-1.02 % |
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.15
Bid-YTW : 3.91 % |
BAM.PR.K |
Floater |
1.43 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-03-09
Maturity Price : 17.75
Evaluated at bid price : 17.75
Bid-YTW : 2.99 % |
SLF.PR.G |
FixedReset |
1.72 % |
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.77
Bid-YTW : 3.49 % |
BAM.PR.B |
Floater |
1.94 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-03-09
Maturity Price : 17.90
Evaluated at bid price : 17.90
Bid-YTW : 2.96 % |
BAM.PR.C |
Floater |
2.30 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-03-09
Maturity Price : 17.76
Evaluated at bid price : 17.76
Bid-YTW : 2.98 % |
Volume Highlights |
Issue |
Index |
Shares Traded |
Notes |
HSE.PR.A |
FixedReset |
52,835 |
Nesbitt crossed 50,000 at 25.85.
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-03-09
Maturity Price : 23.50
Evaluated at bid price : 25.85
Bid-YTW : 3.13 % |
BNS.PR.Z |
FixedReset |
49,524 |
TD crossed 40,000 at 25.22.
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.23
Bid-YTW : 3.13 % |
ENB.PR.F |
FixedReset |
37,032 |
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2018-06-01
Maturity Price : 25.00
Evaluated at bid price : 25.52
Bid-YTW : 3.74 % |
RY.PR.D |
Deemed-Retractible |
33,246 |
TD crossed 25,000 at 25.72.
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2016-02-24
Maturity Price : 25.00
Evaluated at bid price : 25.70
Bid-YTW : 3.80 % |
FTS.PR.F |
Perpetual-Premium |
26,693 |
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2014-12-01
Maturity Price : 25.25
Evaluated at bid price : 25.38
Bid-YTW : 4.71 % |
GWO.PR.P |
Deemed-Retractible |
26,492 |
Recent new issue.
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.65
Bid-YTW : 5.13 % |
There were 22 other index-included issues trading in excess of 10,000 shares. |
Wide Spread Highlights |
Issue |
Index |
Quote Data and Yield Notes |
FTS.PR.E |
OpRet |
Quote: 26.10 – 27.12
Spot Rate : 1.0200
Average : 0.7990
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2013-06-01
Maturity Price : 25.75
Evaluated at bid price : 26.10
Bid-YTW : 3.73 % |
MFC.PR.A |
OpRet |
Quote: 25.37 – 25.78
Spot Rate : 0.4100
Average : 0.2953
YTW SCENARIO
Maturity Type : Soft Maturity
Maturity Date : 2015-12-18
Maturity Price : 25.00
Evaluated at bid price : 25.37
Bid-YTW : 3.66 % |
BNA.PR.E |
SplitShare |
Quote: 24.53 – 24.90
Spot Rate : 0.3700
Average : 0.2564
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2017-12-10
Maturity Price : 25.00
Evaluated at bid price : 24.53
Bid-YTW : 5.27 % |
MFC.PR.C |
Deemed-Retractible |
Quote: 23.26 – 23.70
Spot Rate : 0.4400
Average : 0.3306
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.26
Bid-YTW : 5.43 % |
CM.PR.K |
FixedReset |
Quote: 26.63 – 26.91
Spot Rate : 0.2800
Average : 0.1980
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2014-07-31
Maturity Price : 25.00
Evaluated at bid price : 26.63
Bid-YTW : 2.78 % |
CM.PR.D |
Perpetual-Premium |
Quote: 25.88 – 26.13
Spot Rate : 0.2500
Average : 0.1695
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2012-04-08
Maturity Price : 25.25
Evaluated at bid price : 25.88
Bid-YTW : -16.62 % |
BK.PR.A 2011 Annual Report
March 10th, 2012Canadian Banc Corp. has released its Annual Report to November 30, 2011.
Year
Years
Years
I suggest the reported outperformance probably has more to do with the poor performance of insurers over the past five years than with any manifestation of investment skill.
Figures of interest are:
MER: 1.57% of the whole unit value, excluding one time initial offering expenses.
Average Net Assets: We need this to calculate portfolio yield; unfortunately the number of units changesd, which makes it more approximate. The Total Assets of the fund at year end was $152.3-million, compared to $181.6-million a year prior, so call it an average of $167-million. Total Preferred Share Distribution in 2010 was $3.971-million, at $0.50/share implies an average of 7.942-million units, at an average NAV of ((20.17 + 22.09) / 2 = 21.13, so call it $167.8-million. Close enough! Call the Average Net Assets $167-million.
Underlying Portfolio Yield: Investment income of $6.606-million received divided by average net assets of $167-million is 3.96%.
Income Coverage: Net investment income of $6.606-million less expenses before issuance fees of $2.771-million is $3.835-million, to cover preferred dividends of 3.971-million is just under 97%.
BK.PR.A was last mentioned on PrefBlog when the Semi-annual report was examined.
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