Market Action

April 22, 2022

TXPR closed at 633.74, hitting a new 52-week low on the day, down 1.12% on the day. Volume today was 1.87-million, around the median of the past 21 trading days.

CPD closed at 12.60, hitting a new 52-week low on the day, down 1.10% on the day. Volume was 103,470, at the high end of the past 21 trading days.

ZPR closed at 10.60, hitting a new 52-week low on the day, down 0.28% on the day. Volume of 396,070 was third-highest of the past 21 trading days, behind April 7 (another horrible day) and March 31.

Five-year Canada yields were down 2bp to 2.82% today.

But it was a horrible day everywhere:

Wall Street tumbled more than 2.5% on Friday, ensuring the three main benchmarks ended in negative territory for the week, as surprise earnings news and increased certainty around aggressive near-term interest rate rises took its toll on investors. The TSX, fully swept up in the action, was down more than 2% – its worst day of 2022.

It was the third straight week of losses for both the S&P 500 and the Nasdaq, while the Dow Jones posted its fourth weekly decline in a row.

For the Dow, its 2.82% drop on Friday was its biggest one-day fall since October 2020.

The S&P/TSX Composite Index ended down 464.03 points, or 2.1%, at 21,186.38, its biggest decline since last November and its lowest closing level since March 1. For the week, the index was down 3.1%.
…
Canadian economic data showed the largest monthly gain in producer prices since the series began in January 1956.

Still, I consider it only a matter of time before the world wakes up and looks at the yields available. I mean, Holy Smokes, 6.97% on TRP.PR.C, based on a bid of 13.75 and GOC-5 at a constant 2.88%. Five TRP issues lead the rankings of non-insurance FixedReset (Discount) yields, with issues from BAM, FTS, PWF, GWO, IFC, MFC and CU all yielding comfortably over 6% at their bid price with the same assumption regarding five-year yields. 6% as a dividend! Add SLF to the list with an asterisk, the quote on SLF.PR.G is lousy, but at the closing price it yields well over 6%. It’s ridiculous!

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 3.50 % 4.11 % 25,234 19.05 1 10.2941 % 2,671.0
FixedFloater 0.00 % 0.00 % 0 0.00 0 -1.6390 % 4,967.0
Floater 4.10 % 4.15 % 34,112 17.12 4 -1.6390 % 2,862.5
OpRet 0.00 % 0.00 % 0 0.00 0 -0.4038 % 3,609.8
SplitShare 4.65 % 4.76 % 41,706 3.47 6 -0.4038 % 4,310.8
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.4038 % 3,363.5
Perpetual-Premium 5.78 % 5.85 % 74,187 14.11 16 -2.9171 % 2,953.6
Perpetual-Discount 5.73 % 5.83 % 64,210 14.14 17 -2.5111 % 3,234.5
FixedReset Disc 4.47 % 5.92 % 123,550 14.23 49 -1.1026 % 2,567.7
Insurance Straight 5.70 % 5.81 % 91,898 14.15 20 -2.9398 % 3,145.2
FloatingReset 4.39 % 4.71 % 60,765 16.04 2 -1.5816 % 2,676.8
FixedReset Prem 4.90 % 4.75 % 144,092 2.14 19 -0.4732 % 2,634.7
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 -1.1026 % 2,624.7
FixedReset Ins Non 4.50 % 5.97 % 83,353 14.05 15 -1.0155 % 2,669.4
Performance Highlights
Issue Index Change Notes
POW.PR.A Perpetual-Premium -15.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 6.73 %
CM.PR.Q FixedReset Disc -10.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.00
Evaluated at bid price : 20.00
Bid-YTW : 6.43 %
SLF.PR.G FixedReset Ins Non -10.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 14.00
Evaluated at bid price : 14.00
Bid-YTW : 6.82 %
GWO.PR.H Insurance Straight -6.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.20
Evaluated at bid price : 20.20
Bid-YTW : 6.07 %
GWO.PR.Q Insurance Straight -5.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.57
Evaluated at bid price : 21.83
Bid-YTW : 5.95 %
CU.PR.D Perpetual-Discount -4.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.28
Evaluated at bid price : 21.28
Bid-YTW : 5.86 %
BAM.PR.N Perpetual-Discount -4.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.20
Evaluated at bid price : 20.20
Bid-YTW : 5.95 %
GWO.PR.S Insurance Straight -4.10 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.83
Evaluated at bid price : 22.20
Bid-YTW : 5.96 %
IFC.PR.F Insurance Straight -4.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 22.83
Evaluated at bid price : 23.26
Bid-YTW : 5.74 %
SLF.PR.C Insurance Straight -4.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.05
Evaluated at bid price : 20.05
Bid-YTW : 5.61 %
BAM.PR.M Perpetual-Discount -4.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.40
Evaluated at bid price : 20.40
Bid-YTW : 5.89 %
PWF.PR.R Perpetual-Premium -3.81 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 22.96
Evaluated at bid price : 23.23
Bid-YTW : 5.94 %
GWO.PR.Y Insurance Straight -3.70 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 19.50
Evaluated at bid price : 19.50
Bid-YTW : 5.83 %
GWO.PR.R Insurance Straight -3.70 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.80
Evaluated at bid price : 20.80
Bid-YTW : 5.83 %
SLF.PR.E Insurance Straight -3.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.25
Evaluated at bid price : 20.25
Bid-YTW : 5.62 %
BAM.PF.C Perpetual-Discount -3.48 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.51
Evaluated at bid price : 20.51
Bid-YTW : 5.98 %
PWF.PR.A Floater -3.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 14.00
Evaluated at bid price : 14.00
Bid-YTW : 3.99 %
SLF.PR.D Insurance Straight -3.34 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.25
Evaluated at bid price : 20.25
Bid-YTW : 5.55 %
PWF.PR.L Perpetual-Discount -3.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.50
Evaluated at bid price : 21.50
Bid-YTW : 5.96 %
GWO.PR.T Insurance Straight -3.10 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.60
Evaluated at bid price : 21.90
Bid-YTW : 5.93 %
BAM.PF.D Perpetual-Discount -3.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.80
Evaluated at bid price : 20.80
Bid-YTW : 5.96 %
CU.PR.G Perpetual-Discount -2.93 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 19.90
Evaluated at bid price : 19.90
Bid-YTW : 5.75 %
PWF.PR.F Perpetual-Premium -2.81 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 22.25
Evaluated at bid price : 22.52
Bid-YTW : 5.85 %
CU.PR.E Perpetual-Discount -2.76 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.47
Evaluated at bid price : 21.47
Bid-YTW : 5.80 %
MFC.PR.B Insurance Straight -2.72 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.76
Evaluated at bid price : 20.76
Bid-YTW : 5.67 %
GWO.PR.P Insurance Straight -2.70 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 23.15
Evaluated at bid price : 23.45
Bid-YTW : 5.81 %
PWF.PR.E Perpetual-Premium -2.69 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 23.20
Evaluated at bid price : 23.50
Bid-YTW : 5.87 %
GWO.PR.L Insurance Straight -2.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 23.85
Evaluated at bid price : 24.10
Bid-YTW : 5.92 %
TD.PF.A FixedReset Disc -2.59 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.70
Evaluated at bid price : 20.70
Bid-YTW : 5.92 %
GWO.PR.I Insurance Straight -2.53 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 19.65
Evaluated at bid price : 19.65
Bid-YTW : 5.79 %
TRP.PR.C FixedReset Disc -2.48 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 13.75
Evaluated at bid price : 13.75
Bid-YTW : 6.97 %
POW.PR.D Perpetual-Discount -2.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.42
Evaluated at bid price : 21.42
Bid-YTW : 5.89 %
GWO.PR.M Insurance Straight -2.38 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 24.29
Evaluated at bid price : 24.60
Bid-YTW : 5.95 %
PWF.PR.K Perpetual-Discount -2.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.10
Evaluated at bid price : 21.10
Bid-YTW : 5.90 %
FTS.PR.G FixedReset Disc -2.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.25
Evaluated at bid price : 20.25
Bid-YTW : 6.23 %
BIP.PR.E FixedReset Prem -2.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 23.19
Evaluated at bid price : 23.77
Bid-YTW : 6.18 %
FTS.PR.M FixedReset Disc -2.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.35
Evaluated at bid price : 20.35
Bid-YTW : 6.39 %
MFC.PR.C Insurance Straight -2.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.50
Evaluated at bid price : 20.50
Bid-YTW : 5.56 %
ELF.PR.F Perpetual-Discount -2.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 22.60
Evaluated at bid price : 22.85
Bid-YTW : 5.83 %
IFC.PR.K Perpetual-Premium -2.10 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 23.44
Evaluated at bid price : 23.75
Bid-YTW : 5.59 %
IFC.PR.E Insurance Straight -2.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 23.05
Evaluated at bid price : 23.50
Bid-YTW : 5.57 %
MFC.PR.K FixedReset Ins Non -2.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.50
Evaluated at bid price : 21.50
Bid-YTW : 5.94 %
PWF.PF.A Perpetual-Discount -2.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 19.60
Evaluated at bid price : 19.60
Bid-YTW : 5.77 %
PWF.PR.O Perpetual-Premium -2.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 24.28
Evaluated at bid price : 24.58
Bid-YTW : 5.92 %
RY.PR.N Perpetual-Premium -2.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 23.11
Evaluated at bid price : 23.50
Bid-YTW : 5.19 %
CU.PR.J Perpetual-Discount -2.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.02
Evaluated at bid price : 21.02
Bid-YTW : 5.75 %
PWF.PR.H Perpetual-Premium -2.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 24.22
Evaluated at bid price : 24.48
Bid-YTW : 5.89 %
GWO.PR.G Insurance Straight -2.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.81
Evaluated at bid price : 22.05
Bid-YTW : 5.95 %
TRP.PR.G FixedReset Disc -2.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.08
Evaluated at bid price : 21.08
Bid-YTW : 6.31 %
POW.PR.C Perpetual-Premium -1.94 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 24.51
Evaluated at bid price : 24.76
Bid-YTW : 5.89 %
TD.PF.E FixedReset Disc -1.90 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.87
Evaluated at bid price : 22.22
Bid-YTW : 5.85 %
PWF.PR.T FixedReset Disc -1.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.15
Evaluated at bid price : 21.15
Bid-YTW : 6.09 %
POW.PR.G Perpetual-Premium -1.80 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 23.69
Evaluated at bid price : 24.00
Bid-YTW : 5.87 %
BAM.PF.B FixedReset Disc -1.75 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.79
Evaluated at bid price : 20.79
Bid-YTW : 6.55 %
BAM.PR.K Floater -1.75 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 13.51
Evaluated at bid price : 13.51
Bid-YTW : 4.18 %
CU.PR.H Perpetual-Premium -1.71 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 22.75
Evaluated at bid price : 23.00
Bid-YTW : 5.79 %
POW.PR.B Perpetual-Premium -1.70 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 22.82
Evaluated at bid price : 23.10
Bid-YTW : 5.82 %
BAM.PF.G FixedReset Disc -1.69 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.35
Evaluated at bid price : 20.35
Bid-YTW : 6.49 %
PWF.PR.S Perpetual-Discount -1.66 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.70
Evaluated at bid price : 20.70
Bid-YTW : 5.83 %
BAM.PR.X FixedReset Disc -1.64 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 18.00
Evaluated at bid price : 18.00
Bid-YTW : 6.58 %
IAF.PR.G FixedReset Ins Non -1.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 23.05
Evaluated at bid price : 24.10
Bid-YTW : 5.96 %
BAM.PF.F FixedReset Disc -1.61 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.35
Evaluated at bid price : 21.35
Bid-YTW : 6.49 %
SLF.PR.J FloatingReset -1.59 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 16.10
Evaluated at bid price : 16.10
Bid-YTW : 4.13 %
TRP.PR.F FloatingReset -1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 16.88
Evaluated at bid price : 16.88
Bid-YTW : 4.71 %
BAM.PF.I FixedReset Prem -1.57 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2027-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.15
Bid-YTW : 5.36 %
BAM.PF.H FixedReset Prem -1.56 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-12-31
Maturity Price : 25.00
Evaluated at bid price : 25.20
Bid-YTW : 4.87 %
SLF.PR.H FixedReset Ins Non -1.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 5.98 %
TD.PF.K FixedReset Disc -1.54 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 22.63
Evaluated at bid price : 23.04
Bid-YTW : 5.87 %
TRP.PR.B FixedReset Disc -1.50 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 13.09
Evaluated at bid price : 13.09
Bid-YTW : 7.03 %
ELF.PR.H Perpetual-Premium -1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 23.58
Evaluated at bid price : 23.85
Bid-YTW : 5.80 %
TD.PF.D FixedReset Disc -1.43 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.76
Evaluated at bid price : 22.04
Bid-YTW : 5.86 %
BAM.PR.R FixedReset Disc -1.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 18.25
Evaluated at bid price : 18.25
Bid-YTW : 6.47 %
CM.PR.P FixedReset Disc -1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.90
Evaluated at bid price : 20.90
Bid-YTW : 5.90 %
FTS.PR.H FixedReset Disc -1.30 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 15.20
Evaluated at bid price : 15.20
Bid-YTW : 6.40 %
NA.PR.G FixedReset Prem -1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 22.98
Evaluated at bid price : 23.40
Bid-YTW : 5.97 %
PVS.PR.G SplitShare -1.22 % YTW SCENARIO
Maturity Type : Option Certainty
Maturity Date : 2026-02-28
Maturity Price : 25.00
Evaluated at bid price : 25.10
Bid-YTW : 4.99 %
RY.PR.Z FixedReset Disc -1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.26
Evaluated at bid price : 21.26
Bid-YTW : 5.80 %
MFC.PR.F FixedReset Ins Non -1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 15.83
Evaluated at bid price : 15.83
Bid-YTW : 6.07 %
PVS.PR.H SplitShare -1.18 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2027-02-28
Maturity Price : 25.00
Evaluated at bid price : 25.10
Bid-YTW : 4.77 %
FTS.PR.J Perpetual-Discount -1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.75
Evaluated at bid price : 22.00
Bid-YTW : 5.47 %
BAM.PR.C Floater -1.10 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 13.50
Evaluated at bid price : 13.50
Bid-YTW : 4.18 %
MFC.PR.I FixedReset Ins Non -1.10 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 23.50
Evaluated at bid price : 24.30
Bid-YTW : 5.92 %
FTS.PR.F Perpetual-Discount -1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 22.55
Evaluated at bid price : 22.80
Bid-YTW : 5.45 %
FTS.PR.K FixedReset Disc -1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 19.20
Evaluated at bid price : 19.20
Bid-YTW : 6.37 %
BAM.PR.E Ratchet 10.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 25.00
Evaluated at bid price : 18.75
Bid-YTW : 4.11 %
Volume Highlights
Issue Index Shares
Traded		 Notes
BMO.PR.D FixedReset Prem 38,900 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-08-25
Maturity Price : 25.00
Evaluated at bid price : 25.05
Bid-YTW : 5.93 %
FTS.PR.J Perpetual-Discount 32,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.75
Evaluated at bid price : 22.00
Bid-YTW : 5.47 %
TD.PF.D FixedReset Disc 30,500 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.76
Evaluated at bid price : 22.04
Bid-YTW : 5.86 %
RY.PR.H FixedReset Disc 30,375 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.28
Evaluated at bid price : 21.57
Bid-YTW : 5.72 %
BAM.PF.I FixedReset Prem 30,300 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2027-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.15
Bid-YTW : 5.36 %
CM.PR.R FixedReset Prem 27,800 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-07-31
Maturity Price : 25.00
Evaluated at bid price : 25.02
Bid-YTW : 3.87 %
There were 31 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
POW.PR.A Perpetual-Premium Quote: 21.00 – 24.65
Spot Rate : 3.6500
Average : 2.0333

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 6.73 %
CM.PR.Q FixedReset Disc Quote: 20.00 – 22.32
Spot Rate : 2.3200
Average : 1.4822

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 20.00
Evaluated at bid price : 20.00
Bid-YTW : 6.43 %
SLF.PR.G FixedReset Ins Non Quote: 14.00 – 16.00
Spot Rate : 2.0000
Average : 1.2553

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 14.00
Evaluated at bid price : 14.00
Bid-YTW : 6.82 %
GWO.PR.T Insurance Straight Quote: 21.90 – 23.60
Spot Rate : 1.7000
Average : 1.0805

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.60
Evaluated at bid price : 21.90
Bid-YTW : 5.93 %
RY.PR.J FixedReset Disc Quote: 21.87 – 23.90
Spot Rate : 2.0300
Average : 1.4992

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 21.50
Evaluated at bid price : 21.87
Bid-YTW : 5.91 %
CU.PR.G Perpetual-Discount Quote: 19.90 – 21.30
Spot Rate : 1.4000
Average : 0.9677

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-22
Maturity Price : 19.90
Evaluated at bid price : 19.90
Bid-YTW : 5.75 %
Market Action

April 21, 2022

The five year Canada yield shot up to 2.84% today, up about 9bp. The three-month bill is at 1.212%, which looks an awful lot to me as if the market is bracing for another 50bp hike in the policy rate at the June 1 setting.

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 3.84 % 4.62 % 25,298 18.45 1 -8.1081 % 2,421.7
FixedFloater 0.00 % 0.00 % 0 0.00 0 -1.1220 % 5,049.8
Floater 4.03 % 4.10 % 34,650 17.22 4 -1.1220 % 2,910.2
OpRet 0.00 % 0.00 % 0 0.00 0 0.0928 % 3,624.4
SplitShare 4.63 % 4.49 % 42,352 3.48 6 0.0928 % 4,328.3
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0928 % 3,377.1
Perpetual-Premium 5.61 % 5.68 % 70,380 14.31 16 -0.8168 % 3,042.4
Perpetual-Discount 5.59 % 5.65 % 63,611 14.39 17 -0.5498 % 3,317.8
FixedReset Disc 4.42 % 5.88 % 122,681 14.37 49 0.5514 % 2,596.4
Insurance Straight 5.54 % 5.60 % 87,427 14.47 20 -0.9206 % 3,240.5
FloatingReset 4.32 % 4.63 % 58,240 16.18 2 1.3918 % 2,719.9
FixedReset Prem 4.87 % 4.40 % 145,240 2.15 19 0.0503 % 2,647.2
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 0.5514 % 2,654.0
FixedReset Ins Non 4.45 % 5.93 % 84,215 14.05 15 1.5751 % 2,696.7
Performance Highlights
Issue Index Change Notes
BAM.PR.E Ratchet -8.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 25.00
Evaluated at bid price : 17.00
Bid-YTW : 4.62 %
IAF.PR.B Insurance Straight -4.30 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 21.15
Evaluated at bid price : 21.15
Bid-YTW : 5.49 %
BAM.PR.T FixedReset Disc -2.98 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 18.55
Evaluated at bid price : 18.55
Bid-YTW : 6.49 %
CU.PR.F Perpetual-Discount -2.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 20.35
Evaluated at bid price : 20.35
Bid-YTW : 5.62 %
GWO.PR.G Insurance Straight -2.60 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 22.22
Evaluated at bid price : 22.50
Bid-YTW : 5.83 %
CCS.PR.C Insurance Straight -2.10 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 23.03
Evaluated at bid price : 23.30
Bid-YTW : 5.40 %
CU.PR.H Perpetual-Premium -1.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 23.00
Evaluated at bid price : 23.40
Bid-YTW : 5.68 %
PWF.PR.S Perpetual-Discount -1.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 21.05
Evaluated at bid price : 21.05
Bid-YTW : 5.73 %
PWF.PR.A Floater -1.80 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 14.50
Evaluated at bid price : 14.50
Bid-YTW : 3.85 %
POW.PR.B Perpetual-Premium -1.76 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 23.20
Evaluated at bid price : 23.50
Bid-YTW : 5.72 %
IFC.PR.C FixedReset Disc -1.75 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 20.80
Evaluated at bid price : 20.80
Bid-YTW : 6.05 %
MFC.PR.J FixedReset Ins Non -1.69 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 22.64
Evaluated at bid price : 23.20
Bid-YTW : 5.92 %
ELF.PR.H Perpetual-Premium -1.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 23.95
Evaluated at bid price : 24.20
Bid-YTW : 5.71 %
GWO.PR.L Insurance Straight -1.59 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 24.50
Evaluated at bid price : 24.75
Bid-YTW : 5.76 %
BAM.PF.B FixedReset Disc -1.58 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 21.16
Evaluated at bid price : 21.16
Bid-YTW : 6.43 %
NA.PR.W FixedReset Disc -1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 20.50
Evaluated at bid price : 20.50
Bid-YTW : 6.01 %
PWF.PR.R Perpetual-Premium -1.43 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 23.91
Evaluated at bid price : 24.15
Bid-YTW : 5.71 %
BAM.PR.Z FixedReset Disc -1.42 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 22.93
Evaluated at bid price : 23.59
Bid-YTW : 6.18 %
GWO.PR.N FixedReset Ins Non -1.40 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 14.80
Evaluated at bid price : 14.80
Bid-YTW : 6.19 %
IFC.PR.K Perpetual-Premium -1.38 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 23.91
Evaluated at bid price : 24.26
Bid-YTW : 5.46 %
PWF.PR.Z Perpetual-Premium -1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 21.97
Evaluated at bid price : 22.25
Bid-YTW : 5.80 %
GWO.PR.T Insurance Straight -1.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 22.23
Evaluated at bid price : 22.60
Bid-YTW : 5.74 %
CU.PR.D Perpetual-Discount -1.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 22.01
Evaluated at bid price : 22.25
Bid-YTW : 5.58 %
NA.PR.G FixedReset Prem -1.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 23.29
Evaluated at bid price : 23.70
Bid-YTW : 5.89 %
GWO.PR.I Insurance Straight -1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 20.16
Evaluated at bid price : 20.16
Bid-YTW : 5.64 %
GWO.PR.Y Insurance Straight -1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 20.25
Evaluated at bid price : 20.25
Bid-YTW : 5.62 %
BAM.PF.A FixedReset Disc -1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 22.82
Evaluated at bid price : 23.26
Bid-YTW : 6.19 %
POW.PR.G Perpetual-Premium -1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 24.18
Evaluated at bid price : 24.44
Bid-YTW : 5.76 %
SLF.PR.J FloatingReset -1.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 16.36
Evaluated at bid price : 16.36
Bid-YTW : 4.06 %
GWO.PR.H Insurance Straight -1.10 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 21.51
Evaluated at bid price : 21.51
Bid-YTW : 5.70 %
FTS.PR.F Perpetual-Discount -1.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 22.77
Evaluated at bid price : 23.05
Bid-YTW : 5.38 %
PWF.PR.H Perpetual-Premium -1.07 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-21
Maturity Price : 25.00
Evaluated at bid price : 24.98
Bid-YTW : 5.05 %
BAM.PR.C Floater -1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 13.65
Evaluated at bid price : 13.65
Bid-YTW : 4.13 %
TRP.PR.C FixedReset Disc 1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 14.10
Evaluated at bid price : 14.10
Bid-YTW : 6.81 %
IFC.PR.G FixedReset Ins Non 1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 22.32
Evaluated at bid price : 22.76
Bid-YTW : 5.97 %
BAM.PF.J FixedReset Prem 1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 24.04
Evaluated at bid price : 24.60
Bid-YTW : 6.07 %
CM.PR.P FixedReset Disc 1.58 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 21.18
Evaluated at bid price : 21.18
Bid-YTW : 5.82 %
CU.PR.C FixedReset Disc 1.76 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 21.63
Evaluated at bid price : 22.00
Bid-YTW : 6.08 %
CU.PR.G Perpetual-Discount 2.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 20.50
Evaluated at bid price : 20.50
Bid-YTW : 5.58 %
TRP.PR.F FloatingReset 3.94 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 17.15
Evaluated at bid price : 17.15
Bid-YTW : 4.63 %
MFC.PR.Q FixedReset Ins Non 30.80 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 22.43
Evaluated at bid price : 22.89
Bid-YTW : 5.93 %
TRP.PR.A FixedReset Disc 71.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 17.10
Evaluated at bid price : 17.10
Bid-YTW : 6.76 %
Volume Highlights
Issue Index Shares
Traded		 Notes
CM.PR.O FixedReset Disc 332,515 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 21.18
Evaluated at bid price : 21.18
Bid-YTW : 5.91 %
TRP.PR.K FixedReset Prem 174,203 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-31
Maturity Price : 25.00
Evaluated at bid price : 25.23
Bid-YTW : 3.15 %
TRP.PR.D FixedReset Disc 66,800 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 6.73 %
SLF.PR.E Insurance Straight 58,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 5.41 %
BAM.PF.A FixedReset Disc 53,820 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 22.82
Evaluated at bid price : 23.26
Bid-YTW : 6.19 %
BAM.PF.I FixedReset Prem 31,510 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2027-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.55
Bid-YTW : 4.99 %
There were 22 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
BAM.PR.E Ratchet Quote: 17.00 – 19.00
Spot Rate : 2.0000
Average : 1.3507

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 25.00
Evaluated at bid price : 17.00
Bid-YTW : 4.62 %
GWO.PR.Q Insurance Straight Quote: 22.98 – 24.76
Spot Rate : 1.7800
Average : 1.1382

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 22.69
Evaluated at bid price : 22.98
Bid-YTW : 5.65 %
RY.PR.J FixedReset Disc Quote: 22.21 – 23.70
Spot Rate : 1.4900
Average : 0.9171

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 21.90
Evaluated at bid price : 22.21
Bid-YTW : 5.88 %
BAM.PR.M Perpetual-Discount Quote: 21.25 – 22.25
Spot Rate : 1.0000
Average : 0.6279

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 21.25
Evaluated at bid price : 21.25
Bid-YTW : 5.65 %
CU.PR.F Perpetual-Discount Quote: 20.35 – 21.40
Spot Rate : 1.0500
Average : 0.6783

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 20.35
Evaluated at bid price : 20.35
Bid-YTW : 5.62 %
BAM.PR.T FixedReset Disc Quote: 18.55 – 20.05
Spot Rate : 1.5000
Average : 1.1779

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-21
Maturity Price : 18.55
Evaluated at bid price : 18.55
Bid-YTW : 6.49 %
Market Action

April 20, 2022

4/20 today, but inflation wasn’t mellow!

Canada’s inflation rate hit a new three-decade high in March and blew past expectations on Bay Street, an unwelcome sign for central bankers trying to douse the acceleration.

The Consumer Price Index rose 6.7 per cent in March from a year earlier, a full percentage point higher than February’s 5.7-per-cent pace, Statistics Canada said Wednesday. Financial analysts were expecting an annual inflation rate of 6.1 per cent. It marked the highest inflation since January of 1991, when the federal goods and services tax took effect.
…
Consumers were hit by steeper prices on multiple fronts. Gasoline prices rose 11.8 per cent in a single month. Groceries rose 8.7 per cent on an annual basis, the largest increase since 2009. Pasta products jumped nearly 18 per cent, butter by 16 per cent and fresh milk by 7.7 per cent.

Higher inflation has also spread to pandemic-hit sectors. The cost of restaurant food rose 5.4 per cent over the past year, up from 4.7 per cent in February. Traveller accommodation soared 24.4 per cent on a 12-month basis, while air transportation jumped 8.3 per cent in March alone.

PerpetualDiscounts now yield 5.66%, equivalent to 7.36% interest at the standard equivalency factor of 1.3x. Long corporates now yield 4.63%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has narrowed to 275bp from the 290bp reported April 13.

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 3.51 % 4.15 % 25,763 19.04 1 0.0000 % 2,635.4
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.1778 % 5,107.1
Floater 3.99 % 4.09 % 35,132 17.25 4 -0.1778 % 2,943.2
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0794 % 3,621.0
SplitShare 4.64 % 4.51 % 42,544 3.48 6 -0.0794 % 4,324.3
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0794 % 3,374.0
Perpetual-Premium 5.57 % 5.57 % 70,982 14.38 16 -0.3165 % 3,067.4
Perpetual-Discount 5.56 % 5.66 % 64,628 14.42 17 -0.1487 % 3,336.2
FixedReset Disc 4.45 % 5.68 % 122,113 14.68 49 -0.9158 % 2,582.1
Insurance Straight 5.48 % 5.47 % 86,176 14.57 20 -0.3603 % 3,270.6
FloatingReset 4.08 % 3.71 % 42,666 18.06 2 -2.4498 % 2,682.5
FixedReset Prem 4.88 % 4.40 % 145,323 2.15 19 -0.1109 % 2,645.9
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 -0.9158 % 2,639.5
FixedReset Ins Non 4.52 % 5.75 % 81,288 14.48 15 -1.6078 % 2,654.9
Performance Highlights
Issue Index Change Notes
TRP.PR.A FixedReset Disc -42.66 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 10.00
Evaluated at bid price : 10.00
Bid-YTW : 10.97 %
MFC.PR.Q FixedReset Ins Non -21.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 17.50
Evaluated at bid price : 17.50
Bid-YTW : 7.49 %
CU.PR.G Perpetual-Discount -5.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 19.99
Evaluated at bid price : 19.99
Bid-YTW : 5.72 %
TRP.PR.F FloatingReset -4.79 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 16.50
Evaluated at bid price : 16.50
Bid-YTW : 4.51 %
BAM.PR.T FixedReset Disc -2.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 19.12
Evaluated at bid price : 19.12
Bid-YTW : 6.10 %
FTS.PR.K FixedReset Disc -2.37 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 19.35
Evaluated at bid price : 19.35
Bid-YTW : 6.06 %
CM.PR.P FixedReset Disc -2.34 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 20.85
Evaluated at bid price : 20.85
Bid-YTW : 5.68 %
CU.PR.C FixedReset Disc -2.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.62
Evaluated at bid price : 21.62
Bid-YTW : 5.94 %
IFC.PR.F Insurance Straight -2.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 24.12
Evaluated at bid price : 24.40
Bid-YTW : 5.47 %
IFC.PR.E Insurance Straight -1.84 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 23.72
Evaluated at bid price : 24.00
Bid-YTW : 5.46 %
PWF.PR.F Perpetual-Premium -1.70 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 22.84
Evaluated at bid price : 23.12
Bid-YTW : 5.69 %
IFC.PR.A FixedReset Ins Non -1.68 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 18.68
Evaluated at bid price : 18.68
Bid-YTW : 5.87 %
PWF.PR.T FixedReset Disc -1.54 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.38
Evaluated at bid price : 21.70
Bid-YTW : 5.68 %
TRP.PR.E FixedReset Disc -1.42 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 18.80
Evaluated at bid price : 18.80
Bid-YTW : 6.43 %
NA.PR.E FixedReset Disc -1.37 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 22.53
Evaluated at bid price : 23.03
Bid-YTW : 5.62 %
IFC.PR.G FixedReset Ins Non -1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.94
Evaluated at bid price : 22.50
Bid-YTW : 5.79 %
GWO.PR.P Insurance Straight -1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 23.88
Evaluated at bid price : 24.13
Bid-YTW : 5.64 %
PWF.PR.E Perpetual-Premium -1.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 24.02
Evaluated at bid price : 24.27
Bid-YTW : 5.68 %
BNS.PR.I FixedReset Disc -1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 23.45
Evaluated at bid price : 23.82
Bid-YTW : 5.31 %
SLF.PR.G FixedReset Ins Non -1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 15.60
Evaluated at bid price : 15.60
Bid-YTW : 5.88 %
CM.PR.O FixedReset Disc -1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.18
Evaluated at bid price : 21.18
Bid-YTW : 5.68 %
BMO.PR.T FixedReset Disc 1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.28
Evaluated at bid price : 21.28
Bid-YTW : 5.62 %
GWO.PR.H Insurance Straight 1.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.49
Evaluated at bid price : 21.75
Bid-YTW : 5.62 %
BAM.PF.E FixedReset Disc 1.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 19.92
Evaluated at bid price : 19.92
Bid-YTW : 6.22 %
PWF.PR.R Perpetual-Premium 1.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 24.21
Evaluated at bid price : 24.50
Bid-YTW : 5.63 %
CU.PR.D Perpetual-Discount 1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 22.27
Evaluated at bid price : 22.54
Bid-YTW : 5.51 %
BAM.PR.Z FixedReset Disc 1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 23.26
Evaluated at bid price : 23.93
Bid-YTW : 5.86 %
MFC.PR.N FixedReset Ins Non 1.64 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 20.45
Evaluated at bid price : 20.45
Bid-YTW : 5.85 %
MFC.PR.K FixedReset Ins Non 1.67 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.50
Evaluated at bid price : 21.86
Bid-YTW : 5.58 %
PWF.PR.L Perpetual-Discount 1.82 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 22.12
Evaluated at bid price : 22.40
Bid-YTW : 5.71 %
PWF.PR.S Perpetual-Discount 2.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.45
Evaluated at bid price : 21.45
Bid-YTW : 5.62 %
BAM.PR.X FixedReset Disc 2.46 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 18.30
Evaluated at bid price : 18.30
Bid-YTW : 6.15 %
CM.PR.Q FixedReset Disc 3.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.88
Evaluated at bid price : 22.20
Bid-YTW : 5.60 %
Volume Highlights
Issue Index Shares
Traded		 Notes
BMO.PR.S FixedReset Disc 512,400 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.59
Evaluated at bid price : 21.99
Bid-YTW : 5.57 %
TRP.PR.K FixedReset Prem 363,900 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-31
Maturity Price : 25.00
Evaluated at bid price : 25.23
Bid-YTW : 3.07 %
BMO.PR.W FixedReset Disc 353,400 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.30
Evaluated at bid price : 21.30
Bid-YTW : 5.62 %
TD.PF.C FixedReset Disc 222,892 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.17
Evaluated at bid price : 21.17
Bid-YTW : 5.60 %
NA.PR.C FixedReset Prem 26,958 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-11-15
Maturity Price : 25.00
Evaluated at bid price : 25.05
Bid-YTW : 3.56 %
CU.PR.J Perpetual-Discount 23,400 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.52
Evaluated at bid price : 21.52
Bid-YTW : 5.61 %
There were 18 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
TRP.PR.A FixedReset Disc Quote: 10.00 – 17.54
Spot Rate : 7.5400
Average : 4.0803

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 10.00
Evaluated at bid price : 10.00
Bid-YTW : 10.97 %
MFC.PR.Q FixedReset Ins Non Quote: 17.50 – 23.59
Spot Rate : 6.0900
Average : 3.4739

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 17.50
Evaluated at bid price : 17.50
Bid-YTW : 7.49 %
GWO.PR.R Insurance Straight Quote: 21.63 – 25.50
Spot Rate : 3.8700
Average : 2.2362

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.36
Evaluated at bid price : 21.63
Bid-YTW : 5.59 %
CU.PR.C FixedReset Disc Quote: 21.62 – 22.55
Spot Rate : 0.9300
Average : 0.5559

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 21.62
Evaluated at bid price : 21.62
Bid-YTW : 5.94 %
CU.PR.G Perpetual-Discount Quote: 19.99 – 20.99
Spot Rate : 1.0000
Average : 0.6511

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 19.99
Evaluated at bid price : 19.99
Bid-YTW : 5.72 %
TD.PF.K FixedReset Disc Quote: 23.40 – 24.40
Spot Rate : 1.0000
Average : 0.6540

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-20
Maturity Price : 22.98
Evaluated at bid price : 23.40
Bid-YTW : 5.55 %
Market Action

April 19, 2022

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 3.50 % 4.13 % 25,320 19.08 1 -1.3333 % 2,635.4
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.0534 % 5,116.2
Floater 3.98 % 4.09 % 36,607 17.25 4 0.0534 % 2,948.5
OpRet 0.00 % 0.00 % 0 0.00 0 0.1326 % 3,623.9
SplitShare 4.63 % 4.52 % 43,103 3.49 6 0.1326 % 4,327.7
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.1326 % 3,376.7
Perpetual-Premium 5.55 % 5.54 % 70,992 14.39 16 -0.4497 % 3,077.2
Perpetual-Discount 5.55 % 5.65 % 64,659 14.44 17 -0.1836 % 3,341.2
FixedReset Disc 4.41 % 5.68 % 120,658 14.66 49 1.2152 % 2,606.0
Insurance Straight 5.47 % 5.38 % 85,459 14.59 20 -0.5102 % 3,282.4
FloatingReset 3.98 % 4.29 % 56,814 16.84 2 0.0000 % 2,749.9
FixedReset Prem 4.87 % 4.25 % 150,525 2.15 19 0.1362 % 2,648.9
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 1.2152 % 2,663.9
FixedReset Ins Non 4.45 % 5.71 % 82,103 14.46 15 0.0355 % 2,698.3
Performance Highlights
Issue Index Change Notes
MFC.PR.Q FixedReset Ins Non -5.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.77
Evaluated at bid price : 22.24
Bid-YTW : 5.86 %
PWF.PR.S Perpetual-Discount -4.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 5.74 %
MFC.PR.N FixedReset Ins Non -3.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 20.12
Evaluated at bid price : 20.12
Bid-YTW : 5.94 %
PWF.PR.L Perpetual-Discount -3.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.75
Evaluated at bid price : 22.00
Bid-YTW : 5.81 %
TRP.PR.C FixedReset Disc -2.91 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 14.02
Evaluated at bid price : 14.02
Bid-YTW : 6.56 %
CM.PR.Q FixedReset Disc -2.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.50
Evaluated at bid price : 21.50
Bid-YTW : 5.80 %
BAM.PR.X FixedReset Disc -2.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 17.86
Evaluated at bid price : 17.86
Bid-YTW : 6.30 %
PWF.PR.Z Perpetual-Premium -2.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 22.34
Evaluated at bid price : 22.67
Bid-YTW : 5.69 %
TRP.PR.D FixedReset Disc -1.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 19.18
Evaluated at bid price : 19.18
Bid-YTW : 6.41 %
GWO.PR.S Insurance Straight -1.88 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 22.70
Evaluated at bid price : 23.02
Bid-YTW : 5.74 %
GWO.PR.H Insurance Straight -1.78 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.51
Evaluated at bid price : 21.51
Bid-YTW : 5.70 %
PWF.PR.R Perpetual-Premium -1.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 23.95
Evaluated at bid price : 24.20
Bid-YTW : 5.70 %
BAM.PR.K Floater -1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 13.78
Evaluated at bid price : 13.78
Bid-YTW : 4.09 %
IAF.PR.B Insurance Straight -1.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 22.01
Evaluated at bid price : 22.25
Bid-YTW : 5.20 %
IFC.PR.G FixedReset Ins Non -1.51 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 22.35
Evaluated at bid price : 22.80
Bid-YTW : 5.71 %
PWF.PF.A Perpetual-Discount -1.46 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 20.30
Evaluated at bid price : 20.30
Bid-YTW : 5.57 %
GWO.PR.Q Insurance Straight -1.37 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 22.69
Evaluated at bid price : 22.98
Bid-YTW : 5.64 %
BAM.PR.E Ratchet -1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 25.00
Evaluated at bid price : 18.50
Bid-YTW : 4.13 %
SLF.PR.D Insurance Straight -1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 20.93
Evaluated at bid price : 20.93
Bid-YTW : 5.37 %
TRP.PR.E FixedReset Disc -1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 19.07
Evaluated at bid price : 19.07
Bid-YTW : 6.34 %
PWF.PR.K Perpetual-Discount -1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.69
Evaluated at bid price : 21.94
Bid-YTW : 5.65 %
POW.PR.D Perpetual-Discount -1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 22.01
Evaluated at bid price : 22.25
Bid-YTW : 5.65 %
BAM.PR.Z FixedReset Disc -1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 22.93
Evaluated at bid price : 23.59
Bid-YTW : 5.94 %
BAM.PR.B Floater -1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 13.78
Evaluated at bid price : 13.78
Bid-YTW : 4.09 %
POW.PR.A Perpetual-Premium -1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 24.50
Evaluated at bid price : 24.75
Bid-YTW : 5.69 %
PVS.PR.J SplitShare 1.02 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2028-02-29
Maturity Price : 25.00
Evaluated at bid price : 24.75
Bid-YTW : 4.72 %
CCS.PR.C Insurance Straight 1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 23.53
Evaluated at bid price : 23.80
Bid-YTW : 5.29 %
CM.PR.S FixedReset Disc 1.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 22.75
Evaluated at bid price : 23.36
Bid-YTW : 5.42 %
TD.PF.M FixedReset Prem 1.15 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2024-07-31
Maturity Price : 25.00
Evaluated at bid price : 25.50
Bid-YTW : 4.13 %
TD.PF.B FixedReset Disc 1.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.35
Evaluated at bid price : 21.35
Bid-YTW : 5.57 %
CM.PR.P FixedReset Disc 1.67 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.35
Evaluated at bid price : 21.35
Bid-YTW : 5.55 %
BAM.PF.A FixedReset Disc 2.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 23.10
Evaluated at bid price : 23.54
Bid-YTW : 5.89 %
MFC.PR.K FixedReset Ins Non 2.38 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.50
Evaluated at bid price : 21.50
Bid-YTW : 5.69 %
TRP.PR.A FixedReset Disc 2.59 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 17.44
Evaluated at bid price : 17.44
Bid-YTW : 6.36 %
PWF.PR.A Floater 2.76 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 14.90
Evaluated at bid price : 14.90
Bid-YTW : 3.80 %
MFC.PR.F FixedReset Ins Non 3.71 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 15.95
Evaluated at bid price : 15.95
Bid-YTW : 5.77 %
NA.PR.W FixedReset Disc 4.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 20.80
Evaluated at bid price : 20.80
Bid-YTW : 5.69 %
CM.PR.O FixedReset Disc 4.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.40
Evaluated at bid price : 21.40
Bid-YTW : 5.62 %
CU.PR.D Perpetual-Discount 5.56 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.98
Evaluated at bid price : 22.22
Bid-YTW : 5.59 %
BAM.PR.T FixedReset Disc 5.77 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 19.60
Evaluated at bid price : 19.60
Bid-YTW : 5.96 %
CU.PR.E Perpetual-Discount 6.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 22.07
Evaluated at bid price : 22.30
Bid-YTW : 5.57 %
GWO.PR.N FixedReset Ins Non 12.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 15.01
Evaluated at bid price : 15.01
Bid-YTW : 5.83 %
TRP.PR.G FixedReset Disc 76.81 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.40
Evaluated at bid price : 21.73
Bid-YTW : 5.92 %
Volume Highlights
Issue Index Shares
Traded		 Notes
BAM.PF.I FixedReset Prem 128,800 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2027-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.50
Bid-YTW : 5.03 %
MFC.PR.I FixedReset Ins Non 44,025 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 23.77
Evaluated at bid price : 24.52
Bid-YTW : 5.63 %
PWF.PR.R Perpetual-Premium 24,700 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 23.95
Evaluated at bid price : 24.20
Bid-YTW : 5.70 %
GWO.PR.Y Insurance Straight 22,704 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 20.50
Evaluated at bid price : 20.50
Bid-YTW : 5.54 %
GWO.PR.I Insurance Straight 20,210 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 20.45
Evaluated at bid price : 20.45
Bid-YTW : 5.56 %
CU.PR.J Perpetual-Discount 18,800 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.31
Evaluated at bid price : 21.60
Bid-YTW : 5.57 %
There were 14 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
TRP.PR.D FixedReset Disc Quote: 19.18 – 22.00
Spot Rate : 2.8200
Average : 2.2890

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 19.18
Evaluated at bid price : 19.18
Bid-YTW : 6.41 %
MFC.PR.K FixedReset Ins Non Quote: 21.50 – 23.59
Spot Rate : 2.0900
Average : 1.6137

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.50
Evaluated at bid price : 21.50
Bid-YTW : 5.69 %
BAM.PF.E FixedReset Disc Quote: 19.70 – 21.40
Spot Rate : 1.7000
Average : 1.2632

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 19.70
Evaluated at bid price : 19.70
Bid-YTW : 6.29 %
MFC.PR.Q FixedReset Ins Non Quote: 22.24 – 23.24
Spot Rate : 1.0000
Average : 0.6055

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.77
Evaluated at bid price : 22.24
Bid-YTW : 5.86 %
PWF.PR.F Perpetual-Premium Quote: 23.52 – 24.40
Spot Rate : 0.8800
Average : 0.5986

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 23.22
Evaluated at bid price : 23.52
Bid-YTW : 5.59 %
PWF.PR.L Perpetual-Discount Quote: 22.00 – 22.70
Spot Rate : 0.7000
Average : 0.4455

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-19
Maturity Price : 21.75
Evaluated at bid price : 22.00
Bid-YTW : 5.81 %
Market Action

April 18, 2022

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 3.44 % 4.05 % 25,484 19.21 1 -1.0032 % 2,671.0
FixedFloater 0.00 % 0.00 % 0 0.00 0 -1.4203 % 5,113.5
Floater 3.98 % 4.03 % 37,853 17.38 4 -1.4203 % 2,946.9
OpRet 0.00 % 0.00 % 0 0.00 0 0.1594 % 3,619.1
SplitShare 4.64 % 4.51 % 42,118 3.49 6 0.1594 % 4,322.0
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.1594 % 3,372.2
Perpetual-Premium 5.53 % 5.51 % 70,170 14.53 16 -0.1851 % 3,091.1
Perpetual-Discount 5.54 % 5.59 % 61,454 14.53 17 -0.9413 % 3,347.3
FixedReset Disc 4.46 % 5.70 % 124,764 14.61 49 -1.4592 % 2,574.7
Insurance Straight 5.44 % 5.37 % 86,109 14.65 20 -0.0242 % 3,299.2
FloatingReset 3.98 % 4.29 % 57,391 16.85 2 -0.3529 % 2,749.9
FixedReset Prem 4.88 % 4.55 % 144,502 2.15 19 -0.1736 % 2,645.3
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 -1.4592 % 2,631.9
FixedReset Ins Non 4.45 % 5.68 % 82,986 14.49 15 -1.5392 % 2,697.4
Performance Highlights
Issue Index Change Notes
TRP.PR.G FixedReset Disc -43.75 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 12.29
Evaluated at bid price : 12.29
Bid-YTW : 10.18 %
GWO.PR.N FixedReset Ins Non -12.99 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 13.40
Evaluated at bid price : 13.40
Bid-YTW : 6.48 %
CU.PR.D Perpetual-Discount -8.48 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.05
Evaluated at bid price : 21.05
Bid-YTW : 5.92 %
NA.PR.W FixedReset Disc -7.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 20.00
Evaluated at bid price : 20.00
Bid-YTW : 5.92 %
MFC.PR.K FixedReset Ins Non -7.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 5.83 %
CU.PR.E Perpetual-Discount -6.67 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 5.93 %
MFC.PR.F FixedReset Ins Non -6.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 15.38
Evaluated at bid price : 15.38
Bid-YTW : 5.97 %
BAM.PR.T FixedReset Disc -5.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 18.53
Evaluated at bid price : 18.53
Bid-YTW : 6.29 %
TRP.PR.A FixedReset Disc -4.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 17.00
Evaluated at bid price : 17.00
Bid-YTW : 6.52 %
PWF.PR.A Floater -3.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 14.50
Evaluated at bid price : 14.50
Bid-YTW : 3.91 %
RY.PR.H FixedReset Disc -2.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.47
Evaluated at bid price : 21.47
Bid-YTW : 5.60 %
BAM.PR.X FixedReset Disc -2.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 18.26
Evaluated at bid price : 18.26
Bid-YTW : 6.16 %
BAM.PF.J FixedReset Prem -2.34 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 23.62
Evaluated at bid price : 24.25
Bid-YTW : 5.92 %
BAM.PF.A FixedReset Disc -2.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 22.64
Evaluated at bid price : 23.06
Bid-YTW : 6.01 %
BMO.PR.Y FixedReset Disc -2.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.73
Evaluated at bid price : 22.01
Bid-YTW : 5.63 %
CM.PR.S FixedReset Disc -2.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 22.52
Evaluated at bid price : 23.10
Bid-YTW : 5.48 %
TD.PF.C FixedReset Disc -1.99 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.17
Evaluated at bid price : 21.17
Bid-YTW : 5.60 %
RY.PR.J FixedReset Disc -1.95 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.84
Evaluated at bid price : 22.13
Bid-YTW : 5.70 %
RY.PR.Z FixedReset Disc -1.91 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.31
Evaluated at bid price : 21.61
Bid-YTW : 5.52 %
TD.PF.E FixedReset Disc -1.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 22.21
Evaluated at bid price : 22.72
Bid-YTW : 5.52 %
NA.PR.G FixedReset Prem -1.64 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 23.63
Evaluated at bid price : 24.02
Bid-YTW : 5.59 %
IFC.PR.C FixedReset Disc -1.59 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 5.80 %
BAM.PR.C Floater -1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 13.79
Evaluated at bid price : 13.79
Bid-YTW : 4.09 %
RY.PR.M FixedReset Disc -1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.39
Evaluated at bid price : 21.71
Bid-YTW : 5.57 %
TD.PF.B FixedReset Disc -1.45 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.10
Evaluated at bid price : 21.10
Bid-YTW : 5.64 %
IFC.PR.K Perpetual-Premium -1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 24.22
Evaluated at bid price : 24.60
Bid-YTW : 5.38 %
FTS.PR.K FixedReset Disc -1.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 19.70
Evaluated at bid price : 19.70
Bid-YTW : 5.95 %
SLF.PR.G FixedReset Ins Non -1.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 15.85
Evaluated at bid price : 15.85
Bid-YTW : 5.79 %
CU.PR.F Perpetual-Discount -1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 5.44 %
TD.PF.A FixedReset Disc -1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.07
Evaluated at bid price : 21.07
Bid-YTW : 5.59 %
FTS.PR.M FixedReset Disc -1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 20.80
Evaluated at bid price : 20.80
Bid-YTW : 6.02 %
BAM.PF.F FixedReset Disc -1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.39
Evaluated at bid price : 21.71
Bid-YTW : 6.13 %
CU.PR.J Perpetual-Discount -1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.51
Evaluated at bid price : 21.81
Bid-YTW : 5.51 %
TD.PF.J FixedReset Disc -1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 23.36
Evaluated at bid price : 23.90
Bid-YTW : 5.56 %
GWO.PR.Y Insurance Straight -1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 20.58
Evaluated at bid price : 20.58
Bid-YTW : 5.52 %
BAM.PF.G FixedReset Disc -1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 20.86
Evaluated at bid price : 20.86
Bid-YTW : 6.11 %
GWO.PR.G Insurance Straight -1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 22.73
Evaluated at bid price : 23.02
Bid-YTW : 5.69 %
SLF.PR.H FixedReset Ins Non -1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 19.30
Evaluated at bid price : 19.30
Bid-YTW : 5.68 %
TD.PF.K FixedReset Disc -1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 22.94
Evaluated at bid price : 23.36
Bid-YTW : 5.56 %
BAM.PR.E Ratchet -1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 25.00
Evaluated at bid price : 18.75
Bid-YTW : 4.05 %
TRP.PR.C FixedReset Disc 1.98 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 14.44
Evaluated at bid price : 14.44
Bid-YTW : 6.38 %
MFC.PR.N FixedReset Ins Non 3.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 20.84
Evaluated at bid price : 20.84
Bid-YTW : 5.74 %
CM.PR.Q FixedReset Disc 10.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.73
Evaluated at bid price : 22.00
Bid-YTW : 5.65 %
CM.PR.O FixedReset Disc 13.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 20.50
Evaluated at bid price : 20.50
Bid-YTW : 5.86 %
Volume Highlights
Issue Index Shares
Traded		 Notes
BAM.PR.X FixedReset Disc 25,325 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 18.26
Evaluated at bid price : 18.26
Bid-YTW : 6.16 %
MFC.PR.Q FixedReset Ins Non 17,125 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 22.90
Evaluated at bid price : 23.41
Bid-YTW : 5.56 %
BAM.PF.J FixedReset Prem 14,200 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 23.62
Evaluated at bid price : 24.25
Bid-YTW : 5.92 %
BAM.PF.H FixedReset Prem 12,400 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-12-31
Maturity Price : 25.00
Evaluated at bid price : 25.46
Bid-YTW : 4.55 %
There were 0 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
TRP.PR.G FixedReset Disc Quote: 12.29 – 22.09
Spot Rate : 9.8000
Average : 5.8150

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 12.29
Evaluated at bid price : 12.29
Bid-YTW : 10.18 %
PVS.PR.I SplitShare Quote: 25.45 – 30.00
Spot Rate : 4.5500
Average : 3.2446

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.45
Bid-YTW : 4.38 %
CU.PR.D Perpetual-Discount Quote: 21.05 – 23.03
Spot Rate : 1.9800
Average : 1.2261

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 21.05
Evaluated at bid price : 21.05
Bid-YTW : 5.92 %
TRP.PR.D FixedReset Disc Quote: 19.55 – 22.00
Spot Rate : 2.4500
Average : 1.7068

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 19.55
Evaluated at bid price : 19.55
Bid-YTW : 6.29 %
GWO.PR.N FixedReset Ins Non Quote: 13.40 – 15.44
Spot Rate : 2.0400
Average : 1.3153

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 13.40
Evaluated at bid price : 13.40
Bid-YTW : 6.48 %
BAM.PR.E Ratchet Quote: 18.75 – 20.45
Spot Rate : 1.7000
Average : 1.1103

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-18
Maturity Price : 25.00
Evaluated at bid price : 18.75
Bid-YTW : 4.05 %
Issue Comments

BEP.PR.R Falls In Line with Market

BEP.PR.R closed today with no announcement from the company.

BEP.PR.R is a Straight Perpetual, 5.50%, announced April 5.

The issue traded 311,625 shares today in a range of 23.51-24.80 before closing at 23.60-80. As the HIMI PerpetualDiscount index has fallen about 5% since the April 5 announcement date, we may conclude that the issue fell more-or-less in-line with the market.

Vital statistics are:

BEP.PR.R Perpetual-Discount YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 23.30
Evaluated at bid price : 23.60
Bid-YTW : 5.85 %
Market Action

April 14, 2022

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 3.38 % 3.98 % 25,037 19.32 1 -0.7858 % 2,698.1
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.7063 % 5,187.1
Floater 3.93 % 4.02 % 39,151 17.40 4 0.7063 % 2,989.4
OpRet 0.00 % 0.00 % 0 0.00 0 -0.1988 % 3,613.4
SplitShare 4.65 % 4.51 % 43,826 3.50 6 -0.1988 % 4,315.1
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.1988 % 3,366.8
Perpetual-Premium 5.52 % 5.31 % 69,188 14.58 16 0.0990 % 3,096.8
Perpetual-Discount 5.49 % 5.52 % 62,241 14.58 17 -0.2268 % 3,379.1
FixedReset Disc 4.40 % 5.62 % 129,814 14.74 49 -1.0439 % 2,612.8
Insurance Straight 5.44 % 5.37 % 89,477 14.67 20 -0.0769 % 3,300.0
FloatingReset 3.60 % 3.89 % 57,302 17.67 2 -0.2055 % 2,759.6
FixedReset Prem 4.87 % 4.55 % 149,732 2.16 19 -0.0836 % 2,649.9
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 -1.0439 % 2,670.8
FixedReset Ins Non 4.38 % 5.58 % 83,569 14.67 15 0.1207 % 2,739.5
Performance Highlights
Issue Index Change Notes
CM.PR.O FixedReset Disc -16.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 18.00
Evaluated at bid price : 18.00
Bid-YTW : 6.61 %
CM.PR.Q FixedReset Disc -12.66 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 20.00
Evaluated at bid price : 20.00
Bid-YTW : 6.17 %
MFC.PR.N FixedReset Ins Non -3.90 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 20.18
Evaluated at bid price : 20.18
Bid-YTW : 5.88 %
BMO.PR.T FixedReset Disc -3.67 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 5.65 %
NA.PR.E FixedReset Disc -3.56 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 22.51
Evaluated at bid price : 23.00
Bid-YTW : 5.58 %
CM.PR.P FixedReset Disc -2.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 5.60 %
BMO.PR.S FixedReset Disc -2.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.52
Evaluated at bid price : 21.89
Bid-YTW : 5.55 %
PWF.PR.P FixedReset Disc -1.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 15.60
Evaluated at bid price : 15.60
Bid-YTW : 5.92 %
IFC.PR.C FixedReset Disc -1.89 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.34
Evaluated at bid price : 21.34
Bid-YTW : 5.67 %
CU.PR.E Perpetual-Discount -1.62 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 22.22
Evaluated at bid price : 22.50
Bid-YTW : 5.51 %
BAM.PF.B FixedReset Disc -1.51 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.46
Evaluated at bid price : 21.46
Bid-YTW : 6.05 %
NA.PR.W FixedReset Disc -1.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.30
Evaluated at bid price : 21.60
Bid-YTW : 5.42 %
TRP.PR.C FixedReset Disc -1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 14.16
Evaluated at bid price : 14.16
Bid-YTW : 6.44 %
RY.PR.J FixedReset Disc -1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 22.15
Evaluated at bid price : 22.57
Bid-YTW : 5.54 %
BIP.PR.A FixedReset Disc -1.26 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-06-30
Maturity Price : 25.00
Evaluated at bid price : 23.60
Bid-YTW : 5.99 %
BMO.PR.W FixedReset Disc -1.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.48
Evaluated at bid price : 21.48
Bid-YTW : 5.53 %
BNS.PR.I FixedReset Disc -1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 23.81
Evaluated at bid price : 24.15
Bid-YTW : 5.20 %
PWF.PR.K Perpetual-Discount -1.21 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.89
Evaluated at bid price : 22.13
Bid-YTW : 5.60 %
RY.PR.S FixedReset Disc -1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 23.82
Evaluated at bid price : 24.15
Bid-YTW : 5.21 %
CM.PR.Y FixedReset Prem -1.17 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2024-07-31
Maturity Price : 25.00
Evaluated at bid price : 25.30
Bid-YTW : 4.53 %
PVS.PR.I SplitShare -1.17 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.45
Bid-YTW : 4.37 %
PWF.PR.S Perpetual-Discount -1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.49
Evaluated at bid price : 21.75
Bid-YTW : 5.52 %
TRP.PR.B FixedReset Disc -1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 13.35
Evaluated at bid price : 13.35
Bid-YTW : 6.51 %
BAM.PR.X FixedReset Disc 1.03 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 18.70
Evaluated at bid price : 18.70
Bid-YTW : 5.95 %
SLF.PR.H FixedReset Ins Non 1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 19.50
Evaluated at bid price : 19.50
Bid-YTW : 5.58 %
CU.PR.F Perpetual-Discount 1.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.26
Evaluated at bid price : 21.26
Bid-YTW : 5.37 %
CU.PR.H Perpetual-Premium 1.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 23.96
Evaluated at bid price : 24.30
Bid-YTW : 5.46 %
MFC.PR.C Insurance Straight 1.43 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.25
Evaluated at bid price : 21.25
Bid-YTW : 5.35 %
SLF.PR.G FixedReset Ins Non 1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 16.05
Evaluated at bid price : 16.05
Bid-YTW : 5.66 %
TD.PF.E FixedReset Disc 1.54 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 22.47
Evaluated at bid price : 23.15
Bid-YTW : 5.38 %
FTS.PR.H FixedReset Disc 1.97 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 15.55
Evaluated at bid price : 15.55
Bid-YTW : 5.92 %
PWF.PR.A Floater 2.74 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 15.00
Evaluated at bid price : 15.00
Bid-YTW : 3.77 %
MFC.PR.K FixedReset Ins Non 3.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 22.21
Evaluated at bid price : 22.59
Bid-YTW : 5.34 %
TRP.PR.A FixedReset Disc 3.37 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 17.78
Evaluated at bid price : 17.78
Bid-YTW : 6.18 %
BAM.PR.T FixedReset Disc 3.58 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 19.69
Evaluated at bid price : 19.69
Bid-YTW : 5.89 %
Volume Highlights
Issue Index Shares
Traded		 Notes
IFC.PR.K Perpetual-Premium 178,644 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 24.54
Evaluated at bid price : 24.93
Bid-YTW : 5.31 %
TRP.PR.A FixedReset Disc 23,845 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 17.78
Evaluated at bid price : 17.78
Bid-YTW : 6.18 %
TRP.PR.K FixedReset Prem 20,835 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-31
Maturity Price : 25.00
Evaluated at bid price : 25.23
Bid-YTW : 2.67 %
TRP.PR.E FixedReset Disc 18,665 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 19.30
Evaluated at bid price : 19.30
Bid-YTW : 6.21 %
TRP.PR.D FixedReset Disc 17,465 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 19.42
Evaluated at bid price : 19.42
Bid-YTW : 6.28 %
CM.PR.R FixedReset Prem 17,096 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-07-31
Maturity Price : 25.00
Evaluated at bid price : 24.95
Bid-YTW : 4.55 %
There were 11 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
CM.PR.O FixedReset Disc Quote: 18.00 – 21.66
Spot Rate : 3.6600
Average : 2.5019

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 18.00
Evaluated at bid price : 18.00
Bid-YTW : 6.61 %
IAF.PR.B Insurance Straight Quote: 22.50 – 25.00
Spot Rate : 2.5000
Average : 1.4118

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 22.22
Evaluated at bid price : 22.50
Bid-YTW : 5.14 %
CM.PR.Q FixedReset Disc Quote: 20.00 – 23.13
Spot Rate : 3.1300
Average : 2.0434

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 20.00
Evaluated at bid price : 20.00
Bid-YTW : 6.17 %
BAM.PR.M Perpetual-Discount Quote: 21.20 – 22.25
Spot Rate : 1.0500
Average : 0.6076

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.20
Evaluated at bid price : 21.20
Bid-YTW : 5.65 %
NA.PR.E FixedReset Disc Quote: 23.00 – 23.86
Spot Rate : 0.8600
Average : 0.5428

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 22.51
Evaluated at bid price : 23.00
Bid-YTW : 5.58 %
CM.PR.P FixedReset Disc Quote: 21.00 – 21.88
Spot Rate : 0.8800
Average : 0.6658

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-14
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 5.60 %
Primers

Real Return Bond Performance

This seems to be a hot topic recently, with recent negative returns being explained in various ways:

The problem with Canadian real return bonds is that they, for the most part, mature in 10 to 20 years or more. When inflation is strong and interest rates are rising, investors hate the idea of locking in money for that length of time.

Note that the chart at the top of this article shows the Price Return, not the Total Return, an editorial decision I consider dubious.

But with respect to the quoted text, let’s just say that I’m not entirely satisfied with that explanation, so after I received a query …:

Why is it that RRBs are going down in value right now even though the last few months have seen unexpected inflation (unexpected at the time of the bond’s purchase, i.e. not priced into long term bond yields at the time). I thought that this was the environment that RRBs were supposed to do well in?

… I resolved to provide a more useful answer:

The situation with RRBs is interesting, but it isn’t as bad as you might think. We can compare – cautiously! – the funds:
ZRR : LINK
ZFL : LINK

The former is a Real Return Bond fund (based on the universe of RRBs) and the latter a long-term federal bond fund (based on the long-term Canada index). It would be nice if there was a fund restricted to long-term RRBs, but there isn’t (as far as I know) and ZRR has an average term of 17.87 years (compared to ZFL’s 25.83) so the comparison, while not perfect, isn’t too bad.

ZFL has a 1-year return of -6.97%, compared to -0.95% for ZRR, which is a very dramatic difference! This is because the inflation-adjusted principal value of RRBs has increased dramatically over the past year, due to inflation experienced, despite the lag of three months in incorporating new data.

The question of why ZRR has a negative return at all is interesting. If we look at yield statistics from the Bank of Canada ( LINK ), we see that the yield on Long-term (nominal) Canadas is 2.61%, while the Real Return on long-term RRBs is 0.74%. This implies that the “Break-Even Inflation Rate” (BEIR) is only about 1.9%, which may be considered surprising.

This is the average annual inflation rate over the entire remaining term of the bonds that will result in the two types of bond having the same total return. If the actual inflation rate over the period is higher, RRBs will have done better; if lower, then nominals will have outperformed. So one can choose which type of bond to buy based on one’s prediction of Canadian inflation over the long-term.

The fact that the BEIR is still actually below the 2% midpoint of the BoC inflation target implies that the market believes the current bout of inflation is temporary. If the market believed that future inflation was going to average, say, 4% over the long term, then the current 0.74% real rate would imply a yield of 4.74% on comparable nominals, more than 2% over current levels, which would be a price change of somewhere near -30% for the nominals, a crushing (nominal) bond market crash.

So part of the answer to your question is that inflation expectations are ‘well-anchored’; people believe that in the relatively near future things will get back to normal, whatever that means.

The other part of the answer is that real yields have been climbing for the past year (see the chart at the top of LINK ; the blue line is the long-term real yield. COVID took the long-term real yield negative, a ridiculous and completely unsustainable state of affairs; real yields have gone from -0.25% around the end of 2020 to +0.74% today; a change of about 1% in yield that implies a price change of around -15% in price.

In other words, bonds in general are doing poorly today because they did so well in the early stages of the pandemic and became – as we can tell with hindsight – grossly overpriced.

How high can real yields go? The current level of +0.74% for a long bond looks awfully skimpy to me. It’s within its range of the past 10 years, but the past 10 years have been affected by aftershocks from the Credit Crunch of 2007-09, as well as what some people think are permanent structural changes due to the aging of baby boomers, fewer kids and reduced needs for capital investment in new factories to make things. You can play with the slider on the graph at LINK and extend the chart’s origin to 2000, when real yields were in excess of 3% and the BEIR was about 2.5%. Pay yer money and take yer chances!

Market Action

April 13, 2022

The Globe and Mail remarks:

Canadians are particularly exposed to higher borrowing costs owing to high levels of household debt. At the same time, household finances actually have improved on average through the pandemic, according to central bank research, and interest rate increases will happen against the backdrop of brisk economic growth.

Well, given inflation and high levels of household debt that’s going to have a pretty good effect at the margins.

PerpetualDiscounts now yield 5.48%, equivalent to 7.12% interest at the standard equivalency factor of 1.3x. Long corporates now yield 4.24%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has widened to 290bp from the 275bp reported April 6.

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 3.35 % 3.93 % 24,931 19.38 1 0.5266 % 2,719.4
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.1235 % 5,150.8
Floater 3.34 % 3.39 % 40,779 18.80 4 -0.1235 % 2,968.4
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0265 % 3,620.6
SplitShare 4.64 % 4.51 % 45,592 3.50 6 -0.0265 % 4,323.7
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0265 % 3,373.5
Perpetual-Premium 5.52 % 5.10 % 66,311 14.54 16 -0.1141 % 3,093.7
Perpetual-Discount 5.48 % 5.48 % 63,341 14.68 17 -0.0267 % 3,386.8
FixedReset Disc 4.35 % 5.47 % 131,402 14.91 49 1.6552 % 2,640.4
Insurance Straight 5.43 % 5.43 % 88,275 14.68 20 0.6813 % 3,302.6
FloatingReset 3.59 % 3.88 % 57,878 17.71 2 0.1764 % 2,765.3
FixedReset Prem 4.86 % 4.81 % 150,756 2.17 19 -0.0668 % 2,652.1
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 1.6552 % 2,699.0
FixedReset Ins Non 4.39 % 5.57 % 82,934 14.64 15 0.7781 % 2,736.2
Performance Highlights
Issue Index Change Notes
CU.PR.H Perpetual-Premium -2.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 23.67
Evaluated at bid price : 24.00
Bid-YTW : 5.53 %
TRP.PR.A FixedReset Disc -2.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 17.20
Evaluated at bid price : 17.20
Bid-YTW : 6.39 %
CU.PR.F Perpetual-Discount -2.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 5.44 %
BAM.PF.I FixedReset Prem -2.00 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2027-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.53
Bid-YTW : 4.98 %
CU.PR.G Perpetual-Discount -1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 21.10
Evaluated at bid price : 21.10
Bid-YTW : 5.41 %
NA.PR.G FixedReset Prem -1.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 24.08
Evaluated at bid price : 24.42
Bid-YTW : 5.46 %
CU.PR.C FixedReset Disc -1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 21.93
Evaluated at bid price : 22.44
Bid-YTW : 5.63 %
PWF.PR.K Perpetual-Discount 1.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 22.12
Evaluated at bid price : 22.40
Bid-YTW : 5.53 %
MFC.PR.L FixedReset Ins Non 1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 20.70
Evaluated at bid price : 20.70
Bid-YTW : 5.67 %
BIP.PR.A FixedReset Disc 1.27 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-06-30
Maturity Price : 25.00
Evaluated at bid price : 23.90
Bid-YTW : 5.56 %
BIP.PR.B FixedReset Prem 1.35 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-12-31
Maturity Price : 25.00
Evaluated at bid price : 26.35
Bid-YTW : 4.00 %
BAM.PR.Z FixedReset Disc 1.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 23.37
Evaluated at bid price : 24.02
Bid-YTW : 5.79 %
MFC.PR.Q FixedReset Ins Non 1.54 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 23.25
Evaluated at bid price : 23.75
Bid-YTW : 5.43 %
IAF.PR.I FixedReset Ins Non 1.54 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 23.86
Evaluated at bid price : 24.37
Bid-YTW : 5.49 %
GWO.PR.R Insurance Straight 1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 21.71
Evaluated at bid price : 21.96
Bid-YTW : 5.50 %
RY.PR.J FixedReset Disc 1.60 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 22.34
Evaluated at bid price : 22.86
Bid-YTW : 5.47 %
BAM.PR.X FixedReset Disc 1.93 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 18.51
Evaluated at bid price : 18.51
Bid-YTW : 6.01 %
IFC.PR.E Insurance Straight 2.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 24.21
Evaluated at bid price : 24.50
Bid-YTW : 5.34 %
MFC.PR.N FixedReset Ins Non 2.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 5.65 %
BAM.PR.T FixedReset Disc 2.65 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 19.01
Evaluated at bid price : 19.01
Bid-YTW : 6.09 %
MFC.PR.K FixedReset Ins Non 3.94 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 21.52
Evaluated at bid price : 21.88
Bid-YTW : 5.52 %
CM.PR.Q FixedReset Disc 7.97 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 22.34
Evaluated at bid price : 22.90
Bid-YTW : 5.39 %
GWO.PR.Q Insurance Straight 10.80 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 23.14
Evaluated at bid price : 23.40
Bid-YTW : 5.54 %
CM.PR.O FixedReset Disc 19.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 21.50
Evaluated at bid price : 21.50
Bid-YTW : 5.55 %
TRP.PR.G FixedReset Disc 77.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 21.43
Evaluated at bid price : 21.77
Bid-YTW : 5.86 %
Volume Highlights
Issue Index Shares
Traded		 Notes
TRP.PR.K FixedReset Prem 227,393 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-31
Maturity Price : 25.00
Evaluated at bid price : 25.22
Bid-YTW : 2.92 %
RY.PR.H FixedReset Disc 68,744 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 21.59
Evaluated at bid price : 22.00
Bid-YTW : 5.40 %
TRP.PR.B FixedReset Disc 56,904 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 13.49
Evaluated at bid price : 13.49
Bid-YTW : 6.45 %
CM.PR.R FixedReset Prem 43,543 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-07-31
Maturity Price : 25.00
Evaluated at bid price : 24.92
Bid-YTW : 4.92 %
BMO.PR.S FixedReset Disc 37,425 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 22.10
Evaluated at bid price : 22.35
Bid-YTW : 5.44 %
PWF.PR.O Perpetual-Premium 30,700 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-13
Maturity Price : 25.00
Evaluated at bid price : 25.27
Bid-YTW : -10.29 %
There were 20 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
TRP.PR.D FixedReset Disc Quote: 19.49 – 22.00
Spot Rate : 2.5100
Average : 1.4532

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 19.49
Evaluated at bid price : 19.49
Bid-YTW : 6.26 %
RY.PR.Z FixedReset Disc Quote: 22.10 – 23.98
Spot Rate : 1.8800
Average : 1.0832

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 21.66
Evaluated at bid price : 22.10
Bid-YTW : 5.35 %
PVS.PR.I SplitShare Quote: 25.75 – 30.00
Spot Rate : 4.2500
Average : 3.5273

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-10-31
Maturity Price : 25.00
Evaluated at bid price : 25.75
Bid-YTW : 4.00 %
BAM.PR.K Floater Quote: 14.00 – 15.50
Spot Rate : 1.5000
Average : 0.8595

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 14.00
Evaluated at bid price : 14.00
Bid-YTW : 3.39 %
CU.PR.E Perpetual-Discount Quote: 22.87 – 24.30
Spot Rate : 1.4300
Average : 0.8861

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 22.62
Evaluated at bid price : 22.87
Bid-YTW : 5.42 %
MFC.PR.K FixedReset Ins Non Quote: 21.88 – 23.59
Spot Rate : 1.7100
Average : 1.3790

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-04-13
Maturity Price : 21.52
Evaluated at bid price : 21.88
Bid-YTW : 5.52 %
Canada Prime

BoC Hikes Overnight 50bp to 1.00%; Prime Follows

The Bank of Canada has announced it has:

increased its target for the overnight rate to 1%, with the Bank Rate at 1¼% and the deposit rate at 1%. The Bank is also ending reinvestment and will begin quantitative tightening (QT), effective April 25. Maturing Government of Canada bonds on the Bank’s balance sheet will no longer be replaced and, as a result, the size of the balance sheet will decline over time.

Russia’s ongoing invasion of Ukraine is causing unimaginable human suffering and new economic uncertainty. Price spikes in oil, natural gas and other commodities are adding to inflation around the world. Supply disruptions resulting from the war are also exacerbating ongoing supply constraints and weighing on activity. These factors are the primary drivers of a substantial upward revision to the Bank’s outlook for inflation in Canada.

The war in Ukraine is disrupting the global recovery, just as most economies are emerging from the impact of the Omicron variant of COVID-19. European countries are more directly impacted by confidence effects and supply dislocations caused by the war. China’s economy is facing new COVID outbreaks and an ongoing correction in its property market. In the United States, domestic demand remains very strong and the US Federal Reserve has clearly indicated its resolve to use its monetary policy tools to control inflation. As policy stimulus is withdrawn, US growth is expected to moderate to a pace more in line with potential growth. Global financial conditions have tightened and volatility has increased. The Bank now forecasts global growth of about 3½% this year, 2½% in 2023 and 3¼% in 2024.

In Canada, growth is strong and the economy is moving into excess demand. Labour markets are tight, and wage growth is back to its pre-pandemic pace and rising. Businesses increasingly report they are having difficulty meeting demand, and are able to pass on higher input costs by increasing prices. While the COVID-19 virus continues to mutate and circulate, high rates of vaccination have reduced its health and economic impacts. Growth looks to have been stronger in the first quarter than projected in January and is likely to pick up in the second quarter. Consumer spending is strengthening with the lifting of pandemic containment measures. Exports and business investment will continue to recover, supported by strong foreign demand and high commodity prices. Housing market activity, which has been exceptionally high, is expected to moderate.

The Bank forecasts that Canada’s economy will grow by 4¼% this year before slowing to 3¼% in 2023 and 2¼% in 2024. Robust business investment, labour productivity growth and higher immigration will add to the economy’s productive capacity, while higher interest rates should moderate growth in domestic demand.

CPI inflation in Canada is 5.7%, above the Bank’s forecast in its January Monetary Policy Report (MPR). Inflation is being driven by rising energy and food prices and supply disruptions, in combination with strong global and domestic demand. Core measures of inflation have all moved higher as price pressures broaden. CPI inflation is now expected to average almost 6% in the first half of 2022 and remain well above the control range throughout this year. It is then expected to ease to about 2½% in the second half of 2023 and return to the 2% target in 2024. There is an increasing risk that expectations of elevated inflation could become entrenched. The Bank will use its monetary policy tools to return inflation to target and keep inflation expectations well-anchored.

With the economy moving into excess demand and inflation persisting well above target, the Governing Council judges that interest rates will need to rise further. The policy interest rate is the Bank’s primary monetary policy instrument, and quantitative tightening will complement increases in the policy rate. The timing and pace of further increases in the policy rate will be guided by the Bank’s ongoing assessment of the economy and its commitment to achieving the 2% inflation target.

Prime followed:

Well, Rob Carrick and Ryan Siever will be mad:

There’s a case to be made for banks giving borrowers a break when what is expected to be the biggest interest rate hike in 22 years is announced on Wednesday.

A brief flashback to 2015 is required to get the sense of this story. The economy back then was in the opposite shape of what it is now – weak enough to prompt the Bank of Canada to cut its trendsetting overnight rate by 0.25 of a percentage point in January and again in July.

The big banks hijacked part of that rate cut. While the overnight rate fell by a total 0.5 of a point, the banks cut their prime rate by cumulative 0.3 of a point. They held back the rest of the rate cut to build their revenues and profit.

There was a delay in reducing the prime when the Canada Overnight rate dropped 25bp to 0.75% in January 2015 and again when Canada Overnight dropped a further 25bp to 0.50% in July of that year.