Wall Street’s three major indexes suffered their biggest daily percentage drop in almost two weeks on Wednesday as a surge in U.S. coronavirus cases intensified fears of another round of government lockdowns and worsening economic damage.
The TSX also closed lower, led by a 3.84% decline in the energy sector, with investors largely shrugging off a downgrade of Canada’s debt rating by Fitch Ratings.
…
The United States has recorded the second-largest rise in infections since the health crisis began, with a flare-up of cases in states where restrictions meant to contain the disease were lifted early.
Highlighting the seriousness of the resurgence in cases for many investors, the governors of New York, New Jersey and Connecticut announced that visitors from states with high coronavirus infection rates must self-quarantine for 14 days on arrival.
Fitch Ratings has downgraded Canada’s triple-A credit rating to double-A-plus in light of “much expanded” 2020 deficits due to billions in emergency spending during the novel coronavirus pandemic.
The decision reflects growing public debt at both the federal and provincial levels.
…
“The rating downgrade reflects the deterioration of Canada’s public finances in 2020 resulting from the coronavirus pandemic,” the agency stated. Wednesday’s announcement says Canada’s rating outlook is stable.
Fitch expects the coronavirus response to raise Canada’s consolidated gross general government debt to 115.1 per cent of GDP, up from 88.3 per cent of GDP in 2019.
“Canada has a track record of fiscal adjustment during the 1990s. However, the structure of Canada’s decentralized fiscal framework increases the complexity of any fiscal adjustment,” the agency said. “The pandemic has caused several provinces to pause deficit-reduction plans, and some premiers have urged greater direct federal financial support to the provinces.”
“Federal borrowing for crown corporations also increases debt,” Fitch said. “The federal minority Liberal government, which was returned to office in October 2019, has already loosened fiscal policy relative to the first term and postponed a pledge to stabilize net federal government debt in order to address the priorities of allied minority parties.”
PerpetualDiscounts now yield 5.71%, equivalent to 7.42% interest at the standard equivalency factor of 1.3x. Long corporates now yield 3.00%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has widened slightly (and perhaps spuriously) to 440bp from the 435bp reported June 17.
Performance Highlights |
Issue |
Index |
Change |
Notes |
MFC.PR.G |
FixedReset Ins Non |
-3.79 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 15.75
Evaluated at bid price : 15.75
Bid-YTW : 5.29 % |
CCS.PR.C |
Deemed-Retractible |
-3.51 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 21.44
Evaluated at bid price : 21.70
Bid-YTW : 5.78 % |
BAM.PR.T |
FixedReset Disc |
-3.15 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 11.67
Evaluated at bid price : 11.67
Bid-YTW : 5.96 % |
BAM.PR.Z |
FixedReset Disc |
-2.69 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 15.18
Evaluated at bid price : 15.18
Bid-YTW : 5.88 % |
SLF.PR.J |
FloatingReset |
-2.60 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 9.00
Evaluated at bid price : 9.00
Bid-YTW : 4.48 % |
MFC.PR.H |
FixedReset Ins Non |
-2.52 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 17.40
Evaluated at bid price : 17.40
Bid-YTW : 5.16 % |
RY.PR.M |
FixedReset Disc |
-2.46 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 15.85
Evaluated at bid price : 15.85
Bid-YTW : 4.77 % |
SLF.PR.G |
FixedReset Ins Non |
-2.33 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 9.21
Evaluated at bid price : 9.21
Bid-YTW : 4.83 % |
RY.PR.J |
FixedReset Disc |
-2.33 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 16.36
Evaluated at bid price : 16.36
Bid-YTW : 4.83 % |
MFC.PR.K |
FixedReset Ins Non |
-2.18 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 14.33
Evaluated at bid price : 14.33
Bid-YTW : 5.11 % |
TD.PF.D |
FixedReset Disc |
-2.17 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 16.25
Evaluated at bid price : 16.25
Bid-YTW : 4.94 % |
BAM.PF.G |
FixedReset Disc |
-2.13 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 13.80
Evaluated at bid price : 13.80
Bid-YTW : 5.84 % |
BIP.PR.E |
FixedReset Disc |
-2.10 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 20.50
Evaluated at bid price : 20.50
Bid-YTW : 6.14 % |
EML.PR.A |
FixedReset Ins Non |
-2.07 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 22.98
Evaluated at bid price : 23.60
Bid-YTW : 5.66 % |
TRP.PR.F |
FloatingReset |
-1.93 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 9.67
Evaluated at bid price : 9.67
Bid-YTW : 5.49 % |
PWF.PR.T |
FixedReset Disc |
-1.88 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 14.65
Evaluated at bid price : 14.65
Bid-YTW : 5.32 % |
SLF.PR.I |
FixedReset Ins Non |
-1.84 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 16.00
Evaluated at bid price : 16.00
Bid-YTW : 4.96 % |
BAM.PF.E |
FixedReset Disc |
-1.84 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 13.35
Evaluated at bid price : 13.35
Bid-YTW : 5.85 % |
HSE.PR.G |
FixedReset Disc |
-1.83 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 10.70
Evaluated at bid price : 10.70
Bid-YTW : 9.15 % |
BAM.PR.N |
Perpetual-Discount |
-1.81 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 21.11
Evaluated at bid price : 21.11
Bid-YTW : 5.66 % |
BMO.PR.S |
FixedReset Disc |
-1.76 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 15.08
Evaluated at bid price : 15.08
Bid-YTW : 4.94 % |
HSE.PR.E |
FixedReset Disc |
-1.70 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 11.55
Evaluated at bid price : 11.55
Bid-YTW : 9.13 % |
BAM.PR.M |
Perpetual-Discount |
-1.62 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 21.24
Evaluated at bid price : 21.24
Bid-YTW : 5.62 % |
IFC.PR.G |
FixedReset Ins Non |
-1.61 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 15.25
Evaluated at bid price : 15.25
Bid-YTW : 5.37 % |
BMO.PR.Y |
FixedReset Disc |
-1.60 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 15.99
Evaluated at bid price : 15.99
Bid-YTW : 4.85 % |
HSE.PR.A |
FixedReset Disc |
-1.59 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 6.20
Evaluated at bid price : 6.20
Bid-YTW : 8.59 % |
MFC.PR.F |
FixedReset Ins Non |
-1.58 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 9.35
Evaluated at bid price : 9.35
Bid-YTW : 4.82 % |
IFC.PR.C |
FixedReset Ins Non |
-1.54 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 14.10
Evaluated at bid price : 14.10
Bid-YTW : 5.42 % |
TRP.PR.H |
FloatingReset |
-1.47 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 7.39
Evaluated at bid price : 7.39
Bid-YTW : 5.02 % |
CM.PR.O |
FixedReset Disc |
-1.46 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 14.21
Evaluated at bid price : 14.21
Bid-YTW : 5.26 % |
BAM.PF.B |
FixedReset Disc |
-1.38 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 14.30
Evaluated at bid price : 14.30
Bid-YTW : 5.87 % |
RY.PR.Z |
FixedReset Disc |
-1.37 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 15.10
Evaluated at bid price : 15.10
Bid-YTW : 4.71 % |
HSE.PR.C |
FixedReset Disc |
-1.37 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 10.80
Evaluated at bid price : 10.80
Bid-YTW : 9.16 % |
MFC.PR.M |
FixedReset Ins Non |
-1.32 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 14.90
Evaluated at bid price : 14.90
Bid-YTW : 5.05 % |
NA.PR.S |
FixedReset Disc |
-1.31 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 15.10
Evaluated at bid price : 15.10
Bid-YTW : 5.10 % |
TD.PF.B |
FixedReset Disc |
-1.29 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 15.25
Evaluated at bid price : 15.25
Bid-YTW : 4.80 % |
BMO.PR.T |
FixedReset Disc |
-1.28 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 14.61
Evaluated at bid price : 14.61
Bid-YTW : 4.91 % |
BAM.PR.R |
FixedReset Disc |
-1.28 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 11.55
Evaluated at bid price : 11.55
Bid-YTW : 5.83 % |
IFC.PR.F |
Deemed-Retractible |
-1.27 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 22.92
Evaluated at bid price : 23.25
Bid-YTW : 5.71 % |
RY.PR.H |
FixedReset Disc |
-1.27 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 15.50
Evaluated at bid price : 15.50
Bid-YTW : 4.65 % |
BNS.PR.H |
FixedReset Disc |
-1.27 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 22.99
Evaluated at bid price : 23.40
Bid-YTW : 4.95 % |
IFC.PR.I |
Perpetual-Discount |
-1.26 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 23.30
Evaluated at bid price : 23.60
Bid-YTW : 5.74 % |
BMO.PR.C |
FixedReset Disc |
-1.25 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 5.03 % |
TD.PF.I |
FixedReset Disc |
-1.18 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 18.37
Evaluated at bid price : 18.37
Bid-YTW : 4.89 % |
PWF.PR.P |
FixedReset Disc |
-1.16 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 9.40
Evaluated at bid price : 9.40
Bid-YTW : 5.35 % |
BAM.PF.D |
Perpetual-Discount |
-1.13 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 21.97
Evaluated at bid price : 21.97
Bid-YTW : 5.61 % |
BAM.PF.J |
FixedReset Disc |
-1.06 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 22.65
Evaluated at bid price : 23.25
Bid-YTW : 5.10 % |
IAF.PR.B |
Deemed-Retractible |
-1.06 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 21.42
Evaluated at bid price : 21.42
Bid-YTW : 5.40 % |
IAF.PR.I |
FixedReset Ins Non |
-1.04 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 17.17
Evaluated at bid price : 17.17
Bid-YTW : 4.96 % |
IFC.PR.E |
Deemed-Retractible |
-1.03 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 22.67
Evaluated at bid price : 22.99
Bid-YTW : 5.67 % |
CU.PR.I |
FixedReset Disc |
1.12 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 23.54
Evaluated at bid price : 24.32
Bid-YTW : 4.62 % |
GWO.PR.Q |
Deemed-Retractible |
1.20 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 22.51
Evaluated at bid price : 22.77
Bid-YTW : 5.67 % |
NA.PR.C |
FixedReset Disc |
1.36 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 19.41
Evaluated at bid price : 19.41
Bid-YTW : 5.07 % |
TD.PF.M |
FixedReset Disc |
1.38 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 21.72
Evaluated at bid price : 22.05
Bid-YTW : 4.82 % |
BIK.PR.A |
FixedReset Disc |
1.70 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 22.83
Evaluated at bid price : 23.90
Bid-YTW : 6.10 % |
PWF.PR.A |
Floater |
2.04 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 9.49
Evaluated at bid price : 9.49
Bid-YTW : 4.57 % |
IFC.PR.A |
FixedReset Ins Non |
3.27 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 11.36
Evaluated at bid price : 11.36
Bid-YTW : 5.05 % |
TD.PF.J |
FixedReset Disc |
4.99 % |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-06-24
Maturity Price : 17.68
Evaluated at bid price : 17.68
Bid-YTW : 4.78 % |
CM.PR.Q To Reset To 3.143%
June 30th, 2020Canadian Imperial Bank of Commerce has announced:
CM.PR.Q is a FixedReset, 3.60%+279, that commenced trading 2015-3-11 after being announced 2015-2-26. The issue is tracked by HIMIPref™ and is assigned to the FixedResets (Discount) subindex.
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