Nothing happened today. BOR-RING!
It was a relatively quiet day in the Canadian preferred share market as well, where volume was below average. PerpetualDiscounts were about as flat as you can get, despite dominating the (reasonably short) performance table, which was in turn comprised entirely of losers. The Manulife PerpetualDiscounts, MFC.PR.B and MFC.PR.C had a horrible day; it appears that a number of holders wanted to sell after last week’s earnings release, but wanted to earn just one more dividend before getting out. Both issues made it onto the volume table as well.
It was left to FixedResets to provide the day’s entertainment and they managed to gain 5bp on the day, taking the median weighted average yield down to 3.35% – the second lowest on record, beaten only by March 26 … which, as many will know, marked the beginning of a severe slump in prices that lasted until the end of April.
I asked a Technical Analyst if 3.30% marked a Resistance Point, but after talking for half an hour he realized that not only was his chart upside down, but that the kids had been using it for tick tac toe. I’ll call him again next year and learn why it is now totally obvious that the market is currently about to … er … do whatever it’s going to do.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.5786 % | 2,054.7 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.5786 % | 3,112.6 |
| Floater | 2.55 % | 2.15 % | 35,602 | 21.94 | 4 | -0.5786 % | 2,218.5 |
| OpRet | 4.88 % | -1.50 % | 100,455 | 0.21 | 9 | 0.0155 % | 2,359.2 |
| SplitShare | 6.06 % | -1.01 % | 64,763 | 0.08 | 2 | 0.1675 % | 2,288.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0155 % | 2,157.3 |
| Perpetual-Premium | 5.80 % | 5.57 % | 94,556 | 5.60 | 7 | 0.1813 % | 1,950.0 |
| Perpetual-Discount | 5.79 % | 5.87 % | 172,772 | 14.03 | 71 | -0.0002 % | 1,873.7 |
| FixedReset | 5.30 % | 3.35 % | 275,212 | 3.40 | 47 | 0.0490 % | 2,237.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| MFC.PR.B | Perpetual-Discount | -2.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-08-13 Maturity Price : 18.70 Evaluated at bid price : 18.70 Bid-YTW : 6.22 % |
| MFC.PR.C | Perpetual-Discount | -2.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-08-13 Maturity Price : 18.31 Evaluated at bid price : 18.31 Bid-YTW : 6.15 % |
| GWO.PR.J | FixedReset | -1.58 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-01-30 Maturity Price : 25.00 Evaluated at bid price : 27.35 Bid-YTW : 3.35 % |
| HSB.PR.D | Perpetual-Discount | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-08-13 Maturity Price : 21.54 Evaluated at bid price : 21.54 Bid-YTW : 5.89 % |
| BAM.PR.K | Floater | -1.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-08-13 Maturity Price : 15.05 Evaluated at bid price : 15.05 Bid-YTW : 3.22 % |
| ELF.PR.G | Perpetual-Discount | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-08-13 Maturity Price : 19.15 Evaluated at bid price : 19.15 Bid-YTW : 6.28 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| MFC.PR.B | Perpetual-Discount | 34,882 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-08-13 Maturity Price : 18.70 Evaluated at bid price : 18.70 Bid-YTW : 6.22 % |
| RY.PR.X | FixedReset | 26,733 | TD crossed 20,000 at 27.80. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-09-23 Maturity Price : 25.00 Evaluated at bid price : 27.82 Bid-YTW : 3.29 % |
| ELF.PR.G | Perpetual-Discount | 25,975 | Nesbitt crossed 20,400 at 19.10. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-08-13 Maturity Price : 19.15 Evaluated at bid price : 19.15 Bid-YTW : 6.28 % |
| MFC.PR.E | FixedReset | 25,200 | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-10-19 Maturity Price : 25.00 Evaluated at bid price : 26.36 Bid-YTW : 4.04 % |
| BMO.PR.P | FixedReset | 23,735 | TD crossed 17,200 at 27.35. YTW SCENARIO Maturity Type : Call Maturity Date : 2015-03-27 Maturity Price : 25.00 Evaluated at bid price : 27.30 Bid-YTW : 3.18 % |
| MFC.PR.C | Perpetual-Discount | 22,305 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-08-13 Maturity Price : 18.31 Evaluated at bid price : 18.31 Bid-YTW : 6.15 % |
| There were 17 other index-included issues trading in excess of 10,000 shares. | |||