Yankee Bonds are surging in popularity:
Foreign borrowers are claiming the biggest share of the U.S. corporate bond market in at least a decade, taking advantage of record investor demand for dollar- denominated debt.
The overseas issuers, known as Yankee borrowers, account for 43 percent of sales this year, compared with 37 percent in 2009 and an average 23 percent from 1999 to 2009, according to data compiled by Bloomberg. Reliance Industries Ltd, India’s biggest company by market value, plans to sell at least $1 billion of bonds in its first benchmark offering in dollars.
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U.S. bond mutual funds have taken in $181 billion this year through September, compared with $7.3 billion for European bond funds, according to EPFR Global in Cambridge, Massachusetts. In the first nine months of 2009, U.S. fund inflows were $134.8 billion compared with $2.4 billion in Europe.
More divergence in the Canadian preferred share market today, as PerpetualDiscounts gained 14bp while FixedResets were basically flat, with continued heavy volume.
| 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 | 0.4046 % | 2,167.5 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4046 % | 3,283.5 |
| Floater | 2.88 % | 3.20 % | 76,398 | 19.25 | 3 | 0.4046 % | 2,340.3 |
| OpRet | 4.91 % | 3.32 % | 75,453 | 0.15 | 9 | -0.1763 % | 2,364.7 |
| SplitShare | 5.95 % | -30.61 % | 67,830 | 0.09 | 2 | -0.1842 % | 2,367.5 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1763 % | 2,162.3 |
| Perpetual-Premium | 5.71 % | 5.26 % | 123,289 | 5.48 | 19 | 0.0599 % | 1,998.0 |
| Perpetual-Discount | 5.48 % | 5.52 % | 217,454 | 14.63 | 58 | 0.1419 % | 1,986.3 |
| FixedReset | 5.28 % | 3.24 % | 318,483 | 3.29 | 47 | -0.0055 % | 2,258.4 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| ENB.PR.A | Perpetual-Premium | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-10-04 Maturity Price : 24.82 Evaluated at bid price : 25.04 Bid-YTW : 5.55 % |
| IAG.PR.C | FixedReset | -1.06 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-01-30 Maturity Price : 25.00 Evaluated at bid price : 27.01 Bid-YTW : 3.66 % |
| HSB.PR.C | Perpetual-Discount | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-10-04 Maturity Price : 23.55 Evaluated at bid price : 23.80 Bid-YTW : 5.38 % |
| PWF.PR.I | Perpetual-Premium | 1.25 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2010-11-03 Maturity Price : 25.50 Evaluated at bid price : 25.85 Bid-YTW : 1.76 % |
| BAM.PR.R | FixedReset | 1.54 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-07-30 Maturity Price : 25.00 Evaluated at bid price : 26.42 Bid-YTW : 4.27 % |
| BAM.PR.B | Floater | 1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-10-04 Maturity Price : 16.46 Evaluated at bid price : 16.46 Bid-YTW : 3.20 % |
| ELF.PR.G | Perpetual-Discount | 2.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-10-04 Maturity Price : 20.49 Evaluated at bid price : 20.49 Bid-YTW : 5.82 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PR.G | FixedReset | 143,500 | RBC bought two blocks of 11,000 each from anonymous, at 27.95 and 27.96; RBC bought 15,000 from TD at 27.96 and 10,000 from anonymous, both at 27.96; RBC crossed 50,000 at 27.96. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-30 Maturity Price : 25.00 Evaluated at bid price : 27.95 Bid-YTW : 3.15 % |
| RY.PR.X | FixedReset | 97,085 | RBC crossed 38,700 at 28.00 and sold 13,800 to Scotia at the same price. Nesbitt crossed 20,000 at 28.00. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-09-23 Maturity Price : 25.00 Evaluated at bid price : 28.00 Bid-YTW : 3.22 % |
| RY.PR.P | FixedReset | 81,643 | RBC bought 12,400 from anonymous at 27.59, and crossed 16,000 at the same price. TD crossed 20,000 at the same price again. RBC crossed 11,100 at 27.60. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-03-26 Maturity Price : 25.00 Evaluated at bid price : 27.60 Bid-YTW : 3.28 % |
| TD.PR.E | FixedReset | 64,638 | TD crossed 15,000 at 27.90 and 30,000 at 27.92. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-30 Maturity Price : 25.00 Evaluated at bid price : 27.88 Bid-YTW : 3.23 % |
| CM.PR.K | FixedReset | 59,727 | RBC crossed 25,000 at 26.58. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-08-30 Maturity Price : 25.00 Evaluated at bid price : 26.60 Bid-YTW : 3.42 % |
| TD.PR.S | FixedReset | 57,030 | RBC crossed 45,100 at 26.52. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-08-30 Maturity Price : 25.00 Evaluated at bid price : 26.46 Bid-YTW : 3.10 % |
| There were 51 other index-included issues trading in excess of 10,000 shares. | |||