In astonishing news,
Canada will have endured seven years of budget deficits before it returns to a surplus position, the federal government said Tuesday in its fall fiscal update.
…
The anticipated 2015-16 surplus would mean seven years of deficit financing, beginning in the 2008-09 fiscal year when the financial crisis erupted. Prior to that, the country posted 11 consecutive annual budget surpluses.
Maybe they should cut taxes again! That will increase revenues, absolutely for sure, unless it doesn’t.
McDonald’s Corp.’s yuan bond sale, the first by a foreign company in Hong Kong, may pave the way for a new global debt market as China seeks to capitalize on its status as the engine of the world’s economic recovery.
McDonald’s, which opened its first 1,000 restaurants in China faster than any other country outside the U.S., sold 200-million yuan (US$29-million) of 3% notes due in September 2013.
…
“There are a lot of companies expressing interest in issuing yuan bonds,” said Per Nordstrom, head of EMTNs Asia at Standard Chartered Plc, who worked on the sale. “I’m expecting the renminbi offshore market to be very popular.”
I’m not sure if these things have a cool name yet, like Maple, Yankee and Samurai. You can’t have cross-border bonds without a cool name! It just isn’t done!
The Canadian preferred share market had another good day on strong volume, with PerpetualDiscounts up 14bp and FixedResets gaining 20bp.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.7500 % | 2,186.6 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.7500 % | 3,312.4 |
| Floater | 2.86 % | 3.18 % | 78,644 | 19.31 | 3 | 0.7500 % | 2,360.9 |
| OpRet | 4.90 % | 3.15 % | 81,228 | 0.13 | 9 | 0.1422 % | 2,376.4 |
| SplitShare | 5.89 % | -29.82 % | 64,607 | 0.09 | 2 | 0.0814 % | 2,388.4 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1422 % | 2,173.0 |
| Perpetual-Premium | 5.71 % | 5.08 % | 135,279 | 5.37 | 19 | 0.2340 % | 2,007.9 |
| Perpetual-Discount | 5.45 % | 5.45 % | 225,965 | 14.69 | 58 | 0.1378 % | 1,999.5 |
| FixedReset | 5.27 % | 3.08 % | 314,192 | 3.28 | 47 | 0.1992 % | 2,271.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PWF.PR.P | FixedReset | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-10-12 Maturity Price : 23.38 Evaluated at bid price : 25.81 Bid-YTW : 3.38 % |
| NA.PR.K | Perpetual-Premium | 1.15 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2010-11-11 Maturity Price : 25.50 Evaluated at bid price : 25.51 Bid-YTW : -1.24 % |
| BAM.PR.K | Floater | 1.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-10-12 Maturity Price : 16.61 Evaluated at bid price : 16.61 Bid-YTW : 3.18 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BNS.PR.N | Perpetual-Discount | 115,525 | Nesbitt crossed 100,000 at 24.50. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-10-12 Maturity Price : 24.36 Evaluated at bid price : 24.59 Bid-YTW : 5.34 % |
| MFC.PR.C | Perpetual-Discount | 100,938 | RBC crossed 85,000 at 19.65. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-10-12 Maturity Price : 19.60 Evaluated at bid price : 19.60 Bid-YTW : 5.81 % |
| BNS.PR.Q | FixedReset | 76,762 | RBC bought 10,000 from National at 26.26 and crossed 25,000 at 26.30. Desjardins crossed 14,200 at 26.30. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-11-24 Maturity Price : 25.00 Evaluated at bid price : 26.29 Bid-YTW : 3.08 % |
| TD.PR.R | Perpetual-Premium | 66,086 | RBC crossed 50,000 at 25.50. YTW SCENARIO Maturity Type : Call Maturity Date : 2017-05-30 Maturity Price : 25.00 Evaluated at bid price : 25.45 Bid-YTW : 5.26 % |
| RY.PR.B | Perpetual-Discount | 65,038 | Nesbitt crossed 50,000 at 22.77. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-10-12 Maturity Price : 22.57 Evaluated at bid price : 22.74 Bid-YTW : 5.24 % |
| PWF.PR.D | OpRet | 59,334 | Nesbitt crossed 54,300 at 25.36. YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2012-10-30 Maturity Price : 25.00 Evaluated at bid price : 25.35 Bid-YTW : 4.36 % |
| There were 39 other index-included issues trading in excess of 10,000 shares. | |||
I’m not sure if these things have a cool name yet, like Maple, Yankee and Samurai. You can’t have cross-border bonds without a cool name! It just isn’t done!
Have a look here: http://en.wikipedia.org/wiki/Bond_%28finance%29#Bonds_issued_in_foreign_currencies — the cool name is panda bonds.
Well! You learn something new every day! Thanks!
Of course … these bonds were not issued in Beijing, but Hong Kong, as part of Chinese efforts to get an offshore market going. I wonder if that makes a difference.