Germany is convinced that European investments are a risky proposition:
European officials voiced divisions over the steps needed to stop the sovereign debt crisis as Germany opposes increasing the 750 billion-euro ($1 trillion) bailout fund and the introduction of joint European bonds.
Belgian Finance Minister Didier Reynders told reporters on Dec. 4 that the fund might be expanded if ministers decide to introduce a larger permanent facility when the current temporary one expires, breaking ranks with German Chancellor Angela Merkel and France’s Nicolas Sarkozy. Luxembourg and Italy today called for the creation of joint European bonds, a move rebuffed by Germany Finance Minister Wolfgang Schaeuble.
…
Today’s meeting comes after Luxembourg Finance Minister Jean-Claude Juncker and Italian counterpart Giulio Tremonti wrote a letter to the FT calling for the introduction of a joint European government bond.“E-Bonds” would be sold by a European Debt Agency, which could be created as early as this month and finance as much as 50 percent of the issuances by EU members to create a deep market, they said. A switch would also be offered between E- Bonds and current government bonds.
German Deputy Finance Minister Joerg Asmussen on Dec. 3 rejected such a move because it wouldn’t encourage countries to fix their finances.
It was a muted day overall on the Canadian preferred share market, with PerpetualDiscounts up 6bp and FixedResets losing 5bp. There was some decent volatility, as shown on the performance highlights, and volume remained high.
| 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 | 0.0996 % | 2,278.8 |
| FixedFloater | 4.73 % | 3.20 % | 28,454 | 19.05 | 1 | 0.0000 % | 3,559.0 |
| Floater | 2.61 % | 2.36 % | 53,667 | 21.36 | 4 | 0.0996 % | 2,460.5 |
| OpRet | 4.79 % | 3.16 % | 68,773 | 2.38 | 8 | 0.2163 % | 2,378.9 |
| SplitShare | 5.46 % | 1.39 % | 119,715 | 1.00 | 3 | 0.1472 % | 2,464.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2163 % | 2,175.3 |
| Perpetual-Premium | 5.69 % | 5.44 % | 153,990 | 5.38 | 27 | 0.1252 % | 2,013.5 |
| Perpetual-Discount | 5.36 % | 5.38 % | 284,090 | 14.78 | 51 | 0.0611 % | 2,031.8 |
| FixedReset | 5.23 % | 3.48 % | 352,034 | 3.13 | 52 | -0.0511 % | 2,259.3 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| GWO.PR.J | FixedReset | -3.35 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-01-30 Maturity Price : 25.00 Evaluated at bid price : 26.00 Bid-YTW : 4.47 % |
| BNS.PR.P | FixedReset | -1.60 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-05-25 Maturity Price : 25.00 Evaluated at bid price : 25.75 Bid-YTW : 3.90 % |
| RY.PR.N | FixedReset | -1.20 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-03-26 Maturity Price : 25.00 Evaluated at bid price : 27.27 Bid-YTW : 3.38 % |
| MFC.PR.B | Perpetual-Discount | 1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-12-06 Maturity Price : 20.88 Evaluated at bid price : 20.88 Bid-YTW : 5.59 % |
| MFC.PR.E | FixedReset | 1.16 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-10-19 Maturity Price : 25.00 Evaluated at bid price : 26.98 Bid-YTW : 3.36 % |
| BNS.PR.X | FixedReset | 1.22 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-25 Maturity Price : 25.00 Evaluated at bid price : 27.45 Bid-YTW : 3.49 % |
| BAM.PR.I | OpRet | 2.67 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2011-01-05 Maturity Price : 25.50 Evaluated at bid price : 25.80 Bid-YTW : 3.16 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| RY.PR.X | FixedReset | 65,687 | Nesbitt crossed 50,000 at 27.54. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-09-23 Maturity Price : 25.00 Evaluated at bid price : 27.50 Bid-YTW : 3.53 % |
| SLF.PR.D | Perpetual-Discount | 53,626 | TD crossed 25,000 at 20.40. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-12-06 Maturity Price : 20.35 Evaluated at bid price : 20.35 Bid-YTW : 5.48 % |
| BNS.PR.T | FixedReset | 52,678 | Nesbitt crossed 50,000 at 27.50. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-25 Maturity Price : 25.00 Evaluated at bid price : 27.50 Bid-YTW : 3.41 % |
| CL.PR.B | Perpetual-Premium | 51,300 | Called for redemption. YTW SCENARIO Maturity Type : Call Maturity Date : 2011-01-30 Maturity Price : 25.00 Evaluated at bid price : 24.94 Bid-YTW : 5.06 % |
| TRP.PR.C | FixedReset | 46,039 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-12-06 Maturity Price : 25.24 Evaluated at bid price : 25.29 Bid-YTW : 3.98 % |
| GWO.PR.N | FixedReset | 45,715 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-12-06 Maturity Price : 24.42 Evaluated at bid price : 24.47 Bid-YTW : 3.72 % |
| There were 53 other index-included issues trading in excess of 10,000 shares. | |||