European politicians have a problem when talking about the potential for sovereign default – nobody believes them:
Most global investors predict at least one nation will leave the euro-area within five years and that Greece and Ireland will default, sentiment that is intensifying pressure on policy makers to strengthen their response to the debt crisis.
As the World Economic Forum’s annual meeting gets underway, 59 percent of respondents in a Bloomberg Global Poll said one or more of the 17 euro nations will quit by 2016, including 11 percent who see an exit within 12 months. Respondents were divided over whether Portugal would default, while a majority expressed confidence in Spain.
It was a mixed, downish day on the Canadian preferred share market, as PerpetualDiscounts gained 3bp while FixedResets lost 14bp … that brings the Bozo Spread (Current Yield PerpetualDiscounts less Current Yield FixedResets) down to 6bp! Volume continued at elevated levels.
| 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 | 0.2660 % | 2,364.8 |
| FixedFloater | 4.78 % | 3.47 % | 28,605 | 19.16 | 1 | 0.0000 % | 3,561.0 |
| Floater | 2.53 % | 2.30 % | 41,847 | 21.53 | 4 | 0.2660 % | 2,553.4 |
| OpRet | 4.81 % | 3.38 % | 66,596 | 2.28 | 8 | 0.0000 % | 2,389.5 |
| SplitShare | 5.29 % | 0.82 % | 433,803 | 0.87 | 4 | 0.1199 % | 2,470.1 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0000 % | 2,185.0 |
| Perpetual-Premium | 5.64 % | 5.12 % | 140,893 | 5.01 | 20 | -0.0314 % | 2,034.3 |
| Perpetual-Discount | 5.32 % | 5.27 % | 256,999 | 14.93 | 57 | 0.0252 % | 2,081.1 |
| FixedReset | 5.26 % | 3.52 % | 280,392 | 3.03 | 52 | -0.1380 % | 2,268.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| RY.PR.L | FixedReset | -1.46 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-03-26 Maturity Price : 25.00 Evaluated at bid price : 26.28 Bid-YTW : 3.72 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| RY.PR.A | Perpetual-Discount | 66,459 | RBC crossed 53,800 at 22.50. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-01-25 Maturity Price : 22.37 Evaluated at bid price : 22.53 Bid-YTW : 4.93 % |
| TRP.PR.C | FixedReset | 38,455 | National crossed 10,000 at 25.47; RBC crossed 15,000 at 25.45. YTW SCENARIO Maturity Type : Call Maturity Date : 2016-02-29 Maturity Price : 25.00 Evaluated at bid price : 25.37 Bid-YTW : 4.07 % |
| CM.PR.G | Perpetual-Discount | 34,888 | Desjardins crossed 23,100 at 24.90. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-01-25 Maturity Price : 24.53 Evaluated at bid price : 24.81 Bid-YTW : 5.46 % |
| BNS.PR.Y | FixedReset | 34,357 | RBC crossed 10,000 at 25.01. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-01-25 Maturity Price : 24.91 Evaluated at bid price : 24.96 Bid-YTW : 3.65 % |
| TD.PR.I | FixedReset | 28,192 | RBC crossed 11,000 at 27.24. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-08-30 Maturity Price : 25.00 Evaluated at bid price : 27.20 Bid-YTW : 3.65 % |
| NA.PR.L | Perpetual-Discount | 28,134 | TD crossed 14,500 at 24.05. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-01-25 Maturity Price : 23.72 Evaluated at bid price : 24.00 Bid-YTW : 5.05 % |
| There were 37 other index-included issues trading in excess of 10,000 shares. | |||