There are rising doubts about UK growth:
The Organization for Economic Cooperation and Development cut its forecast for U.K. economic growth in 2011 and said the Bank of England should refrain from increasing interest rates until the second half of the year.
Gross domestic product will expand 1.5 percent instead of the 1.7 percent predicted in November, the Paris-based group said in its economic survey of the U.K. published today. It maintained its 2 percent growth forecast for next year.
“The recovery is likely to remain subdued in 2011, as the necessary fiscal tightening and a fading rebound in world trade create headwinds, before picking up again in 2012,” it said.
… and Moody’s downgraded Portugal:
The euro halted three days of gains versus the dollar after Moody’s Investors Service downgraded Portugal’s credit rating, reviving concern about Europe’s ability to solve its debt crisis.
The 17-nation common currency depreciated versus all but two its major counterparts after Portugal was cut two steps by Moody’s yesterday to A3, four steps from so-called junk status.
It was a good day overall for the Canadian preferred share market, with PerpetualDiscounts up 30bp, FixedResets losing 4bp and DeemedRetractibles up 6bp. Volume was average.
| 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 | 0.4957 % | 2,381.4 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4957 % | 3,581.6 |
| Floater | 2.53 % | 2.35 % | 47,061 | 21.38 | 4 | 0.4957 % | 2,571.3 |
| OpRet | 4.89 % | 3.57 % | 54,435 | 1.16 | 9 | 0.0820 % | 2,396.0 |
| SplitShare | 5.09 % | 3.52 % | 172,659 | 1.01 | 5 | -0.1259 % | 2,484.7 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0820 % | 2,191.0 |
| Perpetual-Premium | 5.75 % | 5.64 % | 132,023 | 13.91 | 10 | 0.0617 % | 2,030.5 |
| Perpetual-Discount | 5.52 % | 5.54 % | 121,854 | 14.40 | 14 | 0.3019 % | 2,117.9 |
| FixedReset | 5.20 % | 3.64 % | 236,569 | 2.96 | 56 | -0.0359 % | 2,271.7 |
| Deemed-Retractible | 5.26 % | 5.38 % | 359,084 | 8.28 | 53 | 0.0637 % | 2,067.3 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| GWO.PR.M | Deemed-Retractible | -1.18 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2019-04-30 Maturity Price : 25.00 Evaluated at bid price : 25.20 Bid-YTW : 5.68 % |
| ELF.PR.G | Deemed-Retractible | 1.03 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.50 Bid-YTW : 7.32 % |
| PWF.PR.A | Floater | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-03-16 Maturity Price : 22.01 Evaluated at bid price : 22.25 Bid-YTW : 2.35 % |
| BAM.PR.T | FixedReset | 1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-03-16 Maturity Price : 23.00 Evaluated at bid price : 24.69 Bid-YTW : 4.71 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PR.O | Deemed-Retractible | 158,410 | RBC crossed 50,000 at 24.70; Desjardins crossed 100,000 at the same price. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.66 Bid-YTW : 5.12 % |
| BNS.PR.M | Deemed-Retractible | 125,375 | Nesbitt crossed 100,000 at 23.40. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.42 Bid-YTW : 5.38 % |
| TRP.PR.C | FixedReset | 112,025 | Anonymous sold 19,500 to Nesbitt and three blocks of 10,000 each to RBC, all at 25.25. RBC crossed 25,000 at the same price. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-03-16 Maturity Price : 25.15 Evaluated at bid price : 25.20 Bid-YTW : 4.18 % |
| RY.PR.G | Deemed-Retractible | 111,520 | Nesbitt crossed 100,000 at 23.20. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.18 Bid-YTW : 5.46 % |
| BNS.PR.X | FixedReset | 103,200 | Nesbitt crossed 100,000 at 27.30. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-25 Maturity Price : 25.00 Evaluated at bid price : 27.31 Bid-YTW : 3.52 % |
| SLF.PR.F | FixedReset | 102,730 | Nesbitt crossed 100,000 at 26.75. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-30 Maturity Price : 25.00 Evaluated at bid price : 26.71 Bid-YTW : 3.79 % |
| There were 31 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| PWF.PR.L | Perpetual-Discount | Quote: 23.75 – 24.29 Spot Rate : 0.5400 Average : 0.3537 YTW SCENARIO |
| FTS.PR.G | FixedReset | Quote: 25.56 – 25.90 Spot Rate : 0.3400 Average : 0.2341 YTW SCENARIO |
| RY.PR.C | Deemed-Retractible | Quote: 23.38 – 23.75 Spot Rate : 0.3700 Average : 0.2649 YTW SCENARIO |
| GWO.PR.J | FixedReset | Quote: 26.76 – 27.10 Spot Rate : 0.3400 Average : 0.2477 YTW SCENARIO |
| W.PR.H | Perpetual-Discount | Quote: 24.00 – 24.27 Spot Rate : 0.2700 Average : 0.1927 YTW SCENARIO |
| GWO.PR.N | FixedReset | Quote: 24.40 – 24.69 Spot Rate : 0.2900 Average : 0.2148 YTW SCENARIO |