Glad to see that some people take piracy seriously:
About 20 percent of ships in the Indian Ocean and Gulf of Aden will use armed guards within the next 18 months, up from 12 percent, Peter Cook, spokesman for the Security Association for the Maritime Industry, said after a presentation yesterday in London.
…
There have been 145 attacks and 22 ships hijacked by Somali pirates in the Indian Ocean so far this year, according to the International Maritime Organization, the shipping division of the United Nations. Somali pirates added at least $2.4 billion to transportation costs in 2010 as ships were diverted to avoid attacks off east Africa, said One Earth, a non-profit group.The IMO, which had advised shipowners to avoid using armed guards, will probably approve vetting procedures for security operators this week, paving the way for their increased use, Cook said. The organization will discuss guidelines for hiring private armed guards this week, it said by e-mail on May 9.
Used to be that governments understood that their main business was promoting trade. Not any more.
There are some worries about the Toronto condo market:
Worries about the sustainability of the housing market could be stoked by a report from Urbanation Inc., which monitors the Toronto condominium market. The group says more than 50% of condominiums purchased in the last year were by buyers who do not intend to occupy their units and plan to rent in many instances.
Condominium rents in Toronto in the first quarter of 2011 were $2.11 per square foot compared to $2.09 a year earlier, a 0.8% increase. Condominiums being registered now and ready to be occupied are priced for sale at $450 per square foot range while newer units are going for $550 per square foot.
“What happens when these newer units hit the market?” said Ben Myers, executive vice-president of Urbanation. “At $550 per square foot a 750 square feet [condominium] is $413,000. You put 25% down and you have a mortgage of $310,000. Take a five-year variable rate mortgage at 3% with 25-year amortization and you get $1,475 a month mortgage. Your condo fee is $345, property tax is another $345 and you are up to $2,200 in carrying costs. That’s a huge [operating] loss [given the average rental rate would bring in just under $1,600/month]. People are buying these for capital appreciation.”
Ir was another good day for the Canadian preferred share market, with PerpetualDiscounts up 16bp, FixedResets winning 5bp and DeemedRetractibles gaining 7bp. Volatility was muted. Volume was relatively low.
| 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 | -0.0702 % | 2,452.5 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0702 % | 3,688.6 |
| Floater | 2.46 % | 2.26 % | 41,173 | 21.61 | 4 | -0.0702 % | 2,648.1 |
| OpRet | 4.87 % | 3.50 % | 61,782 | 0.44 | 9 | 0.1204 % | 2,419.5 |
| SplitShare | 5.19 % | -1.73 % | 57,715 | 0.58 | 6 | 0.0727 % | 2,508.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1204 % | 2,212.4 |
| Perpetual-Premium | 5.74 % | 5.19 % | 128,134 | 1.00 | 9 | 0.0971 % | 2,064.4 |
| Perpetual-Discount | 5.51 % | 5.53 % | 120,640 | 14.53 | 15 | 0.1578 % | 2,155.2 |
| FixedReset | 5.14 % | 3.21 % | 196,936 | 2.88 | 57 | 0.0509 % | 2,311.4 |
| Deemed-Retractible | 5.17 % | 4.91 % | 293,766 | 8.07 | 53 | 0.0742 % | 2,124.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| CIU.PR.A | Perpetual-Discount | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-05-17 Maturity Price : 22.28 Evaluated at bid price : 22.43 Bid-YTW : 5.14 % |
| PWF.PR.K | Perpetual-Discount | 1.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-05-17 Maturity Price : 23.40 Evaluated at bid price : 23.66 Bid-YTW : 5.27 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| CM.PR.D | Deemed-Retractible | 87,684 | TD crossed 78,700 at 25.50. YTW SCENARIO Maturity Type : Call Maturity Date : 2011-06-16 Maturity Price : 25.25 Evaluated at bid price : 25.49 Bid-YTW : -2.61 % |
| BMO.PR.H | Deemed-Retractible | 80,550 | TD crossed 79,000 at 25.39. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-03-27 Maturity Price : 25.00 Evaluated at bid price : 25.35 Bid-YTW : 4.45 % |
| BAM.PR.I | OpRet | 70,800 | Nesbitt crossed 70,000 at 25.50. YTW SCENARIO Maturity Type : Call Maturity Date : 2011-07-30 Maturity Price : 25.25 Evaluated at bid price : 25.50 Bid-YTW : 3.97 % |
| FTS.PR.E | OpRet | 60,523 | Nesbitt crossed 50,000 at 26.75. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-07-01 Maturity Price : 25.75 Evaluated at bid price : 26.74 Bid-YTW : 2.80 % |
| TRP.PR.C | FixedReset | 39,231 | TD crossed 24,900 at 25.70. YTW SCENARIO Maturity Type : Call Maturity Date : 2016-02-29 Maturity Price : 25.00 Evaluated at bid price : 25.65 Bid-YTW : 3.84 % |
| TD.PR.K | FixedReset | 33,360 | RBC crossed 25,000 at 27.45. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-08-30 Maturity Price : 25.00 Evaluated at bid price : 27.45 Bid-YTW : 3.21 % |
| There were 27 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| FTS.PR.F | Perpetual-Discount | Quote: 23.46 – 23.75 Spot Rate : 0.2900 Average : 0.2122 YTW SCENARIO |
| CM.PR.K | FixedReset | Quote: 26.90 – 27.15 Spot Rate : 0.2500 Average : 0.1739 YTW SCENARIO |
| POW.PR.A | Perpetual-Discount | Quote: 24.48 – 24.75 Spot Rate : 0.2700 Average : 0.1950 YTW SCENARIO |
| CIU.PR.A | Perpetual-Discount | Quote: 22.43 – 22.80 Spot Rate : 0.3700 Average : 0.2984 YTW SCENARIO |
| IAG.PR.F | Deemed-Retractible | Quote: 25.78 – 25.99 Spot Rate : 0.2100 Average : 0.1455 YTW SCENARIO |
| BMO.PR.L | Deemed-Retractible | Quote: 25.98 – 26.16 Spot Rate : 0.1800 Average : 0.1209 YTW SCENARIO |