The news from Greece just keeps getting worse:
Credit-default swaps on Greek government debt surged to a record, signaling there’s a 91 percent probability the nation won’t meet debt commitments, after its economy shrank more than previously reported.
Five-year contracts on the country’s sovereign bonds jumped 240 basis points to a record 3,045 basis points, according to CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated market.
Gross domestic product shrank 7.3 percent from a year earlier after declining 8.1 percent on an annual basis in the first quarter, the Hellenic Statistical Authority said. Greece’s financial situation is “on a knife’s edge,” German Finance Minister Wolfgang Schaeuble told lawmakers last night, the parliament’s HIB bulletin said.
But Greece swears up and down it will stay in the Euro:
Greece ruled out quitting the euro on Thursday, shrugging off warnings by its biggest creditor Germany and yet another set of bad economic figures showing it is struggling under the weight of EU/IMF-imposed austerity.
Anger at Greece’s failure to meet fiscal targets that are a condition for its international bailout is nearing breaking point in Berlin and other European capitals, with senior German politicians now talking openly about the possibility of Athens exiting the euro zone.
But Athens ruled out any chance of quitting the single currency, pledging to make every effort to qualify for a €109-billion bailout agreed by euro zone leaders in July, the second rescue package for the debt-laden country in little more than a year.
“There is no threat of Greece exiting the euro zone,” government spokesman Ilias Mosialos said. “We are proceeding with reforms quickly.”
It’s reminiscent of old times! ‘We will not devalue! We will not devalue! We will not devalue! Well, we just devalued, but we had to and that was the last time! We will not devalue!’
Trichet is showing signs of strain:
Trichet, 68, lost his cool yesterday with a reporter who asked whether Germany should abandon the euro and return to the mark as Europe’s debt crisis roils markets and spooks voters.
“I would like very much to hear the congratulations for an institution which has delivered price stability in Germany for almost 13 years,” Trichet said in Frankfurt in an uncharacteristically raised voice. “It’s not by chance we have delivered price stability,” he said. “We do our job, it’s not an easy job.”
If it works, this is bad news for YLO:
Google Inc. (GOOG), owner of the world’s most-used search engine, has acquired Zagat Survey LLC, the review and ratings service, to add features aimed at local businesses and advertisers.
Zagat brings an array of reviews of hotels, restaurants, shopping and other categories, the company said in a blog post today. The service, which offers both printed and online reviews and ratings, was founded more than 30 years ago.
But will small businesses want to buy all their advertising through a place that allows bad reviews?
There was no insider trading of YLO issues reported by the TMX today; nor was there anything new filed on SEDI.
DBRS confirmed three more SplitShare Corporations.
The TRE cease trading order was extended.
It was a good day for the Canadian preferred share market, with PerpetualDiscounts gaining 5bp, FixedResets up 9bp and DeemedRetractibles winning 10bp. Not much volatility. Volume was below 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 | -0.4370 % | 2,152.0 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4370 % | 3,236.6 |
| Floater | 3.01 % | 3.32 % | 57,962 | 18.86 | 3 | -0.4370 % | 2,323.6 |
| OpRet | 4.80 % | 2.37 % | 65,987 | 1.66 | 8 | 0.2026 % | 2,455.1 |
| SplitShare | 5.36 % | 0.07 % | 54,103 | 0.47 | 4 | 0.2076 % | 2,501.1 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2026 % | 2,244.9 |
| Perpetual-Premium | 5.62 % | 4.68 % | 125,270 | 0.47 | 16 | 0.1328 % | 2,117.6 |
| Perpetual-Discount | 5.29 % | 5.36 % | 131,329 | 14.84 | 14 | 0.0509 % | 2,245.4 |
| FixedReset | 5.14 % | 3.06 % | 203,015 | 2.65 | 59 | 0.0907 % | 2,331.7 |
| Deemed-Retractible | 5.03 % | 4.57 % | 243,216 | 4.66 | 46 | 0.1045 % | 2,201.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PWF.PR.A | Floater | -1.90 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-09-08 Maturity Price : 20.61 Evaluated at bid price : 20.61 Bid-YTW : 2.56 % |
| FTS.PR.F | Perpetual-Discount | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-09-08 Maturity Price : 24.23 Evaluated at bid price : 24.52 Bid-YTW : 5.02 % |
| SLF.PR.F | FixedReset | 1.16 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-06-30 Maturity Price : 25.00 Evaluated at bid price : 27.03 Bid-YTW : 2.86 % |
| BAM.PR.X | FixedReset | 1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-09-08 Maturity Price : 22.90 Evaluated at bid price : 24.39 Bid-YTW : 3.64 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| CIU.PR.B | FixedReset | 55,226 | RBC crossed two blocks of 23,600 each, both at 27.35. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-06-01 Maturity Price : 25.00 Evaluated at bid price : 27.30 Bid-YTW : 3.24 % |
| BNS.PR.T | FixedReset | 53,687 | RBC crossed blocks of 23,500 and 25,000, both at 27.35. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-04-25 Maturity Price : 25.00 Evaluated at bid price : 27.32 Bid-YTW : 2.86 % |
| BNS.PR.L | Deemed-Retractible | 45,218 | TD crossed 20,000 at 25.19. YTW SCENARIO Maturity Type : Call Maturity Date : 2016-04-27 Maturity Price : 25.00 Evaluated at bid price : 25.16 Bid-YTW : 4.49 % |
| TD.PR.R | Deemed-Retractible | 39,914 | RBC crossed 18,500 at 26.75. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-04-30 Maturity Price : 26.00 Evaluated at bid price : 26.75 Bid-YTW : 3.92 % |
| RY.PR.A | Deemed-Retractible | 39,461 | YTW SCENARIO Maturity Type : Call Maturity Date : 2015-05-24 Maturity Price : 25.00 Evaluated at bid price : 25.09 Bid-YTW : 4.42 % |
| BMO.PR.J | Deemed-Retractible | 38,127 | YTW SCENARIO Maturity Type : Call Maturity Date : 2016-02-25 Maturity Price : 25.00 Evaluated at bid price : 25.15 Bid-YTW : 4.42 % |
| There were 26 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| FTS.PR.G | FixedReset | Quote: 26.00 – 26.48 Spot Rate : 0.4800 Average : 0.3103 YTW SCENARIO |
| PWF.PR.A | Floater | Quote: 20.61 – 22.00 Spot Rate : 1.3900 Average : 1.2504 YTW SCENARIO |
| PWF.PR.M | FixedReset | Quote: 27.02 – 27.45 Spot Rate : 0.4300 Average : 0.3056 YTW SCENARIO |
| RY.PR.C | Deemed-Retractible | Quote: 25.08 – 25.40 Spot Rate : 0.3200 Average : 0.2205 YTW SCENARIO |
| FTS.PR.H | FixedReset | Quote: 25.30 – 25.78 Spot Rate : 0.4800 Average : 0.3927 YTW SCENARIO |
| IAG.PR.A | Deemed-Retractible | Quote: 23.25 – 23.68 Spot Rate : 0.4300 Average : 0.3561 YTW SCENARIO |