Europe is considering another step towards effective nationalization of the banking system:
Banks in states roiled by Europe’s sovereign-debt crisis may be partly shielded from extra costs when they seek government guarantees, according to two people familiar with the situation.
The European Commission will publish rules on state aid for lenders that may dilute the effect of turmoil in the euro area on the fees that banks have to pay for guarantees on their loans and bonds, said the people who couldn’t be identified because the discussions aren’t public. Under the plans, the formula for setting the fees would reduce the impact of soaring debt- insurance costs for the country giving the backstops, one of the people said.
“Renewed tensions” in financial markets are forcing European Union regulators to extend into 2012 special state aid rules for banks that have allowed governments to inject billions of euros into the industry, said EU Competition Commissioner Joaquin Almunia this month. He said he was planning to “clarify and update the rules on pricing and other conditions.”
I’m not saying that’s necessarily the wrong response – I’m just saying that if it is the right response then banks are just another arm of government.
BRF.PR.A was confirmed at Pfd-3(high) by DBRS:
DBRS has today assigned an Issuer Rating of BBB (high) with a Stable trend to Brookfield Renewable Energy Partners L.P. (BREP) and a rating of BBB (high) with a Stable trend to the Senior Unsecured Debentures and Notes (the Notes) of BRP Finance ULC (BRPF). DBRS has also confirmed the Pfd-3 (high) rating with a Stable trend of Class A Preference Shares, Series 1 (the Prefs) of Brookfield Renewable Power Preferred Equity Inc. (BRPP). The ratings of the Notes of BRPF and the Prefs of BRPP are based on guarantees of the parent company, BREP, and its operating subsidiaries. In addition, the rating on the Senior Unsecured Debentures and Notes of Brookfield Renewable Power Inc. (BRPI) and the Issuer Rating and Income Fund rating of Brookfield Renewable Power Fund (the Fund) have been discontinued. These actions resolve the Under Review with Developing Implications assigned to the ratings of BRPI and the Fund on September 13, 2011.
These rating actions follow the closing of the anticipated business combination (the Transaction) today in which in BREP acquired all of the units of the Fund and the equity interests in all of BRPI’s U.S., Brazilian and Canadian power assets not already owned by the Fund. The Transaction and the expected rating outcomes were described in more detail in the DBRS press release dated September 13, 2011.
It was a mixed, uneventful day for the Canadian preferred share market, with PerpetualDiscounts losing 8bp, FixedResets down 5bp and DeemedRetractibles gaining 4bp. Volatility was negligible; volume was average.
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 | 0.0326 % | 2,104.3 |
FixedFloater | 4.92 % | 4.66 % | 28,713 | 17.05 | 1 | -1.7812 % | 3,130.8 |
Floater | 3.42 % | 3.44 % | 151,838 | 18.60 | 2 | 0.0326 % | 2,272.1 |
OpRet | 4.95 % | 0.72 % | 49,744 | 1.46 | 7 | 0.1484 % | 2,482.9 |
SplitShare | 5.79 % | 6.40 % | 54,694 | 5.15 | 3 | 0.2257 % | 2,535.3 |
Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1484 % | 2,270.3 |
Perpetual-Premium | 5.59 % | 3.12 % | 97,593 | 0.41 | 13 | 0.1008 % | 2,150.8 |
Perpetual-Discount | 5.32 % | 5.37 % | 103,679 | 14.67 | 17 | -0.0798 % | 2,291.7 |
FixedReset | 5.11 % | 3.06 % | 215,197 | 2.46 | 64 | -0.0451 % | 2,341.0 |
Deemed-Retractible | 5.05 % | 4.42 % | 197,700 | 3.84 | 46 | 0.0384 % | 2,216.6 |
Performance Highlights | |||
Issue | Index | Change | Notes |
BAM.PR.X | FixedReset | -2.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-11-28 Maturity Price : 22.75 Evaluated at bid price : 24.01 Bid-YTW : 3.73 % |
BAM.PR.G | FixedFloater | -1.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-11-28 Maturity Price : 25.00 Evaluated at bid price : 19.30 Bid-YTW : 4.66 % |
Volume Highlights | |||
Issue | Index | Shares Traded |
Notes |
ENB.PR.D | FixedReset | 422,680 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-11-28 Maturity Price : 23.13 Evaluated at bid price : 25.10 Bid-YTW : 3.74 % |
BAM.PR.Z | FixedReset | 140,977 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-11-28 Maturity Price : 23.15 Evaluated at bid price : 25.15 Bid-YTW : 4.42 % |
BAM.PR.H | OpRet | 42,231 | TD crossed 40,000 at 25.35. YTW SCENARIO Maturity Type : Call Maturity Date : 2011-12-28 Maturity Price : 25.00 Evaluated at bid price : 25.35 Bid-YTW : 0.01 % |
CM.PR.G | Perpetual-Discount | 41,173 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-11-28 Maturity Price : 24.57 Evaluated at bid price : 24.90 Bid-YTW : 5.47 % |
CM.PR.E | Perpetual-Discount | 35,260 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2041-11-28 Maturity Price : 24.70 Evaluated at bid price : 24.99 Bid-YTW : 5.66 % |
IAG.PR.E | Deemed-Retractible | 31,233 | TD crossed blocks of 10,000 and 15,000, both at 26.05. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-12-31 Maturity Price : 25.00 Evaluated at bid price : 26.00 Bid-YTW : 5.26 % |
There were 31 other index-included issues trading in excess of 10,000 shares. |
Wide Spread Highlights | ||
Issue | Index | Quote Data and Yield Notes |
HSB.PR.C | Deemed-Retractible | Quote: 24.98 – 25.73 Spot Rate : 0.7500 Average : 0.4794 YTW SCENARIO |
BMO.PR.O | FixedReset | Quote: 27.36 – 27.68 Spot Rate : 0.3200 Average : 0.1975 YTW SCENARIO |
BMO.PR.N | FixedReset | Quote: 27.15 – 27.44 Spot Rate : 0.2900 Average : 0.1861 YTW SCENARIO |
BAM.PR.X | FixedReset | Quote: 24.01 – 24.60 Spot Rate : 0.5900 Average : 0.4881 YTW SCENARIO |
IAG.PR.C | FixedReset | Quote: 26.27 – 26.70 Spot Rate : 0.4300 Average : 0.3281 YTW SCENARIO |
GWO.PR.J | FixedReset | Quote: 26.45 – 26.74 Spot Rate : 0.2900 Average : 0.2085 YTW SCENARIO |