The Europeans are going to solve all their problems by monetizing the Greek default:
European governments are considering cutting interest rates on emergency loans to Greece and using contributions from the European Central Bank to plug a new financing gap in the second bailout program for Athens, two people familiar with the discussions said.
Finance ministers wrangled over how to close the funding hole in a teleconference last night after seeing estimates that Greece’s debt would fall to 129 percent of gross domestic product in 2020, missing a target of 120 percent, said the people, who declined to be named because the talks are still in progress. Last year, the level was about 160 percent.
It was another down day for the Canadian preferred share market, with PerpetualPremiums off 5bp, and both FixedResets and DeemedRetractibles losing 31bp. PerpetualDiscounts (all four of them) were hammered for 194bp. Lots of volatility, heavily skewed towards losers. Volume was above 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 | -1.4402 % | 2,407.7 |
| FixedFloater | 4.55 % | 3.92 % | 38,276 | 17.46 | 1 | 0.0000 % | 3,428.9 |
| Floater | 2.77 % | 3.02 % | 61,887 | 19.65 | 3 | -1.4402 % | 2,599.6 |
| OpRet | 4.88 % | 2.50 % | 59,222 | 1.32 | 6 | 0.0511 % | 2,503.2 |
| SplitShare | 5.29 % | -0.76 % | 81,635 | 0.81 | 4 | -0.1495 % | 2,645.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0511 % | 2,289.0 |
| Perpetual-Premium | 5.41 % | 4.02 % | 116,607 | 1.58 | 26 | -0.0493 % | 2,190.8 |
| Perpetual-Discount | 5.20 % | 5.20 % | 78,648 | 15.08 | 4 | -1.9413 % | 2,376.4 |
| FixedReset | 5.07 % | 2.92 % | 214,787 | 2.28 | 65 | -0.3066 % | 2,373.1 |
| Deemed-Retractible | 4.96 % | 3.93 % | 201,544 | 3.03 | 45 | -0.3134 % | 2,282.6 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.N | Perpetual-Discount | -3.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-02-16 Maturity Price : 22.80 Evaluated at bid price : 23.20 Bid-YTW : 5.17 % |
| PWF.PR.A | Floater | -3.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-02-16 Maturity Price : 21.49 Evaluated at bid price : 21.75 Bid-YTW : 2.39 % |
| BAM.PR.M | Perpetual-Discount | -2.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-02-16 Maturity Price : 23.00 Evaluated at bid price : 23.46 Bid-YTW : 5.11 % |
| BAM.PR.Z | FixedReset | -1.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-02-16 Maturity Price : 23.31 Evaluated at bid price : 25.63 Bid-YTW : 4.30 % |
| W.PR.H | Perpetual-Premium | -1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-02-16 Maturity Price : 24.79 Evaluated at bid price : 25.11 Bid-YTW : 5.53 % |
| SLF.PR.G | FixedReset | -1.40 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.92 Bid-YTW : 4.00 % |
| SLF.PR.B | Deemed-Retractible | -1.32 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.16 Bid-YTW : 5.90 % |
| MFC.PR.C | Deemed-Retractible | -1.21 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.93 Bid-YTW : 5.73 % |
| ELF.PR.F | Perpetual-Discount | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-02-16 Maturity Price : 24.00 Evaluated at bid price : 24.30 Bid-YTW : 5.50 % |
| CU.PR.C | FixedReset | -1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-02-16 Maturity Price : 23.23 Evaluated at bid price : 25.27 Bid-YTW : 3.68 % |
| IFC.PR.C | FixedReset | -1.17 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2016-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.31 Bid-YTW : 4.05 % |
| RY.PR.F | Deemed-Retractible | -1.17 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2016-05-24 Maturity Price : 25.00 Evaluated at bid price : 25.44 Bid-YTW : 4.00 % |
| SLF.PR.I | FixedReset | -1.16 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-12-31 Maturity Price : 25.00 Evaluated at bid price : 24.61 Bid-YTW : 4.54 % |
| SLF.PR.A | Deemed-Retractible | -1.15 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.16 Bid-YTW : 5.85 % |
| SLF.PR.E | Deemed-Retractible | -1.10 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.40 Bid-YTW : 6.01 % |
| BNS.PR.M | Deemed-Retractible | -1.05 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2015-07-27 Maturity Price : 25.25 Evaluated at bid price : 25.52 Bid-YTW : 4.21 % |
| IAG.PR.A | Deemed-Retractible | 1.65 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.99 Bid-YTW : 5.23 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| ENB.PR.F | FixedReset | 118,141 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-02-16 Maturity Price : 23.19 Evaluated at bid price : 25.30 Bid-YTW : 3.79 % |
| RY.PR.X | FixedReset | 48,731 | Scotia crossed blocks of 16,900 and 25,000 at 27.10. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-08-24 Maturity Price : 25.00 Evaluated at bid price : 27.14 Bid-YTW : 2.69 % |
| BMO.PR.Q | FixedReset | 48,482 | RBC crossed blocks of 14,500 and 20,000 at 25.80. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.75 Bid-YTW : 2.86 % |
| BNS.PR.Z | FixedReset | 45,079 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.91 Bid-YTW : 3.24 % |
| RY.PR.A | Deemed-Retractible | 42,264 | TD crossed 17,900 at 25.60. YTW SCENARIO Maturity Type : Call Maturity Date : 2015-05-24 Maturity Price : 25.00 Evaluated at bid price : 25.54 Bid-YTW : 3.73 % |
| BNS.PR.N | Deemed-Retractible | 30,615 | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-01-29 Maturity Price : 26.00 Evaluated at bid price : 26.30 Bid-YTW : 4.05 % |
| There were 41 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| W.PR.H | Perpetual-Premium | Quote: 25.11 – 25.99 Spot Rate : 0.8800 Average : 0.5394 YTW SCENARIO |
| BAM.PR.R | FixedReset | Quote: 26.30 – 27.00 Spot Rate : 0.7000 Average : 0.4689 YTW SCENARIO |
| SLF.PR.G | FixedReset | Quote: 23.92 – 24.64 Spot Rate : 0.7200 Average : 0.5068 YTW SCENARIO |
| BAM.PR.N | Perpetual-Discount | Quote: 23.20 – 23.60 Spot Rate : 0.4000 Average : 0.2783 YTW SCENARIO |
| BNS.PR.K | Deemed-Retractible | Quote: 25.60 – 25.89 Spot Rate : 0.2900 Average : 0.1875 YTW SCENARIO |
| PWF.PR.P | FixedReset | Quote: 25.34 – 25.69 Spot Rate : 0.3500 Average : 0.2505 YTW SCENARIO |