Nothing happened today, so I went to a flamenco show. During an informal question and answer period after the show (you aren’t allowed to merely enjoy anything nowadays, particularly dance: you must show diligence in getting booked up) Ms. Enrique explained that the large fans held by the women were mocking the fans held at one time by the nobility at court, exaggerated for satirical purposes; the long trains on some of the dresses are in the same vein.
Which got me to wondering: how are the rich mocked today? I’m not convinced that they are, at least not in North America, where there is a degree of social mobility lacking in a structured society. We don’t mock their wine cellars – because we all want a 5,000 bottle wine cellar. We don’t mock their private planes – because we all want a private plane. Even rap artists, who one might expect to be the most logical source of mockery, make a big fuss about how wonderful it is to have big cars and drink champagne and all the rest of it. We don’t mock the rich, because they are us. The rich are not like you and me – they have more money!
It was a soft day for the Canadian preferred share market, with PerpetualPremiums gaining 3bp, FixedResets losing 16bp and DeemedRetractibles down 11bp. Volatility was good. Volume was heavy, with quite a few issues trading more than 100,000 shares.
| 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 | 0.2673 % | 2,407.1 |
| FixedFloater | 4.44 % | 3.79 % | 33,988 | 17.79 | 1 | -1.2903 % | 3,554.6 |
| Floater | 3.00 % | 3.03 % | 43,249 | 19.65 | 3 | 0.2673 % | 2,599.0 |
| OpRet | 4.76 % | 2.88 % | 46,568 | 1.16 | 5 | -0.2216 % | 2,506.5 |
| SplitShare | 5.25 % | 0.33 % | 80,666 | 0.65 | 4 | 0.0149 % | 2,689.6 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2216 % | 2,292.0 |
| Perpetual-Premium | 5.46 % | 1.66 % | 82,110 | 0.12 | 23 | 0.0306 % | 2,224.9 |
| Perpetual-Discount | 5.19 % | 5.24 % | 156,312 | 15.08 | 10 | 0.2913 % | 2,403.2 |
| FixedReset | 5.01 % | 3.02 % | 191,117 | 2.17 | 67 | -0.1589 % | 2,396.1 |
| Deemed-Retractible | 4.97 % | 3.80 % | 198,511 | 2.86 | 46 | -0.1111 % | 2,306.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| SLF.PR.B | Deemed-Retractible | -1.96 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.46 Bid-YTW : 5.70 % |
| BAM.PR.G | FixedFloater | -1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-04-20 Maturity Price : 22.26 Evaluated at bid price : 21.42 Bid-YTW : 3.79 % |
| SLF.PR.C | Deemed-Retractible | -1.04 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.77 Bid-YTW : 5.72 % |
| TCA.PR.Y | Perpetual-Premium | 1.25 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-03-05 Maturity Price : 50.00 Evaluated at bid price : 52.75 Bid-YTW : 2.49 % |
| BAM.PR.M | Perpetual-Discount | 1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-04-20 Maturity Price : 22.35 Evaluated at bid price : 22.71 Bid-YTW : 5.26 % |
| ELF.PR.G | Perpetual-Discount | 2.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-04-20 Maturity Price : 22.41 Evaluated at bid price : 22.75 Bid-YTW : 5.24 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BMO.PR.P | FixedReset | 174,877 | RBC crossed 150,000 at 26.95. YTW SCENARIO Maturity Type : Call Maturity Date : 2015-02-25 Maturity Price : 25.00 Evaluated at bid price : 26.90 Bid-YTW : 2.92 % |
| CM.PR.J | Deemed-Retractible | 154,240 | Called for redemption YTW SCENARIO Maturity Type : Call Maturity Date : 2013-04-30 Maturity Price : 25.75 Evaluated at bid price : 25.98 Bid-YTW : 3.36 % |
| ENB.PR.H | FixedReset | 141,525 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-04-20 Maturity Price : 23.23 Evaluated at bid price : 25.42 Bid-YTW : 3.53 % |
| BMO.PR.Q | FixedReset | 136,477 | RBC crossed 119,700 at 25.62. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.49 Bid-YTW : 3.08 % |
| BAM.PF.A | FixedReset | 119,350 | RBC bought three blocks from anonymous, two of 10,000 shares, one of 14,200, all at 25.45. Nesbitt crossed 40,000 at 25.44. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-04-20 Maturity Price : 23.21 Evaluated at bid price : 25.36 Bid-YTW : 4.27 % |
| TD.PR.G | FixedReset | 115,110 | TD crossed 50,000 at 26.82; Nesbitt crossed 60,000 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-04-30 Maturity Price : 25.00 Evaluated at bid price : 26.75 Bid-YTW : 2.61 % |
| FTS.PR.E | OpRet | 109,249 | Nesbitt crossed 98,400 at 26.50. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-06-01 Maturity Price : 25.75 Evaluated at bid price : 26.45 Bid-YTW : 2.88 % |
| FTS.PR.C | OpRet | 108,702 | Nesbitt crossed 100,000 at 25.60. YTW SCENARIO Maturity Type : Call Maturity Date : 2012-06-01 Maturity Price : 25.25 Evaluated at bid price : 25.57 Bid-YTW : 0.79 % |
| POW.PR.G | Perpetual-Premium | 105,300 | Nesbitt crossed 35,600 at 25.99 and 20,000 at 25.98. YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-15 Maturity Price : 25.00 Evaluated at bid price : 25.91 Bid-YTW : 5.13 % |
| GWO.PR.P | Deemed-Retractible | 101,300 | Nesbitt crossed 36,800 at 25.99 and bought 10,000 from anonymous at 25.95. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.90 Bid-YTW : 5.07 % |
| There were 47 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BAM.PR.B | Floater | Quote: 17.70 – 18.70 Spot Rate : 1.0000 Average : 0.5966 YTW SCENARIO |
| BAM.PR.K | Floater | Quote: 17.41 – 18.00 Spot Rate : 0.5900 Average : 0.4000 YTW SCENARIO |
| TCA.PR.Y | Perpetual-Premium | Quote: 52.75 – 53.25 Spot Rate : 0.5000 Average : 0.3297 YTW SCENARIO |
| BAM.PR.G | FixedFloater | Quote: 21.42 – 22.10 Spot Rate : 0.6800 Average : 0.5259 YTW SCENARIO |
| BNS.PR.X | FixedReset | Quote: 26.65 – 26.95 Spot Rate : 0.3000 Average : 0.1870 YTW SCENARIO |
| SLF.PR.B | Deemed-Retractible | Quote: 23.46 – 23.73 Spot Rate : 0.2700 Average : 0.1599 YTW SCENARIO |