Fiscal madness continues in the US, with proposals to embed milkfare:
Under President Harry S. Truman’s farm policy, the government bought supplies of a product until its price reached “parity” with the cost immediately before World War I. Adjusted for a century of inflation, the Agriculture Department’s milk-support price today would be $39.08 per hundred pounds, more than double the dairy futures price of $18.60 at 8:34 a.m. in New York today.
Under the revised dairy plan, written by [Minnesota Rep. Collin] Peterson [D], the government would manage the milk supply by setting milk- production limits for farmers who enroll in a market- stabilization program. The proposal eliminates programs that pay farmers when prices fall below a certain level, replacing them with initiatives designed to protect profit margins through insurance programs and by limiting output, which would raise prices.
The year ended on a positive note, with PerpetualPremiums and DeemedRetractibles both up 2bp and FixedResets winning 12bp. Volatility was muted. Volume was near non-existent.
And that’s a wrap for 2012! The fund’s done rather well over the year … I’ve earned an extra half spoonful of cinnamon in my coffee tonight!
| 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 | -0.1601 % | 2,478.5 |
| FixedFloater | 4.35 % | 3.71 % | 30,473 | 17.85 | 1 | 0.2294 % | 3,700.9 |
| Floater | 2.81 % | 3.00 % | 54,001 | 19.72 | 4 | -0.1601 % | 2,676.1 |
| OpRet | 4.62 % | 1.63 % | 53,688 | 0.46 | 4 | 0.1241 % | 2,599.0 |
| SplitShare | 4.63 % | 4.68 % | 52,488 | 4.36 | 2 | 0.0000 % | 2,875.3 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1241 % | 2,376.5 |
| Perpetual-Premium | 5.26 % | 1.03 % | 67,640 | 0.78 | 30 | 0.0194 % | 2,331.8 |
| Perpetual-Discount | 4.86 % | 4.89 % | 129,708 | 15.69 | 4 | -0.0305 % | 2,639.9 |
| FixedReset | 4.92 % | 2.89 % | 212,650 | 4.25 | 77 | 0.1249 % | 2,465.0 |
| Deemed-Retractible | 4.88 % | 0.09 % | 110,626 | 0.16 | 46 | 0.0193 % | 2,429.5 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| ELF.PR.G | Perpetual-Discount | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-12-31 Maturity Price : 23.75 Evaluated at bid price : 24.23 Bid-YTW : 4.89 % |
| MFC.PR.B | Deemed-Retractible | 1.09 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.96 Bid-YTW : 4.72 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| ENB.PR.T | FixedReset | 24,165 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-12-31 Maturity Price : 23.16 Evaluated at bid price : 25.21 Bid-YTW : 3.74 % |
| BMO.PR.Q | FixedReset | 18,397 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.92 Bid-YTW : 3.19 % |
| TD.PR.A | FixedReset | 15,467 | RBC bought 13,300 from CIBC at 25.58. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.55 Bid-YTW : 3.36 % |
| MFC.PR.E | FixedReset | 10,362 | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-09-19 Maturity Price : 25.00 Evaluated at bid price : 26.20 Bid-YTW : 2.85 % |
| RY.PR.H | Deemed-Retractible | 10,100 | National crossed 10,000 at 26.75. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-05-24 Maturity Price : 26.00 Evaluated at bid price : 26.74 Bid-YTW : -0.41 % |
| There were 0 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BAM.PR.C | Floater | Quote: 17.47 – 19.00 Spot Rate : 1.5300 Average : 0.8128 YTW SCENARIO |
| BNS.PR.J | Deemed-Retractible | Quote: 25.82 – 26.28 Spot Rate : 0.4600 Average : 0.2675 YTW SCENARIO |
| ELF.PR.G | Perpetual-Discount | Quote: 24.23 – 24.70 Spot Rate : 0.4700 Average : 0.2905 YTW SCENARIO |
| TCA.PR.X | Perpetual-Premium | Quote: 51.56 – 52.42 Spot Rate : 0.8600 Average : 0.7270 YTW SCENARIO |
| BNS.PR.O | Deemed-Retractible | Quote: 26.26 – 26.55 Spot Rate : 0.2900 Average : 0.1778 YTW SCENARIO |
| GWO.PR.N | FixedReset | Quote: 23.15 – 23.46 Spot Rate : 0.3100 Average : 0.2078 YTW SCENARIO |