BCE is reducing its interest expense:
Bell Canada today announced that it will redeem on February 11, 2013, prior to maturity, all of its outstanding $149,641,000 principal amount of 10% Debentures, Series EA, due June 15, 2014 (“Series EA Debentures”).
The Series EA Debentures will be redeemed at a price equal to $1,113.389 per $1,000 of principal amount of debentures plus $15.890 for accrued and unpaid interest up to, but excluding, the date of redemption.
It may be that my worst fears regarding Greece are getting closer to being realized:
A spate of violent attacks against the homes and offices of public figures has hit Greece as the economy goes into its sixth year of deep recession, apparently nurturing extremist groups on both sides of the political spectrum.
Early Monday morning, a gunman with a Kalashnikov assault rifle sprayed bullets into the Athens headquarters of Greece’s ruling, centre-right New Democracy party. At least one of the bullets went through the window of the office occasionally used by Prime Minister Antonis Samaras, who is implementing harsh austerity in exchange for bailout loans.
A group of illegal immigrants was justified in escaping from a police lockup last year because of the miserable conditions in their overcrowded cell, which was filthy, ridden with disease and had no running water, a Greek court has ruled.
The court in the northwestern city of Igoumenitsa said the 15 adults – from Afghanistan, Iraq, Syria, Egypt and Morocco – had been held for up to six weeks in “wretched and highly dangerous” conditions.
There’s a story about a Saudi farmer who, we are told, should serve as an inspiration to us all:
The herd is one of hundreds owned by Almarai Co. (ALMARAI), the biggest food producer in the Persian Gulf, which processed about 235 million gallons of milk in 2012. The Riyadh-based company’s revenue has almost tripled in the past five years to 7.95 billion riyals ($2.12 billion) as demand for its products — milk, cheese, processed chicken, baked goods and juices — has surged with the nation’s population. Its shares are up 125 percent since its 2005 initial public offering.
The gain has made Prince Sultan bin Mohammed bin Saud Al Kabeer, Almarai’s 59-year-old founder and largest individual shareholder, a billionaire. His 28.6 percent stake in the operation, plus other investments, has helped him amass a fortune of at least $2.8 billion, according to the Bloomberg Billionaires Index. He has never appeared on an international wealth ranking.
“Establishing a dairy farm in the middle of the desert is not that easy,” said Alaa Ghanem, a senior equity analyst at Audi Saradar Investment Bank in a phone interview from his office in Beirut. Almarai, he said, “is an example for anyone who wants to succeed.”
What are the secrets of his success? He used Canadian business techniques! Here’s one:
The subsidy for baby milk will go from SR2 to SR12 per kilogram as part of efforts to reduce the financial burden on public caused by soaring consumer prices.
…
Dr. Mansour Al-Kredes, deputy chairman of the agricultural committee at the Riyadh Chamber of Commerce and Industry, proposed the government subsidize agricultural and food products in order to stabilize the market. “We should have a strategic plan in order to ensure enough food supply, by providing necessary support to farmers,” he explained. “Subsidizing consumer goods will have a positive impact on farmers and will stabilize market prices,” he pointed out.
Critics warn that the high yield of Almarai and other Saudi agricultural ventures carries a hidden cost. Government energy subsidies made possible by Saudi Arabia’s oil profits provide cheap electricity for the kingdom’s industry and agriculture but contribute to soaring domestic energy consumption. Saudi agriculture also draws on the kingdom’s natural aquifers, which are fast running dry.
I hope all the young people reading this blog take this to heart and become risk-taking entrepreneurs like Prince Sultan bin Mohammed bin Saud Al Kabeer.
It was a most interesting day for the Canadian preferred share market with a trading programme at RBC (and, possibly related, at Goldman) roiling the market. When the dust settled, PerpetualPremiums dropped 6bp, FixedResets leapt upward by 24bp and DeemedRetractibles got whacked for 55bp. Volatility was enormous and volume was extremely high.
| 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 | 0.0531 % | 2,497.4 |
| FixedFloater | 4.24 % | 3.55 % | 29,837 | 18.27 | 1 | 1.1287 % | 3,834.7 |
| Floater | 2.79 % | 3.01 % | 61,568 | 19.71 | 4 | 0.0531 % | 2,696.5 |
| OpRet | 4.63 % | 1.96 % | 51,736 | 0.42 | 4 | -0.1716 % | 2,594.3 |
| SplitShare | 4.61 % | 4.53 % | 43,788 | 4.33 | 2 | -0.0600 % | 2,891.5 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1716 % | 2,372.2 |
| Perpetual-Premium | 5.26 % | -0.06 % | 73,490 | 0.74 | 30 | -0.0614 % | 2,342.8 |
| Perpetual-Discount | 4.87 % | 4.90 % | 138,753 | 15.58 | 4 | -0.9003 % | 2,632.9 |
| FixedReset | 4.90 % | 2.77 % | 213,498 | 3.44 | 78 | 0.2374 % | 2,481.9 |
| Deemed-Retractible | 4.90 % | 2.27 % | 115,612 | 0.35 | 46 | -0.5481 % | 2,421.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| MFC.PR.C | Deemed-Retractible | -2.62 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.18 Bid-YTW : 5.03 % |
| MFC.PR.H | FixedReset | -2.50 % | Not a real loss. Low for day was 26.28. YTW SCENARIO Maturity Type : Call Maturity Date : 2017-03-19 Maturity Price : 25.00 Evaluated at bid price : 25.75 Bid-YTW : 3.92 % |
| GWO.PR.I | Deemed-Retractible | -2.29 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.30 Bid-YTW : 4.94 % |
| NA.PR.L | Deemed-Retractible | -2.23 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-15 Maturity Price : 25.00 Evaluated at bid price : 24.98 Bid-YTW : 4.61 % |
| BAM.PR.N | Perpetual-Discount | -2.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-01-14 Maturity Price : 23.69 Evaluated at bid price : 24.20 Bid-YTW : 4.92 % |
| BMO.PR.L | Deemed-Retractible | -2.10 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-05-25 Maturity Price : 26.00 Evaluated at bid price : 26.55 Bid-YTW : 1.76 % |
| SLF.PR.D | Deemed-Retractible | -2.02 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.23 Bid-YTW : 4.93 % |
| BNS.PR.L | Deemed-Retractible | -1.96 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2016-04-27 Maturity Price : 25.00 Evaluated at bid price : 25.49 Bid-YTW : 3.81 % |
| SLF.PR.B | Deemed-Retractible | -1.86 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.84 Bid-YTW : 4.94 % |
| PWF.PR.F | Perpetual-Premium | -1.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-01-14 Maturity Price : 24.64 Evaluated at bid price : 24.90 Bid-YTW : 5.28 % |
| BMO.PR.Q | FixedReset | -1.76 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.60 Bid-YTW : 3.46 % |
| POW.PR.G | Perpetual-Premium | -1.68 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-15 Maturity Price : 25.00 Evaluated at bid price : 26.38 Bid-YTW : 4.81 % |
| SLF.PR.C | Deemed-Retractible | -1.58 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.34 Bid-YTW : 4.86 % |
| BNS.PR.M | Deemed-Retractible | -1.54 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2016-07-27 Maturity Price : 25.00 Evaluated at bid price : 25.62 Bid-YTW : 3.71 % |
| POW.PR.D | Perpetual-Premium | -1.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-01-14 Maturity Price : 24.46 Evaluated at bid price : 24.86 Bid-YTW : 5.04 % |
| TRP.PR.C | FixedReset | -1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-01-14 Maturity Price : 23.48 Evaluated at bid price : 25.30 Bid-YTW : 3.02 % |
| MFC.PR.B | Deemed-Retractible | -1.40 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.65 Bid-YTW : 4.92 % |
| BMO.PR.J | Deemed-Retractible | -1.38 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2016-02-25 Maturity Price : 25.00 Evaluated at bid price : 25.70 Bid-YTW : 3.77 % |
| BAM.PR.M | Perpetual-Discount | -1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-01-14 Maturity Price : 24.07 Evaluated at bid price : 24.37 Bid-YTW : 4.90 % |
| VNR.PR.A | FixedReset | -1.21 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-10-15 Maturity Price : 25.00 Evaluated at bid price : 26.02 Bid-YTW : 3.43 % |
| SLF.PR.A | Deemed-Retractible | -1.20 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.70 Bid-YTW : 4.97 % |
| BMO.PR.M | FixedReset | 1.03 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-08-25 Maturity Price : 25.00 Evaluated at bid price : 25.50 Bid-YTW : 2.86 % |
| BAM.PR.G | FixedFloater | 1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-01-14 Maturity Price : 22.81 Evaluated at bid price : 22.40 Bid-YTW : 3.55 % |
| FTS.PR.G | FixedReset | 1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-01-14 Maturity Price : 24.08 Evaluated at bid price : 24.65 Bid-YTW : 3.70 % |
| RY.PR.I | FixedReset | 1.20 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-02-24 Maturity Price : 25.00 Evaluated at bid price : 26.16 Bid-YTW : 1.42 % |
| SLF.PR.I | FixedReset | 1.37 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2016-12-31 Maturity Price : 25.00 Evaluated at bid price : 26.61 Bid-YTW : 2.59 % |
| TD.PR.K | FixedReset | 1.43 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-31 Maturity Price : 25.00 Evaluated at bid price : 27.02 Bid-YTW : 0.80 % |
| ENB.PR.P | FixedReset | 1.46 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2019-03-01 Maturity Price : 25.00 Evaluated at bid price : 25.78 Bid-YTW : 3.54 % |
| SLF.PR.H | FixedReset | 1.58 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2016-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.72 Bid-YTW : 3.13 % |
| BNS.PR.Q | FixedReset | 1.60 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-10-25 Maturity Price : 25.00 Evaluated at bid price : 25.41 Bid-YTW : 2.58 % |
| CM.PR.K | FixedReset | 2.06 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-31 Maturity Price : 25.00 Evaluated at bid price : 26.77 Bid-YTW : 0.59 % |
| MFC.PR.I | FixedReset | 2.27 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-09-19 Maturity Price : 25.00 Evaluated at bid price : 27.02 Bid-YTW : 2.64 % |
| PWF.PR.R | Perpetual-Premium | 2.99 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-04-30 Maturity Price : 26.00 Evaluated at bid price : 27.52 Bid-YTW : 3.76 % |
| IAG.PR.G | FixedReset | 3.82 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-06-30 Maturity Price : 25.00 Evaluated at bid price : 27.21 Bid-YTW : 2.26 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BNS.PR.L | Deemed-Retractible | 266,018 | RBC crossed 129,400 at 25.01. YTW SCENARIO Maturity Type : Call Maturity Date : 2016-04-27 Maturity Price : 25.00 Evaluated at bid price : 25.49 Bid-YTW : 3.81 % |
| BMO.PR.J | Deemed-Retractible | 259,933 | TD crossed 199,000 at 25.50. YTW SCENARIO Maturity Type : Call Maturity Date : 2016-02-25 Maturity Price : 25.00 Evaluated at bid price : 25.70 Bid-YTW : 3.77 % |
| POW.PR.D | Perpetual-Premium | 250,890 | TD crossed 49,400 at 25.20. Nesbitt crossed blocks of 38,300 shares, 49,400 and 75,000, all at 24.90. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-01-14 Maturity Price : 24.46 Evaluated at bid price : 24.86 Bid-YTW : 5.04 % |
| ENB.PR.B | FixedReset | 202,213 | RBC crossed 50,000 at 25.70; Nesbitt crossed blocks of 74,800 and 60,000 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2017-06-01 Maturity Price : 25.00 Evaluated at bid price : 25.55 Bid-YTW : 3.59 % |
| POW.PR.B | Perpetual-Premium | 201,300 | Nesbitt crossed three blocks: 69,000 shares, 53,400 and 50,000, all at 25.20. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-02-13 Maturity Price : 25.00 Evaluated at bid price : 25.21 Bid-YTW : -4.96 % |
| GWO.PR.N | FixedReset | 191,217 | RBC crossed blocks of 169,900 and 10,000, both at 23.25. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.15 Bid-YTW : 4.10 % |
| PWF.PR.R | Perpetual-Premium | 155,023 | RBC crossed 57,900 at 27.99. YTW SCENARIO Maturity Type : Call Maturity Date : 2017-04-30 Maturity Price : 26.00 Evaluated at bid price : 27.52 Bid-YTW : 3.76 % |
| BNS.PR.M | Deemed-Retractible | 148,993 | RBC crossed 70,000 at 25.95. YTW SCENARIO Maturity Type : Call Maturity Date : 2016-07-27 Maturity Price : 25.00 Evaluated at bid price : 25.62 Bid-YTW : 3.71 % |
| SLF.PR.I | FixedReset | 141,924 | RBC crossed 121,600 at 27.68. YTW SCENARIO Maturity Type : Call Maturity Date : 2016-12-31 Maturity Price : 25.00 Evaluated at bid price : 26.61 Bid-YTW : 2.59 % |
| BMO.PR.M | FixedReset | 131,540 | RBC crossed blocks of 35,800 and 27,500, both at 25.90. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-08-25 Maturity Price : 25.00 Evaluated at bid price : 25.50 Bid-YTW : 2.86 % |
| PWF.PR.F | Perpetual-Premium | 130,021 | RBC crossed 66,200 at 24.50. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-01-14 Maturity Price : 24.64 Evaluated at bid price : 24.90 Bid-YTW : 5.28 % |
| RY.PR.X | FixedReset | 124,636 | RBC crossed blocks of 89,500 and 18,400, both at 27.15. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-08-24 Maturity Price : 25.00 Evaluated at bid price : 26.88 Bid-YTW : 2.06 % |
| BNS.PR.Z | FixedReset | 114,478 | TD crossed blocks of 25,800 and 15,000 at 24.73. RBC crossed 48,500 at 24.70. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.73 Bid-YTW : 3.26 % |
| CM.PR.K | FixedReset | 101,831 | RBC crossed 40,000 at 26.35 and 23,000 at 27.10. Is this a new record for price difference between preferred share block trades? YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-31 Maturity Price : 25.00 Evaluated at bid price : 26.77 Bid-YTW : 0.59 % |
| SLF.PR.A | Deemed-Retractible | 101,287 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.70 Bid-YTW : 4.97 % |
| There were 50 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| MFC.PR.H | FixedReset | Quote: 25.75 – 26.50 Spot Rate : 0.7500 Average : 0.4797 YTW SCENARIO |
| FTS.PR.H | FixedReset | Quote: 25.50 – 26.03 Spot Rate : 0.5300 Average : 0.3314 YTW SCENARIO |
| VNR.PR.A | FixedReset | Quote: 26.02 – 26.38 Spot Rate : 0.3600 Average : 0.2270 YTW SCENARIO |
| SLF.PR.D | Deemed-Retractible | Quote: 24.23 – 24.56 Spot Rate : 0.3300 Average : 0.2003 YTW SCENARIO |
| SLF.PR.I | FixedReset | Quote: 26.61 – 26.99 Spot Rate : 0.3800 Average : 0.2581 YTW SCENARIO |
| PWF.PR.O | Perpetual-Premium | Quote: 26.47 – 26.85 Spot Rate : 0.3800 Average : 0.2694 YTW SCENARIO |
[…] DeemedRetractibles winning 27bp. For the last two classes, these figures represent about half of yesterday’s change, when RBC roiled the market. Volatility was high again today, with many issues rebounding about […]