So how much of what we think we know is actually a silly error?
In the world of economic luminaries, it doesn’t get much bigger than Reinhart and Rogoff, whose work has had enormous influence in one of the biggest economic policy debates of the age.
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Reinhart and Rogoff have admitted to a “coding error” in the spreadsheet that meant some countries were omitted from their calculations. But the economists denied they selectively omitted data or that they used a questionable methodology.
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“It is sobering that such an error slipped into one of our papers despite our best efforts to be consistently careful,” they said in a joint statement. “We do not, however, believe this regrettable slip affects in any significant way the central message of the paper or that in our subsequent work.”
Certainly, false advertising should not be condoned. But banning somebody from the industry for life seems a little extreme:
According to the SEC’s order instituting settled administrative proceedings against Tandon, he represented to CalPERS in May 2008 that Simran met explicit AUM requirements and managed at least $200 million as of Dec. 31, 2007. In fact, Simran managed approximately $80 million at that time. Evidence indicates that Tandon was aware that Simran did not meet the CalPERS requirements for AUM.
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According to the SEC’s order, Tandon violated Sections 206(1), 206(2), and 207 of the Investment Advisers Act of 1940. Tandon neither admitted nor denied the findings, and agreed to be barred from the securities industry and pay disgorgement of $20,018, prejudgment interest of $1,680, and a penalty of $100,000.
Well, at least another SEC lawyer got another notch in his belt.
DGS.PR.A was confirmed by DBRS at Pfd-3:
The net asset value (NAV) of the Company dropped shortly after the last rating confirmation in May 2012, but has been increasing since June. As of April 11, 2013, the downside protection available to the Preferred Shares is approximately 42.5% and the dividend coverage ratio is approximately 1.0 times. The Pfd-3 rating of the Preferred Shares is based primarily on the downside protection available and the additional protection provided by an asset coverage test, which does not permit any distributions to holders of the Class A Shares if the NAV of the Company falls below $15.
It was a modestly down day for the Canadian preferred share market, with PerpetualPremiums down 7bp, FixedResets off 3bp and DeemedRetractibles losing 8bp. Volatility was modest. Volume was 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 | -0.2306 % | 2,581.1 |
| FixedFloater | 4.00 % | 3.23 % | 32,972 | 18.70 | 1 | 1.3220 % | 4,109.2 |
| Floater | 2.70 % | 2.88 % | 87,766 | 20.05 | 4 | -0.2306 % | 2,786.9 |
| OpRet | 4.80 % | 0.19 % | 59,115 | 0.17 | 5 | -0.2005 % | 2,609.4 |
| SplitShare | 4.80 % | 4.02 % | 129,771 | 4.13 | 5 | 0.1414 % | 2,964.4 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2005 % | 2,386.1 |
| Perpetual-Premium | 5.18 % | 3.03 % | 82,415 | 0.86 | 32 | -0.0671 % | 2,379.8 |
| Perpetual-Discount | 4.83 % | 4.82 % | 174,423 | 15.75 | 4 | 0.0101 % | 2,691.6 |
| FixedReset | 4.93 % | 2.86 % | 241,862 | 3.58 | 80 | -0.0271 % | 2,502.9 |
| Deemed-Retractible | 4.87 % | 3.54 % | 128,204 | 0.59 | 44 | -0.0785 % | 2,451.2 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.K | Floater | -2.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-04-18 Maturity Price : 17.64 Evaluated at bid price : 17.64 Bid-YTW : 2.99 % |
| FTS.PR.E | OpRet | -1.01 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-06-01 Maturity Price : 25.75 Evaluated at bid price : 26.41 Bid-YTW : -10.82 % |
| BAM.PR.G | FixedFloater | 1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-04-18 Maturity Price : 22.86 Evaluated at bid price : 23.76 Bid-YTW : 3.23 % |
| BAM.PR.C | Floater | 2.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-04-18 Maturity Price : 18.00 Evaluated at bid price : 18.00 Bid-YTW : 2.93 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| ENB.PR.F | FixedReset | 187,140 | Desjardins crossed blocks of 25,000 shares, 100,000 and 30,000, all at 25.95. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-06-01 Maturity Price : 25.00 Evaluated at bid price : 25.85 Bid-YTW : 3.40 % |
| CU.PR.F | Perpetual-Premium | 152,601 | Scotia crossed blocks of 24,800 and 50,000, both at 25.54. Desjardins crossed 30,000 at the same price; National crossed 28,000 at the same price again. YTW SCENARIO Maturity Type : Call Maturity Date : 2022-06-01 Maturity Price : 25.00 Evaluated at bid price : 25.53 Bid-YTW : 4.29 % |
| FTS.PR.C | OpRet | 109,100 | RBC crossed 35,000 at 25.45. National crossed two blocks of 35,000 each, both at 25.45. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-06-01 Maturity Price : 25.00 Evaluated at bid price : 25.34 Bid-YTW : 0.10 % |
| PWF.PR.S | Perpetual-Premium | 74,772 | Scotia crossed blocks of 52,800 and 15,000, both at 25.45. YTW SCENARIO Maturity Type : Call Maturity Date : 2022-04-30 Maturity Price : 25.00 Evaluated at bid price : 25.40 Bid-YTW : 4.59 % |
| BAM.PF.A | FixedReset | 41,660 | Desjardins sold 13,300 to anonymous at 26.71. Nesbitt bought 14,700 from National at 26.74. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-09-30 Maturity Price : 25.00 Evaluated at bid price : 26.69 Bid-YTW : 3.20 % |
| RY.PR.G | Deemed-Retractible | 41,100 | Scotia crossed 40,000 at 25.84. YTW SCENARIO Maturity Type : Call Maturity Date : 2016-05-24 Maturity Price : 25.00 Evaluated at bid price : 25.84 Bid-YTW : 3.59 % |
| There were 48 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BAM.PR.K | Floater | Quote: 17.64 – 18.16 Spot Rate : 0.5200 Average : 0.3334 YTW SCENARIO |
| TCA.PR.Y | Perpetual-Premium | Quote: 51.00 – 51.50 Spot Rate : 0.5000 Average : 0.3222 YTW SCENARIO |
| BAM.PR.G | FixedFloater | Quote: 23.76 – 24.40 Spot Rate : 0.6400 Average : 0.4743 YTW SCENARIO |
| PWF.PR.M | FixedReset | Quote: 25.80 – 26.15 Spot Rate : 0.3500 Average : 0.2201 YTW SCENARIO |
| TRI.PR.B | Floater | Quote: 23.90 – 24.55 Spot Rate : 0.6500 Average : 0.5319 YTW SCENARIO |
| MFC.PR.C | Deemed-Retractible | Quote: 24.58 – 24.90 Spot Rate : 0.3200 Average : 0.2111 YTW SCENARIO |