The war on bankers’ bonuses is having its intended effect:
TD Securities smoked past analysts’ expectations for the unit’s money-making ability, thanks in large part to the bond desk.
Net income for the wholesale banking business (the way the bank reports its TD Securities income) came in at $220-million, up from $197-million the year before and roughly 10 per cent higher than the $198-million forecast by Peter Routledge of National Bank Financial.
…
The other number that jumps out in TD’s wholesale results is the 2.3-per cent decline in non-interest expenses, which at a securities firm includes payroll as one of its biggest components. That means TD reduced costs even as overall revenue increased, to $643-million from $608-million.
It was a quiet day for the Canadian preferred share market, with PerpetualPremiums down 3bp, FixedResets off 1bp and DeemedRetractibles flat. Volatility was minimal. Volume remained very low.
| 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 | -0.5112 % | 2,515.2 |
| FixedFloater | 3.92 % | 3.15 % | 35,895 | 18.77 | 1 | -0.0412 % | 4,193.9 |
| Floater | 2.77 % | 3.02 % | 78,836 | 19.63 | 4 | -0.5112 % | 2,715.7 |
| OpRet | 4.83 % | 0.82 % | 69,048 | 0.11 | 5 | 0.0933 % | 2,613.3 |
| SplitShare | 4.82 % | 4.14 % | 101,416 | 4.08 | 5 | -0.0162 % | 2,975.8 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0933 % | 2,389.6 |
| Perpetual-Premium | 5.19 % | 3.76 % | 96,834 | 0.76 | 32 | -0.0279 % | 2,381.2 |
| Perpetual-Discount | 4.84 % | 4.88 % | 190,048 | 15.63 | 4 | -0.0911 % | 2,688.1 |
| FixedReset | 4.88 % | 2.70 % | 242,856 | 3.13 | 81 | -0.0119 % | 2,521.7 |
| Deemed-Retractible | 4.87 % | 3.41 % | 134,597 | 0.98 | 44 | 0.0035 % | 2,463.3 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| CU.PR.C | FixedReset | 1.21 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-06-01 Maturity Price : 25.00 Evaluated at bid price : 26.87 Bid-YTW : 2.04 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| ENB.PR.F | FixedReset | 165,039 | Desjardins crossed three blocks: 25,000 shares, 100,000 and 30,000, all at 25.72. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-06-01 Maturity Price : 25.00 Evaluated at bid price : 25.71 Bid-YTW : 3.38 % |
| MFC.PR.F | FixedReset | 118,247 | Desjardins crossed blocks of 50,000 and 48,300, both at 25.55. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.50 Bid-YTW : 2.88 % |
| BAM.PR.B | Floater | 73,604 | Scotia bought 24,800 from TD and crossed 17,900, both at 17.60, then sold 15,500 to National at 17.32. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-05-23 Maturity Price : 17.53 Evaluated at bid price : 17.53 Bid-YTW : 3.02 % |
| TRP.PR.A | FixedReset | 47,684 | Scotia crossed 40,000 at 25.48. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-05-23 Maturity Price : 23.86 Evaluated at bid price : 25.47 Bid-YTW : 3.17 % |
| ENB.PR.N | FixedReset | 45,736 | Nesbitt crossed 40,000 at 25.85. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-12-01 Maturity Price : 25.00 Evaluated at bid price : 25.83 Bid-YTW : 3.33 % |
| MFC.PR.J | FixedReset | 45,500 | Scotia crossed 40,000 at 26.34. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-03-19 Maturity Price : 25.00 Evaluated at bid price : 26.21 Bid-YTW : 2.87 % |
| There were 18 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| CIU.PR.C | FixedReset | Quote: 24.80 – 25.87 Spot Rate : 1.0700 Average : 0.6273 YTW SCENARIO |
| BAM.PR.C | Floater | Quote: 17.45 – 17.92 Spot Rate : 0.4700 Average : 0.2997 YTW SCENARIO |
| ABK.PR.C | SplitShare | Quote: 31.70 – 32.42 Spot Rate : 0.7200 Average : 0.6045 YTW SCENARIO |
| BAM.PR.K | Floater | Quote: 17.40 – 17.69 Spot Rate : 0.2900 Average : 0.1887 YTW SCENARIO |
| PWF.PR.L | Perpetual-Premium | Quote: 25.42 – 25.67 Spot Rate : 0.2500 Average : 0.1733 YTW SCENARIO |
| MFC.PR.A | OpRet | Quote: 25.56 – 25.79 Spot Rate : 0.2300 Average : 0.1646 YTW SCENARIO |