Julie Dickson gave a speech to the Institute of Internal Auditors:
This is not due to any particular incident, but rather seems to reflect a range of factors. Audit firm regulators such as the Canadian Public Accountability Board (CPAB), – and its counterparts around the world – which were largely set up in reaction to Enron, are up and running. And as usually happens when there is someone looking over your shoulder, these audit regulators are finding issues in external audits that require attention, such as a lack of professional skepticism on the part of external auditors.
Isn’t that amazing? Hire some nit-pickers, and they’ll nit-pick. Incredible.
Another poor day for the Canadian preferred share market, with PerpetualPremiums losing 16bp, FixedResets down 15bp and DeemedRetractibles off 12bp. The performance highlights table is only of average size, but is comprised entirely of losers. Volume was on the high side of average.
| 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 | -0.0995 % | 2,549.1 |
| FixedFloater | 4.03 % | 3.35 % | 42,057 | 18.61 | 1 | -0.5059 % | 4,081.5 |
| Floater | 2.61 % | 2.96 % | 76,870 | 19.77 | 5 | -0.0995 % | 2,752.4 |
| OpRet | 4.83 % | 1.77 % | 65,921 | 0.08 | 5 | -0.2482 % | 2,611.9 |
| SplitShare | 4.63 % | 4.13 % | 97,650 | 4.05 | 6 | 0.0713 % | 2,988.3 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2482 % | 2,388.3 |
| Perpetual-Premium | 5.25 % | 3.82 % | 86,303 | 0.36 | 32 | -0.1583 % | 2,367.8 |
| Perpetual-Discount | 4.79 % | 4.93 % | 388,558 | 15.53 | 6 | -0.3129 % | 2,645.7 |
| FixedReset | 4.91 % | 2.85 % | 245,934 | 3.33 | 81 | -0.1506 % | 2,507.9 |
| Deemed-Retractible | 4.91 % | 3.72 % | 136,997 | 1.65 | 44 | -0.1173 % | 2,450.4 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| GWO.PR.I | Deemed-Retractible | -1.10 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.33 Bid-YTW : 4.79 % |
| FTS.PR.E | OpRet | -1.03 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-07-03 Maturity Price : 25.75 Evaluated at bid price : 25.82 Bid-YTW : 1.77 % |
| IFC.PR.A | FixedReset | -1.03 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 26.00 Bid-YTW : 3.13 % |
| BNS.PR.Y | FixedReset | -1.01 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.50 Bid-YTW : 2.98 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| MFC.PR.I | FixedReset | 47,186 | Desjardins crossed 20,000 at 26.35. YTW SCENARIO Maturity Type : Call Maturity Date : 2017-09-19 Maturity Price : 25.00 Evaluated at bid price : 26.18 Bid-YTW : 3.18 % |
| GWO.PR.L | Deemed-Retractible | 36,777 | TD crossed blocks of 10,000 and 25,000, both at 26.15. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-12-31 Maturity Price : 25.00 Evaluated at bid price : 26.10 Bid-YTW : 4.69 % |
| RY.PR.H | Deemed-Retractible | 30,417 | Called for redemption. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-07-03 Maturity Price : 26.00 Evaluated at bid price : 26.10 Bid-YTW : 2.56 % |
| PWF.PR.S | Perpetual-Premium | 29,825 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-06-03 Maturity Price : 24.48 Evaluated at bid price : 24.87 Bid-YTW : 4.86 % |
| TRP.PR.D | FixedReset | 24,622 | YTW SCENARIO Maturity Type : Call Maturity Date : 2019-04-30 Maturity Price : 25.00 Evaluated at bid price : 25.71 Bid-YTW : 3.55 % |
| ENB.PR.D | FixedReset | 21,228 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-06-03 Maturity Price : 23.28 Evaluated at bid price : 25.31 Bid-YTW : 3.60 % |
| There were 36 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| FTS.PR.E | OpRet | Quote: 25.82 – 26.29 Spot Rate : 0.4700 Average : 0.3464 YTW SCENARIO |
| MFC.PR.H | FixedReset | Quote: 26.41 – 26.78 Spot Rate : 0.3700 Average : 0.2704 YTW SCENARIO |
| BNS.PR.Y | FixedReset | Quote: 24.50 – 24.80 Spot Rate : 0.3000 Average : 0.2025 YTW SCENARIO |
| BNS.PR.P | FixedReset | Quote: 25.59 – 25.82 Spot Rate : 0.2300 Average : 0.1367 YTW SCENARIO |
| BAM.PR.X | FixedReset | Quote: 25.23 – 25.50 Spot Rate : 0.2700 Average : 0.1849 YTW SCENARIO |
| RY.PR.B | Deemed-Retractible | Quote: 25.53 – 25.76 Spot Rate : 0.2300 Average : 0.1495 YTW SCENARIO |
During the Credit Crunch, I wondered why CIT Group wasn’t an attractive takeover target. Now, nearly five years later, the speculation is spreading:
A Canadian lender such as Toronto-Dominion Bank could profit by using low-cost deposits to fund CIT’s high-yielding commercial loans, Palmer said. Analysts including Bert Ely at
Ely & Co. have said CIT could be a good match with San Francisco-based Wells Fargo & Co. (WFC), given the bank’s involvement in similar markets such as factoring and small-business lending. Factoring involves buying receivables at a discount from manufacturers to provide them with cash.