TD Bank is really pushing their market growth GICs; does anybody have any pricing information on them? I assume they’re a very expensive product even though they’re subsidized by deposit insurance.
The first batch of jobs number predictions is in:
Employers probably added more workers in August and the jobless rate held at a more than four-year low, signaling a strengthening U.S. labor market that will help sustain growth, economists said before a report this week.
Payrolls rose by 180,000 following a 162,000 gain the prior month, according to the median forecast of 71 economists surveyed by Bloomberg ahead of Labor Department figures Sept. 6. Manufacturing probably cooled after expanding in July at the fastest pace in two years, other data may show.
…
Reports last week showed a mixed picture. Gross domestic product expanded at a 2.5 percent annual rate in the second quarter, up from the 1.7 percent pace previously estimated, and the MNI Chicago Report (CHPMINDX)’s measure of business activity grew in August for a fourth consecutive month. In other data, consumer spending rose less than forecast in July, and consumer sentiment dropped in August from a six-year high.
So will the actual number fall short or overshoot? And once it’s done that, what will the market reaction be? Place yer bets, gents, place yer bets!
Asian corporate debt, moaned about on August 26, is attracting more attention:
Asia dollar-denominated bonds have dropped below par for the first time since 2011 as investors pull money out of the region amid concerns that growth is slowing and as currencies from the rupee to rupiah plunge.
Average prices of company debentures in the region fell to 98.61 cents on the dollar on Aug. 22, the least since October 2011, Bank of America Merrill Lynch indexes show. Dollar bonds globally have held above 100 cents since September 2009. Both investment- and non-investment-grade debt in Asia were below par on Aug. 22. The last time that happened was in September 2008, when Lehman Brothers Holdings Inc. collapsed.
S&P is fighting the good fight:
Standard & Poor’s on Tuesday blasted a $5-billion (U.S.) fraud lawsuit by the U.S. government as retaliation for its 2011 decision to strip the country of its triple-A credit rating.
The McGraw Hill Financial Inc. unit was the only major credit rating agency to take away the United States’ top rating, and the only one sued by the U.S. Department of Justice for allegedly misleading banks and credit unions about the credibility of its ratings prior to the 2008 financial crisis.
In a filing with the U.S. District Court in Santa Ana, Calif., S&P said the lawsuit attempts to punish it for exercising its First Amendment free speech rights under the U.S. Constitution, but also seeks “excessive fines” in violation of the Eighth Amendment.
It said the government’s “impermissibly selective, punitive and meritless” lawsuit was brought “in retaliation for defendants’ exercise of their free speech rights with respect to the creditworthiness of the United States of America.”
Treasuries fell the most in a month as a gauge of U.S. manufacturing rose more than forecast in August, reinforcing bets the Federal Reserve will soon announce plans to reduce monetary stimulus.
…
Benchmark 10-year yields increased seven basis points, or 0.07 percentage point, to 2.85 percent at 3:50 p.m. New York time, according to Bloomberg Bond Trader data. They jumped the most on an intraday basis since Aug. 1 and touched 2.91 percent, the highest since Aug. 23. The 2.5 percent note due in August 2023 lost 18/32, or $5.63 per $1,000 face amount, to 96 31/32.
Two-year (USGG2YR) note yields rose as much as three basis points to 0.43 percent, the highest level since July 2011. Thirty-year (USGG30YR) bond yields climbed eight basis points to 3.78 percent and touched 3.83 percent, the highest since Aug. 23.
Yield changes were reflected in the Canadian market.
TXPL and TXPL, the Canadian preferred share indices with lots of junk (helps to sell the junk!) and based on closing prices were down 28bp and 24bp, respectively.
Despite this, the investment grade elements of the Canadian preferred share market had a reasonably good day – based on the bid prices – with PerpetualDiscounts gaining 3bp, FixedResets up 5bp and DeemedRetractibles winning 18bp. Volatility was high considering the modesty of the general movement. Volume was on the low 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 | -0.2259 % | 2,602.8 |
| FixedFloater | 4.34 % | 3.64 % | 35,306 | 18.06 | 1 | -1.9248 % | 3,829.7 |
| Floater | 2.58 % | 2.91 % | 70,391 | 19.89 | 5 | -0.2259 % | 2,810.3 |
| OpRet | 4.65 % | 3.31 % | 66,855 | 0.78 | 3 | -0.1932 % | 2,615.6 |
| SplitShare | 4.73 % | 4.89 % | 53,061 | 3.84 | 6 | 0.0739 % | 2,960.8 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1932 % | 2,391.7 |
| Perpetual-Premium | 5.91 % | 5.82 % | 101,371 | 4.52 | 2 | -0.1984 % | 2,243.6 |
| Perpetual-Discount | 5.65 % | 5.75 % | 127,901 | 14.22 | 36 | 0.0271 % | 2,296.0 |
| FixedReset | 4.93 % | 3.84 % | 242,912 | 3.86 | 85 | 0.0541 % | 2,453.0 |
| Deemed-Retractible | 5.19 % | 5.16 % | 199,151 | 6.95 | 43 | 0.1769 % | 2,344.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRI.PR.B | Floater | -3.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-03 Maturity Price : 22.49 Evaluated at bid price : 22.75 Bid-YTW : 2.30 % |
| BAM.PR.G | FixedFloater | -1.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-03 Maturity Price : 22.37 Evaluated at bid price : 21.91 Bid-YTW : 3.64 % |
| CIU.PR.C | FixedReset | -1.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-03 Maturity Price : 22.68 Evaluated at bid price : 23.36 Bid-YTW : 3.61 % |
| ENB.PR.N | FixedReset | -1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-03 Maturity Price : 22.81 Evaluated at bid price : 24.10 Bid-YTW : 4.58 % |
| FTS.PR.J | Perpetual-Discount | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-03 Maturity Price : 21.31 Evaluated at bid price : 21.61 Bid-YTW : 5.52 % |
| CU.PR.C | FixedReset | -1.27 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-06-01 Maturity Price : 25.00 Evaluated at bid price : 24.88 Bid-YTW : 4.17 % |
| BAM.PR.M | Perpetual-Discount | -1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-03 Maturity Price : 20.23 Evaluated at bid price : 20.23 Bid-YTW : 5.99 % |
| CU.PR.D | Perpetual-Discount | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-03 Maturity Price : 22.42 Evaluated at bid price : 22.76 Bid-YTW : 5.40 % |
| MFC.PR.H | FixedReset | 1.17 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-03-19 Maturity Price : 25.00 Evaluated at bid price : 25.90 Bid-YTW : 3.47 % |
| CU.PR.F | Perpetual-Discount | 1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-03 Maturity Price : 21.35 Evaluated at bid price : 21.35 Bid-YTW : 5.31 % |
| GWO.PR.I | Deemed-Retractible | 1.56 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.51 Bid-YTW : 6.22 % |
| TRP.PR.B | FixedReset | 1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-03 Maturity Price : 21.42 Evaluated at bid price : 21.75 Bid-YTW : 3.80 % |
| GWO.PR.N | FixedReset | 4.21 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.53 Bid-YTW : 4.49 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PR.E | FixedReset | 80,530 | RBC crossed 34,400 at 25.75; Nesbitt crossed 25,000 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-04-30 Maturity Price : 25.00 Evaluated at bid price : 25.70 Bid-YTW : 2.76 % |
| BAM.PF.D | Perpetual-Discount | 71,546 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-03 Maturity Price : 21.01 Evaluated at bid price : 21.01 Bid-YTW : 5.84 % |
| ENB.PR.Y | FixedReset | 34,570 | RBC crossed 25,000 at 23.70. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-03 Maturity Price : 22.60 Evaluated at bid price : 23.72 Bid-YTW : 4.44 % |
| BMO.PR.P | FixedReset | 31,352 | RBC crossed 25,000 at 25.90. YTW SCENARIO Maturity Type : Call Maturity Date : 2015-02-25 Maturity Price : 25.00 Evaluated at bid price : 25.87 Bid-YTW : 3.08 % |
| BMO.PR.L | Deemed-Retractible | 30,586 | RBC crossed blocks of 14,800 and 11,400, both at 25.70. YTW SCENARIO Maturity Type : Call Maturity Date : 2017-05-25 Maturity Price : 25.00 Evaluated at bid price : 25.76 Bid-YTW : 4.97 % |
| GWO.PR.I | Deemed-Retractible | 27,226 | Desjardins crossed 20,000 at 21.50. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.51 Bid-YTW : 6.22 % |
| There were 29 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| TRI.PR.B | Floater | Quote: 22.75 – 23.61 Spot Rate : 0.8600 Average : 0.5631 YTW SCENARIO |
| TCA.PR.X | Perpetual-Discount | Quote: 49.30 – 50.00 Spot Rate : 0.7000 Average : 0.4686 YTW SCENARIO |
| BMO.PR.K | Deemed-Retractible | Quote: 25.18 – 25.73 Spot Rate : 0.5500 Average : 0.3462 YTW SCENARIO |
| ENB.PR.N | FixedReset | Quote: 24.10 – 24.65 Spot Rate : 0.5500 Average : 0.3690 YTW SCENARIO |
| SLF.PR.H | FixedReset | Quote: 24.54 – 24.98 Spot Rate : 0.4400 Average : 0.2648 YTW SCENARIO |
| BAM.PR.G | FixedFloater | Quote: 21.91 – 22.50 Spot Rate : 0.5900 Average : 0.4698 YTW SCENARIO |