PrefBlog

In the latest installment of Fed Governorship chatter, Bloomberg has released a poll of its subscribers, which can be taken as a reasonable proxy for ‘the market’:

Thirty-five percent of investors, analysts and traders who are Bloomberg subscribers say Summers may provide less stimulus than Bernanke, whose chairmanship ends in January, compared with 13 percent who see Summers with looser policy and 22 percent saying it’d be the same. Forty-seven percent see Yellen presiding over the same policy, with 17 percent saying it’d be looser and 8 percent saying tighter. The rest said they don’t know how it would change.
…
The poll, conducted Sept. 10, showed 40 percent of respondents see Summers getting the job, compared with 33 percent for Yellen, the Fed’s vice chairman. Three percent see Obama opting for former Fed Vice Chairman Donald Kohn, while the remainder said they didn’t know or expected Obama to pick someone else.

In a May 14 poll of investors, Yellen was seen as the most likely selection by 34 percent of investors, more than any other candidate. Twenty-seven percent of investors thought that Bernanke would be reappointed. Summers was seen as a long-shot, with only 4 percent of investors saying he was likely to be Obama’s pick.

It was a mixed day for the Canadian preferred share market today, with PerpetualDiscounts up 12bp, FixedResets off 1bp and DeemedRetractibles gaining 7bp. Volatility was much lower than current standards imply, but still above the average of the first five months of this year. Volume was a little above average.

This entry was posted on Thursday, September 12th, 2013 at 9:56 pm and is filed under Market Action. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.