Nothing happened today, but I’m sure there was more tapering chatter.
It was another fine day for the Canadian preferred share market, with PerpetualDiscounts up 22bp, FixedResets gaining 18bp and DeemedRetractibles winning 37bp. The Performance Highlights table is short by current standards, skewed heavily towards winners. Volume was heavy, with the Volume Highlights table comprised entirely of relatively low-coupon FixedResets.
| 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 | 0.0793 % | 2,598.7 |
| FixedFloater | 4.30 % | 3.61 % | 30,606 | 18.10 | 1 | 0.4087 % | 3,864.7 |
| Floater | 2.60 % | 2.86 % | 65,074 | 20.08 | 5 | 0.0793 % | 2,805.8 |
| OpRet | 4.61 % | 2.57 % | 71,436 | 0.53 | 3 | -0.0768 % | 2,645.9 |
| SplitShare | 4.76 % | 4.80 % | 56,357 | 4.07 | 6 | -0.1150 % | 2,942.9 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0768 % | 2,419.4 |
| Perpetual-Premium | 5.86 % | 5.87 % | 110,093 | 13.98 | 2 | 0.7143 % | 2,263.7 |
| Perpetual-Discount | 5.61 % | 5.74 % | 135,849 | 14.23 | 36 | 0.2159 % | 2,318.6 |
| FixedReset | 4.93 % | 3.67 % | 240,564 | 3.49 | 85 | 0.1815 % | 2,455.1 |
| Deemed-Retractible | 5.15 % | 4.81 % | 195,494 | 6.91 | 43 | 0.3740 % | 2,362.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRI.PR.B | Floater | -1.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-17 Maturity Price : 22.71 Evaluated at bid price : 23.00 Bid-YTW : 2.24 % |
| CIU.PR.A | Perpetual-Discount | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-17 Maturity Price : 20.85 Evaluated at bid price : 20.85 Bid-YTW : 5.57 % |
| BMO.PR.K | Deemed-Retractible | 1.17 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-11-25 Maturity Price : 25.75 Evaluated at bid price : 26.01 Bid-YTW : 1.44 % |
| BNS.PR.Y | FixedReset | 1.48 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.00 Bid-YTW : 3.87 % |
| PWF.PR.A | Floater | 1.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-17 Maturity Price : 23.21 Evaluated at bid price : 23.51 Bid-YTW : 2.21 % |
| CU.PR.D | Perpetual-Discount | 1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-17 Maturity Price : 22.76 Evaluated at bid price : 23.17 Bid-YTW : 5.31 % |
| RY.PR.C | Deemed-Retractible | 2.30 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2015-11-24 Maturity Price : 25.00 Evaluated at bid price : 25.31 Bid-YTW : 4.17 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BNS.PR.Q | FixedReset | 115,202 | RBC crossed 100,000 at 25.15. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.11 Bid-YTW : 3.80 % |
| TD.PR.Y | FixedReset | 107,220 | RBC crossed 100,000 at 25.06. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.08 Bid-YTW : 3.80 % |
| ENB.PR.H | FixedReset | 71,130 | Nesbitt crossed 50,000 at 22.80. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-17 Maturity Price : 22.15 Evaluated at bid price : 22.78 Bid-YTW : 4.52 % |
| BNS.PR.Y | FixedReset | 60,690 | RBC crossed 50,000 at 24.14. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.00 Bid-YTW : 3.87 % |
| ENB.PR.T | FixedReset | 53,324 | TD crossed 25,000 at 23.75. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-17 Maturity Price : 22.64 Evaluated at bid price : 23.77 Bid-YTW : 4.58 % |
| ENB.PR.Y | FixedReset | 40,205 | TD crossed 25,000 at 23.80. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-09-17 Maturity Price : 22.61 Evaluated at bid price : 23.72 Bid-YTW : 4.49 % |
| There were 67 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: 22.06 – 22.94 Spot Rate : 0.8800 Average : 0.6844 YTW SCENARIO |
| CIU.PR.A | Perpetual-Discount | Quote: 20.85 – 21.49 Spot Rate : 0.6400 Average : 0.4555 YTW SCENARIO |
| TCA.PR.Y | Perpetual-Discount | Quote: 50.16 – 50.70 Spot Rate : 0.5400 Average : 0.3820 YTW SCENARIO |
| BAM.PR.Z | FixedReset | Quote: 25.43 – 25.80 Spot Rate : 0.3700 Average : 0.2552 YTW SCENARIO |
| HSB.PR.C | Deemed-Retractible | Quote: 24.90 – 25.21 Spot Rate : 0.3100 Average : 0.1980 YTW SCENARIO |
| BAM.PR.N | Perpetual-Discount | Quote: 20.27 – 20.53 Spot Rate : 0.2600 Average : 0.1685 YTW SCENARIO |
“Nothing happened today, but Iām sure there was more tapering chatter.” — James Hymas, Sept 17, 2013
Let me be the first to confirm that something has happened on this day . . . Ben Bernanke and the FOMC did what they do best . . . make declarations of intention . . . but, today, their verbage totally contradicted the expectation of the market.
Just about everyone on the planet was expecting confirmation of tapering in the statement . . . instead, they got confirmation of on-going accommodation. Very nice work for once, FOMC people!
Who’s sad about this? Short-sellers of just about everything.
Who’s happy about this? Investors who hold just about anything (including prefs!).
(and Adrian, because she gets to hold on to her $100 bill a little bit longer!)
sounds like you were on the wrong side of the market.
Mr. Nestor . . . if I was on the “wrong side of the market”, would I have complemented the FOMC . . . for once?
I have more in common with you (and Adrian) than you may think!
Enjoy the ride while it lasts; the shorts will lick their wounds, and get back in the business of trashing your investments as soon as they can. The media will just switch gears as well, and focus on something else to terrorize your accounts . . . probably FC2 since that’s on the agenda anyway. And there’s always good old European sovereign bankruptcy to fall back on in case of any shortage in fear-based material.
In the meantime, Mr. Bernanke’s clan of regional presi-wannabee minions have done all investors in all categories a big, albeit probably short-term, favour. Unfortunately, I fear, it will not last.
you might want to stop listening to the “noise” and concentrate on what’s really happening. turn your tv off. stop reading the papers. it’s all irrelevant
99% of all people named Adrian are male. Rocky’s wife is one of the 1%, I’m not.
OTOH, I don’t think I need to remind you of specific numbers predicted by you to happen at specific timelines… š