It might be a while before we see tapering:
Federal Reserve Bank of Atlanta President Dennis Lockhart, who has backed record stimulus, said he wants to see inflation accelerate toward the Fed’s 2 percent goal before the central bank reduces $85 billion in monthly bond purchases.
“I’d like to see some movement toward the target” before tapering, Lockhart said today in a Bloomberg Radio interview with Kathleen Hays. Inflation is “stable but too low” and a move up would “give me some confidence we are not dealing with some downside scenario that might develop,” said Lockhart, who doesn’t vote on policy this year.
It was another mixed day for the Canadian preferred share market, with PerpetualDiscounts down 28bp, FixedResets up 20bp and DeemedRetractibles off 5bp. In the Performance Highlights table the three losers are all PerpetualDiscounts while FixedResets dominate the winning side. Volume was above average with the highlights comprised entirely of 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 | -0.0749 % | 2,515.4 |
| FixedFloater | 4.13 % | 3.41 % | 30,027 | 18.53 | 1 | 0.8772 % | 4,063.8 |
| Floater | 2.95 % | 2.98 % | 60,317 | 19.75 | 3 | -0.0749 % | 2,715.9 |
| OpRet | 4.60 % | 0.88 % | 70,596 | 0.38 | 3 | 0.1663 % | 2,655.4 |
| SplitShare | 4.74 % | 5.12 % | 67,585 | 3.92 | 6 | -0.1410 % | 2,958.9 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1663 % | 2,428.1 |
| Perpetual-Premium | 5.57 % | 4.84 % | 123,827 | 0.30 | 11 | -0.1257 % | 2,306.0 |
| Perpetual-Discount | 5.57 % | 5.55 % | 177,579 | 14.51 | 27 | -0.2795 % | 2,362.6 |
| FixedReset | 4.95 % | 3.21 % | 234,115 | 3.32 | 82 | 0.1977 % | 2,484.2 |
| Deemed-Retractible | 5.08 % | 3.92 % | 194,404 | 1.47 | 42 | -0.0532 % | 2,412.3 |
| FloatingReset | 2.61 % | 2.41 % | 283,185 | 4.49 | 5 | 0.0000 % | 2,456.4 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| ELF.PR.H | Perpetual-Discount | -1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-12 Maturity Price : 23.49 Evaluated at bid price : 23.85 Bid-YTW : 5.82 % |
| BAM.PF.D | Perpetual-Discount | -1.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-12 Maturity Price : 19.55 Evaluated at bid price : 19.55 Bid-YTW : 6.37 % |
| FTS.PR.F | Perpetual-Discount | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-12 Maturity Price : 23.01 Evaluated at bid price : 23.30 Bid-YTW : 5.35 % |
| IAG.PR.E | Deemed-Retractible | 1.05 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-12-31 Maturity Price : 25.25 Evaluated at bid price : 25.87 Bid-YTW : 5.50 % |
| IAG.PR.G | FixedReset | 1.16 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-06-30 Maturity Price : 25.00 Evaluated at bid price : 26.12 Bid-YTW : 3.15 % |
| BAM.PR.R | FixedReset | 1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-12 Maturity Price : 23.65 Evaluated at bid price : 25.62 Bid-YTW : 4.13 % |
| HSE.PR.A | FixedReset | 1.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-12 Maturity Price : 22.64 Evaluated at bid price : 23.19 Bid-YTW : 3.98 % |
| TRP.PR.C | FixedReset | 1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-12 Maturity Price : 22.40 Evaluated at bid price : 22.78 Bid-YTW : 3.83 % |
| CIU.PR.A | Perpetual-Discount | 2.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-12 Maturity Price : 21.67 Evaluated at bid price : 21.67 Bid-YTW : 5.32 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| RY.PR.I | FixedReset | 263,640 | Nesbitt crossed 260,000 at 25.18. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-02-24 Maturity Price : 25.00 Evaluated at bid price : 25.17 Bid-YTW : 2.03 % |
| BNS.PR.Z | FixedReset | 168,257 | Nesbitt crossed blocks of 75,000 shares, 25,000 and 50,000, all at 25.70. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.71 Bid-YTW : 4.11 % |
| GWO.PR.J | FixedReset | 53,849 | Called for redemption. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.30 Bid-YTW : 2.34 % |
| CU.PR.C | FixedReset | 32,182 | Nesbitt crossed 10,000 at 26.05. YTW SCENARIO Maturity Type : Call Maturity Date : 2017-06-01 Maturity Price : 25.00 Evaluated at bid price : 26.06 Bid-YTW : 2.70 % |
| ENB.PR.B | FixedReset | 30,715 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-12 Maturity Price : 23.25 Evaluated at bid price : 24.85 Bid-YTW : 4.18 % |
| BAM.PF.A | FixedReset | 28,995 | TD crossed 23,100 at 25.45. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.45 Bid-YTW : 4.23 % |
| There were 43 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: 26.17 – 26.53 Spot Rate : 0.3600 Average : 0.2131 YTW SCENARIO |
| SLF.PR.I | FixedReset | Quote: 25.94 – 26.34 Spot Rate : 0.4000 Average : 0.2687 YTW SCENARIO |
| MFC.PR.C | Deemed-Retractible | Quote: 21.31 – 21.80 Spot Rate : 0.4900 Average : 0.3720 YTW SCENARIO |
| CU.PR.E | Perpetual-Discount | Quote: 23.34 – 23.68 Spot Rate : 0.3400 Average : 0.2323 YTW SCENARIO |
| CU.PR.F | Perpetual-Discount | Quote: 20.99 – 21.25 Spot Rate : 0.2600 Average : 0.1623 YTW SCENARIO |
| GWO.PR.I | Deemed-Retractible | Quote: 22.00 – 22.28 Spot Rate : 0.2800 Average : 0.1915 YTW SCENARIO |
with statements like this…
“The Federal Reserve needs to do more work to support the economic recovery before it can return to “a more normal approach” to monetary policy, Janet Yellen said in prepared testimony released Wednesday. ”
tapering is a long long way off