The Beaudoin-Bombardier family is doing what it does best:
Bombardier Inc.’s Beaudoin-Bombardier family owns a controlling stake in McInnis Cement, a Quebec company that is in talks with the provincial government over financial backing for its proposed $1-billion cement plant in Port-Daniel-Gascons, Que.
As Assiduous Reader Nestor said in the comments, tapering is a long long way off:
Janet Yellen, nominated to be the next chairman of the Federal Reserve, signaled she will carry on the central bank’s unprecedented stimulus until she sees improvement in an economy that’s operating well below potential.
“A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases,” Yellen said in testimony for her nomination hearing before the Senate Banking Committee today in Washington. “Supporting the recovery today is the surest path to returning to a more normal approach to monetary policy.”
The Ban-the-Bond movement is having an effect:
Moody’s Investors Service cut its ratings on four of the biggest U.S. banks after deciding the government would be less likely to help them repay creditors in a crisis.
Morgan Stanley (MS), Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and Bank of New York Mellon Corp. had their senior holding company ratings lowered one level yesterday after Moody’s concluded a review of eight U.S. banks that began in August. Spokesmen for the four companies declined to comment.
U.S. banking regulators have been preparing rules and procedures that seek to allow the government to wind down even the largest financial companies without providing taxpayer assistance. The plans would require investors to accept losses and could require bonds to be converted into equity capital.
“We believe that U.S. bank regulators have made substantive progress in establishing a credible framework to resolve a large, failing bank,” Robert Young, a managing director at Moody’s, said in a statement. “Rather than relying on public funds to bail out one of these institutions, we expect that bank holding company creditors will be bailed-in and thereby shoulder much of the burden to help recapitalize a failing bank.”
Premier Wynne is terribly, terribly concerned about Rob Ford. In less important news:
Heinz said it is closing its plant in Leamington, Ont., in mid-2014, a move that will cost 740 jobs and end almost a century of ketchup making in the southern Ontario town.
…
Other Canadian food plants slated to close include:– Lance Canada Ltd.’s bakery in Cambridge, which employs 130 people. It will close in May, the company’s North Carolina parent said.
– Canada Bread’s snack cake plant in Shawinigan, Que., is scheduled to close in May.
– Kraft Canada’s coffee plant in Oakville, Ont., is expected to close this year.
It was a positive day for the Canadian preferred share market, with PerpetualDiscounts up 14bp, FixedResets winning 18bp and DeemedRetractibles up 12bp. A modest – by recent standards – Performance Highlights table is comprised entirely of winners and dominated by FixedResets. Volume was 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 | 0.4483 % | 2,533.3 |
| FixedFloater | 4.17 % | 3.45 % | 31,508 | 18.46 | 1 | -0.1314 % | 4,028.4 |
| Floater | 2.93 % | 2.95 % | 59,641 | 19.81 | 3 | 0.4483 % | 2,735.3 |
| OpRet | 4.62 % | 2.80 % | 70,110 | 0.37 | 3 | -0.3327 % | 2,651.5 |
| SplitShare | 4.73 % | 5.11 % | 65,462 | 3.92 | 6 | 0.2374 % | 2,968.3 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3327 % | 2,424.6 |
| Perpetual-Premium | 5.57 % | 2.59 % | 124,988 | 0.09 | 11 | 0.0036 % | 2,309.1 |
| Perpetual-Discount | 5.56 % | 5.55 % | 178,777 | 14.55 | 27 | 0.1393 % | 2,368.2 |
| FixedReset | 4.95 % | 3.22 % | 231,469 | 3.30 | 82 | 0.1750 % | 2,489.8 |
| Deemed-Retractible | 5.07 % | 4.00 % | 194,505 | 1.47 | 42 | 0.1198 % | 2,416.8 |
| FloatingReset | 2.61 % | 2.35 % | 301,675 | 4.49 | 5 | 0.0317 % | 2,459.5 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| ELF.PR.H | Perpetual-Discount | 1.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-14 Maturity Price : 23.82 Evaluated at bid price : 24.20 Bid-YTW : 5.73 % |
| CU.PR.E | Perpetual-Discount | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-14 Maturity Price : 23.29 Evaluated at bid price : 23.62 Bid-YTW : 5.19 % |
| HSE.PR.A | FixedReset | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-14 Maturity Price : 22.87 Evaluated at bid price : 23.60 Bid-YTW : 3.90 % |
| VNR.PR.A | FixedReset | 1.11 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-10-15 Maturity Price : 25.00 Evaluated at bid price : 25.58 Bid-YTW : 3.83 % |
| MFC.PR.K | FixedReset | 1.27 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.70 Bid-YTW : 4.16 % |
| BAM.PF.B | FixedReset | 1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-14 Maturity Price : 22.80 Evaluated at bid price : 24.10 Bid-YTW : 4.53 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BMO.PR.J | Deemed-Retractible | 59,335 | RBC crossed 50,000 at 25.60. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-02-25 Maturity Price : 25.50 Evaluated at bid price : 25.59 Bid-YTW : 2.69 % |
| TRP.PR.B | FixedReset | 58,878 | Desjardins crossed blocks of 18,200 and 11,800, both at 20.70. RBC crossed 13,400 at 20.80. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-14 Maturity Price : 20.85 Evaluated at bid price : 20.85 Bid-YTW : 3.87 % |
| FTS.PR.H | FixedReset | 58,008 | RBC crossed 42,400 at 21.12. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-14 Maturity Price : 21.12 Evaluated at bid price : 21.12 Bid-YTW : 3.99 % |
| BMO.PR.R | FloatingReset | 55,200 | Scotia bought 48,600 from RBC at 25.05. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-08-25 Maturity Price : 25.00 Evaluated at bid price : 25.07 Bid-YTW : 2.35 % |
| BAM.PF.C | Perpetual-Discount | 36,922 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-11-14 Maturity Price : 19.61 Evaluated at bid price : 19.61 Bid-YTW : 6.29 % |
| CM.PR.M | FixedReset | 30,400 | Scotia bought 19,700 from RBC at 25.80. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-31 Maturity Price : 25.00 Evaluated at bid price : 25.80 Bid-YTW : 2.35 % |
| There were 35 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| PWF.PR.F | Perpetual-Discount | Quote: 23.80 – 24.07 Spot Rate : 0.2700 Average : 0.1724 YTW SCENARIO |
| ELF.PR.G | Perpetual-Discount | Quote: 21.61 – 21.95 Spot Rate : 0.3400 Average : 0.2482 YTW SCENARIO |
| TD.PR.O | Deemed-Retractible | Quote: 25.25 – 25.49 Spot Rate : 0.2400 Average : 0.1584 YTW SCENARIO |
| BNS.PR.Y | FixedReset | Quote: 24.20 – 24.49 Spot Rate : 0.2900 Average : 0.2270 YTW SCENARIO |
| CU.PR.C | FixedReset | Quote: 25.55 – 25.85 Spot Rate : 0.3000 Average : 0.2382 YTW SCENARIO |
| ENB.PR.A | Perpetual-Premium | Quote: 25.02 – 25.27 Spot Rate : 0.2500 Average : 0.1913 YTW SCENARIO |