We can hope that Saskatchewan’s flirtation with the national securities regulator gets consummated:
The federal government is close to signing up a third province for its voluntary national securities regulator, with Saskatchewan’s government now “optimistic” that it can reach an agreement to join Ontario and British Columbia.
…
And now, Saskatchewan is poised to become the next province, giving needed momentum to the project by adding a province that had long held a neutral stance regarding the idea.“We are still working on it, and believe we will come to an agreement,” Saskatchewan government spokeswoman Kathy Young said in response to questions, adding, “we are certainly optimistic.”
The Canadian preferred share market kept the rally going – barely! – today, with PerpetualDiscounts gaining 1bp, FixedResets up 8bp and DeemedRetractibles flat. Floaters did very well, dominating the good part of the Performance Highlights table. Volume was slightly above average.
PerpetualDiscounts now yield 5.32%, equivalent to 6.92% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 4.4% (maybe just a smidgen over) so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 250bp, a slight (and perhaps spurious) widening from the 245bp reported April 30.
| 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 | 1.9546 % | 2,463.3 |
| FixedFloater | 4.58 % | 3.81 % | 30,411 | 17.83 | 1 | 0.2899 % | 3,752.2 |
| Floater | 2.96 % | 3.08 % | 53,642 | 19.49 | 4 | 1.9546 % | 2,659.7 |
| OpRet | 4.34 % | -2.89 % | 34,055 | 0.15 | 2 | 0.2124 % | 2,709.3 |
| SplitShare | 4.78 % | 4.35 % | 67,715 | 4.18 | 5 | 0.2060 % | 3,102.6 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2124 % | 2,477.4 |
| Perpetual-Premium | 5.51 % | -10.92 % | 96,426 | 0.09 | 15 | -0.0261 % | 2,400.3 |
| Perpetual-Discount | 5.30 % | 5.32 % | 124,133 | 14.91 | 21 | 0.0091 % | 2,542.3 |
| FixedReset | 4.50 % | 3.39 % | 210,763 | 4.14 | 75 | 0.0819 % | 2,572.1 |
| Deemed-Retractible | 4.97 % | -6.00 % | 139,428 | 0.13 | 42 | 0.0028 % | 2,528.6 |
| FloatingReset | 2.67 % | 2.34 % | 146,838 | 4.20 | 6 | -0.0724 % | 2,495.4 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| FTS.PR.F | Perpetual-Discount | -1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-05-07 Maturity Price : 23.72 Evaluated at bid price : 24.00 Bid-YTW : 5.18 % |
| BAM.PR.Z | FixedReset | -1.20 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-12-31 Maturity Price : 25.00 Evaluated at bid price : 26.32 Bid-YTW : 3.41 % |
| ELF.PR.G | Perpetual-Discount | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-05-07 Maturity Price : 21.66 Evaluated at bid price : 22.05 Bid-YTW : 5.42 % |
| BAM.PR.X | FixedReset | 1.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-05-07 Maturity Price : 22.30 Evaluated at bid price : 22.81 Bid-YTW : 3.98 % |
| BAM.PR.B | Floater | 2.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-05-07 Maturity Price : 16.98 Evaluated at bid price : 16.98 Bid-YTW : 3.11 % |
| BAM.PR.K | Floater | 2.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-05-07 Maturity Price : 16.94 Evaluated at bid price : 16.94 Bid-YTW : 3.12 % |
| BAM.PR.C | Floater | 2.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-05-07 Maturity Price : 17.14 Evaluated at bid price : 17.14 Bid-YTW : 3.08 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PR.Q | Deemed-Retractible | 204,990 | Scotia crossed three blocks;; 35,000 shares, 100,000 and 68,800, all at 26.50. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-06-06 Maturity Price : 25.75 Evaluated at bid price : 26.51 Bid-YTW : -26.76 % |
| HSE.PR.A | FixedReset | 131,570 | Nesbitt crossed 25,000 and 100,000, both at 23.50. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-05-07 Maturity Price : 23.09 Evaluated at bid price : 23.45 Bid-YTW : 3.71 % |
| ENB.PR.B | FixedReset | 101,434 | Scotia crossed 25,300 and 60,000, both at 25.30. YTW SCENARIO Maturity Type : Call Maturity Date : 2017-06-01 Maturity Price : 25.00 Evaluated at bid price : 25.33 Bid-YTW : 3.81 % |
| NA.PR.L | Deemed-Retractible | 101,099 | TD crossed 50,000 at 25.35; Nesbitt crossed 42,700 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-06-14 Maturity Price : 25.00 Evaluated at bid price : 25.35 Bid-YTW : -9.32 % |
| RY.PR.A | Deemed-Retractible | 85,308 | TD crossed 83,100 at 25.80. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-06-23 Maturity Price : 25.25 Evaluated at bid price : 25.72 Bid-YTW : -11.20 % |
| BNS.PR.B | FloatingReset | 82,200 | Nesbitt crossed 80,000 at 25.25. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-10-25 Maturity Price : 25.00 Evaluated at bid price : 25.21 Bid-YTW : 2.33 % |
| There were 39 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BAM.PF.A | FixedReset | Quote: 26.17 – 27.00 Spot Rate : 0.8300 Average : 0.4668 YTW SCENARIO |
| MFC.PR.K | FixedReset | Quote: 25.34 – 26.16 Spot Rate : 0.8200 Average : 0.4623 YTW SCENARIO |
| IFC.PR.A | FixedReset | Quote: 24.59 – 24.98 Spot Rate : 0.3900 Average : 0.2360 YTW SCENARIO |
| RY.PR.I | FixedReset | Quote: 25.86 – 26.23 Spot Rate : 0.3700 Average : 0.2430 YTW SCENARIO |
| MFC.PR.F | FixedReset | Quote: 24.01 – 24.34 Spot Rate : 0.3300 Average : 0.2174 YTW SCENARIO |
| BNA.PR.E | SplitShare | Quote: 25.63 – 25.88 Spot Rate : 0.2500 Average : 0.1456 YTW SCENARIO |