May 27, 2014

Well, the huge sums of government money spent persecuting Fabulous Fab have finally had an effect:

Fabrice Tourre, the former Goldman Sachs Group Inc. (GS) vice president found liable for his part in selling a pre-crisis mortgage security that lost value, said he won’t file an appeal in the civil case.

“While my lawyers have advised me there are strong grounds to appeal, I prefer to move forward with my education and close this difficult chapter of my life,” Tourre said in a statement today. “I look forward to finishing my Ph.D. in economics and to making meaningful contributions to my field.”

Tourre, 35, was found liable Aug. 1 after a jury trial at which the U.S. Securities and Exchange Commission claimed he intentionally misled investors in a subprime-mortgage vehicle called Abacus 2007-AC1. In March, he was ordered to pay more than $825,000 in penalties.

The lawsuit was one of the government’s most prominent efforts to fix responsibility for the housing market crash, which helped precipitate the worst economic downturn since the 1930s.

It looks like all the easy shale oil money has been made:

The U.S. shale patch is facing a shakeout as drillers struggle to keep pace with the relentless spending needed to get oil and gas out of the ground.

Shale debt has almost doubled over the last four years while revenue has gained just 5.6 percent, according to a Bloomberg News analysis of 61 shale drillers. A dozen of those wildcatters are spending at least 10 percent of their sales on interest compared with Exxon Mobil Corp.’s 0.1 percent.

Drillers are caught in a bind. They must keep borrowing to pay for exploration needed to offset the steep production declines typical of shale wells. At the same time, investors have been pushing companies to cut back. Spending tumbled at 26 of the 61 firms examined. For companies that can’t afford to keep drilling, less oil coming out means less money coming in, accelerating the financial tailspin.

Good news, everybody! Not only is Toronto the largest Fair Trade city in North America, but Ethiopian coffee is Canada’s favourite FairTrade product! There’s only one teensy, tiny little problem:

The third main set of FTEPR findings concerns Fairtrade specifically. This research was unable to find any evidence that Fairtrade has made a positive difference to the wages and working conditions of those employed in the production of the commodities produced for Fairtrade certified export in the areas where the research has been conducted. This is the case for ‘smallholder’ crops like coffee – where Fairtrade standards have been based on the erroneous assumption that the vast majority of production is based on family labour – and for ‘hired labour organization’ commodities like the cut flowers produced in factory-style greenhouse conditions in Ethiopia.8 In some cases, indeed, the data suggest that those employed in areas where there are Fairtrade producer organisations are significantly worse paid, and treated, than those employed for wages in the production of the same commodities in areas without any Fairtrade certified institutions (including in areas characterised by smallholder production). At the very least, this research suggests that Fairtrade organizations need to pay far more attention to the conditions of those extremely poor rural people – especially women and girls – employed in the production of commodities labelled and sold to ‘ethical consumers’ who expect their purchases to improve the lives of the poor.

Section 3 discusses other evidence too, drawing on both quantitative and qualitative findings. The FTEPR research design did not set out to capture comprehensive data on child labour. However, in the quantitative survey results and especially in the qualitative life’s work interviews, the fact of widespread wage labour by children and teenagers (specifically, children working for wages and during school time) was inescapable.

It was a mixed day for the Canadian preferred share market, with PerpetualDiscounts gaining 5bp, FixedResets down 33bp and DeemedRetractibles off 8bp. The lengthy Performance Highlights table is dominated by FixedReset losers (although Floaters got hit hard too), particularly BAM issues – presumably due to the new issue announcement. 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 -1.1700 % 2,493.2
FixedFloater 4.50 % 3.74 % 31,418 17.91 1 0.0000 % 3,815.4
Floater 2.92 % 3.04 % 50,151 19.57 4 -1.1700 % 2,691.9
OpRet 4.39 % -7.93 % 33,914 0.10 2 -0.2334 % 2,707.4
SplitShare 4.81 % 4.08 % 62,581 4.18 5 -0.0636 % 3,110.4
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.2334 % 2,475.6
Perpetual-Premium 5.50 % -10.46 % 88,958 0.09 15 -0.0026 % 2,408.4
Perpetual-Discount 5.28 % 5.30 % 104,207 14.88 21 0.0545 % 2,553.9
FixedReset 4.53 % 3.52 % 202,660 4.48 75 -0.3327 % 2,548.8
Deemed-Retractible 4.99 % -3.11 % 146,831 0.09 43 -0.0796 % 2,527.6
FloatingReset 2.66 % 2.42 % 154,283 4.01 6 -0.1782 % 2,488.0
Performance Highlights
Issue Index Change Notes
BAM.PR.B Floater -2.77 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-05-27
Maturity Price : 17.19
Evaluated at bid price : 17.19
Bid-YTW : 3.08 %
BAM.PR.K Floater -2.60 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-05-27
Maturity Price : 17.21
Evaluated at bid price : 17.21
Bid-YTW : 3.08 %
BAM.PF.A FixedReset -2.34 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2018-09-30
Maturity Price : 25.00
Evaluated at bid price : 25.50
Bid-YTW : 4.19 %
BAM.PR.C Floater -2.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-05-27
Maturity Price : 17.40
Evaluated at bid price : 17.40
Bid-YTW : 3.04 %
MFC.PR.F FixedReset -1.89 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.31
Bid-YTW : 4.00 %
BAM.PR.X FixedReset -1.55 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-05-27
Maturity Price : 21.89
Evaluated at bid price : 22.20
Bid-YTW : 4.05 %
BAM.PF.B FixedReset -1.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-05-27
Maturity Price : 23.10
Evaluated at bid price : 24.80
Bid-YTW : 4.18 %
BAM.PR.Z FixedReset -1.26 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2017-12-31
Maturity Price : 25.00
Evaluated at bid price : 25.92
Bid-YTW : 3.94 %
FTS.PR.H FixedReset -1.25 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-05-27
Maturity Price : 21.39
Evaluated at bid price : 21.39
Bid-YTW : 3.61 %
RY.PR.L FixedReset -1.24 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2019-02-24
Maturity Price : 25.00
Evaluated at bid price : 26.23
Bid-YTW : 3.16 %
RY.PR.I FixedReset -1.06 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2019-02-24
Maturity Price : 25.00
Evaluated at bid price : 25.23
Bid-YTW : 3.33 %
PWF.PR.A Floater 2.51 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-05-27
Maturity Price : 20.00
Evaluated at bid price : 20.00
Bid-YTW : 2.64 %
Volume Highlights
Issue Index Shares
Traded
Notes
ENB.PF.C FixedReset 176,888 Recent new issue.
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-05-27
Maturity Price : 23.10
Evaluated at bid price : 24.94
Bid-YTW : 4.18 %
BAM.PR.P FixedReset 161,750 Called for redemption.
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2014-09-30
Maturity Price : 25.00
Evaluated at bid price : 25.65
Bid-YTW : 2.56 %
BAM.PF.B FixedReset 128,477 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-05-27
Maturity Price : 23.10
Evaluated at bid price : 24.80
Bid-YTW : 4.18 %
TD.PR.I FixedReset 102,683 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2014-07-31
Maturity Price : 25.00
Evaluated at bid price : 25.31
Bid-YTW : 1.89 %
RY.PR.I FixedReset 101,265 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2019-02-24
Maturity Price : 25.00
Evaluated at bid price : 25.23
Bid-YTW : 3.33 %
BNS.PR.R FixedReset 84,300 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2019-01-26
Maturity Price : 25.00
Evaluated at bid price : 25.64
Bid-YTW : 3.31 %
There were 34 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
MFC.PR.F FixedReset Quote: 23.31 – 23.80
Spot Rate : 0.4900
Average : 0.2981

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.31
Bid-YTW : 4.00 %

GWO.PR.I Deemed-Retractible Quote: 22.71 – 23.10
Spot Rate : 0.3900
Average : 0.2793

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.71
Bid-YTW : 5.78 %

BAM.PR.X FixedReset Quote: 22.20 – 22.48
Spot Rate : 0.2800
Average : 0.1963

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-05-27
Maturity Price : 21.89
Evaluated at bid price : 22.20
Bid-YTW : 4.05 %

PWF.PR.P FixedReset Quote: 24.30 – 24.52
Spot Rate : 0.2200
Average : 0.1503

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-05-27
Maturity Price : 23.96
Evaluated at bid price : 24.30
Bid-YTW : 3.38 %

PWF.PR.S Perpetual-Discount Quote: 23.26 – 23.49
Spot Rate : 0.2300
Average : 0.1610

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-05-27
Maturity Price : 22.96
Evaluated at bid price : 23.26
Bid-YTW : 5.20 %

GWO.PR.F Deemed-Retractible Quote: 25.48 – 25.68
Spot Rate : 0.2000
Average : 0.1354

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2014-06-26
Maturity Price : 25.00
Evaluated at bid price : 25.48
Bid-YTW : -5.88 %

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