The National Securities Regulator has just gotten a little more national:
Two more provinces have agreed to join a voluntary national securities regulator expected to begin operations in the fall of 2015, bringing the total number on board to four and giving the upcoming capital markets watchdog a more pan-Canadian scope.
Sources say Saskatchewan and New Brunswick will sign on to the Cooperative Capital Markets Regulator Wednesday in a ceremony in Ottawa with federal Finance Minister Joe Oliver, embracing a plan backed by Ontario and British Columbia last September.
Marketwatch has a nice chart on market trends:
This chart shows how much money is flooding into investment vehicles — index mutual funds and exchange-traded funds — that track stock indexes. These two types of funds have grabbed about 24% of the U.S. mutual fund and ETF market, down from less than 5% in 1998, according to Deutsche Bank data.
Big full-service brokerages, “which control 50% of all invested household wealth in America, have successfully pushed the majority of their advisors’ practices toward more hands-off investing approaches,” said Josh Brown of The Reformed Broker in a recent blog post, referring to charging a flat percentage fee on assets, rather than commissions. “At the same time, do-it-yourselfers have made Vanguard, State Street and BlackRock’s iShares three of the world’s largest asset managers — and they are primarily purveyors of passive indexing products.”
There were modest gains for the Canadian preferred share market, with PerpetualDiscounts winning 7bp, FixedResets gaining 1bp and DeemedRetractibles up 2bp. Volatility was minimal. Volume was average.
PerpetualDiscounts now yield 5.17%, equivalent to 6.72% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 4.3%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 240bp, a slight (and perhaps spurious) narrowing from the 245bp reported July 2.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 3.14 % | 3.13 % | 22,987 | 19.41 | 1 | -0.0418 % | 2,531.9 |
| FixedFloater | 4.14 % | 3.42 % | 28,662 | 18.47 | 1 | 2.6846 % | 4,148.0 |
| Floater | 2.87 % | 2.98 % | 46,793 | 19.80 | 4 | 0.2605 % | 2,756.8 |
| OpRet | 4.02 % | -4.25 % | 87,763 | 0.08 | 1 | -0.0392 % | 2,717.9 |
| SplitShare | 4.26 % | 4.01 % | 56,618 | 4.05 | 6 | 0.0603 % | 3,116.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0392 % | 2,485.2 |
| Perpetual-Premium | 5.53 % | -2.41 % | 85,341 | 0.09 | 17 | -0.0231 % | 2,424.6 |
| Perpetual-Discount | 5.25 % | 5.17 % | 111,585 | 15.23 | 20 | 0.0663 % | 2,572.4 |
| FixedReset | 4.39 % | 3.62 % | 199,089 | 4.62 | 76 | 0.0076 % | 2,558.5 |
| Deemed-Retractible | 4.98 % | 1.63 % | 136,042 | 0.13 | 43 | 0.0202 % | 2,548.0 |
| FloatingReset | 2.66 % | 2.13 % | 110,761 | 3.86 | 6 | 0.0526 % | 2,516.3 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| CIU.PR.C | FixedReset | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-07-09 Maturity Price : 21.76 Evaluated at bid price : 22.25 Bid-YTW : 3.41 % |
| BAM.PR.G | FixedFloater | 2.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-07-09 Maturity Price : 22.98 Evaluated at bid price : 22.95 Bid-YTW : 3.42 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BMO.PR.T | FixedReset | 334,546 | Nesbitt crossed two blocks of 100,000 each, both at 25.45. RBC crossed blocks of 10,000 shares, 12,300 and 50,000, all at 25.45. TD crossed 40,000 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2019-08-25 Maturity Price : 25.00 Evaluated at bid price : 25.44 Bid-YTW : 3.62 % |
| CM.PR.O | FixedReset | 201,900 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2019-07-31 Maturity Price : 25.00 Evaluated at bid price : 25.43 Bid-YTW : 3.62 % |
| TD.PF.A | FixedReset | 168,241 | TD crossed 100,000 at 25.47. Desjardins crossed 30,000 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2019-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.47 Bid-YTW : 3.60 % |
| RY.PR.H | FixedReset | 164,150 | RBC crossed 50,000 at 25.45. TD crossed 30,000 at the same price; Nesbitt crossed 50,000 at the same price. CIBC sold 10,000 to anonymous at the same price again. YTW SCENARIO Maturity Type : Call Maturity Date : 2019-08-24 Maturity Price : 25.00 Evaluated at bid price : 25.46 Bid-YTW : 3.61 % |
| ENB.PF.C | FixedReset | 133,597 | Scotia crossed 75,400 at 25.12. RBC crossed 10,000 at 25.10. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-07-09 Maturity Price : 23.16 Evaluated at bid price : 25.10 Bid-YTW : 4.20 % |
| BNS.PR.P | FixedReset | 132,946 | RBC crossed 88,600 and 40,000, both at 25.46. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-04-25 Maturity Price : 25.00 Evaluated at bid price : 25.41 Bid-YTW : 2.84 % |
| There were 30 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BAM.PR.B | Floater | Quote: 17.70 – 18.20 Spot Rate : 0.5000 Average : 0.3060 YTW SCENARIO |
| BAM.PR.G | FixedFloater | Quote: 22.95 – 23.95 Spot Rate : 1.0000 Average : 0.8072 YTW SCENARIO |
| CIU.PR.C | FixedReset | Quote: 22.25 – 22.84 Spot Rate : 0.5900 Average : 0.4280 YTW SCENARIO |
| RY.PR.L | FixedReset | Quote: 26.41 – 26.84 Spot Rate : 0.4300 Average : 0.2895 YTW SCENARIO |
| BAM.PR.C | Floater | Quote: 17.60 – 17.95 Spot Rate : 0.3500 Average : 0.2904 YTW SCENARIO |
| GWO.PR.H | Deemed-Retractible | Quote: 23.87 – 24.05 Spot Rate : 0.1800 Average : 0.1219 YTW SCENARIO |