The hot news of the day is that the BoC did not move policy rates (emphasis added):
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.
Global economic growth is evolving essentially as the Bank had anticipated in its October Monetary Policy Report (MPR). The US economy continues to grow at a solid pace, although private domestic demand has proven slightly less robust than expected. Meanwhile, commodity prices have declined further. The ongoing terms-of-trade adjustments and shifting growth prospects across different regions are contributing to exchange rate movements. In this context, policy divergence is expected to remain a prominent theme.
In Canada, the dynamics of growth have been broadly in line with the Bank’s MPR outlook. The economy continues to undergo a complex and lengthy adjustment to the decline in Canada’s terms of trade. This adjustment is being aided by the ongoing US recovery, a lower Canadian dollar and the Bank’s monetary policy easing this year. The resource sector is still contending with lower prices for commodities. In non-resource sectors, exports are picking up, particularly in exchange rate-sensitive categories. However, business investment continues to be weighed down by cuts in resource-sector spending. The labour market has been resilient at the national level, although with significant job losses in resource-producing regions. The Bank expects GDP growth to moderate in the fourth quarter of 2015 before moving to a rate above potential in 2016. While bond yields are slightly higher, financial conditions remain accommodative in Canada.
In the midst of all of these adjustments, inflation is in line with the Bank’s October outlook. Total CPI inflation remains near the bottom of the Bank’s target range, owing to declines in consumer energy prices. Core inflation is close to 2 per cent as the effects of the lower dollar and the output gap continue to offset each other.
The Bank judges that the risks around the inflation profile remain roughly balanced over the projection horizon. Vulnerabilities in the household sector continue to edge higher while overall risks to financial stability are evolving as expected. Taking all of these developments into consideration, the Bank judges that the risks to the outlook for inflation remain within the zone for which the current stance of monetary policy is appropriate. Therefore, the target for the overnight rate remains at 1/2 per cent.
The GDP expectations look more optimistic than has been the case since oil started to drop; in the October rate announcement:
Given this judgment about potential output, the Canadian economy can be expected to return to full capacity, and inflation sustainably to target, around mid-2017.
Mind you, the two releases are not speaking to precisely the same issue: GDP growth will have to be “above potential” for quite some time before all the slack in the economy is taken up. But it certainly sounds more optimistic!
Barrie McKenna in the Globe comments:
Many economists don’t expect Canada’s central bank to hike rates until late next year or even 2017. A few say the bank could even cut again.
“Governor [Stephen] Poloz is making it clear that even as the Fed hikes, Canadian rates will be steady,” Bank of Montreal senior economist Benjamin Reitzes said a in a research note.
Royal Bank of Canada deputy chief economist Dawn Desjardins said she expects the central bank to keep monetary policy “very stimulative” at least until the investment activity in the oil patch stops shrinking.
Of course, one big drag on the Canadian economy is electricity prices in Ontario:
Ontarians have paid $37-billion more than market price for electricity over eight years and will pay another $133-billion by 2032, after the provincial government’s process for planning the system “broke down.” Electricity prices have ballooned by 70 per cent.
What’s more, Hydro One is in rough shape, with ever-increasing power outages and aging equipment “at very high risk of failing” that needs $4.472-billion worth of repairs – even as the province is in the process of selling 60 per cent of the company to the private sector.
Auditor-General Bonnie Lysyk made these blockbuster revelations about Ontario’s expensive and aging electricity system in her annual report Wednesday, which also put several other provincial policies under the microscrope.
…
“We found that the planning process had essentially broken down over the past decade,” Ms. Lysyk wrote in her report. “In the absence of a technical plan, the Ministry has made a number of decisions about power generation that went against the OPA’s technical advice and did not fully consider the state of the electricity market or the long-term effects.”“Ontario electricity ratepayers have had to pay billions for these decisions,” Ms. Lysyk added.
…
For instance, Ontarians are paying double for wind power and more than triple for solar power what U.S. consumers pay. The problem, Ms. Lysyk found, was that the 2010 Green Energy Act failed to take advantage of low electricity prices and instead mandated higher prices for wind and solar power companies than they had received previously. This all added up to $9.2-billion more in renewables costs under the current system than the previous one.In another case in 2013, the government decided to convert a coal-fired plant in Thunder Bay to biomass in order to keep the plant going after the province stopped burning coal for electricity. Energy experts at the OPA told the government the conversion was not cost-effective, but the government told them to do it anyway. As a result, power from the plant costs $1,600/megawatts per hour, which is 25 times more than the cost at other Ontario biomass plants, Ms. Lysyk found. What’s more, some of the biomass burned at the plant is actually imported, which undercuts part of the rationale to keep the plant going to help Ontario’s forestry industry.
Craziness. The Auditor General’s highlights are listed in her press release and masochists will enjoy reading the full report.
Meanwhile, the US took delivery of a good solid beige book:
The economy expanded modestly across most of the U.S. in October and November amid rising consumer spending, while a stronger dollar helped keep inflation in check, a Federal Reserve report showed.
Eight of the 12 Fed districts called the expansion “modest,” while the Minneapolis region reported moderate growth, according to the Beige Book released Wednesday in Washington. Conditions were “steady” in the Kansas City district and “leveled off” in New York, while growth reported by the Boston Fed was “somewhat slower.”
“Consumer spending increased in nearly all districts,” with robust car sales and lower gasoline prices boosting purchases of trucks and larger vehicles, the report said. While “labor markets continued to tighten modestly,” prices were “generally steady.”
Pay gains were described as “generally stable to increasing,” with most districts saying wage pressures were only building for skilled workers and employees in short supply.
The report coincides with Fed Chair Janet Yellen’s comments in a speech earlier Wednesday that she is increasingly confident the economy is growing sufficiently to achieve labor-market improvement and higher inflation.
Nevertheless, the Fed appears to be dampening expectations of substantial rate increases:
Federal Reserve policy makers may need to have more than just confidence that inflation will pick up to raise interest rates again after liftoff.
Chair Janet Yellen on Wednesday suggested that the pace of future rate increases could depend on “actual progress” in price gains toward the central bank’s target. That’s a shift from the requirement the Federal Open Market Committee set for an initial move, to be “reasonably confident” that inflation would move back to its goal over the medium term.
The language adds to reasons to expect that rates will rise gradually after a widely-anticipated liftoff later this month. As measured by the personal consumption expenditures price index, the Fed’s favorite gauge, headline inflation climbed just 0.2 percent in the year through October. So-called core prices, which strip out volatile food and energy costs, rose 1.3 percent.
“Given the persistent shortfall in inflation from our 2 percent objective, the Committee will, of course, carefully monitor actual progress toward our inflation goal as we make decisions over time on the appropriate path for the federal funds rate,” Yellen told the Economic Club of Washington on Wednesday.
… while at the same time Lockhart is pressing hard for a December hike:
Federal Reserve Bank of Atlanta President Dennis Lockhart said he favors raising interest rates this month, adding to signs that the central bank will proceed with its first increase since 2006.
“Absent information that drastically changes the economic picture and outlook, I feel the case for liftoff is compelling,” Lockhart said Wednesday in Fort Lauderdale, Florida.
The Federal Open Market Committee is considering tightening policy at its next meeting Dec. 15-16 as the economy expands and the labor market shows signs of continued progress. Payrolls are estimated to have increased by 200,000 last month and the unemployment rate stayed at 5 percent, according to economists surveyed prior to the government report on Friday.
The Atlanta Fed official, a voting member of the FOMC this year, said employment gains have clearly met the committee’s desire for further improvement as a criterion for liftoff.
…
Lockhart has never dissented from an FOMC decision.
Meanwhile, Assiduous Readers with good memories will remember that on April 9 I highlighted Power Financial’s investment in WealthSimple, which led on June 22 to astonished indignation that they might not be entirely altruistic in their goals. Whatever – WealthSimple is now flexing its newly gained muscles:
Online portfolio manager Wealthsimple is gaining ground among competitors as it acquires online brokerage Canadian ShareOwner Investments Inc.
It is the first acquisition in Canada between two online advice platforms, also known as robo-advisers, and the deal reveals that Wealthsimple will now manage 10,000 clients and $400-million in client assets – financial details that have been widely anticipated in the wealth-management industry.
Currently, there are 10 Canadian online portfolio manager platforms, including one in development with BMO Nesbitt Burns Inc., which is set to launch its offering in early 2016.
Wealthsimple entered the market in September, 2014, and quickly grabbed the attention of investment giant Power Financial Corp., which invested $10-million in the company this year and has an option to invest an additional $20-million. At the time, Wealthsimple had only 1,000 clients on its platform, with an unknown amount of assets under management (AUM), but founder and chief executive officer Michael Katchen has said he is aiming to reach AUM of $2-billion over the next two years.
… and Sun Life is reinforcing its global ambitions:
Canada’s Sun Life Financial Inc signalled the significance of the fast growing Indian insurance market by revealing plans on Wednesday to increase its stake in life insurance joint venture Birla Sun Life Insurance, to 49 per cent.
Toronto-based Sun Life, which currently owns 26 per cent of Birla Sun Life, is buying an additional 23 per cent in the venture from partner Aditya Birla Nuvo Ltd, which will keep the remaining stake. Sun Life will spend 16.64-billion rupees ($250-million) on the purchase.
The deal, which is expected to close by March 2016, comes months after Sun Life Chief Executive Dean Connor told Reuters the company was interested in raising its stake in the venture.
Birla Sun Life Insurance is among the top five private insurers in India and aims to crack the top 3 at some point.
S Split Corp., proud issuer of SBN.PR.A, was confirmed at Pfd-3 by DBRS:
DBRS Limited (DBRS) has today confirmed the rating of Preferred Shares (the Preferred Shares) issued by S Split Corp. (the Company) at Pfd-3.
…
The net proceeds from the initial offering were used to purchase a portfolio of common shares of the Bank of Nova Scotia (the BNS Shares). Dividends received from the BNS Shares are used to pay a fixed cumulative monthly dividend to the holders of the Preferred Shares equal to 5.25% per annum. Based on the most recent dividend paid on the BNS Shares, the dividend income net of management fees and other expenses is expected to cover approximately 44% of the Preferred Share distributions. As of November 26, 2015, the Portfolio provides downside protection of approximately 39% to the Preferred Shares.
…
The Company aims to provide the holders of the Class A Shares with regular monthly cash distributions in an amount targeted to be 6% per annum on the net asset value (NAV) of the Class A Shares. These distributions result in an average annual grind on the NAV of approximately 2.3% for the next five years. No distributions will be paid to the Class A Shares if the asset coverage available to the Preferred Shares drops below 1.65 times. Furthermore, no special distributions will be paid to the Class A Shares if the payment would drop the Company NAV to less than $25; however, special distributions may be made to mitigate any potential tax liabilities to the Company. The combination of the asset coverage test and the Class A Share distributions being based on the Company NAV provides capital preservation for holders of the Preferred Shares.
It appears that preferred share investors are taking inspiration from old WW2 stories:
Click for Big
It was another awful day for the Canadian preferred share market, with PerpetualDiscounts down 49bp, FixedResets losing 92bp and DeemedRetractibles off 16bp. The Performance Highlights table is comprised entirely of losers, almost all FixedResets. Volume was quite high.
PerpetualDiscounts now yield 5.63%, equivalent to 7.32% interest at the standard equivalency factor of 1.3x. Long corporates now yield a little over 4.2%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 310bp, a widening from the 300bp reported November 26.
For as long as the FixedReset market is so violently unsettled, I’ll keep publishing updates of the more interesting and meaningful series of FixedResets’ Implied Volatilities. This doesn’t include Enbridge because although Enbridge has a large number of issues outstanding, all of which are quite liquid, the range of Issue Reset Spreads is too small for decent conclusions. The low is 212bp (ENB.PR.H; second-lowest is ENB.PR.D at 237bp) and the high is a mere 268 for ENB.PF.G.
Remember that all rich /cheap assessments are:
» based on Implied Volatility Theory only
» are relative only to other FixedResets from the same issuer
» assume constant GOC-5 yield
» assume constant Implied Volatility
» assume constant spread
Here’s TRP:
Click for Big
TRP.PR.E, which resets 2019-10-30 at +235, is bid at 18.85 to be $1.18 rich, while TRP.PR.C, resetting 2016-1-30 at +154, is $1.22 cheap at its bid price of 12.10.
Click for Big
Most expensive is MFC.PR.H, resetting at +313bp on 2017-3-19, bid at 23.40 to be 0.42 rich, while MFC.PR.K, resetting at +222bp on 2018-9-19, is bid at 18.65 to be 0.57 cheap.
Click for Big
The cheapest issue relative to its peers is BAM.PR.R, resetting at +230bp on 2016-6-30, bid at 15.40 to be $1.44 cheap. BAM.PF.G, resetting at +284bp on 2020-6-30 is bid at 20.60 and appears to be $0.92 rich.
Click for Big
FTS.PR.K, with a spread of +205bp, and bid at 18.25, looks $0.75 expensive and resets 2019-3-1. FTS.PR.G, with a spread of +213bp and resetting 2018-9-1, is bid at 17.10 and is $0.82 cheap.
Click for Big
Investment-grade pairs predict an average three-month bill yield over the next five-odd years of -0.58%, with no outliers. There is one junk outlier below -1.50%.
Click for Big
Shall we just say that this exhibits a high level of confidence in the continued rapacity of Canadian banks?
| 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 | 4.46 % | 5.38 % | 35,218 | 17.41 | 1 | -1.6129 % | 1,740.7 |
| FixedFloater | 6.36 % | 5.60 % | 29,163 | 16.76 | 1 | -1.1258 % | 3,067.0 |
| Floater | 4.33 % | 4.36 % | 84,507 | 16.61 | 3 | -1.6521 % | 1,823.9 |
| OpRet | 4.86 % | 3.73 % | 28,474 | 0.73 | 1 | 0.1589 % | 2,740.8 |
| SplitShare | 4.76 % | 5.54 % | 127,686 | 4.32 | 5 | -0.0962 % | 3,218.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0962 % | 2,510.8 |
| Perpetual-Premium | 5.76 % | -1.93 % | 89,736 | 0.09 | 6 | -0.2354 % | 2,522.9 |
| Perpetual-Discount | 5.59 % | 5.63 % | 92,933 | 14.41 | 33 | -0.4897 % | 2,562.9 |
| FixedReset | 5.09 % | 4.75 % | 227,125 | 15.01 | 76 | -0.9241 % | 2,018.2 |
| Deemed-Retractible | 5.16 % | 5.22 % | 122,799 | 5.36 | 33 | -0.1618 % | 2,594.7 |
| FloatingReset | 2.66 % | 3.84 % | 63,980 | 5.72 | 10 | -0.4768 % | 2,170.2 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| SLF.PR.G | FixedReset | -4.28 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.55 Bid-YTW : 9.12 % |
| BAM.PR.K | Floater | -4.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 10.65 Evaluated at bid price : 10.65 Bid-YTW : 4.50 % |
| IFC.PR.C | FixedReset | -3.51 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.96 Bid-YTW : 7.47 % |
| VNR.PR.A | FixedReset | -3.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 19.17 Evaluated at bid price : 19.17 Bid-YTW : 5.03 % |
| FTS.PR.G | FixedReset | -3.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 17.10 Evaluated at bid price : 17.10 Bid-YTW : 4.66 % |
| MFC.PR.K | FixedReset | -2.71 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.65 Bid-YTW : 7.21 % |
| BAM.PR.R | FixedReset | -2.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 15.40 Evaluated at bid price : 15.40 Bid-YTW : 5.45 % |
| RY.PR.O | Perpetual-Discount | -2.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 22.23 Evaluated at bid price : 22.60 Bid-YTW : 5.44 % |
| FTS.PR.H | FixedReset | -2.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 14.20 Evaluated at bid price : 14.20 Bid-YTW : 4.25 % |
| MFC.PR.H | FixedReset | -2.17 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.40 Bid-YTW : 5.01 % |
| BAM.PR.T | FixedReset | -2.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 15.85 Evaluated at bid price : 15.85 Bid-YTW : 5.39 % |
| BAM.PR.Z | FixedReset | -2.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 20.10 Evaluated at bid price : 20.10 Bid-YTW : 5.07 % |
| TRP.PR.D | FixedReset | -1.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 18.04 Evaluated at bid price : 18.04 Bid-YTW : 4.81 % |
| TRP.PR.G | FixedReset | -1.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 20.05 Evaluated at bid price : 20.05 Bid-YTW : 4.84 % |
| BAM.PF.B | FixedReset | -1.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 18.50 Evaluated at bid price : 18.50 Bid-YTW : 5.07 % |
| MFC.PR.I | FixedReset | -1.87 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.06 Bid-YTW : 5.57 % |
| NA.PR.W | FixedReset | -1.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 17.70 Evaluated at bid price : 17.70 Bid-YTW : 4.75 % |
| FTS.PR.K | FixedReset | -1.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 18.25 Evaluated at bid price : 18.25 Bid-YTW : 4.33 % |
| IFC.PR.A | FixedReset | -1.82 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 16.20 Bid-YTW : 8.99 % |
| PWF.PR.T | FixedReset | -1.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 21.96 Evaluated at bid price : 22.30 Bid-YTW : 3.86 % |
| TRP.PR.C | FixedReset | -1.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 12.10 Evaluated at bid price : 12.10 Bid-YTW : 5.15 % |
| CU.PR.H | Perpetual-Discount | -1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 23.30 Evaluated at bid price : 23.60 Bid-YTW : 5.58 % |
| IAG.PR.G | FixedReset | -1.62 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.85 Bid-YTW : 5.62 % |
| BAM.PR.E | Ratchet | -1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 25.00 Evaluated at bid price : 15.25 Bid-YTW : 5.38 % |
| TRP.PR.A | FixedReset | -1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 15.60 Evaluated at bid price : 15.60 Bid-YTW : 4.70 % |
| GWO.PR.N | FixedReset | -1.48 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.35 Bid-YTW : 10.16 % |
| CU.PR.G | Perpetual-Discount | -1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 20.26 Evaluated at bid price : 20.26 Bid-YTW : 5.59 % |
| HSE.PR.A | FixedReset | -1.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 12.80 Evaluated at bid price : 12.80 Bid-YTW : 5.19 % |
| PWF.PR.S | Perpetual-Discount | -1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 21.36 Evaluated at bid price : 21.66 Bid-YTW : 5.59 % |
| CM.PR.Q | FixedReset | -1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 4.54 % |
| CU.PR.C | FixedReset | -1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 19.30 Evaluated at bid price : 19.30 Bid-YTW : 4.39 % |
| SLF.PR.I | FixedReset | -1.30 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.25 Bid-YTW : 5.84 % |
| BAM.PF.E | FixedReset | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 18.75 Evaluated at bid price : 18.75 Bid-YTW : 5.04 % |
| BAM.PR.X | FixedReset | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 14.85 Evaluated at bid price : 14.85 Bid-YTW : 4.96 % |
| MFC.PR.L | FixedReset | -1.25 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.00 Bid-YTW : 7.05 % |
| MFC.PR.M | FixedReset | -1.24 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.95 Bid-YTW : 6.56 % |
| RY.PR.J | FixedReset | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 20.06 Evaluated at bid price : 20.06 Bid-YTW : 4.58 % |
| HSE.PR.C | FixedReset | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 19.77 Evaluated at bid price : 19.77 Bid-YTW : 5.26 % |
| IAG.PR.A | Deemed-Retractible | -1.14 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.60 Bid-YTW : 6.58 % |
| TD.PR.T | FloatingReset | -1.13 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.80 Bid-YTW : 3.62 % |
| BAM.PR.G | FixedFloater | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 25.00 Evaluated at bid price : 14.93 Bid-YTW : 5.60 % |
| PWF.PR.P | FixedReset | -1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 14.28 Evaluated at bid price : 14.28 Bid-YTW : 4.46 % |
| RY.PR.N | Perpetual-Discount | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 22.63 Evaluated at bid price : 22.97 Bid-YTW : 5.36 % |
| MFC.PR.J | FixedReset | -1.05 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.71 Bid-YTW : 6.14 % |
| BAM.PF.A | FixedReset | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 19.85 Evaluated at bid price : 19.85 Bid-YTW : 5.04 % |
| BMO.PR.W | FixedReset | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 18.04 Evaluated at bid price : 18.04 Bid-YTW : 4.57 % |
| TD.PF.D | FixedReset | -1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 20.35 Evaluated at bid price : 20.35 Bid-YTW : 4.57 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TRP.PR.D | FixedReset | 72,847 | RBC crossed 37,000 at 18.10. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 18.04 Evaluated at bid price : 18.04 Bid-YTW : 4.81 % |
| RY.PR.Z | FixedReset | 51,883 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 18.28 Evaluated at bid price : 18.28 Bid-YTW : 4.53 % |
| TRP.PR.E | FixedReset | 45,833 | Scotia crossed 10,000 at 19.06. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 18.85 Evaluated at bid price : 18.85 Bid-YTW : 4.66 % |
| TRP.PR.A | FixedReset | 36,725 | RBC crossed 20,000 at 15.78. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 15.60 Evaluated at bid price : 15.60 Bid-YTW : 4.70 % |
| RY.PR.O | Perpetual-Discount | 34,450 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 22.23 Evaluated at bid price : 22.60 Bid-YTW : 5.44 % |
| RY.PR.H | FixedReset | 30,613 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-02 Maturity Price : 18.37 Evaluated at bid price : 18.37 Bid-YTW : 4.55 % |
| There were 54 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| HSE.PR.C | FixedReset | Quote: 19.77 – 21.62 Spot Rate : 1.8500 Average : 1.0748 YTW SCENARIO |
| BAM.PR.K | Floater | Quote: 10.65 – 11.29 Spot Rate : 0.6400 Average : 0.3979 YTW SCENARIO |
| IGM.PR.B | Perpetual-Premium | Quote: 25.29 – 26.22 Spot Rate : 0.9300 Average : 0.7234 YTW SCENARIO |
| VNR.PR.A | FixedReset | Quote: 19.17 – 19.75 Spot Rate : 0.5800 Average : 0.3975 YTW SCENARIO |
| RY.PR.O | Perpetual-Discount | Quote: 22.60 – 23.06 Spot Rate : 0.4600 Average : 0.2809 YTW SCENARIO |
| HSE.PR.E | FixedReset | Quote: 21.11 – 21.60 Spot Rate : 0.4900 Average : 0.3471 YTW SCENARIO |