Amidst all the snivelling from old-stock Canadians unable to compete in the Vancouver housing market it’s nice to see a major move in the other direction:
President Barack Obama signed into law a measure easing a 35-year-old tax on foreign investment in U.S. real estate, potentially opening the door to greater purchases by overseas investors, a major source of capital since the financial crisis.
Contained in the $1.1 trillion spending measure that was passed to avoid a government shutdown is a provision that treats foreign pension funds the same as their U.S. counterparts for real estate investments. The provision waives the tax imposed on such investors under the 1980 Foreign Investment in Real Property Tax Act, known as FIRPTA.
“FIRPTA has historically made direct investment in U.S. property a non-starter for trillions of dollars worth of foreign pensions,” said James Corl, a managing director at private equity firm Siguler Guff & Co. “This tax-law modification is a game changer” that could result in hundreds of billions of new capital flows into U.S. real estate.
We are lowering our long-term issuer credit and senior unsecured debt ratings on the Province of Alberta to ‘AA+’ from ‘AAA’. We are also lowering our ‘AAA’ senior unsecured debt rating on Alberta Capital Finance Authority to ‘AA+’ from ‘AAA’.
The downgrade reflects our view of Alberta’s projected oil price-driven weak budgetary performances in the next two years; moderate, but rapidly rising, tax-supported debt burden; and now-average economic prospects. The stable outlook reflects our expectations that the province’s liquidity will continue to be exceptional in the next two years, real GDP growth will be positive in 2016 and 2017, and that the debt burden will remain moderate despite large deficit-driven increases in fiscal years 2016-2018.
…
We assess the provincial economy as strong despite the plunge in oil prices and declining real GDP that we expect for 2015. The concentration in the oil and gas industry tempers our assessment of the provincial economy. In 2014, the industry, which includes supporting activities, represented about 27% of real GDP and about 6% of employment. This exposure brings economic and fiscal volatility as oil and gas prices move, as the decline in oil prices indicates. Furthermore, the prospects for energy prices have caused us to reassess Alberta’s growth prospects as average, from above-average previously. We estimate the provincial GDP per capita to be about US$80,800 (2012-2014), which we consider to be high compared with that of peers. Real and nominal GDP growth in 2014 was what we consider very strong despite the fall in oil prices in the second half of the year. Real GDP rose 4.5% (5.1% in 2014): nominal GDP increased 9.1%, compared with 10.2%. Labor force results were also strong, in our opinion. Employment grew 2.2% (2.5% in 2013) and the unemployment rate was 4.7%, up only slightly from 2013. For 2015, the province expects real and nominal GDP to decline 1.0% and 9.4%, respectively. In 2016, we believe real and nominal GDP should rebound, with about 1.0% and 4.0% growth, respectively.Alberta’s financial management is very strong, in our view. Budget information is comprehensive and detailed. The province produces a five-year capital plan annually. The level of transparency and disclosure in financial statements is high. The independent auditor-general, who reports to the legislature, audits financial statements. Debt and liquidity management and related policies and practices are prudent and risk-averse. A capable and experienced administration supports the recently elected governing party.
I mentioned the Capital Power debt reorganization on November 19 and November 20; now it has come to fruition:
Capital Power Corporation (“Capital Power”) (TSX: CPX) and Capital Power L.P. (“CPLP”) announced today the completion of a previously announced transaction to exchange all outstanding CPLP medium term notes (“CPLP Notes”) for newly issued Capital Power medium term notes (“Capital Power Notes”) that have the same financial and other terms as the CPLP Notes and that are unconditionally guaranteed by CPLP (“Note Exchange”).
The Note Exchange transaction received strong support and was approved by more than 87% of the votes cast at the December 17, 2015 meeting of holders of CPLP Notes, voting as a single class.
As a result of the Note Exchange, the CPLP Notes have been cancelled and the following Capital Power Notes were issued in exchange for them:
◦4.85% Medium Term Notes of Capital Power due February 21, 2019, Series 1
◦5.276% Medium Term Notes of Capital Power due November 16, 2020, Series 2The Note Exchange and additional steps to reorganize CPLP’s capital structure were undertaken to simplify the organizational structure and reduce reporting obligations. The cessation of CPLP as a reporting issuer and transition of long-term credit ratings to only Capital Power will result in efficiencies for Capital Power while providing noteholders with better liquidity over time and structural enhancement. The timing of the Note Exchange follows the exchange of all remaining Exchangeable Common Limited Partnership Units of CPLP for shares of Capital Power by EPCOR Power Development Corporation on April 2, 2015.
RBC Capital Markets acted as the Solicitation Agent for the Note Exchange transaction
So, what’s done is done. RBC got paid and their counsel got paid:
The Solicitation Agent will be entitled to receive a fee for its services and be reimbursed for certain reasonable out-of-pocket expenses, including fees of legal counsel, and will be indemnified against certain liabilities and expenses in connection with the solicitation of votes in favour of the Note Exchange Resolution.
… and Kingsdale got paid:
CPLP has retained Kingsdale Shareholder Services to act as information agent in connection with the Note Exchange Transaction. The Information Agent will receive reasonable and customary compensation from CPLP for its services in connection with the Note Exchange Transaction, will be reimbursed for certain out-of-pocket expenses and will be indemnified against certain liabilities and expenses in connection with the Note Exchange Transaction.
… and I’m sure lots of other people got paid, but the Noteholders didn’t get paid, not a penny. And they voted in favour anyway! Like I always say, there’s one born every minute!
It was a modestly negative day for the Canadian preferred share market, with PerpetualDiscounts losing 26bp, FixedResets down 25bp and DeemedRetractibles off 8bp. The Performance Highlights table continues to be enormous, though, indicating a lot of churn under the placid surface. Volume was extremely high.
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 18.50 to be $1.26 rich, while TRP.PR.C, resetting 2016-1-30 at +154, is $0.84 cheap at its bid price of 11.91.
Click for Big
Most expensive is MFC.PR.G, resetting at +290bp on 2016-12-19, bid at 21.30 to be 0.37 cheap, while MFC.PR.N, resetting at +230bp on 2020-3-19, is bid at 19.75 to be 0.57 rich.
Click for Big
The cheapest issue relative to its peers is BAM.PR.R, resetting at +230bp on 2016-6-30, bid at 15.41 to be $1.35 cheap. BAM.PF.E, resetting at +255bp on 2020-3-31 is bid at 19.50 and appears to be $1.36 rich.
Click for Big
FTS.PR.M, with a spread of +248bp, and bid at 20.39, looks $0.33 expensive and resets 2019-12-1. FTS.PR.G, with a spread of +213bp and resetting 2018-9-1, is bid at 16.89 and is $0.98 cheap.
Click for Big
Investment-grade pairs predict an average three-month bill yield over the next five-odd years of -1.03%, with one outlier below -2.00%. There is one junk outlier below -2.00% and four above 0.00%.
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 | 4.94 % | 6.01 % | 33,464 | 16.63 | 1 | 0.7326 % | 1,569.5 |
| FixedFloater | 7.20 % | 6.38 % | 36,162 | 15.77 | 1 | 0.7634 % | 2,711.6 |
| Floater | 4.24 % | 4.37 % | 83,977 | 16.68 | 4 | 2.4810 % | 1,803.7 |
| OpRet | 4.87 % | 4.26 % | 24,386 | 0.69 | 1 | 0.0000 % | 2,735.4 |
| SplitShare | 4.83 % | 5.58 % | 81,423 | 1.87 | 6 | 0.8948 % | 3,201.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.8948 % | 2,497.6 |
| Perpetual-Premium | 5.82 % | 5.90 % | 97,893 | 13.95 | 7 | -0.0514 % | 2,488.4 |
| Perpetual-Discount | 5.78 % | 5.86 % | 102,834 | 14.04 | 33 | -0.2576 % | 2,477.9 |
| FixedReset | 5.25 % | 4.65 % | 272,003 | 14.77 | 81 | -0.2534 % | 1,967.7 |
| Deemed-Retractible | 5.23 % | 5.37 % | 135,266 | 5.31 | 33 | -0.0839 % | 2,565.0 |
| FloatingReset | 2.80 % | 4.19 % | 67,614 | 5.67 | 11 | -0.3235 % | 2,107.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IFC.PR.A | FixedReset | -4.44 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.50 Bid-YTW : 9.19 % |
| TRP.PR.A | FixedReset | -3.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 14.79 Evaluated at bid price : 14.79 Bid-YTW : 4.75 % |
| TRP.PR.H | FloatingReset | -3.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 9.80 Evaluated at bid price : 9.80 Bid-YTW : 4.39 % |
| MFC.PR.K | FixedReset | -3.59 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.51 Bid-YTW : 7.22 % |
| TRP.PR.B | FixedReset | -3.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 10.80 Evaluated at bid price : 10.80 Bid-YTW : 4.79 % |
| PWF.PR.P | FixedReset | -2.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 13.66 Evaluated at bid price : 13.66 Bid-YTW : 4.37 % |
| MFC.PR.L | FixedReset | -2.70 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.72 Bid-YTW : 7.17 % |
| IAG.PR.G | FixedReset | -2.60 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.26 Bid-YTW : 6.53 % |
| FTS.PR.I | FloatingReset | -2.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 11.35 Evaluated at bid price : 11.35 Bid-YTW : 4.19 % |
| GWO.PR.N | FixedReset | -2.42 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.33 Bid-YTW : 9.99 % |
| HSE.PR.A | FixedReset | -2.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 11.20 Evaluated at bid price : 11.20 Bid-YTW : 5.57 % |
| TRP.PR.D | FixedReset | -2.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 17.67 Evaluated at bid price : 17.67 Bid-YTW : 4.73 % |
| SLF.PR.G | FixedReset | -2.24 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.81 Bid-YTW : 8.84 % |
| HSE.PR.C | FixedReset | -2.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 16.75 Evaluated at bid price : 16.75 Bid-YTW : 6.05 % |
| VNR.PR.A | FixedReset | -2.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 19.35 Evaluated at bid price : 19.35 Bid-YTW : 4.79 % |
| RY.PR.L | FixedReset | -2.00 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.55 Bid-YTW : 4.28 % |
| FTS.PR.K | FixedReset | -1.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 17.69 Evaluated at bid price : 17.69 Bid-YTW : 4.27 % |
| FTS.PR.G | FixedReset | -1.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 16.89 Evaluated at bid price : 16.89 Bid-YTW : 4.51 % |
| FTS.PR.H | FixedReset | -1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 13.95 Evaluated at bid price : 13.95 Bid-YTW : 4.10 % |
| FTS.PR.M | FixedReset | -1.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 20.39 Evaluated at bid price : 20.39 Bid-YTW : 4.21 % |
| NA.PR.Q | FixedReset | -1.57 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.52 Bid-YTW : 3.81 % |
| HSB.PR.C | Deemed-Retractible | -1.52 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.65 Bid-YTW : 5.37 % |
| TRP.PR.F | FloatingReset | -1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 13.05 Evaluated at bid price : 13.05 Bid-YTW : 4.52 % |
| MFC.PR.M | FixedReset | -1.49 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.80 Bid-YTW : 6.60 % |
| TRP.PR.E | FixedReset | -1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 18.50 Evaluated at bid price : 18.50 Bid-YTW : 4.58 % |
| W.PR.J | Perpetual-Discount | -1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 22.72 Evaluated at bid price : 23.01 Bid-YTW : 6.19 % |
| MFC.PR.F | FixedReset | -1.39 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.21 Bid-YTW : 9.45 % |
| TRP.PR.C | FixedReset | -1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 11.91 Evaluated at bid price : 11.91 Bid-YTW : 4.88 % |
| PWF.PR.T | FixedReset | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 22.07 Evaluated at bid price : 22.45 Bid-YTW : 3.68 % |
| W.PR.H | Perpetual-Discount | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 22.53 Evaluated at bid price : 22.78 Bid-YTW : 6.15 % |
| ELF.PR.G | Perpetual-Discount | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 20.52 Evaluated at bid price : 20.52 Bid-YTW : 5.90 % |
| SLF.PR.H | FixedReset | -1.20 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.30 Bid-YTW : 7.79 % |
| CIU.PR.A | Perpetual-Discount | -1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 19.60 Evaluated at bid price : 19.60 Bid-YTW : 5.93 % |
| HSB.PR.D | Deemed-Retractible | -1.15 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.82 Bid-YTW : 5.13 % |
| BNS.PR.A | FloatingReset | -1.06 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.37 Bid-YTW : 4.46 % |
| ELF.PR.F | Perpetual-Discount | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 22.12 Evaluated at bid price : 22.40 Bid-YTW : 6.02 % |
| TD.PF.E | FixedReset | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 20.66 Evaluated at bid price : 20.66 Bid-YTW : 4.46 % |
| CU.PR.C | FixedReset | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 18.80 Evaluated at bid price : 18.80 Bid-YTW : 4.31 % |
| BMO.PR.Y | FixedReset | -1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 19.35 Evaluated at bid price : 19.35 Bid-YTW : 4.62 % |
| RY.PR.A | Deemed-Retractible | -1.01 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.47 Bid-YTW : 4.94 % |
| PVS.PR.C | SplitShare | 1.02 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2017-12-10 Maturity Price : 25.00 Evaluated at bid price : 24.75 Bid-YTW : 5.50 % |
| BAM.PR.K | Floater | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 10.51 Evaluated at bid price : 10.51 Bid-YTW : 4.50 % |
| PVS.PR.D | SplitShare | 1.09 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2021-10-08 Maturity Price : 25.00 Evaluated at bid price : 22.34 Bid-YTW : 6.81 % |
| BNS.PR.L | Deemed-Retractible | 1.13 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.96 Bid-YTW : 4.67 % |
| MFC.PR.J | FixedReset | 1.23 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.50 Bid-YTW : 6.17 % |
| BAM.PR.T | FixedReset | 1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 16.20 Evaluated at bid price : 16.20 Bid-YTW : 4.88 % |
| BNS.PR.E | FixedReset | 1.27 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-25 Maturity Price : 25.00 Evaluated at bid price : 25.52 Bid-YTW : 5.09 % |
| CIU.PR.C | FixedReset | 1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 13.40 Evaluated at bid price : 13.40 Bid-YTW : 4.01 % |
| BAM.PF.F | FixedReset | 1.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 4.64 % |
| ENB.PR.A | Perpetual-Discount | 1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 22.98 Evaluated at bid price : 23.25 Bid-YTW : 5.96 % |
| RY.PR.M | FixedReset | 1.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 19.00 Evaluated at bid price : 19.00 Bid-YTW : 4.56 % |
| HSE.PR.G | FixedReset | 1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 18.40 Evaluated at bid price : 18.40 Bid-YTW : 5.95 % |
| BAM.PF.A | FixedReset | 1.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 4.74 % |
| MFC.PR.H | FixedReset | 1.79 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.15 Bid-YTW : 5.63 % |
| BAM.PR.B | Floater | 1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 10.80 Evaluated at bid price : 10.80 Bid-YTW : 4.37 % |
| BAM.PR.R | FixedReset | 2.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 15.41 Evaluated at bid price : 15.41 Bid-YTW : 5.04 % |
| BAM.PF.B | FixedReset | 2.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 18.65 Evaluated at bid price : 18.65 Bid-YTW : 4.74 % |
| TRP.PR.G | FixedReset | 2.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 19.95 Evaluated at bid price : 19.95 Bid-YTW : 4.72 % |
| BAM.PR.C | Floater | 2.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 10.70 Evaluated at bid price : 10.70 Bid-YTW : 4.42 % |
| BNS.PR.B | FloatingReset | 2.43 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.38 Bid-YTW : 4.08 % |
| HSE.PR.E | FixedReset | 2.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 18.34 Evaluated at bid price : 18.34 Bid-YTW : 5.98 % |
| PVS.PR.E | SplitShare | 3.56 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-10-31 Maturity Price : 25.00 Evaluated at bid price : 24.45 Bid-YTW : 5.96 % |
| BAM.PF.E | FixedReset | 4.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 19.50 Evaluated at bid price : 19.50 Bid-YTW : 4.57 % |
| PWF.PR.A | Floater | 4.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 12.60 Evaluated at bid price : 12.60 Bid-YTW : 3.78 % |
| IAG.PR.A | Deemed-Retractible | 4.77 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.65 Bid-YTW : 7.26 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| RY.PR.Q | FixedReset | 356,269 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 23.21 Evaluated at bid price : 25.22 Bid-YTW : 5.22 % |
| BNS.PR.E | FixedReset | 167,063 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-25 Maturity Price : 25.00 Evaluated at bid price : 25.52 Bid-YTW : 5.09 % |
| BAM.PF.B | FixedReset | 113,133 | Scotia crossed blocks of 37,600 and 54,000, both at 18.35. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 18.65 Evaluated at bid price : 18.65 Bid-YTW : 4.74 % |
| POW.PR.C | Perpetual-Premium | 104,835 | Nesbitt crossed blocks of 51,400 and 50,000, both at 25.05. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 24.81 Evaluated at bid price : 25.03 Bid-YTW : 5.90 % |
| BIP.PR.B | FixedReset | 47,175 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 22.57 Evaluated at bid price : 23.56 Bid-YTW : 5.84 % |
| HSE.PR.E | FixedReset | 46,986 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2045-12-18 Maturity Price : 18.34 Evaluated at bid price : 18.34 Bid-YTW : 5.98 % |
| There were 73 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| RY.PR.L | FixedReset | Quote: 24.55 – 25.13 Spot Rate : 0.5800 Average : 0.3617 YTW SCENARIO |
| VNR.PR.A | FixedReset | Quote: 19.35 – 20.07 Spot Rate : 0.7200 Average : 0.5351 YTW SCENARIO |
| IFC.PR.A | FixedReset | Quote: 15.50 – 16.09 Spot Rate : 0.5900 Average : 0.4132 YTW SCENARIO |
| BMO.PR.Y | FixedReset | Quote: 19.35 – 19.77 Spot Rate : 0.4200 Average : 0.2835 YTW SCENARIO |
| FTS.PR.I | FloatingReset | Quote: 11.35 – 11.79 Spot Rate : 0.4400 Average : 0.3146 YTW SCENARIO |
| BAM.PF.A | FixedReset | Quote: 20.00 – 20.40 Spot Rate : 0.4000 Average : 0.2885 YTW SCENARIO |
I wouldn’t call it sniveling when people in Vancouver complain about being locked out of the local real estate market.
Having a place to live is a pretty important part of ones life. Sure, not everyone has to buy, renting is an option. However, the rental vacancy rate in Vancouver is less than 1%, which makes it tough to find an affordable place to rent.
Even though I own my own, very modest, apartment on the west side, I don’t see how high real estate prices help me. If I move, it will be to at least a comparable place, hopefully something nicer, so lower prices are better for me.
I find that amongst fellow Vancouverites, one of the most popular discussion topics is how people can afford to live here. It’s not just the cost of housing, we pay the highest gas prices in North America – currently $1.20 per litre. Salaries aren’t very high here, so I think there is a lot of hidden, and not so hidden, poverty.
Unfortunately, due to peoples lack of understanding regarding the basics laws of supply and demand, we will never fix the housing problem in Vancouver. The problem is obviously caused by a rapidly increasing population moving into a city mostly surrounded by water and mountains. There is no way any level of government can solve this problem short of limiting demand. Subsidized housing is simply a wealth transfer from one group to another. The rich aren’t rich enough or numerous enough to tax to provide affordable housing for the rest of us.
My solution to the problem is simple, we should limit or eliminate our very rapid growth in population.
I wouldn’t call it sniveling when people in Vancouver complain about being locked out of the local real estate market.
I call it snivelling because so many of them seem to believe they have a God-given right to purchase a nice house in one of Canada’s greatest cities [tops in North America, fifth in the world, according to some] at a price of their own choosing.
It ain’t gonna happen and it shouldn’t happen. Not in this world. But we even have a guy in the Globe today suggesting:
Just like the dairy farmers, Bombardier and every other parasite who knows how to work the system: let’s cower behind our tariff walls and pretend the rest of the world doesn’t exist, because gosh! We’re Canadian!
My solution to the problem is simple, we should limit or eliminate our very rapid growth in population.
My solution to the problem is even simpler: if you can’t make a living where you are, move.