Is it possible that prosperity is just around the corner?
Fresh reminders that central banks may be starting to map their retreat from extraordinary stimulus measures sent a shock wave through markets, roiling bonds, currencies and equities.
Global bonds declined, the euro rebounded from its lows of the day and stocks came under renewed pressure after Bloomberg News reported the European Central Bank is likely to gradually taper asset purchases as it ends quantitative easing. Officials who asked not to be identified didn’t exclude that the program could still be extended past the current end-date of March 2017 at the full pace of 80 billion euros ($90 billion) a month. Oil also retreated.
…
Traders have been monitoring central banks for any signs they may be willing to pull back on stimulus measures. Bets on a Federal Reserve interest-rate increase by December climbed after Richmond Fed chief Jeffrey Lacker urged tighter policy and his Cleveland counterpart, Loretta Mester, said the U.S. economy is ripe for a hike. The ECB will probably wind down bond purchases in steps of 10 billion euros a month, according to euro-zone central-bank officials.
Maybe with some exceptions…:
Britain crashing out of the European single market could cost banks and associated businesses in the U.K. almost 40 billion pounds ($51 billion) in lost revenue, undermining a key sector of the economy, an industry report warned on Tuesday.
Finance firms are making a fresh bid for special status in upcoming Brexit negotiations with the EU after U.K. government officials this week indicated banks will get no favors. The report, prepared by Oliver Wyman on behalf of TheCityUK lobby group, warns that almost 70,000 jobs and 10 billion pounds of tax revenue are at risk from a so-called hard Brexit.
Prime Minister Theresa May has ruled out prioritizing protection of the banks in Brexit talks and has dismissed their key business demand for an interim deal to help ease the transition out of the bloc, Bloomberg News reported Monday, citing three government officials. Finance executives have threatened to move jobs if Britain doesn’t secure a deal allowing them to serve European clients from London.
Here’s another risk with narrowly focussed ETFs:
How fast can an exchange-traded fund lose nearly 90 percent of its assets? Less than a day.
That’s all it took for Franklin Templeton Investments Corp. in Toronto to cash in more than $130 million shares of WisdomTree Investment Inc.’s Australia & New Zealand Debt Fund last week, according to a person familiar with the matter. The withdrawal amounted to 88 percent of the fund’s assets and left it with just $19 million under management, data compiled by Bloomberg show.
| 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 | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1619 % | 1,712.7 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1619 % | 3,128.7 |
| Floater | 4.36 % | 4.53 % | 40,445 | 16.40 | 4 | 0.1619 % | 1,803.1 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0066 % | 2,890.7 |
| SplitShare | 4.84 % | 4.67 % | 69,905 | 2.14 | 6 | 0.0066 % | 3,452.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0066 % | 2,693.5 |
| Perpetual-Premium | 5.34 % | 4.71 % | 68,145 | 2.10 | 23 | -0.1367 % | 2,686.7 |
| Perpetual-Discount | 5.11 % | 5.07 % | 98,523 | 15.16 | 15 | -0.2054 % | 2,911.6 |
| FixedReset | 4.96 % | 4.31 % | 150,775 | 6.94 | 92 | -0.5561 % | 2,043.6 |
| Deemed-Retractible | 5.03 % | 4.91 % | 114,767 | 1.19 | 32 | -0.3393 % | 2,795.6 |
| FloatingReset | 3.01 % | 4.30 % | 39,248 | 4.96 | 12 | 0.7889 % | 2,207.6 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| FTS.PR.H | FixedReset | -2.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 13.66 Evaluated at bid price : 13.66 Bid-YTW : 3.96 % |
| FTS.PR.K | FixedReset | -2.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 17.55 Evaluated at bid price : 17.55 Bid-YTW : 4.07 % |
| TRP.PR.H | FloatingReset | -1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 10.38 Evaluated at bid price : 10.38 Bid-YTW : 4.36 % |
| IFC.PR.A | FixedReset | -1.75 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.13 Bid-YTW : 9.82 % |
| BAM.PF.E | FixedReset | -1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 18.55 Evaluated at bid price : 18.55 Bid-YTW : 4.62 % |
| SLF.PR.J | FloatingReset | -1.62 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 12.77 Bid-YTW : 11.10 % |
| FTS.PR.G | FixedReset | -1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 17.57 Evaluated at bid price : 17.57 Bid-YTW : 4.10 % |
| SLF.PR.D | Deemed-Retractible | -1.51 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.14 Bid-YTW : 6.28 % |
| MFC.PR.M | FixedReset | -1.34 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.36 Bid-YTW : 7.84 % |
| BMO.PR.S | FixedReset | -1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 19.12 Evaluated at bid price : 19.12 Bid-YTW : 4.08 % |
| TRP.PR.G | FixedReset | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 20.25 Evaluated at bid price : 20.25 Bid-YTW : 4.52 % |
| FTS.PR.M | FixedReset | -1.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 19.53 Evaluated at bid price : 19.53 Bid-YTW : 4.21 % |
| SLF.PR.C | Deemed-Retractible | -1.24 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.21 Bid-YTW : 6.23 % |
| PWF.PR.T | FixedReset | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 19.23 Evaluated at bid price : 19.23 Bid-YTW : 4.14 % |
| MFC.PR.L | FixedReset | -1.21 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.93 Bid-YTW : 7.96 % |
| BAM.PF.A | FixedReset | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 18.77 Evaluated at bid price : 18.77 Bid-YTW : 4.85 % |
| TRP.PR.E | FixedReset | -1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 18.30 Evaluated at bid price : 18.30 Bid-YTW : 4.32 % |
| BAM.PF.G | FixedReset | -1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 19.97 Evaluated at bid price : 19.97 Bid-YTW : 4.61 % |
| TD.PF.B | FixedReset | -1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 18.32 Evaluated at bid price : 18.32 Bid-YTW : 4.19 % |
| BAM.PF.F | FixedReset | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 19.72 Evaluated at bid price : 19.72 Bid-YTW : 4.64 % |
| BAM.PR.M | Perpetual-Discount | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 22.15 Evaluated at bid price : 22.43 Bid-YTW : 5.32 % |
| GWO.PR.N | FixedReset | -1.13 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.94 Bid-YTW : 10.08 % |
| TD.PF.C | FixedReset | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 18.31 Evaluated at bid price : 18.31 Bid-YTW : 4.19 % |
| RY.PR.J | FixedReset | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 20.20 Evaluated at bid price : 20.20 Bid-YTW : 4.26 % |
| MFC.PR.H | FixedReset | -1.12 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.21 Bid-YTW : 6.19 % |
| TD.PF.A | FixedReset | -1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 18.61 Evaluated at bid price : 18.61 Bid-YTW : 4.12 % |
| SLF.PR.E | Deemed-Retractible | -1.10 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.38 Bid-YTW : 6.17 % |
| MFC.PR.I | FixedReset | -1.09 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.94 Bid-YTW : 6.87 % |
| IFC.PR.C | FixedReset | -1.04 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.01 Bid-YTW : 8.01 % |
| BAM.PR.X | FixedReset | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 13.32 Evaluated at bid price : 13.32 Bid-YTW : 4.68 % |
| SLF.PR.A | Deemed-Retractible | -1.04 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.81 Bid-YTW : 5.51 % |
| CM.PR.P | FixedReset | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 18.19 Evaluated at bid price : 18.19 Bid-YTW : 4.14 % |
| TD.PF.D | FixedReset | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 20.22 Evaluated at bid price : 20.22 Bid-YTW : 4.32 % |
| MFC.PR.G | FixedReset | -1.01 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.65 Bid-YTW : 7.01 % |
| VNR.PR.A | FixedReset | 1.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 18.95 Evaluated at bid price : 18.95 Bid-YTW : 4.68 % |
| IFC.PR.D | FloatingReset | 15.48 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.90 Bid-YTW : 7.92 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PF.H | FixedReset | 754,568 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.71 Bid-YTW : 4.35 % |
| BAM.PR.M | Perpetual-Discount | 132,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 22.15 Evaluated at bid price : 22.43 Bid-YTW : 5.32 % |
| PWF.PR.P | FixedReset | 120,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 13.20 Evaluated at bid price : 13.20 Bid-YTW : 4.29 % |
| GWO.PR.H | Deemed-Retractible | 109,778 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.90 Bid-YTW : 5.56 % |
| CU.PR.E | Perpetual-Discount | 72,890 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-10-04 Maturity Price : 24.21 Evaluated at bid price : 24.69 Bid-YTW : 4.99 % |
| SLF.PR.J | FloatingReset | 66,497 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 12.77 Bid-YTW : 11.10 % |
| There were 57 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| FTS.PR.H | FixedReset | Quote: 13.66 – 14.12 Spot Rate : 0.4600 Average : 0.2854 YTW SCENARIO |
| GWO.PR.G | Deemed-Retractible | Quote: 24.98 – 25.39 Spot Rate : 0.4100 Average : 0.2515 YTW SCENARIO |
| GWO.PR.M | Deemed-Retractible | Quote: 25.81 – 26.17 Spot Rate : 0.3600 Average : 0.2340 YTW SCENARIO |
| PWF.PR.T | FixedReset | Quote: 19.23 – 19.60 Spot Rate : 0.3700 Average : 0.2522 YTW SCENARIO |
| TRP.PR.H | FloatingReset | Quote: 10.38 – 10.70 Spot Rate : 0.3200 Average : 0.2173 YTW SCENARIO |
| CU.PR.F | Perpetual-Discount | Quote: 22.60 – 22.90 Spot Rate : 0.3000 Average : 0.2049 YTW SCENARIO |