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Just before midnight on election day
The markets could be interesting tomorrow:
Panicked investors rushed to unwind bets they’d piled on amid predictions Clinton would sweep to victory. Futures on the S&P 500 Index plunged more than 4 percent and Mexico’s peso — which tends to weaken as Trump’s prospects improve — sank by the most in two decades. U.S. Treasuries, the yen and gold all soared by the most since Britain’s surprise vote to leave the European Union sent shockwaves through markets in late June.
| 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 | -0.2308 % | 1,714.3 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2308 % | 3,131.6 |
| Floater | 4.37 % | 4.51 % | 43,346 | 16.36 | 4 | -0.2308 % | 1,804.8 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0330 % | 2,904.4 |
| SplitShare | 4.82 % | 4.52 % | 45,725 | 2.04 | 6 | 0.0330 % | 3,468.4 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0330 % | 2,706.2 |
| Perpetual-Premium | 5.36 % | 4.76 % | 73,751 | 2.00 | 23 | -0.0412 % | 2,699.0 |
| Perpetual-Discount | 5.14 % | 5.14 % | 87,446 | 15.26 | 15 | -0.1303 % | 2,908.3 |
| FixedReset | 4.84 % | 4.19 % | 187,398 | 6.86 | 93 | 0.0853 % | 2,105.7 |
| Deemed-Retractible | 5.04 % | 4.93 % | 121,907 | 0.22 | 32 | 0.0294 % | 2,798.8 |
| FloatingReset | 2.79 % | 3.29 % | 44,518 | 4.92 | 12 | 0.0811 % | 2,293.3 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| SLF.PR.J | FloatingReset | -1.67 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 12.93 Bid-YTW : 10.93 % |
| IFC.PR.A | FixedReset | -1.46 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.52 Bid-YTW : 9.67 % |
| TRP.PR.E | FixedReset | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-11-08 Maturity Price : 18.50 Evaluated at bid price : 18.50 Bid-YTW : 4.40 % |
| PWF.PR.P | FixedReset | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-11-08 Maturity Price : 13.51 Evaluated at bid price : 13.51 Bid-YTW : 4.29 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| IFC.PR.A | FixedReset | 65,099 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.52 Bid-YTW : 9.67 % |
| RY.PR.Z | FixedReset | 64,575 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-11-08 Maturity Price : 19.15 Evaluated at bid price : 19.15 Bid-YTW : 3.99 % |
| BNS.PR.P | FixedReset | 52,200 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.73 Bid-YTW : 3.18 % |
| BMO.PR.S | FixedReset | 41,093 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2046-11-08 Maturity Price : 19.52 Evaluated at bid price : 19.52 Bid-YTW : 4.05 % |
| BIP.PR.C | FixedReset | 40,895 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.65 Bid-YTW : 4.91 % |
| TD.PF.H | FixedReset | 40,750 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.75 Bid-YTW : 4.25 % |
| There were 31 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| GWO.PR.N | FixedReset | Quote: 13.87 – 14.25 Spot Rate : 0.3800 Average : 0.2488 YTW SCENARIO |
| VNR.PR.A | FixedReset | Quote: 18.90 – 19.35 Spot Rate : 0.4500 Average : 0.3441 YTW SCENARIO |
| MFC.PR.F | FixedReset | Quote: 13.54 – 13.84 Spot Rate : 0.3000 Average : 0.2010 YTW SCENARIO |
| TRP.PR.E | FixedReset | Quote: 18.50 – 18.80 Spot Rate : 0.3000 Average : 0.2174 YTW SCENARIO |
| NA.PR.S | FixedReset | Quote: 18.94 – 19.19 Spot Rate : 0.2500 Average : 0.1767 YTW SCENARIO |
| BNS.PR.Z | FixedReset | Quote: 20.74 – 20.98 Spot Rate : 0.2400 Average : 0.1683 YTW SCENARIO |
Who can guess what short term investors will do? Currently US and Canadian markets are up a bit.
As a pref investor what I find interesting is that bond yields are spiking a huge amount, at least in the US. Although I am no fan of Trump I hope his presidency brings an end to the easy money, low interest rate trap that I believe we are currently in.
Although I am no fan of Trump I hope his presidency brings an end to the easy money, low interest rate trap that I believe we are currently in.
It might, if only by the mechanism of increased borrowing to cover increased spending paired with tax cuts.
i think within 4-5 years, we’ll see those types of interest rates. the bond market hasn’t been having a good week. it’s likely your one and done, one and done, scenario is going to be missing the one and done part. bond market probably going to have a bad few months sooner than later.
it’s likely your one and done, one and done, scenario is going to be missing the one and done part
I’m getting more sympathetic to that view in light of political changes I did not foresee!