Chris Bourke of Bloomberg wrote a piece about Australia’s housing market that interested me because of Canada’s presence in the charts:
Click for Big
That represents the failure of Canada’s housing policy since 2006 – the vast expansion of the CMHC insurance books has enabled the banks – through lower risk and, importantly, lower risk weights feeding into their capital ratios – to load up on mortgages. It astonishes me that there are some people who are surprised by the housing bubble in Toronto and Vancouver; I am flabbergasted that there are some who blame foreign money for the problem.
The other chart I liked was:
Click for Big
Wow. In Toronto, you can’t throw a brick without hitting a crane – Sydney must be something else!
| 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 | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2626 % | 2,452.0 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2626 % | 4,499.3 |
| Floater | 3.69 % | 3.91 % | 99,610 | 17.55 | 3 | -0.2626 % | 2,593.0 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0987 % | 3,117.2 |
| SplitShare | 4.73 % | 4.14 % | 53,442 | 1.10 | 6 | 0.0987 % | 3,722.6 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0987 % | 2,904.5 |
| Perpetual-Premium | 5.34 % | 4.69 % | 45,043 | 0.16 | 20 | -0.0020 % | 2,843.2 |
| Perpetual-Discount | 5.19 % | 5.23 % | 62,934 | 15.06 | 15 | 0.0338 % | 3,025.8 |
| FixedReset | 4.22 % | 4.20 % | 152,585 | 4.41 | 98 | -0.1509 % | 2,504.6 |
| Deemed-Retractible | 5.01 % | 5.31 % | 87,901 | 5.91 | 30 | -0.0450 % | 2,947.1 |
| FloatingReset | 2.70 % | 2.77 % | 41,823 | 3.96 | 8 | -0.1353 % | 2,686.5 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PWF.PR.P | FixedReset | -7.36 % | Clearly a bogus quote (16.75-18.10), since the low for the day was 18.00 (three trades of 100 shares each, timestamped 3:36). I have not checked whether this lamentable state of affairs is due to inadequate Toronto Stock Exchange reporting or inadequate Toronto Stock Exchange supervision of market-makers.
YTW SCENARIO |
| IFC.PR.A | FixedReset | -1.24 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.91 Bid-YTW : 7.24 % |
| W.PR.K | FixedReset | -1.02 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-01-15 Maturity Price : 25.00 Evaluated at bid price : 26.15 Bid-YTW : 3.90 % |
| VNR.PR.A | FixedReset | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-23 Maturity Price : 22.89 Evaluated at bid price : 24.25 Bid-YTW : 4.63 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| CU.PR.E | Perpetual-Discount | 115,800 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-23 Maturity Price : 23.93 Evaluated at bid price : 24.41 Bid-YTW : 5.01 % |
| NA.PR.A | FixedReset | 62,700 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-08-15 Maturity Price : 25.00 Evaluated at bid price : 26.77 Bid-YTW : 3.42 % |
| GWO.PR.N | FixedReset | 24,000 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.43 Bid-YTW : 7.44 % |
| TRP.PR.J | FixedReset | 22,540 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-31 Maturity Price : 25.00 Evaluated at bid price : 26.70 Bid-YTW : 3.42 % |
| PWF.PR.Z | Perpetual-Discount | 14,436 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-11-23 Maturity Price : 24.39 Evaluated at bid price : 24.78 Bid-YTW : 5.23 % |
| BMO.PR.D | FixedReset | 13,190 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-08-25 Maturity Price : 25.00 Evaluated at bid price : 25.56 Bid-YTW : 3.90 % |
| There were 3 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| PWF.PR.P | FixedReset | Quote: 16.75 – 18.10 Spot Rate : 1.3500 Average : 0.7509 YTW SCENARIO |
| MFC.PR.L | FixedReset | Quote: 22.70 – 23.00 Spot Rate : 0.3000 Average : 0.1832 YTW SCENARIO |
| TRP.PR.G | FixedReset | Quote: 24.23 – 24.75 Spot Rate : 0.5200 Average : 0.4106 YTW SCENARIO |
| W.PR.K | FixedReset | Quote: 26.15 – 26.50 Spot Rate : 0.3500 Average : 0.2650 YTW SCENARIO |
| SLF.PR.C | Deemed-Retractible | Quote: 22.10 – 22.32 Spot Rate : 0.2200 Average : 0.1519 YTW SCENARIO |
| IFC.PR.A | FixedReset | Quote: 19.91 – 20.20 Spot Rate : 0.2900 Average : 0.2252 YTW SCENARIO |