There was a a bit of a milestone passed today in the Treasury market:
Stocks tumbled as a rout in the shares of industrial and technology companies sent indexes spiraling lower amid a raft of earnings and renewed selling in the bull market’s biggest winners. The 10-year Treasury yield pierced 3 percent for the first time in four years.
The Dow Jones Industrial Average fell for a fifth day, the longest losing streak since March 2017. The sell off accelerated after industrial bellwether Caterpillar Inc. said that the first quarter was its “high water mark” for the year. The Nasdaq 100 Index slumped 2.1 percent, with Alphabet Inc.’s rise in capital spending sending its shares lower 4.5 percent.
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| 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 | -0.1539 % | 2,955.8 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1539 % | 5,423.7 |
| Floater | 3.38 % | 3.60 % | 91,675 | 18.29 | 4 | -0.1539 % | 3,125.7 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0793 % | 3,151.2 |
| SplitShare | 4.61 % | 4.55 % | 79,495 | 5.09 | 5 | -0.0793 % | 3,763.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0793 % | 2,936.2 |
| Perpetual-Premium | 5.57 % | -5.35 % | 77,329 | 0.09 | 11 | -0.0415 % | 2,868.8 |
| Perpetual-Discount | 5.41 % | 5.44 % | 69,984 | 14.77 | 24 | -0.1032 % | 2,940.2 |
| FixedReset | 4.32 % | 4.80 % | 165,080 | 5.63 | 104 | -0.1290 % | 2,505.6 |
| Deemed-Retractible | 5.16 % | 5.64 % | 89,247 | 5.63 | 28 | -0.0199 % | 2,935.6 |
| FloatingReset | 3.08 % | 3.03 % | 30,478 | 3.57 | 11 | -0.0040 % | 2,756.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IFC.PR.C | FixedReset | -1.35 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.60 Bid-YTW : 5.84 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TRP.PR.C | FixedReset | 152,940 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-04-24 Maturity Price : 17.36 Evaluated at bid price : 17.36 Bid-YTW : 5.05 % |
| TRP.PR.J | FixedReset | 107,215 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-05-31 Maturity Price : 25.00 Evaluated at bid price : 26.35 Bid-YTW : 3.94 % |
| PWF.PR.Z | Perpetual-Discount | 86,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-04-24 Maturity Price : 23.50 Evaluated at bid price : 23.84 Bid-YTW : 5.41 % |
| IAG.PR.I | FixedReset | 61,780 | YTW SCENARIO Maturity Type : Call Maturity Date : 2023-03-31 Maturity Price : 25.00 Evaluated at bid price : 25.15 Bid-YTW : 4.86 % |
| RY.PR.A | Deemed-Retractible | 60,123 | YTW SCENARIO Maturity Type : Call Maturity Date : 2018-05-24 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 0.00 % |
| VNR.PR.A | FixedReset | 35,700 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-04-24 Maturity Price : 23.00 Evaluated at bid price : 24.45 Bid-YTW : 4.95 % |
| There were 18 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| TRP.PR.E | FixedReset | Quote: 21.85 – 22.16 Spot Rate : 0.3100 Average : 0.2048 YTW SCENARIO |
| PWF.PR.R | Perpetual-Premium | Quote: 25.07 – 25.33 Spot Rate : 0.2600 Average : 0.1720 YTW SCENARIO |
| BAM.PF.I | FixedReset | Quote: 25.70 – 25.94 Spot Rate : 0.2400 Average : 0.1675 YTW SCENARIO |
| IFC.PR.C | FixedReset | Quote: 22.60 – 22.87 Spot Rate : 0.2700 Average : 0.1985 YTW SCENARIO |
| CU.PR.F | Perpetual-Discount | Quote: 21.30 – 21.51 Spot Rate : 0.2100 Average : 0.1402 YTW SCENARIO |
| PVS.PR.F | SplitShare | Quote: 25.05 – 25.24 Spot Rate : 0.1900 Average : 0.1273 YTW SCENARIO |
“If rates start to normalize, so is your stock valuation. And I think that’s increasingly what the market is starting to be looking at.”
ya… what are stock valuations going to look like with a 3.5% ten year bond?
what are they going to look like at 4%?
market finally starting to wake up