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The FOMC Statement was released on schedule:
Information received since the Federal Open Market Committee met in November indicates that the labor market has continued to strengthen and that economic activity has been rising at a strong rate. Job gains have been strong, on average, in recent months, and the unemployment rate has remained low. Household spending has continued to grow strongly, while growth of business fixed investment has moderated from its rapid pace earlier in the year. On a 12-month basis, both overall inflation and inflation for items other than food and energy remain near 2 percent. Indicators of longer-term inflation expectations are little changed, on balance.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee judges that some further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective over the medium term. The Committee judges that risks to the economic outlook are roughly balanced, but will continue to monitor global economic and financial developments and assess their implications for the economic outlook.
In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2‑1/2 percent.
In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.
Voting for the FOMC monetary policy action were: Jerome H. Powell, Chairman; John C. Williams, Vice Chairman; Thomas I. Barkin; Raphael W. Bostic; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Mary C. Daly; Loretta J. Mester; and Randal K. Quarles.
No dissenters! The market was quick to note:
In previous statements, the Fed had said it planned “further gradual increases” in its benchmark rate, conveying to investors that additional hikes were expected. Wednesday’s statement slightly calibrated those expectations by adding the word “some” to the beginning of that phrase, suggesting that the pace of rate increases is likely to slow.
A majority of Fed officials on Wednesday predicted the central bank would raise rates no more than twice next year. In September, most Fed officials had predicted at least three rate increases.
The S&P 500-stock index, which had been up more than 1 percent early in the day whipsawed wildly after the 2 p.m. announcement from the central bank, paring gains and at times slipping into negative territory. But the sell-off worsened during the news conference that accompanied the announcement, with stocks falling below 2 percent at moments.
A separate economic outlook from the Fed showed 2019 growth tapering slightly from September’s projections, with the central bank now expecting gross domestic product of 2.3 percent for the year, down from its previous projections of 2.5 percent.
Treasury yields declined on the day, while the five-year Canada rate, important in FixedReset pricing, was down 4bp to 1.89%.
I’m pleased to see guaranteed minimum income getting some political support:
Prime Minister Justin Trudeau and Social Development Minister Jean-Yves Duclos have argued that the Liberal-created Canada Child Benefit, among other measures, amounts to a guaranteed minimum income already.
But in an interview this week with The Canadian Press, Duclos said the current suite of federal programs could one day be enhanced to provide a minimum income of sorts to all Canadians, particularly those without children who aren’t eligible for federal benefits for families, seniors or the working poor.
“Whether this is going to be enhanced eventually to a broader guaranteed minimum income for all Canadians, including those without children that are not currently covered by a guaranteed minimum income at the federal level, I believe the answer is yes,” Duclos said. “At some point, there will be a universal guaranteed minimum income in Canada for all Canadians.”
As for implementation, just make it a refundable (and taxable!) tax credit. Start it off small and increase it.
PerpetualDiscounts now yield 5.98%, equivalent to 7.77% interest at the standard conversion factor of 1.3x. Long corporates now yield a little over 4.05%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 370bp, a significant increase 360bp reported December 12. I find this spread level to be incredible, particularly since it doesn’t make much sense for a declining yield environment. We seem to have entered a Twilight Zone in which PerpetualDiscounts are priced off FixedResets, rather than independently.
| 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 | 0.5547 % | 2,300.7 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.5547 % | 4,221.7 |
| Floater | 5.08 % | 5.38 % | 44,149 | 14.89 | 4 | 0.5547 % | 2,433.0 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2651 % | 3,126.4 |
| SplitShare | 4.71 % | 5.65 % | 95,718 | 4.58 | 7 | -0.2651 % | 3,733.5 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2651 % | 2,913.1 |
| Perpetual-Premium | 5.61 % | 6.05 % | 144,809 | 13.75 | 2 | -0.1791 % | 2,852.0 |
| Perpetual-Discount | 5.80 % | 5.98 % | 72,187 | 13.85 | 33 | 0.0853 % | 2,847.4 |
| FixedReset Disc | 5.27 % | 5.83 % | 227,459 | 14.12 | 66 | -1.2715 % | 2,132.2 |
| Deemed-Retractible | 5.58 % | 7.98 % | 96,052 | 5.11 | 27 | -0.1684 % | 2,835.6 |
| FloatingReset | 4.20 % | 4.84 % | 41,695 | 2.96 | 7 | -0.4508 % | 2,398.5 |
| FixedReset Prem | 5.15 % | 4.37 % | 288,569 | 2.28 | 14 | 0.0557 % | 2,513.5 |
| FixedReset Bank Non | 2.99 % | 4.39 % | 145,688 | 2.91 | 6 | -0.0345 % | 2,557.4 |
| FixedReset Ins Non | 5.12 % | 8.81 % | 151,222 | 5.18 | 22 | -0.6799 % | 2,187.5 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRP.PR.D | FixedReset Disc | -7.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 16.61 Evaluated at bid price : 16.61 Bid-YTW : 6.76 % |
| PWF.PR.K | Perpetual-Discount | -4.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 6.30 % |
| TD.PF.E | FixedReset Disc | -4.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 5.77 % |
| NA.PR.S | FixedReset Disc | -4.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 17.65 Evaluated at bid price : 17.65 Bid-YTW : 6.37 % |
| MFC.PR.L | FixedReset Ins Non | -4.11 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.75 Bid-YTW : 10.84 % |
| TD.PF.D | FixedReset Disc | -3.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 20.79 Evaluated at bid price : 20.79 Bid-YTW : 5.75 % |
| BMO.PR.C | FixedReset Disc | -3.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 22.42 Evaluated at bid price : 23.05 Bid-YTW : 5.66 % |
| TD.PF.J | FixedReset Disc | -3.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 5.65 % |
| RY.PR.J | FixedReset Disc | -3.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 20.40 Evaluated at bid price : 20.40 Bid-YTW : 5.80 % |
| TRP.PR.C | FixedReset Disc | -3.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 13.14 Evaluated at bid price : 13.14 Bid-YTW : 6.57 % |
| MFC.PR.J | FixedReset Ins Non | -3.24 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.33 Bid-YTW : 8.69 % |
| CM.PR.Q | FixedReset Disc | -3.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 19.90 Evaluated at bid price : 19.90 Bid-YTW : 5.98 % |
| HSE.PR.E | FixedReset Disc | -3.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 18.55 Evaluated at bid price : 18.55 Bid-YTW : 7.46 % |
| PWF.PR.Q | FloatingReset | -3.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 14.70 Evaluated at bid price : 14.70 Bid-YTW : 5.59 % |
| BMO.PR.Y | FixedReset Disc | -2.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 19.80 Evaluated at bid price : 19.80 Bid-YTW : 5.94 % |
| CM.PR.R | FixedReset Disc | -2.93 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 22.06 Evaluated at bid price : 22.50 Bid-YTW : 5.83 % |
| RY.PR.M | FixedReset Disc | -2.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 20.20 Evaluated at bid price : 20.20 Bid-YTW : 5.68 % |
| TD.PF.K | FixedReset Disc | -2.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 21.46 Evaluated at bid price : 21.46 Bid-YTW : 5.57 % |
| TD.PF.I | FixedReset Disc | -2.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 21.87 Evaluated at bid price : 22.25 Bid-YTW : 5.60 % |
| BMO.PR.W | FixedReset Disc | -2.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 18.50 Evaluated at bid price : 18.50 Bid-YTW : 5.79 % |
| BMO.PR.E | FixedReset Disc | -2.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 21.65 Evaluated at bid price : 22.01 Bid-YTW : 5.51 % |
| CCS.PR.C | Deemed-Retractible | -2.50 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.46 Bid-YTW : 7.98 % |
| BAM.PR.Z | FixedReset Disc | -2.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 19.75 Evaluated at bid price : 19.75 Bid-YTW : 6.26 % |
| TRP.PR.G | FixedReset Disc | -2.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 19.53 Evaluated at bid price : 19.53 Bid-YTW : 6.28 % |
| RY.PR.H | FixedReset Disc | -2.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 18.94 Evaluated at bid price : 18.94 Bid-YTW : 5.72 % |
| TD.PF.B | FixedReset Disc | -2.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 18.55 Evaluated at bid price : 18.55 Bid-YTW : 5.88 % |
| BAM.PR.T | FixedReset Disc | -2.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 15.84 Evaluated at bid price : 15.84 Bid-YTW : 6.61 % |
| VNR.PR.A | FixedReset Disc | -2.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 21.01 Evaluated at bid price : 21.01 Bid-YTW : 5.82 % |
| MFC.PR.N | FixedReset Ins Non | -2.08 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.85 Bid-YTW : 10.78 % |
| IFC.PR.C | FixedReset Ins Non | -1.88 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.76 Bid-YTW : 10.59 % |
| CU.PR.E | Perpetual-Discount | -1.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 5.90 % |
| TD.PF.A | FixedReset Disc | -1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 18.51 Evaluated at bid price : 18.51 Bid-YTW : 5.85 % |
| TD.PF.C | FixedReset Disc | -1.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 18.55 Evaluated at bid price : 18.55 Bid-YTW : 5.83 % |
| MFC.PR.K | FixedReset Ins Non | -1.71 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.60 Bid-YTW : 8.96 % |
| BAM.PR.K | Floater | -1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 12.05 Evaluated at bid price : 12.05 Bid-YTW : 5.75 % |
| GWO.PR.T | Deemed-Retractible | -1.60 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.50 Bid-YTW : 8.11 % |
| HSE.PR.G | FixedReset Disc | -1.59 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 18.60 Evaluated at bid price : 18.60 Bid-YTW : 7.39 % |
| BMO.PR.S | FixedReset Disc | -1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 18.75 Evaluated at bid price : 18.75 Bid-YTW : 5.89 % |
| RY.PR.Z | FixedReset Disc | -1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 19.25 Evaluated at bid price : 19.25 Bid-YTW : 5.58 % |
| EMA.PR.H | FixedReset Disc | -1.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 22.42 Evaluated at bid price : 23.23 Bid-YTW : 5.29 % |
| BAM.PF.F | FixedReset Disc | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 19.55 Evaluated at bid price : 19.55 Bid-YTW : 6.28 % |
| TRP.PR.E | FixedReset Disc | -1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 17.50 Evaluated at bid price : 17.50 Bid-YTW : 6.37 % |
| TRP.PR.H | FloatingReset | -1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 12.50 Evaluated at bid price : 12.50 Bid-YTW : 5.85 % |
| IAG.PR.A | Deemed-Retractible | -1.29 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.60 Bid-YTW : 8.35 % |
| PWF.PR.T | FixedReset Disc | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 19.47 Evaluated at bid price : 19.47 Bid-YTW : 5.75 % |
| GWO.PR.S | Deemed-Retractible | -1.21 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.80 Bid-YTW : 7.06 % |
| MFC.PR.Q | FixedReset Ins Non | -1.17 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.25 Bid-YTW : 8.81 % |
| BNS.PR.I | FixedReset Disc | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 21.84 Evaluated at bid price : 22.30 Bid-YTW : 5.22 % |
| RY.PR.O | Perpetual-Discount | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 23.07 Evaluated at bid price : 23.43 Bid-YTW : 5.26 % |
| NA.PR.W | FixedReset Disc | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 17.45 Evaluated at bid price : 17.45 Bid-YTW : 6.19 % |
| TRP.PR.K | FixedReset Disc | -1.12 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-05-31 Maturity Price : 25.00 Evaluated at bid price : 24.70 Bid-YTW : 5.40 % |
| MFC.PR.I | FixedReset Ins Non | -1.03 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.15 Bid-YTW : 8.76 % |
| EIT.PR.A | SplitShare | -1.03 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2024-03-14 Maturity Price : 25.00 Evaluated at bid price : 24.10 Bid-YTW : 5.65 % |
| GWO.PR.N | FixedReset Ins Non | -1.02 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.50 Bid-YTW : 13.12 % |
| PWF.PR.H | Perpetual-Discount | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 24.19 Evaluated at bid price : 24.45 Bid-YTW : 5.97 % |
| NA.PR.E | FixedReset Disc | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 19.52 Evaluated at bid price : 19.52 Bid-YTW : 5.99 % |
| IAG.PR.I | FixedReset Ins Non | 1.15 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.03 Bid-YTW : 7.25 % |
| PWF.PR.L | Perpetual-Discount | 1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 21.49 Evaluated at bid price : 21.75 Bid-YTW : 5.95 % |
| BAM.PR.R | FixedReset Disc | 1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 16.60 Evaluated at bid price : 16.60 Bid-YTW : 6.26 % |
| W.PR.J | Perpetual-Discount | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 23.62 Evaluated at bid price : 23.89 Bid-YTW : 5.96 % |
| PWF.PR.O | Perpetual-Discount | 1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 24.15 Evaluated at bid price : 24.40 Bid-YTW : 6.03 % |
| HSE.PR.A | FixedReset Disc | 1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 12.50 Evaluated at bid price : 12.50 Bid-YTW : 7.17 % |
| BAM.PR.C | Floater | 1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 12.88 Evaluated at bid price : 12.88 Bid-YTW : 5.38 % |
| BAM.PR.B | Floater | 1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 12.80 Evaluated at bid price : 12.80 Bid-YTW : 5.41 % |
| BAM.PF.B | FixedReset Disc | 1.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 19.10 Evaluated at bid price : 19.10 Bid-YTW : 6.14 % |
| CU.PR.F | Perpetual-Discount | 2.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 19.80 Evaluated at bid price : 19.80 Bid-YTW : 5.74 % |
| GWO.PR.Q | Deemed-Retractible | 2.48 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.52 Bid-YTW : 8.09 % |
| BAM.PR.X | FixedReset Disc | 2.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 15.35 Evaluated at bid price : 15.35 Bid-YTW : 5.90 % |
| PWF.PR.P | FixedReset Disc | 2.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 15.08 Evaluated at bid price : 15.08 Bid-YTW : 5.83 % |
| SLF.PR.G | FixedReset Ins Non | 2.90 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.92 Bid-YTW : 12.86 % |
| W.PR.H | Perpetual-Discount | 3.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 23.53 Evaluated at bid price : 23.80 Bid-YTW : 5.88 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PF.J | FixedReset Disc | 137,450 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 5.65 % |
| NA.PR.E | FixedReset Disc | 84,244 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 19.52 Evaluated at bid price : 19.52 Bid-YTW : 5.99 % |
| W.PR.M | FixedReset Prem | 73,337 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-15 Maturity Price : 25.00 Evaluated at bid price : 25.12 Bid-YTW : 5.41 % |
| TRP.PR.D | FixedReset Disc | 58,653 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 16.61 Evaluated at bid price : 16.61 Bid-YTW : 6.76 % |
| TD.PF.D | FixedReset Disc | 56,127 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 20.79 Evaluated at bid price : 20.79 Bid-YTW : 5.75 % |
| BMO.PR.E | FixedReset Disc | 55,430 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-12-19 Maturity Price : 21.65 Evaluated at bid price : 22.01 Bid-YTW : 5.51 % |
| There were 77 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| MFC.PR.H | FixedReset Ins Non | Quote: 21.45 – 23.65 Spot Rate : 2.2000 Average : 1.2028 YTW SCENARIO |
| BAM.PF.E | FixedReset Disc | Quote: 18.00 – 19.80 Spot Rate : 1.8000 Average : 1.1156 YTW SCENARIO |
| VNR.PR.A | FixedReset Disc | Quote: 21.01 – 23.63 Spot Rate : 2.6200 Average : 1.9554 YTW SCENARIO |
| BAM.PF.F | FixedReset Disc | Quote: 19.55 – 22.00 Spot Rate : 2.4500 Average : 1.8862 YTW SCENARIO |
| NA.PR.S | FixedReset Disc | Quote: 17.65 – 19.00 Spot Rate : 1.3500 Average : 0.8002 YTW SCENARIO |
| TRP.PR.F | FloatingReset | Quote: 15.56 – 17.00 Spot Rate : 1.4400 Average : 0.8967 YTW SCENARIO |
So, James, you’re in favour of the minimum guaranteed annual income. Trust the Mop and Pail to be nebulous about what this would actually cost:
“The parliamentary budget office has estimated federal spending would need to increase $43.1-billion annually to provide every low-income household with an average of $9,421, beefing up the $32.9-billion Ottawa already spends on support for low-income Canadians.”
Surely there’s a preposition missing such as by or to $43.1 billion?
How about the cost of “administration” or another level of bureaucracy? Included in the extra billions or not?
And if you would make them file income tax how would you do that, by dropping off T1 forms in their coffee cups at the highway off ramps instead of spare change?
Who would pay for all the extra spending, the Cash Underground Economy? I can see you really haven’t thought this through, James.
I can see you really haven’t thought this through, James.
How very insightful of you to see all that merely through inspection of three sentences of commentary on a three-paragraph extract from a single news story.
I will restrict myself to pointing out that the Parliamentary Budget Officer’s Report was based on the Ontario Basic Income Pilot which I have criticized.