The International Association of Insurance Supervisors has announced:
The CSFWG will host an ICS Stakeholder Meeting in Orlando on 10 April. The stakeholder meeting is intended to provide a forum for constructive feedback on ICS Version 2.0. Stakeholders who wish to provide presentations on key issues related to the ICS should contact danita.pattemore@bis.org and becky.easland@bis.org by 22 March 2019 indicating the topics they wish to cover. Presentation materials should be provided no later than 29 March 2019. To register, please click here.
Assiduous Readers will remember that “ICS” is the Insurance Capital Standards that will determine the fate of insurance Deemed Maturities.
Canadian inflation continues to be firm:
The annual pace of inflation edged higher in February as gains in most spending categories offset lower gasoline prices, Statistics Canada said Friday.
The federal data agency said the consumer price index climbed 1.5 per cent last month compared to the same month a year ago. The move compared with a year-over-over increase of 1.4 per cent in January.
…
Helping push costs higher was a 8.1 per cent increase in mortgage interest costs and a 14.3 per cent rise compared with a year ago in the cost of fresh vegetables. The cost of passenger vehicle insurance premiums also rose 6.3 per cent.The cost of gasoline was down 11.9 per cent compared with the same month last year, as overall energy prices slipped 5.7 per cent.
However, Statistics Canada said tighter oil supplies and the temporary closure of several refineries for seasonal maintenance helped boost gasoline prices 1.9 per cent compared with January, the first month-over-month increase in gasoline since July 2018.
Excluding gasoline, the annual pace of inflation held steady at 2.1 per cent, the same as January.
…
The report also said the average of the Bank of Canada’s three core inflation readings, which omit more-volatile items such as gas, edged down to 1.8 per cent compared with a reading of 1.9 per cent in January.
The bond market, however, was very strong today, with the Canada 5-Year yield down 8bp to 1.48%. Long Canadas are at 1.89%, so call them even with inflation before taxes.
| 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 | -0.7705 % | 2,108.5 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.7705 % | 3,869.0 |
| Floater | 5.55 % | 5.73 % | 44,303 | 14.33 | 3 | -0.7705 % | 2,229.7 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1834 % | 3,276.1 |
| SplitShare | 4.88 % | 4.68 % | 76,388 | 3.89 | 8 | -0.1834 % | 3,912.4 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1834 % | 3,052.6 |
| Perpetual-Premium | 5.68 % | -4.11 % | 70,604 | 0.08 | 7 | -0.0996 % | 2,924.0 |
| Perpetual-Discount | 5.40 % | 5.50 % | 73,949 | 14.57 | 26 | 0.4002 % | 3,091.4 |
| FixedReset Disc | 5.21 % | 5.29 % | 188,266 | 14.88 | 64 | -0.1547 % | 2,189.3 |
| Deemed-Retractible | 5.24 % | 5.87 % | 99,962 | 8.20 | 27 | 0.1254 % | 3,059.0 |
| FloatingReset | 4.22 % | 4.17 % | 41,880 | 2.73 | 5 | -0.8491 % | 2,395.2 |
| FixedReset Prem | 5.07 % | 3.77 % | 330,141 | 2.24 | 19 | 0.1061 % | 2,569.0 |
| FixedReset Bank Non | 1.98 % | 3.99 % | 146,881 | 2.75 | 3 | 0.0417 % | 2,636.7 |
| FixedReset Ins Non | 4.97 % | 6.48 % | 113,506 | 8.35 | 22 | -0.1290 % | 2,269.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| SLF.PR.H | FixedReset Ins Non | -3.31 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.26 Bid-YTW : 7.81 % |
| TRP.PR.E | FixedReset Disc | -2.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 17.00 Evaluated at bid price : 17.00 Bid-YTW : 5.94 % |
| TRP.PR.F | FloatingReset | -2.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 14.37 Evaluated at bid price : 14.37 Bid-YTW : 6.25 % |
| TRP.PR.A | FixedReset Disc | -2.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 14.75 Evaluated at bid price : 14.75 Bid-YTW : 6.00 % |
| TRP.PR.D | FixedReset Disc | -2.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 17.19 Evaluated at bid price : 17.19 Bid-YTW : 5.90 % |
| PWF.PR.A | Floater | -1.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 13.15 Evaluated at bid price : 13.15 Bid-YTW : 5.32 % |
| TRP.PR.C | FixedReset Disc | -1.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 12.76 Evaluated at bid price : 12.76 Bid-YTW : 6.07 % |
| MFC.PR.C | Deemed-Retractible | -1.84 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.82 Bid-YTW : 6.74 % |
| CU.PR.E | Perpetual-Discount | -1.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 22.17 Evaluated at bid price : 22.50 Bid-YTW : 5.48 % |
| PWF.PR.Q | FloatingReset | -1.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 14.19 Evaluated at bid price : 14.19 Bid-YTW : 5.83 % |
| SLF.PR.G | FixedReset Ins Non | -1.62 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.57 Bid-YTW : 9.05 % |
| MFC.PR.N | FixedReset Ins Non | -1.51 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.24 Bid-YTW : 7.65 % |
| TD.PF.B | FixedReset Disc | -1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 18.91 Evaluated at bid price : 18.91 Bid-YTW : 5.21 % |
| BAM.PF.E | FixedReset Disc | -1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 17.74 Evaluated at bid price : 17.74 Bid-YTW : 5.91 % |
| MFC.PR.F | FixedReset Ins Non | -1.40 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.79 Bid-YTW : 8.72 % |
| TD.PF.I | FixedReset Disc | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 22.44 Evaluated at bid price : 23.12 Bid-YTW : 5.00 % |
| MFC.PR.K | FixedReset Ins Non | -1.18 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.33 Bid-YTW : 7.20 % |
| PWF.PR.P | FixedReset Disc | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 14.44 Evaluated at bid price : 14.44 Bid-YTW : 5.47 % |
| BIP.PR.D | FixedReset Disc | -1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 21.46 Evaluated at bid price : 21.81 Bid-YTW : 6.11 % |
| TD.PF.D | FixedReset Disc | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 21.02 Evaluated at bid price : 21.02 Bid-YTW : 5.24 % |
| MFC.PR.M | FixedReset Ins Non | -1.06 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.73 Bid-YTW : 7.40 % |
| BIP.PR.E | FixedReset Disc | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 21.55 Evaluated at bid price : 21.82 Bid-YTW : 5.74 % |
| TRP.PR.G | FixedReset Disc | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 19.10 Evaluated at bid price : 19.10 Bid-YTW : 5.93 % |
| PWF.PR.F | Perpetual-Discount | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 23.69 Evaluated at bid price : 24.00 Bid-YTW : 5.54 % |
| MFC.PR.B | Deemed-Retractible | 1.10 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.15 Bid-YTW : 6.14 % |
| IAF.PR.G | FixedReset Ins Non | 1.27 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.67 Bid-YTW : 6.48 % |
| RY.PR.S | FixedReset Disc | 1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 21.77 Evaluated at bid price : 22.18 Bid-YTW : 4.76 % |
| IFC.PR.F | Deemed-Retractible | 1.36 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.85 Bid-YTW : 5.90 % |
| POW.PR.G | Perpetual-Discount | 1.36 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2019-05-15 Maturity Price : 25.50 Evaluated at bid price : 25.70 Bid-YTW : -2.23 % |
| BIP.PR.F | FixedReset Disc | 1.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 21.87 Evaluated at bid price : 22.32 Bid-YTW : 5.72 % |
| GWO.PR.N | FixedReset Ins Non | 1.61 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.13 Bid-YTW : 8.39 % |
| MFC.PR.J | FixedReset Ins Non | 1.62 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.29 Bid-YTW : 6.40 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| MFC.PR.K | FixedReset Ins Non | 114,600 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.33 Bid-YTW : 7.20 % |
| PVS.PR.F | SplitShare | 69,457 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2024-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 4.87 % |
| BMO.PR.B | FixedReset Prem | 47,425 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-02-25 Maturity Price : 25.00 Evaluated at bid price : 25.84 Bid-YTW : 3.77 % |
| MFC.PR.I | FixedReset Ins Non | 36,355 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.43 Bid-YTW : 6.30 % |
| BAM.PF.B | FixedReset Disc | 35,905 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 18.75 Evaluated at bid price : 18.75 Bid-YTW : 5.68 % |
| RY.PR.H | FixedReset Disc | 34,235 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-03-22 Maturity Price : 19.29 Evaluated at bid price : 19.29 Bid-YTW : 5.07 % |
| There were 35 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| MFC.PR.K | FixedReset Ins Non | Quote: 19.33 – 23.99 Spot Rate : 4.6600 Average : 2.6381 YTW SCENARIO |
| MFC.PR.G | FixedReset Ins Non | Quote: 21.14 – 25.00 Spot Rate : 3.8600 Average : 2.2163 YTW SCENARIO |
| TD.PF.J | FixedReset Disc | Quote: 22.10 – 22.93 Spot Rate : 0.8300 Average : 0.5064 YTW SCENARIO |
| HSE.PR.G | FixedReset Disc | Quote: 19.52 – 20.21 Spot Rate : 0.6900 Average : 0.4416 YTW SCENARIO |
| CM.PR.P | FixedReset Disc | Quote: 18.11 – 18.75 Spot Rate : 0.6400 Average : 0.3938 YTW SCENARIO |
| CM.PR.Q | FixedReset Disc | Quote: 20.60 – 21.30 Spot Rate : 0.7000 Average : 0.4746 YTW SCENARIO |
Interesting when gasoline prices are rising, Stats Can headlines focus on the “core inflation” number. When gasoline prices year over year are down, oops, they forget to do this.
Stats Can headlines or independent press headlines?
I’ve had a look at the Stats Can release for February and a dozen of its predecessors (click the “Previous Release” button) and while the format of the opening paragraph varies a little, the all-items index is always (in my limited sample) quoted first.
Have you compiled any actual statistics on the matter?
That is true, it is the authors of the news articles and not necessarily Stats Can that puts the emphasis on “core inflation” only when it suits the low inflation narrative. Not sure why the motivation is for doing this.
Not that I’m letting Stats Can off the hook, they have many tools they use to make inflation, core or otherwise, look lower than it actually is. I’ll give them credit though, they are quite open about how they calculate inflation. As a retired computer programmer I cringe at their methodology.