Trump has indicated his disdain for the World Trade Organization and for the Trans-Pacific Partnership while starting mini-trade wars with US allies, eliminating those potential avenues to increase pressure on China to be a freer trader. He’s got his own way of doing things:
Investors are dealing with a painful new reality: The trade war between the United States and China could last indefinitely.
The anxiety caused by that realization rippled through the stock markets on Monday. The S&P 500 tumbled 2.4 percent after China said it would increase tariffs on nearly $60 billion of American-made goods in response to a similar move last week by the Trump administration.
…
On Friday, Mr. Trump raised tariffs on $200 billion worth of Chinese-made goods.But signs of economic worry also emerged in other financial markets on Monday. The price of Treasury bonds rose, as investors sought the safety of government securities. Prices for soybeans and copper, both of which are sensitive to global growth and trade, dropped. Interest rates rose in corporate bond markets, an indication that investors were seeking higher premiums in response to the increased economic risks of a worsening trade fight.
The trouble is, I think, that he doesn’t care. The point of all this is to impress Joe Lunchbucket, who is tired of all this pusillanimous talking and wants to see some action. And there’s no other point.
The five-year Canada yield was down 7bp to 1.55%, which didn’t do FixedResets a lot of good.
| 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 | -0.7457 % | 2,036.1 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.7457 % | 3,736.2 |
| Floater | 5.77 % | 6.11 % | 47,326 | 13.68 | 3 | -0.7457 % | 2,153.2 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0679 % | 3,291.8 |
| SplitShare | 4.68 % | 4.91 % | 77,926 | 4.26 | 7 | -0.0679 % | 3,931.1 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0679 % | 3,067.2 |
| Perpetual-Premium | 5.53 % | 3.12 % | 90,373 | 0.09 | 12 | 0.0329 % | 2,953.2 |
| Perpetual-Discount | 5.43 % | 5.48 % | 76,360 | 14.67 | 20 | -0.1210 % | 3,107.6 |
| FixedReset Disc | 5.30 % | 5.43 % | 161,036 | 14.90 | 63 | -0.3464 % | 2,167.8 |
| Deemed-Retractible | 5.24 % | 5.89 % | 94,159 | 8.05 | 27 | -0.3499 % | 3,070.0 |
| FloatingReset | 3.98 % | 4.36 % | 49,970 | 2.61 | 4 | -0.2564 % | 2,398.5 |
| FixedReset Prem | 5.11 % | 3.81 % | 255,628 | 2.12 | 21 | -0.0815 % | 2,584.1 |
| FixedReset Bank Non | 1.98 % | 4.04 % | 152,540 | 2.62 | 3 | -0.1526 % | 2,648.6 |
| FixedReset Ins Non | 5.10 % | 6.84 % | 97,511 | 8.25 | 22 | -0.1838 % | 2,228.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PWF.PR.A | Floater | -2.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 13.07 Evaluated at bid price : 13.07 Bid-YTW : 5.30 % |
| BAM.PF.E | FixedReset Disc | -2.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 17.10 Evaluated at bid price : 17.10 Bid-YTW : 6.17 % |
| BIP.PR.E | FixedReset Disc | -2.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 20.51 Evaluated at bid price : 20.51 Bid-YTW : 6.19 % |
| MFC.PR.F | FixedReset Ins Non | -1.99 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.88 Bid-YTW : 9.49 % |
| MFC.PR.H | FixedReset Ins Non | -1.87 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.31 Bid-YTW : 6.50 % |
| IFC.PR.E | Deemed-Retractible | -1.83 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.60 Bid-YTW : 6.03 % |
| BMO.PR.Y | FixedReset Disc | -1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 20.73 Evaluated at bid price : 20.73 Bid-YTW : 5.17 % |
| BAM.PF.B | FixedReset Disc | -1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 18.15 Evaluated at bid price : 18.15 Bid-YTW : 6.00 % |
| BAM.PR.R | FixedReset Disc | -1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 15.53 Evaluated at bid price : 15.53 Bid-YTW : 6.17 % |
| SLF.PR.I | FixedReset Ins Non | -1.33 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.02 Bid-YTW : 6.92 % |
| BAM.PR.T | FixedReset Disc | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 15.65 Evaluated at bid price : 15.65 Bid-YTW : 6.20 % |
| CM.PR.P | FixedReset Disc | -1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 17.52 Evaluated at bid price : 17.52 Bid-YTW : 5.51 % |
| TRP.PR.F | FloatingReset | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 14.55 Evaluated at bid price : 14.55 Bid-YTW : 6.28 % |
| BAM.PF.G | FixedReset Disc | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 18.65 Evaluated at bid price : 18.65 Bid-YTW : 6.04 % |
| CM.PR.O | FixedReset Disc | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 18.03 Evaluated at bid price : 18.03 Bid-YTW : 5.47 % |
| IFC.PR.C | FixedReset Ins Non | -1.15 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.06 Bid-YTW : 7.99 % |
| MFC.PR.C | Deemed-Retractible | -1.13 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.61 Bid-YTW : 6.81 % |
| GWO.PR.T | Deemed-Retractible | -1.05 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.60 Bid-YTW : 5.98 % |
| HSE.PR.E | FixedReset Disc | 1.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 20.20 Evaluated at bid price : 20.20 Bid-YTW : 6.43 % |
| BAM.PR.K | Floater | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 11.47 Evaluated at bid price : 11.47 Bid-YTW : 6.11 % |
| MFC.PR.M | FixedReset Ins Non | 1.11 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.26 Bid-YTW : 7.66 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PF.B | FixedReset Disc | 134,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 18.22 Evaluated at bid price : 18.22 Bid-YTW : 5.34 % |
| SLF.PR.A | Deemed-Retractible | 61,826 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.30 Bid-YTW : 6.25 % |
| BMO.PR.B | FixedReset Prem | 53,800 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-02-25 Maturity Price : 25.00 Evaluated at bid price : 25.65 Bid-YTW : 3.81 % |
| BNS.PR.E | FixedReset Prem | 52,505 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-25 Maturity Price : 25.00 Evaluated at bid price : 25.95 Bid-YTW : 3.61 % |
| MFC.PR.R | FixedReset Ins Non | 52,015 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-03-19 Maturity Price : 25.00 Evaluated at bid price : 24.88 Bid-YTW : 4.87 % |
| EMA.PR.H | FixedReset Disc | 52,015 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 22.49 Evaluated at bid price : 23.31 Bid-YTW : 5.24 % |
| There were 35 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| TRP.PR.F | FloatingReset | Quote: 14.55 – 15.03 Spot Rate : 0.4800 Average : 0.3020 YTW SCENARIO |
| BAM.PR.Z | FixedReset Disc | Quote: 19.88 – 20.32 Spot Rate : 0.4400 Average : 0.2679 YTW SCENARIO |
| IFC.PR.E | Deemed-Retractible | Quote: 23.60 – 24.00 Spot Rate : 0.4000 Average : 0.2728 YTW SCENARIO |
| BIP.PR.F | FixedReset Disc | Quote: 21.28 – 21.74 Spot Rate : 0.4600 Average : 0.3408 YTW SCENARIO |
| GWO.PR.T | Deemed-Retractible | Quote: 23.60 – 23.94 Spot Rate : 0.3400 Average : 0.2338 YTW SCENARIO |
| BAM.PR.R | FixedReset Disc | Quote: 15.53 – 15.95 Spot Rate : 0.4200 Average : 0.3149 YTW SCENARIO |
Alterna Bank is raising 50 million from its members via a 4% shares issue.
I wonder what kind of investment this would be….or how it would be rated, if at all. Not sure if they will trade anywhere.
https://www.alterna.ca/Personal/Investments/SpecialShares/ComingSoonInvestmentShares/
I’m very sure Trump knows who is his biggest creditor is, yes? Last I heard it was around 1.18 Trillion; China holds about 5% of US debt. That is a very big collar. Since we live in a world where “that” will not happen, I might not expect China to pull that collar just a bit so it chokes a tad. Illustrations of intentions has been a hallmark of China for centuries. The fat lady will sing, no doubt, in my mind.
And oh yea, I had to look up “pusillanimous”. So Thanks.
The fat lady will sing, no doubt, in my mind.
Some day, I agree.
In Canada we didn’t get serious about the national debt until 1994, when there was a serious chance that a government bond auction would fail. The US will eventually find itself in the same position … and my-oh-my, won’t that be a pleasant decade that ensues!
US is one of the last countries that doesn’t have any VAT. For them, just like with Canada, instead of fiscal restraint, the easiest option would be a a 5 to 10 per cent VAT. It’s going to happen at the rate their unrestrained spending is growing. Early 2020s will be a safe bet.
What the heck went on today between 3 and 4 pm EST? BAM perpetuals yielding as much as 5.9 to 6%?
skeptical , what happened is i bought some , and then as never fails the price i thought was crazy cheap went down some more . i only see the cent banks lowering int rates , so i have no idea why the perpetuals keep dropping in price .
baffled, yes, I looked everywhere for signs of any trouble with BAM, and there were none to be found. Debt trading as usual, common stock as usual…
so that’s really a great opportunity to own at 6%….collect the dividends and revel in the opportunity presented to us.
What I have seen in this market is that specific issues can remain undervalued for months and then they suddenly pop…So may be, just may be, the Canadian preferred market is from the era of Ben Graham after all.
skeptical , the only way i can understand whats happening is , people chase whats hot (bitcoin doubled) and ignore the slow steady way ( divs) to financial independence . the market will crash , they will be crying , you and i wont be