The Federal Reserve has announced the appointment of its Insurance Policy Advisory Committee:
The Federal Reserve Board on Wednesday announced the inaugural 21 members of the Insurance Policy Advisory Committee (IPAC). The IPAC provides information, advice, and recommendations to the Federal Reserve Board on domestic and international insurance issues, including negotiations at the International Association of Insurance Supervisors (IAIS).
The inaugural IPAC members include expertise in life insurance, property and casualty insurance, and reinsurance. Members have professional backgrounds in insurance accounting, actuarial science, academia, insurance regulation, policyholder advocacy, capital markets, and other areas.
The inaugural IPAC members will serve staggered terms ranging from one to three years. Starting next year, the Board intends to annually appoint new members to the IPAC to serve three-year terms.
PerpetualDiscounts now yield 5.40%, equivalent to 7.02% interest at the standard equivalency factor of 1.3x. Long corporates now yield 3.42%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has narrowed precipitously to 360bp from the 380bp reported October 9.
| 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 | 1.0242 % | 1,891.2 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 1.0242 % | 3,470.2 |
| Floater | 6.37 % | 6.54 % | 46,184 | 13.13 | 4 | 1.0242 % | 1,999.9 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1068 % | 3,389.4 |
| SplitShare | 4.65 % | 4.57 % | 52,075 | 3.95 | 7 | -0.1068 % | 4,047.7 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1068 % | 3,158.2 |
| Perpetual-Premium | 5.49 % | -23.10 % | 57,701 | 0.09 | 8 | 0.0343 % | 3,025.1 |
| Perpetual-Discount | 5.39 % | 5.40 % | 69,435 | 14.70 | 25 | 0.1985 % | 3,210.3 |
| FixedReset Disc | 5.67 % | 5.73 % | 167,059 | 14.33 | 66 | -0.0539 % | 2,073.1 |
| Deemed-Retractible | 5.21 % | 5.73 % | 65,987 | 7.85 | 27 | 0.0189 % | 3,161.9 |
| FloatingReset | 6.37 % | 6.85 % | 80,996 | 12.73 | 2 | -0.4578 % | 2,384.9 |
| FixedReset Prem | 5.14 % | 4.04 % | 161,030 | 1.69 | 20 | 0.0471 % | 2,598.8 |
| FixedReset Bank Non | 1.97 % | 4.44 % | 81,768 | 2.22 | 3 | -0.1801 % | 2,674.0 |
| FixedReset Ins Non | 5.47 % | 8.16 % | 115,530 | 7.77 | 21 | 0.0601 % | 2,111.5 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| HSE.PR.A | FixedReset Disc | -2.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 10.71 Evaluated at bid price : 10.71 Bid-YTW : 7.47 % |
| TRP.PR.C | FixedReset Disc | -1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 11.53 Evaluated at bid price : 11.53 Bid-YTW : 6.56 % |
| CM.PR.Q | FixedReset Disc | -1.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 17.83 Evaluated at bid price : 17.83 Bid-YTW : 6.03 % |
| TD.PF.L | FixedReset Disc | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 22.75 Evaluated at bid price : 23.86 Bid-YTW : 5.08 % |
| BIP.PR.F | FixedReset Disc | -1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 21.67 Evaluated at bid price : 22.00 Bid-YTW : 5.84 % |
| NA.PR.S | FixedReset Disc | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 17.08 Evaluated at bid price : 17.08 Bid-YTW : 5.80 % |
| BAM.PF.C | Perpetual-Discount | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 21.39 Evaluated at bid price : 21.39 Bid-YTW : 5.73 % |
| RY.PR.S | FixedReset Disc | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 19.96 Evaluated at bid price : 19.96 Bid-YTW : 5.26 % |
| HSE.PR.C | FixedReset Disc | 1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 16.10 Evaluated at bid price : 16.10 Bid-YTW : 7.32 % |
| BAM.PR.K | Floater | 1.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 10.66 Evaluated at bid price : 10.66 Bid-YTW : 6.56 % |
| BAM.PR.C | Floater | 1.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 10.68 Evaluated at bid price : 10.68 Bid-YTW : 6.54 % |
| IAF.PR.I | FixedReset Ins Non | 1.91 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.75 Bid-YTW : 7.55 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| SLF.PR.E | Deemed-Retractible | 142,400 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.99 Bid-YTW : 6.75 % |
| TD.PF.C | FixedReset Disc | 80,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 16.71 Evaluated at bid price : 16.71 Bid-YTW : 5.68 % |
| TRP.PR.C | FixedReset Disc | 72,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 11.53 Evaluated at bid price : 11.53 Bid-YTW : 6.56 % |
| BMO.PR.F | FixedReset Disc | 64,804 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 22.97 Evaluated at bid price : 24.40 Bid-YTW : 5.18 % |
| TRP.PR.A | FixedReset Disc | 60,901 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-16 Maturity Price : 13.24 Evaluated at bid price : 13.24 Bid-YTW : 6.58 % |
| IFC.PR.C | FixedReset Ins Non | 59,400 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.68 Bid-YTW : 8.35 % |
| 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.R | FixedReset Ins Non | Quote: 24.25 – 24.66 Spot Rate : 0.4100 Average : 0.2794 YTW SCENARIO |
| HSE.PR.A | FixedReset Disc | Quote: 10.71 – 11.00 Spot Rate : 0.2900 Average : 0.1893 YTW SCENARIO |
| BAM.PF.F | FixedReset Disc | Quote: 17.55 – 17.79 Spot Rate : 0.2400 Average : 0.1534 YTW SCENARIO |
| BIP.PR.E | FixedReset Disc | Quote: 22.15 – 22.50 Spot Rate : 0.3500 Average : 0.2681 YTW SCENARIO |
| HSE.PR.G | FixedReset Disc | Quote: 17.15 – 17.40 Spot Rate : 0.2500 Average : 0.1726 YTW SCENARIO |
| BIP.PR.F | FixedReset Disc | Quote: 22.00 – 22.30 Spot Rate : 0.3000 Average : 0.2247 YTW SCENARIO |