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Another day in the Attack of the Coronavirus:
Stocks plunged on Thursday, falling more than 3 percent for the fourth time in the past two weeks, as investors began to consider that the economic damage caused by the fast spreading coronavirus could be much worse than they had initially expected.
Stocks have traded in wild swings for days, initially triggered by the appearance of large numbers of infections outside of China, where the outbreak originated.
That market volatility continued for a fourth day this week, with the S&P 500 falling more than 3 percent on Thursday afternoon. The index has gained or lost more than 3 percent six times in the past two weeks.
…
Worry about long-term growth also pushed the yield on 10-year United States Treasury notes to a new low of 0.9 percent. Because of their relative safety, government bonds are in high demand during bouts of panic over the economy.
TXPR closed at 580.50, down 0.55% on the day. Volume today was 2.33-million, lowest of the past six trading days days.
CPD closed at 11.56, down 0.77% on the day. Volume of 99,390 was the lowest of the past nine trading days.
ZPR closed at 9.17, down 0.43% on the day. Volume of 340,283 was lowest of the past six trading days.
Five-year Canada yields were down 18bp to 0.74% today. Eighteen basis points! That’s awesome.
| 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 | -0.2142 % | 1,854.8 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2142 % | 3,403.4 |
| Floater | 5.76 % | 6.00 % | 50,572 | 13.79 | 4 | -0.2142 % | 1,961.4 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0563 % | 3,470.2 |
| SplitShare | 4.78 % | 4.30 % | 51,283 | 4.09 | 7 | 0.0563 % | 4,144.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0563 % | 3,233.5 |
| Perpetual-Premium | 5.58 % | 4.95 % | 73,706 | 0.08 | 12 | -0.0660 % | 3,051.3 |
| Perpetual-Discount | 5.26 % | 5.32 % | 70,657 | 14.88 | 24 | 0.0018 % | 3,318.7 |
| FixedReset Disc | 6.08 % | 5.41 % | 188,352 | 14.59 | 64 | -1.0950 % | 1,974.8 |
| Deemed-Retractible | 5.20 % | 5.30 % | 85,109 | 14.91 | 27 | 0.0976 % | 3,246.6 |
| FloatingReset | 5.95 % | 5.82 % | 69,059 | 14.16 | 3 | -2.8500 % | 2,199.6 |
| FixedReset Prem | 5.16 % | 4.70 % | 132,280 | 1.41 | 22 | -0.2998 % | 2,624.8 |
| FixedReset Bank Non | 1.92 % | 2.97 % | 104,732 | 1.86 | 3 | -0.0135 % | 2,759.9 |
| FixedReset Ins Non | 5.92 % | 5.33 % | 103,757 | 14.69 | 22 | -0.9815 % | 2,002.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| SLF.PR.J | FloatingReset | -5.11 % | All too real, as the issue traded 4700 shares in a range of 10.75-50 before being quoted at 10.95-41. The issue traded 1600 shares at 10.90 at 3:40-3:41 before trading 100 at 10.75 at 3:41.
YTW SCENARIO |
| SLF.PR.G | FixedReset Ins Non | -4.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 11.01 Evaluated at bid price : 11.01 Bid-YTW : 5.14 % |
| BNS.PR.I | FixedReset Disc | -3.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 18.05 Evaluated at bid price : 18.05 Bid-YTW : 5.09 % |
| CM.PR.T | FixedReset Disc | -3.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 21.56 Evaluated at bid price : 21.84 Bid-YTW : 5.09 % |
| RY.PR.S | FixedReset Disc | -2.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 18.12 Evaluated at bid price : 18.12 Bid-YTW : 4.97 % |
| TD.PF.L | FixedReset Disc | -2.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 21.81 Evaluated at bid price : 22.18 Bid-YTW : 4.96 % |
| NA.PR.W | FixedReset Disc | -2.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 15.15 Evaluated at bid price : 15.15 Bid-YTW : 5.52 % |
| TD.PF.E | FixedReset Disc | -2.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 17.76 Evaluated at bid price : 17.76 Bid-YTW : 5.30 % |
| BMO.PR.E | FixedReset Disc | -2.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 18.33 Evaluated at bid price : 18.33 Bid-YTW : 5.24 % |
| HSE.PR.A | FixedReset Disc | -2.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 9.29 Evaluated at bid price : 9.29 Bid-YTW : 7.07 % |
| NA.PR.G | FixedReset Disc | -2.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 18.10 Evaluated at bid price : 18.10 Bid-YTW : 5.45 % |
| HSE.PR.E | FixedReset Disc | -2.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 15.93 Evaluated at bid price : 15.93 Bid-YTW : 7.10 % |
| CM.PR.Q | FixedReset Disc | -2.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 16.40 Evaluated at bid price : 16.40 Bid-YTW : 5.62 % |
| PWF.PR.Q | FloatingReset | -2.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 11.95 Evaluated at bid price : 11.95 Bid-YTW : 5.80 % |
| SLF.PR.I | FixedReset Ins Non | -2.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 17.01 Evaluated at bid price : 17.01 Bid-YTW : 5.30 % |
| BAM.PR.X | FixedReset Disc | -1.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 11.62 Evaluated at bid price : 11.62 Bid-YTW : 5.84 % |
| BAM.PR.R | FixedReset Disc | -1.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 13.76 Evaluated at bid price : 13.76 Bid-YTW : 5.81 % |
| BAM.PR.Z | FixedReset Disc | -1.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 17.85 Evaluated at bid price : 17.85 Bid-YTW : 5.66 % |
| RY.PR.J | FixedReset Disc | -1.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 16.85 Evaluated at bid price : 16.85 Bid-YTW : 5.37 % |
| BMO.PR.T | FixedReset Disc | -1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 15.65 Evaluated at bid price : 15.65 Bid-YTW : 5.19 % |
| TRP.PR.C | FixedReset Disc | -1.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 10.31 Evaluated at bid price : 10.31 Bid-YTW : 5.86 % |
| TRP.PR.D | FixedReset Disc | -1.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 15.15 Evaluated at bid price : 15.15 Bid-YTW : 5.68 % |
| MFC.PR.K | FixedReset Ins Non | -1.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 15.79 Evaluated at bid price : 15.79 Bid-YTW : 5.31 % |
| SLF.PR.H | FixedReset Ins Non | -1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 14.09 Evaluated at bid price : 14.09 Bid-YTW : 5.34 % |
| NA.PR.C | FixedReset Disc | -1.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 19.68 Evaluated at bid price : 19.68 Bid-YTW : 5.53 % |
| MFC.PR.Q | FixedReset Ins Non | -1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 17.47 Evaluated at bid price : 17.47 Bid-YTW : 5.23 % |
| TRP.PR.F | FloatingReset | -1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 12.21 Evaluated at bid price : 12.21 Bid-YTW : 6.27 % |
| BMO.PR.F | FixedReset Disc | -1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 22.21 Evaluated at bid price : 22.80 Bid-YTW : 4.97 % |
| BMO.PR.S | FixedReset Disc | -1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 15.81 Evaluated at bid price : 15.81 Bid-YTW : 5.33 % |
| RY.PR.M | FixedReset Disc | -1.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 16.55 Evaluated at bid price : 16.55 Bid-YTW : 5.29 % |
| MFC.PR.I | FixedReset Ins Non | -1.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 17.26 Evaluated at bid price : 17.26 Bid-YTW : 5.53 % |
| TRP.PR.G | FixedReset Disc | -1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 16.72 Evaluated at bid price : 16.72 Bid-YTW : 5.74 % |
| MFC.PR.M | FixedReset Ins Non | -1.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 15.87 Evaluated at bid price : 15.87 Bid-YTW : 5.33 % |
| BAM.PF.E | FixedReset Disc | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 15.28 Evaluated at bid price : 15.28 Bid-YTW : 5.67 % |
| EMA.PR.C | FixedReset Disc | -1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 16.81 Evaluated at bid price : 16.81 Bid-YTW : 5.64 % |
| IFC.PR.G | FixedReset Ins Non | -1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 17.41 Evaluated at bid price : 17.41 Bid-YTW : 5.42 % |
| CM.PR.P | FixedReset Disc | -1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 15.30 Evaluated at bid price : 15.30 Bid-YTW : 5.52 % |
| BAM.PF.A | FixedReset Disc | -1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 18.45 Evaluated at bid price : 18.45 Bid-YTW : 5.57 % |
| BAM.PF.B | FixedReset Disc | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 5.75 % |
| CM.PR.S | FixedReset Disc | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 16.41 Evaluated at bid price : 16.41 Bid-YTW : 5.44 % |
| HSE.PR.C | FixedReset Disc | -1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 14.99 Evaluated at bid price : 14.99 Bid-YTW : 7.19 % |
| BMO.PR.D | FixedReset Disc | -1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 19.18 Evaluated at bid price : 19.18 Bid-YTW : 5.35 % |
| HSE.PR.G | FixedReset Disc | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 6.99 % |
| PWF.PR.P | FixedReset Disc | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 12.05 Evaluated at bid price : 12.05 Bid-YTW : 5.13 % |
| NA.PR.E | FixedReset Disc | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 16.99 Evaluated at bid price : 16.99 Bid-YTW : 5.42 % |
| TD.PF.H | FixedReset Prem | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 23.58 Evaluated at bid price : 24.75 Bid-YTW : 5.00 % |
| CM.PR.Y | FixedReset Disc | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 22.37 Evaluated at bid price : 23.11 Bid-YTW : 5.05 % |
| TD.PF.D | FixedReset Disc | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 17.55 Evaluated at bid price : 17.55 Bid-YTW : 5.25 % |
| BAM.PR.M | Perpetual-Discount | -1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 21.72 Evaluated at bid price : 21.97 Bid-YTW : 5.49 % |
| MFC.PR.J | FixedReset Ins Non | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 17.30 Evaluated at bid price : 17.30 Bid-YTW : 5.34 % |
| BMO.PR.W | FixedReset Disc | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 15.80 Evaluated at bid price : 15.80 Bid-YTW : 5.23 % |
| TD.PF.C | FixedReset Disc | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 16.15 Evaluated at bid price : 16.15 Bid-YTW : 5.21 % |
| MFC.PR.F | FixedReset Ins Non | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 10.60 Evaluated at bid price : 10.60 Bid-YTW : 5.34 % |
| TRP.PR.B | FixedReset Disc | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 9.81 Evaluated at bid price : 9.81 Bid-YTW : 5.44 % |
| CU.PR.E | Perpetual-Discount | 1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 22.94 Evaluated at bid price : 23.37 Bid-YTW : 5.25 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| CM.PR.R | FixedReset Disc | 125,873 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 19.45 Evaluated at bid price : 19.45 Bid-YTW : 5.55 % |
| PWF.PR.P | FixedReset Disc | 68,800 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 12.05 Evaluated at bid price : 12.05 Bid-YTW : 5.13 % |
| PVS.PR.H | SplitShare | 62,700 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2027-02-28 Maturity Price : 25.00 Evaluated at bid price : 25.15 Bid-YTW : 4.62 % |
| CU.PR.C | FixedReset Disc | 43,715 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 16.15 Evaluated at bid price : 16.15 Bid-YTW : 5.09 % |
| TRP.PR.A | FixedReset Disc | 40,759 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 13.70 Evaluated at bid price : 13.70 Bid-YTW : 5.41 % |
| CM.PR.T | FixedReset Disc | 34,968 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-05 Maturity Price : 21.56 Evaluated at bid price : 21.84 Bid-YTW : 5.09 % |
| There were 49 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| HSE.PR.C | FixedReset Disc | Quote: 14.99 – 15.39 Spot Rate : 0.4000 Average : 0.2556 YTW SCENARIO |
| PWF.PR.T | FixedReset Disc | Quote: 16.61 – 17.11 Spot Rate : 0.5000 Average : 0.3581 YTW SCENARIO |
| TD.PF.F | Perpetual-Discount | Quote: 24.44 – 24.78 Spot Rate : 0.3400 Average : 0.2135 YTW SCENARIO |
| GWO.PR.R | Deemed-Retractible | Quote: 22.52 – 22.97 Spot Rate : 0.4500 Average : 0.3263 YTW SCENARIO |
| TD.PF.E | FixedReset Disc | Quote: 17.76 – 18.15 Spot Rate : 0.3900 Average : 0.2684 YTW SCENARIO |
| BIP.PR.E | FixedReset Disc | Quote: 21.79 – 22.20 Spot Rate : 0.4100 Average : 0.2951 YTW SCENARIO |
James a question for you.
What do you think is the pandemic risk to insurance companies. Especially Lifecos? Is this the kind of risk that could have been absorbed by the NVCC preferred shares for insurance cos?
Very timely, since DBRS has just released a commentary titled Coronavirus Disease (COVID-19) Impact on Life Insurers More Likely to Result from Adverse Market Movements than Increased Claims:
They may have a tough time, but unless things get a whole lot worse (like, it mutates into a more deadly version) I think it will be the common shareholders taking the hit.
Thanks for the excellent link. Appreciate it very much.
Some more pertinent coverage on this:
The overall impact of the coronavirus is expected to be “manageable,” according to a report Monday from Standard & Poor’s Global Ratings Inc.
https://www.businessinsurance.com/article/20200224/NEWS06/912333206/Coronavirus-impact-manageable-for-insurers-reinsurers-Standard-&-Poors-China-sup