After an extremely slow start, Trump has apparently decided that his re-election prospects depend on largesse:
The Trump administration called on Tuesday for urgent action to speed $1 trillion into the economy, including sending $250 billion worth of checks to millions of Americans, as the government prepared its most powerful tools to fight the coronavirus pandemic and an almost certain recession.
…
During lunch on Capitol Hill not long after, Mr. Mnuchin privately told Republican senators that he envisioned the direct payments covering two weeks of pay and going out by the end of April, according to three people familiar with the discussion who described it on the condition of anonymity. Additional checks would be possible if the national emergency persists, Mr. Mnuchin told the group.The tone of the lunch conversation was grim. Mr. Mnuchin warned darkly that without forceful government intervention, the unemployment rate could rise to nearly 20 percent, according to people familiar with the session, who described his comments on the condition of anonymity. A Treasury spokesperson said that Mr. Mnuchin was just using a mathematical example and that he did not believe the jobless rate would get that high.
Helicopter money, indeed! All this had an effect:
After suffering their worst day in decades, stocks bounced back on Tuesday as Washington policymakers talked up plans to try to cushion an economy careening toward a deep recession driven by the coronavirus outbreak.
The S&P 500 rose 6 percent, rebounding from a 12 percent collapse on Monday, which was its steepest drop since 1987.
Early trading was unsteady, and stocks briefly fell into negative territory. They then surged after the Federal Reserve said it would use its emergency lending powers to try to keep credit flowing to households and businesses in the United States by buying up commercial paper. Shares in Europe also recovered from early losses to end higher.
…
On Tuesday, economists from S&P Global Ratings wrote that they expected the United States’ economy to shrink by 1 percent in the first quarter, and 6 percent in the second quarter, putting the country in recession. That 6 percent drop would be the sharpest falloff in economic activity since 2008.
Meanwhile, in the frozen north:
The federal government will unveil nearly $30-billion of emergency financial aid on Wednesday to help struggling Canadians and businesses cope with the economic fallout from the new coronavirus crisis, sources say.
Prime Minister Justin Trudeau and Finance Minister Bill Morneau will announce immediate financial assistance to Canadians who have been left without a job because of business closings, including self-employed and part-time workers unable to collect regular employment-insurance benefits, according to the sources.
The package will include immediate financial relief, but part of the almost $30-billion will be set aside to boost the economy toward the end of the crisis, insiders say. Further measures are also planned to target hard-hit sectors of the economy in the coming weeks, the sources said.
…
Because the EI system can be slow to adjust to an economic shock, Prof. [Miles] Corak [an economics professor with the Graduate Center of the City University of New York who served as economist in residence in 2017 with the Canadian federal department responsible for Employment Insurance and social policy] said Ottawa should consider the idea of “helicopter” payments, in which money is sent directly to all or many Canadians.He said the tradeoff in terms of failing to target the money to those most in need is worth the benefit of speed in this case.
…
“We expect business investment and exports to post substantial declines and consumer spending to ease. As a result, economic growth will contract by a projected 2.7 per cent in the second quarter,” said Matthew Stewart, the director of national forecast at the Conference Board of Canada. “However, due to the unpredictability of the coronavirus, there are still huge downside risks to the outlook.”
… and in Canadian markets:
The Toronto Stock Exchange’s S&P/TSX composite index was unofficially up 324.81 points, or 2.63%, at 12,685,21. On Monday, the index had plummeted nearly 10%.
…
Materials stocks jumped 9.2%, while industrials rose 3.4% and the heavyweight financial sector increased 1.9%.The energy sector dropped 9.2%, facing continued pressure from weak oil prices following a shock crash last week.
…
An early rebound in European markets was wiped out as the region’s battered airline and travel stocks suffered a drubbing.Data showed German investor morale at lows last seen in the 2008 financial crisis, and rating agency S&P Global warned the inevitable global recession this year would lead to a spike in defaults.
…
Brent crude futures slid $1.32 to settle at $28.73 a barrel and West Texas Intermediate crude futures fell $1.75 to settle at $26.95 a barrel. The U.S. benchmark has slumped more than 50% since Jan. 2.
…He said the tradeoff in terms of failing to target the money to those most in need is worth the benefit of speed in this case.
So there’s a bunch of interesting things going on here: first of all, helicopter money is supposed to fuel inflation; I don’t know if a mere trillion will be enough to do that. The comment about defaults is interesting. I think that ultimately the coronavirus outbreak will not have long-term effects for investment-grade investors. Junk, however, might get hammered due to defaults; and those individuals who have extended themselves to the limit to buy large houses might soon wish they hadn’t. There wasn’t much evidence of preferred share pricing reflecting differential credit quality this as of last Friday, but we shall see how things work out moving forward, one way or another.
But inflation? The Canada 5-Year Yield was up 19bp today to 0.80%, while the 30-year was up 16bp to 1.41%, which is the highest yield since February 20 when this mess got going. Sixteen Basis Points on a long Canada? That’s like, at least two and a half bucks price change (per $100 par value) on long bonds, given that the duration of ZFL, the BMO Long Federal Bond Index ETF is reported as 16.80 (I don’t know if they mean Modified or Macaulay Duration). Fortunes were made and lost today. Fortunes!
Husky has announced a $1-billion reduction in planned 2020 spending:
Husky Energy is taking a series of actions to fortify its business in response to challenging global market conditions.
These initiatives reflect the Company’s commitment to capital discipline, which includes maintaining the strength of its balance sheet while protecting value in an extended low commodity price environment. Husky’s drive to improve process and occupational safety is unaffected and remains a top priority.
“Husky has three important advantages: a strong balance sheet, an Integrated Corridor which includes a sizeable downstream and midstream segment, and Offshore operations that include long-term gas contracts in the Asia Pacific region not linked to the price of oil,” said CEO Rob Peabody.
Given current market conditions Husky will commence the safe and orderly reduction, or shut-in, of production where it is cash negative on a variable cost basis at current prices.
Strong Balance Sheet and Liquidity
Total liquidity is $4.9 billion, comprised of $1.4 billion in cash and $3.5 billion in unused credit facilities. In line with its committed credit facilities, Husky is required to maintain debt to capital of no more than 65%, and is well below this threshold with a ratio of 27% with no long-term debt maturities until 2022.
2020 Capital Program Reduced by $900 Million; Further Cost Reductions of $100 Million …
| 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 | 2.4665 % | 1,303.9 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 2.4665 % | 2,392.6 |
| Floater | 8.30 % | 8.37 % | 56,510 | 11.01 | 4 | 2.4665 % | 1,378.9 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 1.0684 % | 3,213.9 |
| SplitShare | 5.16 % | 6.41 % | 70,681 | 4.03 | 7 | 1.0684 % | 3,838.1 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 1.0684 % | 2,994.6 |
| Perpetual-Premium | 7.09 % | 7.42 % | 95,410 | 11.98 | 12 | -2.3432 % | 2,403.4 |
| Perpetual-Discount | 6.55 % | 6.25 % | 81,648 | 13.56 | 24 | -0.4271 % | 2,672.3 |
| FixedReset Disc | 8.58 % | 7.22 % | 208,902 | 11.90 | 64 | -0.8088 % | 1,404.3 |
| Deemed-Retractible | 6.51 % | 7.14 % | 90,555 | 12.44 | 27 | -1.8851 % | 2,598.3 |
| FloatingReset | 5.97 % | 5.61 % | 66,896 | 14.43 | 3 | 12.7005 % | 1,584.4 |
| FixedReset Prem | 6.68 % | 6.59 % | 175,597 | 13.03 | 22 | -0.3695 % | 2,030.0 |
| FixedReset Bank Non | 2.21 % | 13.01 % | 114,208 | 1.78 | 3 | 2.3267 % | 2,398.0 |
| FixedReset Ins Non | 8.83 % | 7.78 % | 121,327 | 11.31 | 22 | 2.3804 % | 1,348.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| CU.PR.C | FixedReset Disc | -19.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.10 Evaluated at bid price : 10.10 Bid-YTW : 7.68 % |
| PWF.PR.G | Perpetual-Premium | -6.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.26 Evaluated at bid price : 20.26 Bid-YTW : 7.42 % |
| EML.PR.A | FixedReset Ins Non | -6.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 19.27 Evaluated at bid price : 19.27 Bid-YTW : 7.28 % |
| TD.PF.D | FixedReset Disc | -6.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 12.30 Evaluated at bid price : 12.30 Bid-YTW : 7.03 % |
| PWF.PR.Z | Perpetual-Discount | -6.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 17.20 Evaluated at bid price : 17.20 Bid-YTW : 7.64 % |
| GWO.PR.R | Deemed-Retractible | -5.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 17.00 Evaluated at bid price : 17.00 Bid-YTW : 7.10 % |
| BIK.PR.A | FixedReset Prem | -5.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 7.35 % |
| BAM.PF.D | Perpetual-Discount | -5.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.88 Evaluated at bid price : 16.88 Bid-YTW : 7.30 % |
| POW.PR.A | Perpetual-Premium | -5.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.89 Evaluated at bid price : 18.89 Bid-YTW : 7.59 % |
| PWF.PR.H | Perpetual-Premium | -5.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 19.11 Evaluated at bid price : 19.11 Bid-YTW : 7.67 % |
| TD.PF.H | FixedReset Prem | -5.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.13 Evaluated at bid price : 18.13 Bid-YTW : 6.65 % |
| GWO.PR.Q | Deemed-Retractible | -4.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 17.76 Evaluated at bid price : 17.76 Bid-YTW : 7.29 % |
| GWO.PR.P | Deemed-Retractible | -4.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.75 Evaluated at bid price : 18.75 Bid-YTW : 7.24 % |
| POW.PR.G | Perpetual-Premium | -4.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.85 Evaluated at bid price : 18.85 Bid-YTW : 7.60 % |
| EIT.PR.A | SplitShare | -4.48 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2024-03-14 Maturity Price : 25.00 Evaluated at bid price : 23.65 Bid-YTW : 6.40 % |
| MFC.PR.R | FixedReset Ins Non | -4.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 14.00 Evaluated at bid price : 14.00 Bid-YTW : 8.09 % |
| BMO.PR.F | FixedReset Disc | -4.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 15.88 Evaluated at bid price : 15.88 Bid-YTW : 6.99 % |
| POW.PR.B | Perpetual-Discount | -4.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.25 Evaluated at bid price : 18.25 Bid-YTW : 7.50 % |
| GWO.PR.S | Deemed-Retractible | -4.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.28 Evaluated at bid price : 18.28 Bid-YTW : 7.22 % |
| BMO.PR.C | FixedReset Disc | -4.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 14.91 Evaluated at bid price : 14.91 Bid-YTW : 6.82 % |
| PWF.PR.S | Perpetual-Discount | -3.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.53 Evaluated at bid price : 16.53 Bid-YTW : 7.40 % |
| PWF.PR.F | Perpetual-Discount | -3.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 17.62 Evaluated at bid price : 17.62 Bid-YTW : 7.60 % |
| MFC.PR.O | FixedReset Ins Non | -3.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.81 Evaluated at bid price : 18.81 Bid-YTW : 7.47 % |
| PWF.PR.O | Perpetual-Premium | -3.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 7.39 % |
| RY.PR.H | FixedReset Disc | -3.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 11.23 Evaluated at bid price : 11.23 Bid-YTW : 6.97 % |
| POW.PR.C | Perpetual-Premium | -3.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.01 Evaluated at bid price : 20.01 Bid-YTW : 7.42 % |
| HSE.PR.G | FixedReset Disc | -3.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 8.25 Evaluated at bid price : 8.25 Bid-YTW : 12.62 % |
| BMO.PR.T | FixedReset Disc | -3.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.76 Evaluated at bid price : 10.76 Bid-YTW : 7.24 % |
| TD.PF.C | FixedReset Disc | -3.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 11.10 Evaluated at bid price : 11.10 Bid-YTW : 7.35 % |
| GWO.PR.H | Deemed-Retractible | -3.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 17.29 Evaluated at bid price : 17.29 Bid-YTW : 7.05 % |
| CM.PR.O | FixedReset Disc | -3.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.26 Evaluated at bid price : 10.26 Bid-YTW : 7.91 % |
| NA.PR.X | FixedReset Prem | -3.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 19.25 Evaluated at bid price : 19.25 Bid-YTW : 7.27 % |
| CCS.PR.C | Deemed-Retractible | -3.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.68 Evaluated at bid price : 18.68 Bid-YTW : 6.73 % |
| GWO.PR.I | Deemed-Retractible | -3.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.10 Evaluated at bid price : 16.10 Bid-YTW : 7.03 % |
| TD.PF.B | FixedReset Disc | -3.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.96 Evaluated at bid price : 10.96 Bid-YTW : 7.23 % |
| PWF.PR.R | Perpetual-Premium | -3.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.65 Evaluated at bid price : 18.65 Bid-YTW : 7.52 % |
| SLF.PR.C | Deemed-Retractible | -3.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 6.99 % |
| PWF.PR.P | FixedReset Disc | -3.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 8.02 Evaluated at bid price : 8.02 Bid-YTW : 7.01 % |
| GWO.PR.T | Deemed-Retractible | -3.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.10 Evaluated at bid price : 18.10 Bid-YTW : 7.15 % |
| GWO.PR.L | Deemed-Retractible | -2.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 19.26 Evaluated at bid price : 19.26 Bid-YTW : 7.38 % |
| BAM.PR.N | Perpetual-Discount | -2.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.40 Evaluated at bid price : 16.40 Bid-YTW : 7.28 % |
| BAM.PR.M | Perpetual-Discount | -2.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 7.24 % |
| RY.PR.Z | FixedReset Disc | -2.93 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.95 Evaluated at bid price : 10.95 Bid-YTW : 7.08 % |
| NA.PR.A | FixedReset Prem | -2.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.60 Evaluated at bid price : 18.60 Bid-YTW : 7.20 % |
| BAM.PF.C | Perpetual-Discount | -2.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.82 Evaluated at bid price : 16.82 Bid-YTW : 7.25 % |
| NA.PR.W | FixedReset Disc | -2.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.50 Evaluated at bid price : 10.50 Bid-YTW : 7.71 % |
| TD.PF.L | FixedReset Disc | -2.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 15.81 Evaluated at bid price : 15.81 Bid-YTW : 6.82 % |
| SLF.PR.E | Deemed-Retractible | -2.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.20 Evaluated at bid price : 16.20 Bid-YTW : 6.98 % |
| PWF.PR.K | Perpetual-Discount | -2.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 17.00 Evaluated at bid price : 17.00 Bid-YTW : 7.42 % |
| RY.PR.J | FixedReset Disc | -2.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 13.15 Evaluated at bid price : 13.15 Bid-YTW : 6.43 % |
| SLF.PR.A | Deemed-Retractible | -2.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.98 Evaluated at bid price : 16.98 Bid-YTW : 7.03 % |
| BAM.PF.A | FixedReset Disc | -2.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 13.64 Evaluated at bid price : 13.64 Bid-YTW : 7.12 % |
| NA.PR.E | FixedReset Disc | -2.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 11.50 Evaluated at bid price : 11.50 Bid-YTW : 7.75 % |
| GWO.PR.G | Deemed-Retractible | -2.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.32 Evaluated at bid price : 18.32 Bid-YTW : 7.14 % |
| GWO.PR.F | Deemed-Retractible | -2.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 7.24 % |
| SLF.PR.B | Deemed-Retractible | -2.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 17.42 Evaluated at bid price : 17.42 Bid-YTW : 6.93 % |
| BMO.PR.D | FixedReset Disc | -2.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 14.21 Evaluated at bid price : 14.21 Bid-YTW : 6.90 % |
| BAM.PF.G | FixedReset Disc | -2.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 12.20 Evaluated at bid price : 12.20 Bid-YTW : 7.09 % |
| BMO.PR.W | FixedReset Disc | -2.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 11.03 Evaluated at bid price : 11.03 Bid-YTW : 7.22 % |
| NA.PR.S | FixedReset Disc | -2.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.65 Evaluated at bid price : 10.65 Bid-YTW : 7.89 % |
| RY.PR.M | FixedReset Disc | -2.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 12.70 Evaluated at bid price : 12.70 Bid-YTW : 6.45 % |
| BNS.PR.H | FixedReset Prem | -2.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.61 Evaluated at bid price : 18.61 Bid-YTW : 6.57 % |
| NA.PR.G | FixedReset Disc | -2.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 12.50 Evaluated at bid price : 12.50 Bid-YTW : 7.69 % |
| NA.PR.C | FixedReset Disc | -2.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 13.65 Evaluated at bid price : 13.65 Bid-YTW : 7.66 % |
| SLF.PR.D | Deemed-Retractible | -2.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.15 Evaluated at bid price : 16.15 Bid-YTW : 6.93 % |
| RY.PR.F | Deemed-Retractible | -2.10 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.81 Bid-YTW : 9.90 % |
| RY.PR.C | Deemed-Retractible | -2.05 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.90 Bid-YTW : 9.84 % |
| BIP.PR.A | FixedReset Disc | -2.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 12.25 Evaluated at bid price : 12.25 Bid-YTW : 8.55 % |
| TD.PF.A | FixedReset Disc | -1.90 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.85 Evaluated at bid price : 10.85 Bid-YTW : 7.27 % |
| TD.PF.E | FixedReset Disc | -1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 13.01 Evaluated at bid price : 13.01 Bid-YTW : 6.81 % |
| CU.PR.F | Perpetual-Discount | -1.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.72 Evaluated at bid price : 18.72 Bid-YTW : 6.07 % |
| PWF.PR.I | Perpetual-Premium | -1.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 21.16 Evaluated at bid price : 21.16 Bid-YTW : 7.23 % |
| IAF.PR.B | Deemed-Retractible | -1.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 17.25 Evaluated at bid price : 17.25 Bid-YTW : 6.70 % |
| BIP.PR.E | FixedReset Disc | -1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.75 Evaluated at bid price : 16.75 Bid-YTW : 7.51 % |
| PWF.PR.L | Perpetual-Discount | -1.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 17.01 Evaluated at bid price : 17.01 Bid-YTW : 7.65 % |
| W.PR.K | FixedReset Prem | -1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 17.70 Evaluated at bid price : 17.70 Bid-YTW : 7.59 % |
| BIP.PR.B | FixedReset Prem | -1.65 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 17.85 Evaluated at bid price : 17.85 Bid-YTW : 7.75 % |
| RY.PR.E | Deemed-Retractible | -1.64 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.80 Bid-YTW : 9.98 % |
| BMO.PR.B | FixedReset Prem | -1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.00 Evaluated at bid price : 18.00 Bid-YTW : 6.59 % |
| CM.PR.P | FixedReset Disc | -1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.60 Evaluated at bid price : 10.60 Bid-YTW : 7.74 % |
| BAM.PF.B | FixedReset Disc | -1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 12.55 Evaluated at bid price : 12.55 Bid-YTW : 7.11 % |
| CM.PR.S | FixedReset Disc | -1.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 12.01 Evaluated at bid price : 12.01 Bid-YTW : 7.14 % |
| CU.PR.D | Perpetual-Discount | -1.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 19.95 Evaluated at bid price : 19.95 Bid-YTW : 6.21 % |
| GWO.PR.M | Deemed-Retractible | -1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.10 Evaluated at bid price : 20.10 Bid-YTW : 7.25 % |
| BAM.PF.H | FixedReset Prem | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 19.46 Evaluated at bid price : 19.46 Bid-YTW : 6.46 % |
| POW.PR.D | Perpetual-Discount | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.00 Evaluated at bid price : 18.00 Bid-YTW : 7.10 % |
| RY.PR.G | Deemed-Retractible | -1.13 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.75 Bid-YTW : 10.11 % |
| CM.PR.Y | FixedReset Disc | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.72 Evaluated at bid price : 16.72 Bid-YTW : 6.86 % |
| BNS.PR.Z | FixedReset Bank Non | 1.03 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.56 Bid-YTW : 13.20 % |
| PVS.PR.G | SplitShare | 1.11 % | YTW SCENARIO Maturity Type : Option Certainty Maturity Date : 2026-02-28 Maturity Price : 25.00 Evaluated at bid price : 22.75 Bid-YTW : 6.83 % |
| IFC.PR.I | Perpetual-Premium | 1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 6.52 % |
| BMO.PR.S | FixedReset Disc | 1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.84 Evaluated at bid price : 10.84 Bid-YTW : 7.47 % |
| W.PR.M | FixedReset Prem | 1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 17.48 Evaluated at bid price : 17.48 Bid-YTW : 7.61 % |
| PVS.PR.F | SplitShare | 1.28 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2024-09-30 Maturity Price : 25.00 Evaluated at bid price : 23.80 Bid-YTW : 6.09 % |
| RY.PR.P | Perpetual-Premium | 1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 21.35 Evaluated at bid price : 21.35 Bid-YTW : 6.22 % |
| BAM.PF.I | FixedReset Prem | 1.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 19.55 Evaluated at bid price : 19.55 Bid-YTW : 6.17 % |
| BMO.PR.E | FixedReset Disc | 1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 13.72 Evaluated at bid price : 13.72 Bid-YTW : 6.75 % |
| BAM.PF.J | FixedReset Prem | 1.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.76 Evaluated at bid price : 18.76 Bid-YTW : 6.36 % |
| TD.PF.K | FixedReset Disc | 1.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 13.25 Evaluated at bid price : 13.25 Bid-YTW : 6.86 % |
| CM.PR.R | FixedReset Disc | 1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 13.79 Evaluated at bid price : 13.79 Bid-YTW : 7.51 % |
| IAF.PR.G | FixedReset Ins Non | 1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.99 Evaluated at bid price : 10.99 Bid-YTW : 8.02 % |
| TRP.PR.A | FixedReset Disc | 1.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 9.22 Evaluated at bid price : 9.22 Bid-YTW : 7.72 % |
| BIP.PR.D | FixedReset Disc | 2.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 16.62 Evaluated at bid price : 16.62 Bid-YTW : 7.57 % |
| MFC.PR.K | FixedReset Ins Non | 2.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.42 Evaluated at bid price : 10.42 Bid-YTW : 7.78 % |
| HSE.PR.C | FixedReset Disc | 2.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 9.25 Evaluated at bid price : 9.25 Bid-YTW : 11.23 % |
| EMA.PR.F | FixedReset Disc | 2.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 12.83 Evaluated at bid price : 12.83 Bid-YTW : 7.00 % |
| ELF.PR.H | Perpetual-Premium | 2.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.80 Evaluated at bid price : 20.80 Bid-YTW : 6.75 % |
| RY.PR.O | Perpetual-Discount | 2.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.60 Evaluated at bid price : 20.60 Bid-YTW : 6.02 % |
| TRP.PR.B | FixedReset Disc | 2.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 6.49 Evaluated at bid price : 6.49 Bid-YTW : 7.29 % |
| MFC.PR.H | FixedReset Ins Non | 2.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 11.55 Evaluated at bid price : 11.55 Bid-YTW : 8.34 % |
| SLF.PR.I | FixedReset Ins Non | 2.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.76 Evaluated at bid price : 10.76 Bid-YTW : 7.92 % |
| RY.PR.N | Perpetual-Discount | 3.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.60 Evaluated at bid price : 20.60 Bid-YTW : 6.02 % |
| EMA.PR.H | FixedReset Prem | 3.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 21.94 Evaluated at bid price : 22.30 Bid-YTW : 5.54 % |
| IFC.PR.A | FixedReset Ins Non | 3.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 9.00 Evaluated at bid price : 9.00 Bid-YTW : 7.03 % |
| BAM.PR.K | Floater | 3.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 7.23 Evaluated at bid price : 7.23 Bid-YTW : 8.39 % |
| BAM.PR.T | FixedReset Disc | 3.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.32 Evaluated at bid price : 10.32 Bid-YTW : 7.27 % |
| CU.PR.H | Perpetual-Discount | 3.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 6.17 % |
| IFC.PR.F | Deemed-Retractible | 3.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.15 Evaluated at bid price : 20.15 Bid-YTW : 6.61 % |
| PWF.PR.T | FixedReset Disc | 3.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 11.40 Evaluated at bid price : 11.40 Bid-YTW : 7.39 % |
| RY.PR.W | Perpetual-Discount | 3.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.90 Evaluated at bid price : 20.90 Bid-YTW : 5.93 % |
| BAM.PR.B | Floater | 3.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 7.25 Evaluated at bid price : 7.25 Bid-YTW : 8.37 % |
| BAM.PR.C | Floater | 3.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 7.25 Evaluated at bid price : 7.25 Bid-YTW : 8.37 % |
| MFC.PR.I | FixedReset Ins Non | 3.93 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 11.38 Evaluated at bid price : 11.38 Bid-YTW : 8.03 % |
| HSE.PR.E | FixedReset Disc | 4.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 9.10 Evaluated at bid price : 9.10 Bid-YTW : 11.57 % |
| MFC.PR.N | FixedReset Ins Non | 4.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.15 Evaluated at bid price : 10.15 Bid-YTW : 7.21 % |
| TRP.PR.J | FixedReset Prem | 4.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.95 Evaluated at bid price : 20.95 Bid-YTW : 6.64 % |
| HSE.PR.A | FixedReset Disc | 4.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 5.58 Evaluated at bid price : 5.58 Bid-YTW : 10.56 % |
| TRP.PR.E | FixedReset Disc | 4.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 9.93 Evaluated at bid price : 9.93 Bid-YTW : 8.29 % |
| BAM.PR.X | FixedReset Disc | 4.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 8.68 Evaluated at bid price : 8.68 Bid-YTW : 7.09 % |
| TRP.PR.F | FloatingReset | 5.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 8.24 Evaluated at bid price : 8.24 Bid-YTW : 6.97 % |
| TRP.PR.D | FixedReset Disc | 5.98 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.28 Evaluated at bid price : 10.28 Bid-YTW : 8.09 % |
| MFC.PR.L | FixedReset Ins Non | 6.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.00 Evaluated at bid price : 10.00 Bid-YTW : 7.72 % |
| BMO.PR.Q | FixedReset Bank Non | 6.22 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.50 Bid-YTW : 13.01 % |
| TRP.PR.C | FixedReset Disc | 6.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 7.05 Evaluated at bid price : 7.05 Bid-YTW : 7.77 % |
| TRP.PR.K | FixedReset Prem | 6.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 18.72 Evaluated at bid price : 18.72 Bid-YTW : 6.62 % |
| BMO.PR.Z | Perpetual-Discount | 6.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 21.59 Evaluated at bid price : 21.90 Bid-YTW : 5.75 % |
| IAF.PR.I | FixedReset Ins Non | 6.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 11.50 Evaluated at bid price : 11.50 Bid-YTW : 8.02 % |
| MFC.PR.G | FixedReset Ins Non | 7.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 11.07 Evaluated at bid price : 11.07 Bid-YTW : 8.09 % |
| BAM.PR.R | FixedReset Disc | 7.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.32 Evaluated at bid price : 10.32 Bid-YTW : 7.09 % |
| CM.PR.Q | FixedReset Disc | 7.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 11.15 Evaluated at bid price : 11.15 Bid-YTW : 7.78 % |
| IFC.PR.C | FixedReset Ins Non | 7.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.80 Evaluated at bid price : 10.80 Bid-YTW : 7.61 % |
| TD.PF.F | Perpetual-Discount | 8.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 21.15 Evaluated at bid price : 21.15 Bid-YTW : 5.89 % |
| GWO.PR.N | FixedReset Ins Non | 9.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 8.20 Evaluated at bid price : 8.20 Bid-YTW : 5.85 % |
| EIT.PR.B | SplitShare | 9.88 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2025-03-14 Maturity Price : 25.00 Evaluated at bid price : 23.35 Bid-YTW : 6.41 % |
| IFC.PR.E | Deemed-Retractible | 10.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 20.30 Evaluated at bid price : 20.30 Bid-YTW : 6.44 % |
| SLF.PR.G | FixedReset Ins Non | 11.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 7.80 Evaluated at bid price : 7.80 Bid-YTW : 6.48 % |
| MFC.PR.F | FixedReset Ins Non | 11.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 7.34 Evaluated at bid price : 7.34 Bid-YTW : 6.95 % |
| SLF.PR.H | FixedReset Ins Non | 11.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.13 Evaluated at bid price : 10.13 Bid-YTW : 6.89 % |
| PWF.PR.Q | FloatingReset | 14.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 8.90 Evaluated at bid price : 8.90 Bid-YTW : 5.61 % |
| SLF.PR.J | FloatingReset | 18.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 8.15 Evaluated at bid price : 8.15 Bid-YTW : 5.47 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| MFC.PR.M | FixedReset Ins Non | 271,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.13 Evaluated at bid price : 10.13 Bid-YTW : 8.07 % |
| RY.PR.H | FixedReset Disc | 257,828 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 11.23 Evaluated at bid price : 11.23 Bid-YTW : 6.97 % |
| TD.PF.B | FixedReset Disc | 257,489 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.96 Evaluated at bid price : 10.96 Bid-YTW : 7.23 % |
| SLF.PR.H | FixedReset Ins Non | 219,503 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 10.13 Evaluated at bid price : 10.13 Bid-YTW : 6.89 % |
| BAM.PR.B | Floater | 147,316 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 7.25 Evaluated at bid price : 7.25 Bid-YTW : 8.37 % |
| BMO.PR.W | FixedReset Disc | 145,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 11.03 Evaluated at bid price : 11.03 Bid-YTW : 7.22 % |
| BAM.PR.K | Floater | 136,856 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-03-17 Maturity Price : 7.23 Evaluated at bid price : 7.23 Bid-YTW : 8.39 % |
| There were 100 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| IAF.PR.G | FixedReset Ins Non | Quote: 10.99 – 19.80 Spot Rate : 8.8100 Average : 4.7640 YTW SCENARIO |
| NA.PR.E | FixedReset Disc | Quote: 11.50 – 17.50 Spot Rate : 6.0000 Average : 3.2145 YTW SCENARIO |
| CM.PR.Q | FixedReset Disc | Quote: 11.15 – 17.41 Spot Rate : 6.2600 Average : 3.5809 YTW SCENARIO |
| TRP.PR.E | FixedReset Disc | Quote: 9.93 – 15.40 Spot Rate : 5.4700 Average : 3.0399 YTW SCENARIO |
| BAM.PF.I | FixedReset Prem | Quote: 19.55 – 24.65 Spot Rate : 5.1000 Average : 2.9171 YTW SCENARIO |
| CU.PR.C | FixedReset Disc | Quote: 10.10 – 14.30 Spot Rate : 4.2000 Average : 2.4992 YTW SCENARIO |
I’m not sure anyone will notice a little comment posted after 1000 poor quality quotes, but what strikes me about this market is that as of today, compared with Dec 31, 2019 happy days, The TSX is down 26% but TXPR is down 30%. S&P-500 is down a mere 22% before currency (only 14% in C$ terms). These are all before dividends, which are pretty negligible in 2.5 months.
At the same time, GOC-5 has fallen by all of 0.88%, which, in a world where Fixed Reset yields are thought by pessimists to maintain their nominal (not relative) level so fixed reset prices might rationally be expected to lose 5%. Optimists think fixed resets should trade on a spread to GOC-5 and not be that sensitive to it. So, zero to 5% decline reasonable expectation; 30% observed. Blame it on liquidity.
The world is upside down on fundamentals. The last optimist was run over by the stampede.
I note James’ comment about the meteoric rise in the 5- and 10-year GOC. I’ve often wondered about the effect that ETFs have when liquidity and bids dry up, but unit holders decide in droves to bail out rather than selling their units into the market. The redemption rights found in Blackrock’s ETFs, for instance, allow redemption at 95% NAV. Absent large holdings of cash, which is not normally the case, the ETF would have to sell some of its holdings to cover the redemption. I am reading reports that, globally, with liquidity drying up, bond funds trying to offload holdings are having to sell at substantially lower prices than bid on trading platforms. So, as bond prices fall, the yield jumps higher. And could something similar be happening with ETFs in the preferred market?
5 year GoC at 0.95 today. yikes. but it’s not just Canada’s bonds selling off. US, and Euro area bonds also. they are all selling off and showing higher yields.
my theory is..
1. why would anyone buy a bond at these levels ?
2. why would anyone lend money to governments that are broke, and about to spend trillions on bailouts that they are going to print. ..
1. why would anyone buy a bond at these levels ?
Central banks of course will buy these bonds, because they have to. Remember QE? It’s coming to all central banks near you.
2. why would anyone lend money to governments that are broke, and about to spend trillions on bailouts that they are going to print. ..
Who else would they lend to?
Corporation that want bailouts, like Boeing that was A rated until yesterday.
Or Canadian banks? That exist on the implicit government bail outs.
Perhaps some utilities could exist on their own, along with some consumer staples and tech. But few and far between.
For government lending though, I doubt that any amount of printing is going to fill the void that is going to be left by the economic tsunami about to hit us with increasing force in the next few weeks. What is a measly $27 billion going to do for millions of people who are about to be temporarily unemployed?
Barely cover rent and utilities, if at all, with some grocery money.
It’s risk off mode, means duration and credit of all types are getting sold. Massively. Liquidations. Parity trades blowing up.
IMHO, there are far too many things going on at this moment.
We are now encountering the “unknown unknowns”, as Rumsfield would say.