December 23, 2020

I was fascinated to read about the Royal Ottawa Golf Club’s CEWS-derived operating surplus:

The Royal Ottawa Golf Club, one of the country’s most prominent private courses, has banked a $1-million surplus from its past season, thanks mostly to federal subsidies for workers’ wages during the COVID-19 pandemic.

CBC News has obtained the club’s audited financial statements, and a recording of its annual general meeting, in which its board told members about the club’s “very strong financial position” due to the Canada emergency wage subsidy (CEWS) windfall.

“We ended up with a rather substantial subsidy,” Doug McLarty, the club treasurer, told participants in the Dec. 5 online video meeting. “It was over a million dollars. And that ended up on the bottom line.”

“I can tell you that pretty well every club in Ontario that we are aware of, and in Quebec, applied for that subsidy. And many of them are in a similar situation to what we have enjoyed this year — they have an operating surplus that they weren’t anticipating.” [said McLarty]

It was interesting because not only did the effect go far beyond partial mitigation of coronavirus damage, but because I can’t figure out how they qualified. This puzzlement led to curiosity about investment management firms – we weren’t subject to lockdowns and fees are based on assets under management. So I used the CRA CEWS Registry to search for a few investment management companies that might have obtained some of this largesse … it turns out that quite a few of them were sucking government tit!

If anybody can tell me why these guys don’t deserve to be classed as welfare bums, let me know!

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 -0.2716 % 1,860.5
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.2716 % 3,414.0
Floater 4.67 % 4.61 % 75,891 16.22 2 -0.2716 % 1,967.5
OpRet 0.00 % 0.00 % 0 0.00 0 0.1780 % 3,632.3
SplitShare 4.77 % 4.36 % 43,755 3.82 9 0.1780 % 4,337.7
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.1780 % 3,384.5
Perpetual-Premium 5.34 % -0.10 % 73,036 0.08 19 0.1277 % 3,203.7
Perpetual-Discount 5.01 % 5.01 % 71,597 15.40 12 -0.0378 % 3,670.6
FixedReset Disc 5.02 % 3.90 % 148,051 17.22 56 -0.0818 % 2,325.4
Insurance Straight 5.07 % 4.85 % 88,356 15.37 22 -0.0719 % 3,549.0
FloatingReset 1.93 % 1.91 % 41,600 1.09 3 0.0656 % 1,851.5
FixedReset Prem 5.15 % 3.14 % 220,925 0.78 22 0.0573 % 2,677.0
FixedReset Bank Non 1.93 % 1.81 % 174,846 1.09 2 -0.0200 % 2,880.3
FixedReset Ins Non 5.05 % 3.87 % 84,829 17.29 22 0.4152 % 2,426.1
Performance Highlights
Issue Index Change Notes
TRP.PR.D FixedReset Disc -7.72 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 13.75
Evaluated at bid price : 13.75
Bid-YTW : 5.62 %
CU.PR.F Perpetual-Discount -1.92 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 23.30
Evaluated at bid price : 23.56
Bid-YTW : 4.81 %
IAF.PR.I FixedReset Ins Non -1.65 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 20.90
Evaluated at bid price : 20.90
Bid-YTW : 4.05 %
BAM.PR.K Floater -1.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 9.05
Evaluated at bid price : 9.05
Bid-YTW : 4.74 %
MFC.PR.C Insurance Straight -1.62 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 23.36
Evaluated at bid price : 23.65
Bid-YTW : 4.77 %
IFC.PR.A FixedReset Ins Non -1.51 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 14.97
Evaluated at bid price : 14.97
Bid-YTW : 3.82 %
TRP.PR.C FixedReset Disc -1.43 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 10.37
Evaluated at bid price : 10.37
Bid-YTW : 4.85 %
BAM.PR.Z FixedReset Disc -1.30 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 18.26
Evaluated at bid price : 18.26
Bid-YTW : 4.87 %
MFC.PR.L FixedReset Ins Non -1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 17.84
Evaluated at bid price : 17.84
Bid-YTW : 3.95 %
IAF.PR.B Insurance Straight -1.10 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 23.98
Evaluated at bid price : 24.23
Bid-YTW : 4.75 %
TD.PF.D FixedReset Disc 1.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 21.77
Evaluated at bid price : 22.17
Bid-YTW : 3.65 %
GWO.PR.R Insurance Straight 1.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 24.01
Evaluated at bid price : 24.45
Bid-YTW : 4.90 %
BAM.PR.B Floater 1.09 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 9.31
Evaluated at bid price : 9.31
Bid-YTW : 4.61 %
GWO.PR.N FixedReset Ins Non 1.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 11.30
Evaluated at bid price : 11.30
Bid-YTW : 3.87 %
RY.PR.M FixedReset Disc 1.37 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 21.40
Evaluated at bid price : 21.40
Bid-YTW : 3.59 %
CU.PR.G Perpetual-Discount 1.81 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 23.16
Evaluated at bid price : 23.60
Bid-YTW : 4.79 %
RY.PR.H FixedReset Disc 2.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 21.26
Evaluated at bid price : 21.26
Bid-YTW : 3.40 %
PWF.PR.T FixedReset Disc 2.35 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 18.75
Evaluated at bid price : 18.75
Bid-YTW : 4.11 %
MFC.PR.H FixedReset Ins Non 4.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 22.91
Evaluated at bid price : 23.40
Bid-YTW : 3.84 %
IAF.PR.G FixedReset Ins Non 7.85 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 20.60
Evaluated at bid price : 20.60
Bid-YTW : 4.05 %
Volume Highlights
Issue Index Shares
Traded
Notes
BMO.PR.B FixedReset Prem 201,550 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-02-25
Maturity Price : 25.00
Evaluated at bid price : 25.65
Bid-YTW : 2.93 %
TD.PF.A FixedReset Disc 22,763 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 20.84
Evaluated at bid price : 20.84
Bid-YTW : 3.48 %
BMO.PR.T FixedReset Disc 21,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 19.96
Evaluated at bid price : 19.96
Bid-YTW : 3.60 %
BNS.PR.I FixedReset Disc 20,015 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 21.89
Evaluated at bid price : 22.20
Bid-YTW : 3.60 %
RY.PR.Z FixedReset Disc 18,700 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 20.98
Evaluated at bid price : 20.98
Bid-YTW : 3.39 %
BNS.PR.Z FixedReset Bank Non 18,300 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.08
Bid-YTW : 1.81 %
There were 20 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
TRP.PR.D FixedReset Disc Quote: 13.75 – 15.05
Spot Rate : 1.3000
Average : 0.7427

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 13.75
Evaluated at bid price : 13.75
Bid-YTW : 5.62 %

MFC.PR.K FixedReset Ins Non Quote: 18.60 – 20.17
Spot Rate : 1.5700
Average : 1.2743

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 18.60
Evaluated at bid price : 18.60
Bid-YTW : 3.91 %

BAM.PF.E FixedReset Disc Quote: 15.90 – 16.79
Spot Rate : 0.8900
Average : 0.5950

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 15.90
Evaluated at bid price : 15.90
Bid-YTW : 4.94 %

MFC.PR.C Insurance Straight Quote: 23.65 – 24.23
Spot Rate : 0.5800
Average : 0.3975

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 23.36
Evaluated at bid price : 23.65
Bid-YTW : 4.77 %

CU.PR.D Perpetual-Discount Quote: 24.85 – 25.85
Spot Rate : 1.0000
Average : 0.8451

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 24.61
Evaluated at bid price : 24.85
Bid-YTW : 4.97 %

CU.PR.C FixedReset Disc Quote: 18.42 – 19.42
Spot Rate : 1.0000
Average : 0.8483

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-12-23
Maturity Price : 18.42
Evaluated at bid price : 18.42
Bid-YTW : 3.94 %

2 Responses to “December 23, 2020”

  1. paradon says:

    Heck from the same source you can see that 95 Canadian Tire outlets are also collecting the CEWS! Fear not however, we can afford it.

  2. mbarbon says:

    Hence why I don’t have confidence on the “current strength of the CDN $”… The government really blew it when it came to CERB/CEWS !! You knew it was wrong when hardly NO ONE complained ….

    If properly done, we would have been paying for it…
    Ended up with our ourselves/kids/grandkids paying for this !!

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