December 9, 2021

There’s an interesting kerfuffle amongst US bank agencies:

Earlier today, the Consumer Financial Protection Bureau (CFPB) posted on its website a document, purportedly approved by the FDIC, requesting comment on bank mergers. No such document has been approved by the FDIC.

The FDIC has longstanding internal policies and procedures for circulating and conducting votes of its Board of Directors, and for issuing documents for publication in the Federal Register. In this case, there was no valid vote by the Board, and no such request for information and comment has been approved by the agency for publication in the Federal Register.

The FDIC has a proud 88-year history of Board members working together in a collegial manner. This history has spanned many Presidential administrations, and countless philosophical differences on substantive issues among Board members over the years. Notwithstanding the actions taken today, the FDIC expects this time-honored tradition of collegiality and comity to continue.

This reflects a blog post on consumerfinance.gov:

The law requires that the Director of the CFPB serve as a member of the Board of Directors of the Federal Deposit Insurance Corporation (FDIC). The FDIC plays a critical role when it comes to reviewing bank mergers and ensuring financial stability in our country. As agencies across the government are rethinking their approach to combat anticompetitive consolidation and practices, the FDIC’s Board has voted to launch a review of the agency’s Bank Merger Act policies and invites the public to weigh in. We will accept comments for 60 days from the publication in the Federal Register.

The end of the post has a link to a joint statement by FDIC Director Martin J. Gruenberg and Director Rohit Chopra (the latter being the author of the blog post), which has been saved for posterity here in case it mysteriously disappears during routine maintenance.

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 3.08 % 3.58 % 47,960 19.98 1 0.0000 % 2,834.8
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.8105 % 5,154.4
Floater 3.09 % 3.13 % 79,187 19.34 3 -0.8105 % 2,970.5
OpRet 0.00 % 0.00 % 0 0.00 0 -0.2679 % 3,668.0
SplitShare 4.67 % 4.22 % 49,873 3.80 5 -0.2679 % 4,380.4
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.2679 % 3,417.8
Perpetual-Premium 5.14 % 1.33 % 45,484 0.09 28 0.3773 % 3,254.0
Perpetual-Discount 4.75 % 4.79 % 68,163 15.85 7 -0.1640 % 3,815.6
FixedReset Disc 3.92 % 3.95 % 123,385 16.99 37 1.5403 % 2,818.2
Insurance Straight 4.98 % 4.52 % 97,561 3.40 20 0.2340 % 3,646.6
FloatingReset 2.51 % 2.12 % 36,544 22.15 2 -1.6919 % 2,735.3
FixedReset Prem 4.71 % 3.78 % 115,010 2.45 33 -0.0443 % 2,712.3
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 1.5403 % 2,880.7
FixedReset Ins Non 4.14 % 3.92 % 92,926 17.23 19 -0.0207 % 2,914.4
Performance Highlights
Issue Index Change Notes
BAM.PR.X FixedReset Disc -6.46 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 16.50
Evaluated at bid price : 16.50
Bid-YTW : 4.87 %
TRP.PR.F FloatingReset -3.34 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 16.80
Evaluated at bid price : 16.80
Bid-YTW : 2.89 %
SLF.PR.H FixedReset Ins Non -2.58 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 21.55
Evaluated at bid price : 21.55
Bid-YTW : 3.96 %
CU.PR.C FixedReset Disc -2.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 21.37
Evaluated at bid price : 21.65
Bid-YTW : 4.36 %
GWO.PR.N FixedReset Ins Non -2.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 16.01
Evaluated at bid price : 16.01
Bid-YTW : 3.89 %
TD.PF.M FixedReset Prem -1.56 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2024-07-31
Maturity Price : 25.00
Evaluated at bid price : 25.81
Bid-YTW : 4.04 %
BIP.PR.A FixedReset Prem -1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 22.61
Evaluated at bid price : 23.40
Bid-YTW : 5.03 %
BAM.PR.R FixedReset Disc -1.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 19.55
Evaluated at bid price : 19.55
Bid-YTW : 4.63 %
BAM.PR.K Floater -1.29 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 13.82
Evaluated at bid price : 13.82
Bid-YTW : 3.13 %
PVS.PR.J SplitShare -1.22 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2028-02-29
Maturity Price : 25.00
Evaluated at bid price : 25.04
Bid-YTW : 4.40 %
SLF.PR.G FixedReset Ins Non 1.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 17.20
Evaluated at bid price : 17.20
Bid-YTW : 3.81 %
BAM.PF.E FixedReset Disc 1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 4.67 %
FTS.PR.K FixedReset Disc 1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 20.76
Evaluated at bid price : 20.76
Bid-YTW : 4.22 %
MFC.PR.F FixedReset Ins Non 1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 18.26
Evaluated at bid price : 18.26
Bid-YTW : 3.69 %
CU.PR.H Perpetual-Premium 1.53 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-09-01
Maturity Price : 25.50
Evaluated at bid price : 25.80
Bid-YTW : 3.69 %
TRP.PR.C FixedReset Disc 1.67 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 15.20
Evaluated at bid price : 15.20
Bid-YTW : 4.49 %
RY.PR.M FixedReset Disc 2.15 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 22.97
Evaluated at bid price : 24.25
Bid-YTW : 3.85 %
RY.PR.J FixedReset Disc 3.16 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-05-24
Maturity Price : 25.00
Evaluated at bid price : 24.45
Bid-YTW : 3.94 %
TRP.PR.A FixedReset Disc 3.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 17.99
Evaluated at bid price : 17.99
Bid-YTW : 4.62 %
CIU.PR.A Perpetual-Premium 6.61 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 23.59
Evaluated at bid price : 23.86
Bid-YTW : 4.84 %
TRP.PR.G FixedReset Disc 88.99 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 22.34
Evaluated at bid price : 23.00
Bid-YTW : 4.46 %
Volume Highlights
Issue Index Shares
Traded
Notes
CU.PR.J Perpetual-Discount 383,500 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 24.42
Evaluated at bid price : 24.80
Bid-YTW : 4.79 %
BNS.PR.H FixedReset Prem 63,500 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-01-26
Maturity Price : 25.00
Evaluated at bid price : 25.25
Bid-YTW : 1.57 %
BMO.PR.F FixedReset Prem 49,200 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2024-05-25
Maturity Price : 25.00
Evaluated at bid price : 25.90
Bid-YTW : 3.66 %
MFC.PR.G FixedReset Ins Non 45,055 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-01-18
Maturity Price : 25.00
Evaluated at bid price : 24.98
Bid-YTW : 3.68 %
MFC.PR.R FixedReset Ins Non 33,100 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-03-19
Maturity Price : 25.00
Evaluated at bid price : 25.13
Bid-YTW : 2.46 %
BAM.PR.B Floater 18,203 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 13.94
Evaluated at bid price : 13.94
Bid-YTW : 3.11 %
There were 5 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
BAM.PR.X FixedReset Disc Quote: 16.50 – 17.85
Spot Rate : 1.3500
Average : 0.9884

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 16.50
Evaluated at bid price : 16.50
Bid-YTW : 4.87 %

SLF.PR.H FixedReset Ins Non Quote: 21.55 – 22.47
Spot Rate : 0.9200
Average : 0.7140

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 21.55
Evaluated at bid price : 21.55
Bid-YTW : 3.96 %

IFC.PR.A FixedReset Ins Non Quote: 20.15 – 20.95
Spot Rate : 0.8000
Average : 0.6000

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 20.15
Evaluated at bid price : 20.15
Bid-YTW : 3.92 %

GWO.PR.S Insurance Straight Quote: 25.32 – 25.85
Spot Rate : 0.5300
Average : 0.3358

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-06-30
Maturity Price : 25.25
Evaluated at bid price : 25.32
Bid-YTW : 4.15 %

MFC.PR.L FixedReset Ins Non Quote: 22.75 – 23.45
Spot Rate : 0.7000
Average : 0.5065

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 22.34
Evaluated at bid price : 22.75
Bid-YTW : 3.90 %

BAM.PR.Z FixedReset Prem Quote: 24.13 – 24.85
Spot Rate : 0.7200
Average : 0.5489

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2051-12-09
Maturity Price : 23.62
Evaluated at bid price : 24.13
Bid-YTW : 4.55 %

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