4/20 today, but inflation wasn’t mellow!
Canada’s inflation rate hit a new three-decade high in March and blew past expectations on Bay Street, an unwelcome sign for central bankers trying to douse the acceleration.
The Consumer Price Index rose 6.7 per cent in March from a year earlier, a full percentage point higher than February’s 5.7-per-cent pace, Statistics Canada said Wednesday. Financial analysts were expecting an annual inflation rate of 6.1 per cent. It marked the highest inflation since January of 1991, when the federal goods and services tax took effect.
…
Consumers were hit by steeper prices on multiple fronts. Gasoline prices rose 11.8 per cent in a single month. Groceries rose 8.7 per cent on an annual basis, the largest increase since 2009. Pasta products jumped nearly 18 per cent, butter by 16 per cent and fresh milk by 7.7 per cent.Higher inflation has also spread to pandemic-hit sectors. The cost of restaurant food rose 5.4 per cent over the past year, up from 4.7 per cent in February. Traveller accommodation soared 24.4 per cent on a 12-month basis, while air transportation jumped 8.3 per cent in March alone.
PerpetualDiscounts now yield 5.66%, equivalent to 7.36% interest at the standard equivalency factor of 1.3x. Long corporates now yield 4.63%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has narrowed to 275bp from the 290bp reported April 13.
| 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 | 3.51 % | 4.15 % | 25,763 | 19.04 | 1 | 0.0000 % | 2,635.4 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1778 % | 5,107.1 |
| Floater | 3.99 % | 4.09 % | 35,132 | 17.25 | 4 | -0.1778 % | 2,943.2 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0794 % | 3,621.0 |
| SplitShare | 4.64 % | 4.51 % | 42,544 | 3.48 | 6 | -0.0794 % | 4,324.3 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0794 % | 3,374.0 |
| Perpetual-Premium | 5.57 % | 5.57 % | 70,982 | 14.38 | 16 | -0.3165 % | 3,067.4 |
| Perpetual-Discount | 5.56 % | 5.66 % | 64,628 | 14.42 | 17 | -0.1487 % | 3,336.2 |
| FixedReset Disc | 4.45 % | 5.68 % | 122,113 | 14.68 | 49 | -0.9158 % | 2,582.1 |
| Insurance Straight | 5.48 % | 5.47 % | 86,176 | 14.57 | 20 | -0.3603 % | 3,270.6 |
| FloatingReset | 4.08 % | 3.71 % | 42,666 | 18.06 | 2 | -2.4498 % | 2,682.5 |
| FixedReset Prem | 4.88 % | 4.40 % | 145,323 | 2.15 | 19 | -0.1109 % | 2,645.9 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.9158 % | 2,639.5 |
| FixedReset Ins Non | 4.52 % | 5.75 % | 81,288 | 14.48 | 15 | -1.6078 % | 2,654.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRP.PR.A | FixedReset Disc | -42.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 10.00 Evaluated at bid price : 10.00 Bid-YTW : 10.97 % |
| MFC.PR.Q | FixedReset Ins Non | -21.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 17.50 Evaluated at bid price : 17.50 Bid-YTW : 7.49 % |
| CU.PR.G | Perpetual-Discount | -5.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 19.99 Evaluated at bid price : 19.99 Bid-YTW : 5.72 % |
| TRP.PR.F | FloatingReset | -4.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 4.51 % |
| BAM.PR.T | FixedReset Disc | -2.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 19.12 Evaluated at bid price : 19.12 Bid-YTW : 6.10 % |
| FTS.PR.K | FixedReset Disc | -2.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 19.35 Evaluated at bid price : 19.35 Bid-YTW : 6.06 % |
| CM.PR.P | FixedReset Disc | -2.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 20.85 Evaluated at bid price : 20.85 Bid-YTW : 5.68 % |
| CU.PR.C | FixedReset Disc | -2.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.62 Evaluated at bid price : 21.62 Bid-YTW : 5.94 % |
| IFC.PR.F | Insurance Straight | -2.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 24.12 Evaluated at bid price : 24.40 Bid-YTW : 5.47 % |
| IFC.PR.E | Insurance Straight | -1.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 23.72 Evaluated at bid price : 24.00 Bid-YTW : 5.46 % |
| PWF.PR.F | Perpetual-Premium | -1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 22.84 Evaluated at bid price : 23.12 Bid-YTW : 5.69 % |
| IFC.PR.A | FixedReset Ins Non | -1.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 18.68 Evaluated at bid price : 18.68 Bid-YTW : 5.87 % |
| PWF.PR.T | FixedReset Disc | -1.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.38 Evaluated at bid price : 21.70 Bid-YTW : 5.68 % |
| TRP.PR.E | FixedReset Disc | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 18.80 Evaluated at bid price : 18.80 Bid-YTW : 6.43 % |
| NA.PR.E | FixedReset Disc | -1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 22.53 Evaluated at bid price : 23.03 Bid-YTW : 5.62 % |
| IFC.PR.G | FixedReset Ins Non | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.94 Evaluated at bid price : 22.50 Bid-YTW : 5.79 % |
| GWO.PR.P | Insurance Straight | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 23.88 Evaluated at bid price : 24.13 Bid-YTW : 5.64 % |
| PWF.PR.E | Perpetual-Premium | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 24.02 Evaluated at bid price : 24.27 Bid-YTW : 5.68 % |
| BNS.PR.I | FixedReset Disc | -1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 23.45 Evaluated at bid price : 23.82 Bid-YTW : 5.31 % |
| SLF.PR.G | FixedReset Ins Non | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 15.60 Evaluated at bid price : 15.60 Bid-YTW : 5.88 % |
| CM.PR.O | FixedReset Disc | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.18 Evaluated at bid price : 21.18 Bid-YTW : 5.68 % |
| BMO.PR.T | FixedReset Disc | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.28 Evaluated at bid price : 21.28 Bid-YTW : 5.62 % |
| GWO.PR.H | Insurance Straight | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.49 Evaluated at bid price : 21.75 Bid-YTW : 5.62 % |
| BAM.PF.E | FixedReset Disc | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 19.92 Evaluated at bid price : 19.92 Bid-YTW : 6.22 % |
| PWF.PR.R | Perpetual-Premium | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 24.21 Evaluated at bid price : 24.50 Bid-YTW : 5.63 % |
| CU.PR.D | Perpetual-Discount | 1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 22.27 Evaluated at bid price : 22.54 Bid-YTW : 5.51 % |
| BAM.PR.Z | FixedReset Disc | 1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 23.26 Evaluated at bid price : 23.93 Bid-YTW : 5.86 % |
| MFC.PR.N | FixedReset Ins Non | 1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 20.45 Evaluated at bid price : 20.45 Bid-YTW : 5.85 % |
| MFC.PR.K | FixedReset Ins Non | 1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.50 Evaluated at bid price : 21.86 Bid-YTW : 5.58 % |
| PWF.PR.L | Perpetual-Discount | 1.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 22.12 Evaluated at bid price : 22.40 Bid-YTW : 5.71 % |
| PWF.PR.S | Perpetual-Discount | 2.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.45 Evaluated at bid price : 21.45 Bid-YTW : 5.62 % |
| BAM.PR.X | FixedReset Disc | 2.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 18.30 Evaluated at bid price : 18.30 Bid-YTW : 6.15 % |
| CM.PR.Q | FixedReset Disc | 3.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.88 Evaluated at bid price : 22.20 Bid-YTW : 5.60 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BMO.PR.S | FixedReset Disc | 512,400 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.59 Evaluated at bid price : 21.99 Bid-YTW : 5.57 % |
| TRP.PR.K | FixedReset Prem | 363,900 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-05-31 Maturity Price : 25.00 Evaluated at bid price : 25.23 Bid-YTW : 3.07 % |
| BMO.PR.W | FixedReset Disc | 353,400 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.30 Evaluated at bid price : 21.30 Bid-YTW : 5.62 % |
| TD.PF.C | FixedReset Disc | 222,892 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.17 Evaluated at bid price : 21.17 Bid-YTW : 5.60 % |
| NA.PR.C | FixedReset Prem | 26,958 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-11-15 Maturity Price : 25.00 Evaluated at bid price : 25.05 Bid-YTW : 3.56 % |
| CU.PR.J | Perpetual-Discount | 23,400 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-04-20 Maturity Price : 21.52 Evaluated at bid price : 21.52 Bid-YTW : 5.61 % |
| There were 18 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| TRP.PR.A | FixedReset Disc | Quote: 10.00 – 17.54 Spot Rate : 7.5400 Average : 4.0803 YTW SCENARIO |
| MFC.PR.Q | FixedReset Ins Non | Quote: 17.50 – 23.59 Spot Rate : 6.0900 Average : 3.4739 YTW SCENARIO |
| GWO.PR.R | Insurance Straight | Quote: 21.63 – 25.50 Spot Rate : 3.8700 Average : 2.2362 YTW SCENARIO |
| CU.PR.C | FixedReset Disc | Quote: 21.62 – 22.55 Spot Rate : 0.9300 Average : 0.5559 YTW SCENARIO |
| CU.PR.G | Perpetual-Discount | Quote: 19.99 – 20.99 Spot Rate : 1.0000 Average : 0.6511 YTW SCENARIO |
| TD.PF.K | FixedReset Disc | Quote: 23.40 – 24.40 Spot Rate : 1.0000 Average : 0.6540 YTW SCENARIO |
[…] PerpetualDiscounts now yield 6.01%, equivalent to 7.81% interest at the standard equivalency factor of 1.3x. Long corporates now yield 4.63%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has exploded to 320bp from the 275bp reported April 20. […]