TXPR closed at 631.54, down 2.00% on the day. Volume today was 1.30-million, below the median of the past 21 trading days.
CPD closed at 12.55, down 1.34% on the day. Volume was 55,120, near the median of the past 21 trading days.
ZPR closed at 10.51 down 1.22% on the day. Volume of 230,470 was above the median of the past 21 trading days.
Five-year Canada yields were rocketted up to 3.54% today. Geez, it seems like only last Friday that I was using 3.36% to prepare the number for PrefLetter and reflecting on what a whopping great big number that was. Wait a minute … it was last Friday. Never mind.
It wasn’t a good day in Canada:
Money markets see about a 75% chance that the Bank of Canada would raise interest rates by three-quarters of a percentage point next month, which would be the biggest hike since August 1998, and expect rates to peak at about 3.9% next year.
Just two weeks ago, investors expected a so-called terminal rate of 3%.
…
But the energy sector gave back some recent gains on Monday and fell 3.1%, while the materials group, which includes precious and base metal miners and fertilizer companies, tumbled 4.8% as gold and copper prices fell.Technology shares, which are particularly sensitive to higher rates, lost 3.6%, with shares of cloud-based commerce platform company Lightspeed Commerce Inc down 14.4%.
…
An index of world stocks dropped 3.7%.As speculation simmers that the Fed could hike interest rates by 75 basis points at its June 14-15 policy meeting this week, markets ratcheted up expectations that U.S. rates would peak at around 4% next year, up an eye-watering 100 basis points from less than two weeks ago.
Investors are trying to predict where benchmark policy rates could peak in the United States and other major economies, as that would help determine equity valuations and how much further share prices could fall.
European shares tumbled 2.4% to their lowest in more than three months, and the euro STOXX volatility index – an equivalent in Europe of the U.S. VIX index, also known as Wall Street’s fear gauge – surged to a one-month high. The U.S. Vix index also leapt to its highest in over a month.
… and in the States:
On Monday, the S&P fell 3.9 percent, closing the day nearly 22 percent below its Jan. 3 peak and firmly in a bear market — a rare and grim marker of investors’ growing concerns for the economy.
A crucial report on Friday showed inflation in the United States was accelerating and creeping into every corner of the economy. Earlier last week, the World Bank issued a dire warning that global growth may be choked, especially as the war in Ukraine drags on.
Together, the data undercut optimism that the Federal Reserve, as it raises interest rates, would be able to keep price gains under control without damaging the American economy and sending ripples throughout the globe.
Monday’s trading ended with reports that the Fed is likely to discuss making its biggest interest-rate increase since 1994 when policymakers meet this week.
Meanwhile, Manulife Bank took a survey about the real economy:
- Over one in five Canadians of Canadians expect rising interest rates to have a significant negative impact on their overall mortgage, debt and financial situation.
- As many as eighteen per cent of homeowners believe they can no longer afford the house they own.
- Indebted Canadians are more likely to report that debt is causing them stress with close to half saying it is negatively impacting their mental health.
- The housing market is out of reach for most – two-thirds do not view home ownership as being affordable, in their local community.
- Nearly half of Canadians said they would struggle to handle unexpected expenses or are reconsidering summer vacation plans due to affordability concerns.
Oddly, I can’t find much about the survey itself on-line, in terms of details, demographics, financial situation of the respondents, etc. The ‘details’ provided at the link provided by Manulife aren’t worth much, so I suspect that this was simply a marketting effort, rather than a serious attempt to try to understand anything.
Now in its eleventh year, the Manulife Bank of Canada poll surveyed 2,001 Canadians in all provinces between ages 20 and 69 with household income of more than $40,000. The survey was conducted online by Ipsos between April 14 and April 20, 2022. National results were weighted by gender, age, region, and education. This survey has a credibility interval of +/- 2.5 per cent 19 times out of 20, of what the results would have been had all Canadian adults between the ages of 20 and 69 been surveyed.
| 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 | -1.6219 % | 2,602.1 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -1.6219 % | 4,990.8 |
| Floater | 4.78 % | 4.85 % | 47,587 | 15.65 | 3 | -1.6219 % | 2,876.2 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.5799 % | 3,494.4 |
| SplitShare | 4.87 % | 5.38 % | 37,205 | 3.19 | 8 | -0.5799 % | 4,173.1 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.5799 % | 3,256.0 |
| Perpetual-Premium | 5.85 % | 5.97 % | 70,244 | 13.88 | 2 | -0.2792 % | 2,955.3 |
| Perpetual-Discount | 5.81 % | 5.93 % | 62,002 | 13.91 | 34 | -2.2776 % | 3,192.1 |
| FixedReset Disc | 4.63 % | 6.54 % | 128,517 | 13.40 | 57 | -2.1508 % | 2,521.7 |
| Insurance Straight | 5.85 % | 5.91 % | 89,640 | 14.06 | 19 | -2.8742 % | 3,073.8 |
| FloatingReset | 5.10 % | 5.38 % | 49,509 | 14.90 | 2 | -0.4812 % | 2,685.8 |
| FixedReset Prem | 5.07 % | 5.15 % | 138,308 | 2.00 | 9 | -0.6594 % | 2,601.6 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -2.1508 % | 2,577.7 |
| FixedReset Ins Non | 4.42 % | 6.30 % | 75,202 | 13.56 | 15 | -0.9988 % | 2,714.6 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| RY.PR.M | FixedReset Disc | -29.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 14.87 Evaluated at bid price : 14.87 Bid-YTW : 8.86 % |
| GWO.PR.Y | Insurance Straight | -18.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 16.01 Evaluated at bid price : 16.01 Bid-YTW : 7.06 % |
| NA.PR.W | FixedReset Disc | -11.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 19.00 Evaluated at bid price : 19.00 Bid-YTW : 7.06 % |
| BAM.PF.D | Perpetual-Discount | -8.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.04 Evaluated at bid price : 20.04 Bid-YTW : 6.25 % |
| TRP.PR.G | FixedReset Disc | -6.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.05 Evaluated at bid price : 20.05 Bid-YTW : 7.05 % |
| BAM.PR.M | Perpetual-Discount | -5.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.11 Evaluated at bid price : 20.11 Bid-YTW : 6.04 % |
| MFC.PR.N | FixedReset Ins Non | -5.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 6.68 % |
| BAM.PR.N | Perpetual-Discount | -5.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 19.95 Evaluated at bid price : 19.95 Bid-YTW : 6.09 % |
| PWF.PF.A | Perpetual-Discount | -4.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 5.71 % |
| PWF.PR.H | Perpetual-Discount | -4.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 23.37 Evaluated at bid price : 23.66 Bid-YTW : 6.16 % |
| BAM.PR.R | FixedReset Disc | -3.98 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 17.86 Evaluated at bid price : 17.86 Bid-YTW : 7.15 % |
| MFC.PR.C | Insurance Straight | -3.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 19.51 Evaluated at bid price : 19.51 Bid-YTW : 5.80 % |
| BNS.PR.I | FixedReset Disc | -3.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 23.13 Evaluated at bid price : 23.54 Bid-YTW : 6.13 % |
| BAM.PF.C | Perpetual-Discount | -3.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.75 Evaluated at bid price : 20.75 Bid-YTW : 5.97 % |
| BAM.PR.Z | FixedReset Disc | -3.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.42 Evaluated at bid price : 23.31 Bid-YTW : 6.80 % |
| TD.PF.E | FixedReset Disc | -3.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.26 Evaluated at bid price : 21.26 Bid-YTW : 6.60 % |
| BAM.PF.E | FixedReset Disc | -3.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 19.10 Evaluated at bid price : 19.10 Bid-YTW : 7.24 % |
| BAM.PR.T | FixedReset Disc | -3.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 18.71 Evaluated at bid price : 18.71 Bid-YTW : 6.93 % |
| IFC.PR.A | FixedReset Ins Non | -3.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.30 Evaluated at bid price : 20.30 Bid-YTW : 6.28 % |
| GWO.PR.I | Insurance Straight | -3.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 18.95 Evaluated at bid price : 18.95 Bid-YTW : 5.96 % |
| GWO.PR.P | Insurance Straight | -3.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.60 Evaluated at bid price : 22.85 Bid-YTW : 5.92 % |
| CU.PR.G | Perpetual-Discount | -3.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 19.35 Evaluated at bid price : 19.35 Bid-YTW : 5.87 % |
| RY.PR.H | FixedReset Disc | -2.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.97 Evaluated at bid price : 20.97 Bid-YTW : 6.45 % |
| CU.PR.C | FixedReset Disc | -2.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.38 Evaluated at bid price : 21.65 Bid-YTW : 6.51 % |
| BAM.PF.B | FixedReset Disc | -2.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.85 Evaluated at bid price : 20.85 Bid-YTW : 7.08 % |
| PWF.PR.R | Perpetual-Discount | -2.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.80 Evaluated at bid price : 23.08 Bid-YTW : 6.04 % |
| GWO.PR.G | Insurance Straight | -2.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.36 Evaluated at bid price : 21.63 Bid-YTW : 6.02 % |
| TRP.PR.B | FixedReset Disc | -2.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 13.13 Evaluated at bid price : 13.13 Bid-YTW : 7.69 % |
| TD.PF.B | FixedReset Disc | -2.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.75 Evaluated at bid price : 20.75 Bid-YTW : 6.52 % |
| POW.PR.D | Perpetual-Discount | -2.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 5.92 % |
| CU.PR.J | Perpetual-Discount | -2.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.26 Evaluated at bid price : 20.26 Bid-YTW : 5.92 % |
| CU.PR.H | Perpetual-Discount | -2.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.13 Evaluated at bid price : 22.41 Bid-YTW : 5.90 % |
| CU.PR.D | Perpetual-Discount | -2.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.95 Evaluated at bid price : 20.95 Bid-YTW : 5.90 % |
| MFC.PR.B | Insurance Straight | -2.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.27 Evaluated at bid price : 20.27 Bid-YTW : 5.77 % |
| CU.PR.F | Perpetual-Discount | -2.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 19.50 Evaluated at bid price : 19.50 Bid-YTW : 5.82 % |
| TD.PF.D | FixedReset Disc | -2.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.27 Evaluated at bid price : 21.55 Bid-YTW : 6.47 % |
| BAM.PF.G | FixedReset Disc | -2.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 7.13 % |
| IFC.PR.K | Perpetual-Discount | -2.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.58 Evaluated at bid price : 22.92 Bid-YTW : 5.85 % |
| IFC.PR.F | Insurance Straight | -2.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.77 Evaluated at bid price : 23.17 Bid-YTW : 5.82 % |
| CU.PR.E | Perpetual-Discount | -2.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.75 Evaluated at bid price : 20.75 Bid-YTW : 5.96 % |
| BMO.PR.T | FixedReset Disc | -2.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 6.41 % |
| PWF.PR.E | Perpetual-Discount | -2.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.82 Evaluated at bid price : 23.10 Bid-YTW : 6.03 % |
| PVS.PR.K | SplitShare | -2.30 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2029-05-31 Maturity Price : 25.00 Evaluated at bid price : 22.91 Bid-YTW : 5.98 % |
| RY.PR.S | FixedReset Disc | -2.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 23.01 Evaluated at bid price : 23.40 Bid-YTW : 6.08 % |
| RY.PR.J | FixedReset Disc | -2.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 6.53 % |
| GWO.PR.H | Insurance Straight | -2.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.30 Evaluated at bid price : 20.30 Bid-YTW : 6.00 % |
| CM.PR.O | FixedReset Disc | -2.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.90 Evaluated at bid price : 20.90 Bid-YTW : 6.53 % |
| BAM.PR.B | Floater | -2.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 13.52 Evaluated at bid price : 13.52 Bid-YTW : 4.87 % |
| GWO.PR.L | Insurance Straight | -2.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 23.53 Evaluated at bid price : 23.80 Bid-YTW : 5.94 % |
| POW.PR.A | Perpetual-Discount | -2.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 23.69 Evaluated at bid price : 24.00 Bid-YTW : 5.93 % |
| GWO.PR.T | Insurance Straight | -2.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.53 Evaluated at bid price : 21.80 Bid-YTW : 5.91 % |
| POW.PR.G | Perpetual-Discount | -2.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 24.00 Evaluated at bid price : 24.25 Bid-YTW : 5.87 % |
| CIU.PR.A | Perpetual-Discount | -1.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 19.46 Evaluated at bid price : 19.46 Bid-YTW : 5.97 % |
| MFC.PR.F | FixedReset Ins Non | -1.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 15.54 Evaluated at bid price : 15.54 Bid-YTW : 6.72 % |
| BAM.PF.A | FixedReset Disc | -1.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.37 Evaluated at bid price : 22.80 Bid-YTW : 6.89 % |
| BAM.PF.I | FixedReset Prem | -1.92 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-03-31 Maturity Price : 25.00 Evaluated at bid price : 25.56 Bid-YTW : 5.15 % |
| POW.PR.B | Perpetual-Discount | -1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.55 Evaluated at bid price : 22.81 Bid-YTW : 5.96 % |
| CM.PR.P | FixedReset Disc | -1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.80 Evaluated at bid price : 20.80 Bid-YTW : 6.46 % |
| SLF.PR.D | Insurance Straight | -1.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.06 Evaluated at bid price : 20.06 Bid-YTW : 5.57 % |
| GWO.PR.M | Insurance Straight | -1.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 24.25 Evaluated at bid price : 24.55 Bid-YTW : 5.91 % |
| PWF.PR.O | Perpetual-Discount | -1.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 24.10 Evaluated at bid price : 24.36 Bid-YTW : 6.04 % |
| BAM.PR.C | Floater | -1.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 13.55 Evaluated at bid price : 13.55 Bid-YTW : 4.85 % |
| BMO.PR.S | FixedReset Disc | -1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.41 Evaluated at bid price : 21.41 Bid-YTW : 6.45 % |
| PWF.PR.F | Perpetual-Discount | -1.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.86 Evaluated at bid price : 22.10 Bid-YTW : 6.02 % |
| TRP.PR.C | FixedReset Disc | -1.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 13.85 Evaluated at bid price : 13.85 Bid-YTW : 7.62 % |
| PWF.PR.P | FixedReset Disc | -1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 15.08 Evaluated at bid price : 15.08 Bid-YTW : 7.06 % |
| GWO.PR.R | Insurance Straight | -1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.25 Evaluated at bid price : 20.25 Bid-YTW : 5.95 % |
| BIP.PR.E | FixedReset Disc | -1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 23.12 Evaluated at bid price : 23.75 Bid-YTW : 6.61 % |
| SLF.PR.C | Insurance Straight | -1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 19.78 Evaluated at bid price : 19.78 Bid-YTW : 5.65 % |
| GWO.PR.Q | Insurance Straight | -1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.49 Evaluated at bid price : 21.75 Bid-YTW : 5.93 % |
| PWF.PR.K | Perpetual-Discount | -1.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.86 Evaluated at bid price : 20.86 Bid-YTW : 6.03 % |
| BIP.PR.A | FixedReset Disc | -1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.75 Evaluated at bid price : 22.00 Bid-YTW : 7.21 % |
| SLF.PR.E | Insurance Straight | -1.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 5.65 % |
| TD.PF.J | FixedReset Disc | -1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 23.31 Evaluated at bid price : 23.90 Bid-YTW : 6.34 % |
| NA.PR.E | FixedReset Disc | -1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 23.32 Evaluated at bid price : 23.90 Bid-YTW : 6.19 % |
| PWF.PR.L | Perpetual-Discount | -1.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.36 Evaluated at bid price : 21.36 Bid-YTW : 6.07 % |
| TD.PF.A | FixedReset Disc | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.90 Evaluated at bid price : 20.90 Bid-YTW : 6.41 % |
| MFC.PR.M | FixedReset Ins Non | -1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 20.95 Evaluated at bid price : 20.95 Bid-YTW : 6.50 % |
| SLF.PR.G | FixedReset Ins Non | -1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 15.55 Evaluated at bid price : 15.55 Bid-YTW : 6.77 % |
| TD.PF.K | FixedReset Disc | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 23.04 Evaluated at bid price : 23.50 Bid-YTW : 6.28 % |
| TD.PF.C | FixedReset Disc | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.15 Evaluated at bid price : 21.15 Bid-YTW : 6.35 % |
| BMO.PR.Y | FixedReset Disc | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.40 Evaluated at bid price : 21.40 Bid-YTW : 6.45 % |
| PWF.PR.Z | Perpetual-Discount | -1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.71 Evaluated at bid price : 22.05 Bid-YTW : 5.91 % |
| BMO.PR.F | FixedReset Prem | -1.10 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2024-05-25 Maturity Price : 25.00 Evaluated at bid price : 25.15 Bid-YTW : 4.94 % |
| NA.PR.G | FixedReset Disc | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 23.96 Evaluated at bid price : 24.35 Bid-YTW : 6.25 % |
| CCS.PR.C | Insurance Straight | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.28 Evaluated at bid price : 22.55 Bid-YTW : 5.55 % |
| ELF.PR.F | Perpetual-Discount | -1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.35 Evaluated at bid price : 22.62 Bid-YTW : 5.95 % |
| BAM.PR.X | FixedReset Disc | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 18.35 Evaluated at bid price : 18.35 Bid-YTW : 7.20 % |
| IFC.PR.E | Insurance Straight | -1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.70 Evaluated at bid price : 23.10 Bid-YTW : 5.73 % |
| SLF.PR.H | FixedReset Ins Non | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 18.80 Evaluated at bid price : 18.80 Bid-YTW : 6.47 % |
| PVS.PR.J | SplitShare | -1.04 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2028-02-29 Maturity Price : 25.00 Evaluated at bid price : 23.70 Bid-YTW : 5.52 % |
| GWO.PR.S | Insurance Straight | -1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.10 Evaluated at bid price : 22.47 Bid-YTW : 5.84 % |
| PVS.PR.G | SplitShare | -1.00 % | YTW SCENARIO Maturity Type : Option Certainty Maturity Date : 2026-02-28 Maturity Price : 25.00 Evaluated at bid price : 24.65 Bid-YTW : 5.38 % |
| IFC.PR.I | Perpetual-Discount | 1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 22.98 Evaluated at bid price : 23.30 Bid-YTW : 5.90 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| IAF.PR.G | FixedReset Ins Non | 75,748 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-07-30 Maturity Price : 25.00 Evaluated at bid price : 24.98 Bid-YTW : 3.05 % |
| TD.PF.C | FixedReset Disc | 40,060 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 21.15 Evaluated at bid price : 21.15 Bid-YTW : 6.35 % |
| BAM.PR.X | FixedReset Disc | 27,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 18.35 Evaluated at bid price : 18.35 Bid-YTW : 7.20 % |
| CM.PR.R | FixedReset Disc | 23,200 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-06-13 Maturity Price : 24.19 Evaluated at bid price : 25.06 Bid-YTW : 6.76 % |
| CU.PR.I | FixedReset Prem | 20,200 | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-12-01 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 4.57 % |
| RS.PR.A | SplitShare | 19,811 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-12-31 Maturity Price : 10.00 Evaluated at bid price : 10.03 Bid-YTW : 5.45 % |
| There were 13 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| RY.PR.M | FixedReset Disc | Quote: 14.87 – 21.26 Spot Rate : 6.3900 Average : 3.8228 YTW SCENARIO |
| GWO.PR.Y | Insurance Straight | Quote: 16.01 – 20.29 Spot Rate : 4.2800 Average : 2.5061 YTW SCENARIO |
| NA.PR.W | FixedReset Disc | Quote: 19.00 – 21.30 Spot Rate : 2.3000 Average : 1.4816 YTW SCENARIO |
| TD.PF.D | FixedReset Disc | Quote: 21.55 – 23.60 Spot Rate : 2.0500 Average : 1.4251 YTW SCENARIO |
| TRP.PR.A | FixedReset Disc | Quote: 16.65 – 18.20 Spot Rate : 1.5500 Average : 1.0398 YTW SCENARIO |
| BAM.PF.D | Perpetual-Discount | Quote: 20.04 – 21.32 Spot Rate : 1.2800 Average : 0.7941 YTW SCENARIO |
For anyone that was around for real estate markets in the late 80’s, early 90’s, when mortgage rates were typically in the mid teens, a 4% bank rate is really not that “eye watering”. In fact, the resultant mortgage rate related to this level is really nothing short of “low”, by historical standards. I think the reality, especially for those too young to have experienced financial reality lol, is that easy money has been around far too long, anyway. Perhaps, a prospective homebuyer who cannot easily handle a mortgage rate in the 6 or 7% range probably needs to look at whether they should be in this market in the first place.
People in that previous period were literally lining up at subdivision sales offices to pay whatever price was being asked, and to effortlessly sign up for a 15% mortgage with literally next to no down payment. And houses were certainly not “cheap” in that era; not at all. But this was manageable.
Why are low, single digit lending rates causing so much stress right now? Employment opportunities abound, 6 digit salaries even for relatively inexperienced younger professionals are almost “common” . . . In real terms, this is probably the easiest economic backdrop we’ve seen in 50 years. But . . . it doesn’t seem to be enough.
Maybe the only real issue . . . is . . . attitude.
Until a few months ago, preferreds used to offer the highest yield of almost any fixed income product, even without accounting for the dividend credit. That made them a decent choice for even registered products.
That is clearly no longer the case. Perpetuals don’t even yield 6%, while the equivalent long bonds offer a yield above 6%.
A couple of examples.
Enbridge’s A rated bond with 25 year maturity ( I know little about seniority preferences in case ugly things happen) trades at 6.05%. ENB.PR.A trades a hair below 6%. ENB.PR.A for sure would below the bond, so the only advantage here is the DTC, which is moot for registered products.
Same with MFC and SLF bonds that trade at about 5.6% yields with similar yields offered by perpetuals.
So the trade off is the DTC and perhaps higher liquidity for small investors vs higher seniority, definite maturity date, no call risk, lesser risk of taxation change and of course slightly higher yield.
If you really want to go out there, you can find examples of common stock that pays the same or higher divs than the same company’s prefs. Beyond that advantage, these companies often raise their divs, there’s the possibility of capital growth (and loss, I know) . . . but in times of market turbulence, there’s not much difference between price performance between the two (in many cases) . . .
Example: AQN vs. AQN.PR.A
And then there’s that category that appears not many here seem to want to consider: REITs . . . they’re typically paying miles higher return %’s than prefs, and the tax situation usually includes several different forms of credits to the holder.
Several very high quality REITs pay between 8 & 10% before the tax credit consideration.
Example: TNT.UN, BTB.UN
The final point about these “off topic” items is this: they have liquidity
just a few thoughts!
MFC (current common dividend level 6%+) is probably an even better example of a common stock that, from a dividend percentage standpoint, literally outperforms most, if not all of the prefs issues by this company. Since the 2008 “credit crunch”, they’ve raised their dividend at least once per year, every year.
ratchetrick
Thanks for the suggestions.
REITs and common equity don’t quite fall into the fixed income part of portfolio. At least for me.
REITs are good, but interestingly, the market cap of some of the REITs(the example you gave) is less than the market cap of a single preferred issue we discuss here(cm.pr.r). Besides, REIT will get killed even more if rates rise higher and they can cut their distributions easily. Plus the underlying business model(office/industrial/retail etc.) can change on a dime. It require far more diligent work than picking perpetuals or resets/floaters of near monopolistic/oligopolistic businesses.
MFC, since you are an old timer, do you remember, what happened to them back in 2008? They were a $40 stock that is still trading at half of that price. I think they had to slice their dividend by nearly 50 per cent. I’m not sure if they have managed to recover their dividend payment back to the levels in 2008/9.
Pretty much all MFC perpetuals are likely to touch their par value in their existence, as we have seen in the recent past, so long as the company remains solvent and at investment rated level. The perpetuals will go up in deflationary mode, rate resets (Should) go up in somewhat inflationary setup. And everything crashes when markets are crashing now!
Lol skeptical! I’m actually not an old timer by any definition. I was, however, a very financially aggressive kid! I am old enough though, to understand that opinions offered in most blogs are only respected if they happen to coincide with the reader’s own mindset. This venue is a little more open minded; hence, I like to follow the chat!
Yea, you’re absolutely right about the REITs, and common stock points you bring up. It’s a different kind of thing than what the pref space offers, for sure. I just mention them in passing.
But the point you originally made about the vanishing difference between pref yields, and bond yields is one I think everyone needs to consider. Especially since so much more investing cash is sitting in accounts like rrsp’s, tfsa’s, resp’s, and whatever schemes the Feds come up with next. I think we could be on the eve of very rare opportunity to lock up some very worthwhile long bond positions. Time will tell.