June 22, 2022

TXPR closed at 614.13, down 0.80% on the day. Volume today was 2.06-million, well above the median of the past 21 trading days.

CPD closed at 12.25, down 1.05% on the day. Volume was 50,219, well below the median of the past 21 trading days.

ZPR closed at 10.28 down 0.77% on the day. Volume of 149,563 was below the median of the past 21 trading days.

Five-year Canada yields were up to 3.33% today.

Sorry that this is late: I had other things to do last night.

So, how about that Canadian inflation, eh?:

The consumer price index (CPI) rose 7.7 per cent in May from a year earlier, rising from April’s 6.8-per-cent pace, Statistics Canada said on Wednesday. It was the highest inflation rate since 1983 and part of a broader surge in prices that’s taken hold in advanced economies.

The recent jump in energy prices, stoked by the Russia-Ukraine war, is having a tangible effect on the numbers. Gasoline prices rose 12 per cent in May alone and were up 48 per cent from a year earlier; the national average price for regular unleaded remains north of $2 a litre.

So there’s another crypto company in trouble:

TSX-listed Voyager Digital Ltd.’s VOYG-T stock lost half its value in a single day after management warned of a potential default on a US$655-million loan to a troubled hedge fund, as investors continue to fear financial contagion owing to the crypto sector’s recent crash.

Voyager, which went public in Canada in 2019, was historically known for its trading venue that allows retail and institutional investors to buy and sell cryptocurrencies. Lately, however, the company has expanded its operations, and one of its newer divisions offers loans to institutional borrowers. At the end of March, Voyager had lent $2-billion worth of crypto assets, according to its quarterly filings.

On Wednesday, Voyager disclosed that it has lent US$655-million to Three Arrows Capital, a hedge fund known for trading cryptocurrencies, in the form of 15,250 bitcoin and US$350-million worth of USDC, another cryptocurrency.

According to their latest financials (SEDAR Voyager Digital Ltd. May 16 2022 07:30:45 ET Interim financial statements/report – EnglishPDF 606 K) they have loaned $2-billion in crypto while holding $227-million collateral. Sounds like the sooner these guys go bankrupt, the better.

Westjet’s unique take on planning has given me an idea for a new business:

On Wednesday, WestJet’s vice-president of government relations, Andrew Gibbons, said the airline is “disappointed” that the new rule unfairly makes it the “sole provider of reimbursement” for delays it cannot control. He said the airline relies on government agencies, NAV Canada, Canada Border Services Agency and Canadian Air Transport Security Authority (CATSA) to provide a seamless experience for travelers. These are the agencies that are understaffed and blamed for much of the delays at airports, particularly Toronto Pearson.

My idea is to offer valet parking at municipal lots downtown during sports events and other times of high demand; I figure I should be able to sell at least 5,000 tickets on busy days. Customers will not, of course, be refunded if I cannot actually park the cars due to the small number of such spots actually available; capacity is the government’s problem and I rely on them to provide a seamless experience for my customers.

PerpetualDiscounts now yield 6.14%, equivalent to 7.98% interest at the standard equivalency factor of 1.3x. Long corporates now yield 5.37%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has narrow sharply to 260bp from the 285bp reported June 15.

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 -1.8351 % 2,500.3
FixedFloater 0.00 % 0.00 % 0 0.00 0 -1.8351 % 4,795.6
Floater 4.97 % 4.99 % 50,375 15.54 3 -1.8351 % 2,763.7
OpRet 0.00 % 0.00 % 0 0.00 0 -0.5015 % 3,458.8
SplitShare 4.92 % 5.72 % 40,706 3.17 8 -0.5015 % 4,130.5
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.5015 % 3,222.8
Perpetual-Premium 6.02 % 6.09 % 78,762 13.68 2 -1.1391 % 2,872.6
Perpetual-Discount 6.00 % 6.14 % 64,219 13.70 34 -0.8679 % 3,090.9
FixedReset Disc 4.67 % 6.66 % 114,383 13.26 57 -0.5711 % 2,496.4
Insurance Straight 6.04 % 6.13 % 84,548 13.74 19 -0.8536 % 2,978.3
FloatingReset 5.53 % 5.86 % 49,279 14.12 2 0.2756 % 2,658.2
FixedReset Prem 5.09 % 5.48 % 135,611 1.97 9 0.2655 % 2,591.5
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 -0.5711 % 2,551.9
FixedReset Ins Non 4.53 % 6.51 % 76,173 13.35 15 -0.8589 % 2,649.4
Performance Highlights
Issue Index Change Notes
BIP.PR.A FixedReset Disc -2.88 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 20.89
Evaluated at bid price : 20.89
Bid-YTW : 7.65 %
TRP.PR.D FixedReset Disc -2.77 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 18.57
Evaluated at bid price : 18.57
Bid-YTW : 7.62 %
MFC.PR.L FixedReset Ins Non -2.62 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 19.31
Evaluated at bid price : 19.31
Bid-YTW : 6.99 %
CU.PR.F Perpetual-Discount -2.62 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 18.61
Evaluated at bid price : 18.61
Bid-YTW : 6.12 %
TRP.PR.B FixedReset Disc -2.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 12.87
Evaluated at bid price : 12.87
Bid-YTW : 7.93 %
MFC.PR.F FixedReset Ins Non -2.56 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 15.20
Evaluated at bid price : 15.20
Bid-YTW : 6.95 %
MFC.PR.M FixedReset Ins Non -2.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 20.00
Evaluated at bid price : 20.00
Bid-YTW : 6.88 %
BAM.PF.E FixedReset Disc -2.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 18.35
Evaluated at bid price : 18.35
Bid-YTW : 7.51 %
BAM.PR.K Floater -2.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 13.00
Evaluated at bid price : 13.00
Bid-YTW : 4.99 %
BAM.PR.T FixedReset Disc -2.21 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 17.28
Evaluated at bid price : 17.28
Bid-YTW : 7.44 %
TRP.PR.C FixedReset Disc -2.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 13.40
Evaluated at bid price : 13.40
Bid-YTW : 7.94 %
PWF.PR.P FixedReset Disc -2.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 14.75
Evaluated at bid price : 14.75
Bid-YTW : 7.29 %
PWF.PR.F Perpetual-Discount -2.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 21.29
Evaluated at bid price : 21.29
Bid-YTW : 6.28 %
GWO.PR.Y Insurance Straight -2.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 18.11
Evaluated at bid price : 18.11
Bid-YTW : 6.25 %
POW.PR.B Perpetual-Discount -2.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 21.30
Evaluated at bid price : 21.57
Bid-YTW : 6.20 %
BAM.PR.R FixedReset Disc -2.00 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 17.15
Evaluated at bid price : 17.15
Bid-YTW : 7.41 %
BAM.PR.X FixedReset Disc -1.98 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 17.33
Evaluated at bid price : 17.33
Bid-YTW : 7.58 %
BMO.PR.T FixedReset Disc -1.94 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 20.20
Evaluated at bid price : 20.20
Bid-YTW : 6.73 %
MFC.PR.N FixedReset Ins Non -1.94 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 19.70
Evaluated at bid price : 19.70
Bid-YTW : 6.86 %
CM.PR.O FixedReset Disc -1.90 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 20.60
Evaluated at bid price : 20.60
Bid-YTW : 6.70 %
BAM.PR.B Floater -1.81 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 13.00
Evaluated at bid price : 13.00
Bid-YTW : 4.99 %
MFC.PR.B Insurance Straight -1.77 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 19.40
Evaluated at bid price : 19.40
Bid-YTW : 6.04 %
FTS.PR.H FixedReset Disc -1.75 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 14.60
Evaluated at bid price : 14.60
Bid-YTW : 7.38 %
CCS.PR.C Insurance Straight -1.75 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 20.78
Evaluated at bid price : 20.78
Bid-YTW : 6.05 %
MFC.PR.Q FixedReset Ins Non -1.74 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 22.57
Evaluated at bid price : 23.10
Bid-YTW : 6.41 %
GWO.PR.R Insurance Straight -1.53 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 19.34
Evaluated at bid price : 19.34
Bid-YTW : 6.24 %
PVS.PR.J SplitShare -1.52 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2028-02-29
Maturity Price : 25.00
Evaluated at bid price : 22.65
Bid-YTW : 6.47 %
CU.PR.D Perpetual-Discount -1.51 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 20.19
Evaluated at bid price : 20.19
Bid-YTW : 6.14 %
BAM.PR.C Floater -1.44 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 13.05
Evaluated at bid price : 13.05
Bid-YTW : 4.97 %
GWO.PR.S Insurance Straight -1.43 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 21.39
Evaluated at bid price : 21.39
Bid-YTW : 6.17 %
PVS.PR.H SplitShare -1.40 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2027-02-28
Maturity Price : 25.00
Evaluated at bid price : 23.92
Bid-YTW : 5.85 %
SLF.PR.E Insurance Straight -1.39 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 19.21
Evaluated at bid price : 19.21
Bid-YTW : 5.89 %
BAM.PF.D Perpetual-Discount -1.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 19.65
Evaluated at bid price : 19.65
Bid-YTW : 6.27 %
PWF.PR.E Perpetual-Discount -1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 22.22
Evaluated at bid price : 22.50
Bid-YTW : 6.21 %
BAM.PF.A FixedReset Disc -1.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 21.63
Evaluated at bid price : 22.03
Bid-YTW : 7.09 %
FTS.PR.J Perpetual-Discount -1.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 19.90
Evaluated at bid price : 19.90
Bid-YTW : 6.04 %
BNS.PR.I FixedReset Disc -1.24 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 23.56
Evaluated at bid price : 23.95
Bid-YTW : 6.09 %
GWO.PR.Q Insurance Straight -1.23 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 20.82
Evaluated at bid price : 20.82
Bid-YTW : 6.22 %
SLF.PR.G FixedReset Ins Non -1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 14.76
Evaluated at bid price : 14.76
Bid-YTW : 7.20 %
IFC.PR.G FixedReset Ins Non -1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 21.83
Evaluated at bid price : 22.33
Bid-YTW : 6.63 %
PWF.PR.L Perpetual-Discount -1.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 20.80
Evaluated at bid price : 20.80
Bid-YTW : 6.24 %
GWO.PR.G Insurance Straight -1.18 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 6.23 %
NA.PR.S FixedReset Disc -1.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 21.00
Evaluated at bid price : 21.00
Bid-YTW : 6.76 %
SLF.PR.H FixedReset Ins Non -1.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 17.65
Evaluated at bid price : 17.65
Bid-YTW : 6.94 %
BIP.PR.E FixedReset Disc -1.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 22.87
Evaluated at bid price : 23.50
Bid-YTW : 6.76 %
ELF.PR.H Perpetual-Discount -1.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 23.25
Evaluated at bid price : 23.55
Bid-YTW : 5.94 %
SLF.PR.C Insurance Straight -1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 19.05
Evaluated at bid price : 19.05
Bid-YTW : 5.87 %
CM.PR.Q FixedReset Disc 1.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 21.26
Evaluated at bid price : 21.26
Bid-YTW : 6.62 %
IFC.PR.E Insurance Straight 1.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 22.06
Evaluated at bid price : 22.35
Bid-YTW : 5.83 %
IFC.PR.F Insurance Straight 1.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 22.08
Evaluated at bid price : 22.40
Bid-YTW : 5.93 %
FTS.PR.K FixedReset Disc 1.36 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 18.60
Evaluated at bid price : 18.60
Bid-YTW : 7.21 %
MFC.PR.K FixedReset Ins Non 2.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 21.50
Evaluated at bid price : 21.50
Bid-YTW : 6.51 %
BAM.PF.I FixedReset Prem 2.16 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2027-03-31
Maturity Price : 25.00
Evaluated at bid price : 26.07
Bid-YTW : 4.39 %
Volume Highlights
Issue Index Shares
Traded
Notes
IAF.PR.G FixedReset Ins Non 220,000 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-07-30
Maturity Price : 25.00
Evaluated at bid price : 24.98
Bid-YTW : 3.78 %
RS.PR.A SplitShare 118,833 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-12-31
Maturity Price : 10.00
Evaluated at bid price : 10.04
Bid-YTW : 5.47 %
BAM.PF.F FixedReset Disc 103,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 20.06
Evaluated at bid price : 20.06
Bid-YTW : 7.44 %
MFC.PR.J FixedReset Ins Non 59,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 22.88
Evaluated at bid price : 23.52
Bid-YTW : 6.38 %
IFC.PR.G FixedReset Ins Non 53,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 21.83
Evaluated at bid price : 22.33
Bid-YTW : 6.63 %
CM.PR.R FixedReset Disc 48,300 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 24.10
Evaluated at bid price : 25.05
Bid-YTW : 6.83 %
There were 20 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
SLF.PR.H FixedReset Ins Non Quote: 17.65 – 23.50
Spot Rate : 5.8500
Average : 4.1905

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 17.65
Evaluated at bid price : 17.65
Bid-YTW : 6.94 %

BAM.PR.K Floater Quote: 13.00 – 15.31
Spot Rate : 2.3100
Average : 1.3184

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 13.00
Evaluated at bid price : 13.00
Bid-YTW : 4.99 %

BAM.PF.E FixedReset Disc Quote: 18.35 – 20.90
Spot Rate : 2.5500
Average : 1.6646

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 18.35
Evaluated at bid price : 18.35
Bid-YTW : 7.51 %

MFC.PR.L FixedReset Ins Non Quote: 19.31 – 22.00
Spot Rate : 2.6900
Average : 1.9184

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 19.31
Evaluated at bid price : 19.31
Bid-YTW : 6.99 %

IFC.PR.I Perpetual-Discount Quote: 22.50 – 24.74
Spot Rate : 2.2400
Average : 1.6008

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 22.16
Evaluated at bid price : 22.50
Bid-YTW : 6.02 %

PWF.PR.Z Perpetual-Discount Quote: 21.20 – 23.00
Spot Rate : 1.8000
Average : 1.2304

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2052-06-22
Maturity Price : 21.20
Evaluated at bid price : 21.20
Bid-YTW : 6.18 %

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