More central bank huffing and puffing:
Central banks around the world risk losing public trust and must now act forcefully to combat inflation, even if that drags their economies into a recession, European Central Bank board member Isabel Schnabel said on Saturday.
Inflation is close to double-digit territory in many of the world’s top economies and any decline is likely to be slow, keeping prices above central bank targets for years to come.
“Even if we enter a recession, we have little choice but to continue the normalization path,” Ms. Schnabel told the U.S. Federal Reserve’s Jackson Hole Economic Symposium. “If there was a de-anchoring of inflation expectations, the effect on the economy would be even worse.”
She also cautioned central banks against pausing on the first sign of a potential turn in inflationary pressures. Policy-makers should instead signal their “strong determination” to bring inflation back to target quickly, she said.
| 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 | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1533 % | 2,504.5 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1533 % | 4,803.6 |
| Floater | 6.31 % | 6.42 % | 56,004 | 13.21 | 2 | -0.1533 % | 2,768.3 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0670 % | 3,472.3 |
| SplitShare | 4.90 % | 5.38 % | 37,902 | 3.02 | 8 | 0.0670 % | 4,146.6 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0670 % | 3,235.4 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1553 % | 2,837.8 |
| Perpetual-Discount | 6.00 % | 6.16 % | 67,868 | 13.62 | 35 | 0.1553 % | 3,094.5 |
| FixedReset Disc | 4.69 % | 6.33 % | 97,641 | 13.45 | 58 | 0.3760 % | 2,524.9 |
| Insurance Straight | 5.99 % | 6.10 % | 80,991 | 13.68 | 19 | -0.0989 % | 3,005.7 |
| FloatingReset | 7.58 % | 7.85 % | 38,692 | 11.44 | 2 | 0.0309 % | 2,626.5 |
| FixedReset Prem | 5.07 % | 4.45 % | 105,145 | 1.82 | 6 | -0.0784 % | 2,610.8 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3760 % | 2,581.0 |
| FixedReset Ins Non | 4.72 % | 6.69 % | 57,763 | 13.26 | 14 | 0.4390 % | 2,581.4 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| CU.PR.E | Perpetual-Discount | -2.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 20.90 Evaluated at bid price : 20.90 Bid-YTW : 5.90 % |
| NA.PR.W | FixedReset Disc | -2.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 20.81 Evaluated at bid price : 20.81 Bid-YTW : 6.40 % |
| FTS.PR.H | FixedReset Disc | -2.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 14.20 Evaluated at bid price : 14.20 Bid-YTW : 7.44 % |
| CM.PR.O | FixedReset Disc | -1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 21.40 Evaluated at bid price : 21.40 Bid-YTW : 6.33 % |
| RY.PR.S | FixedReset Disc | -1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 23.45 Evaluated at bid price : 23.87 Bid-YTW : 5.89 % |
| GWO.PR.Y | Insurance Straight | -1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 19.04 Evaluated at bid price : 19.04 Bid-YTW : 6.02 % |
| PWF.PF.A | Perpetual-Discount | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 18.80 Evaluated at bid price : 18.80 Bid-YTW : 6.06 % |
| IFC.PR.F | Insurance Straight | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 21.69 Evaluated at bid price : 22.02 Bid-YTW : 6.12 % |
| NA.PR.E | FixedReset Disc | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 23.20 Evaluated at bid price : 23.86 Bid-YTW : 6.13 % |
| TRP.PR.C | FixedReset Disc | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 13.65 Evaluated at bid price : 13.65 Bid-YTW : 7.68 % |
| PWF.PR.O | Perpetual-Discount | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 23.09 Evaluated at bid price : 23.35 Bid-YTW : 6.28 % |
| CU.PR.H | Perpetual-Discount | 1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 22.00 Evaluated at bid price : 22.00 Bid-YTW : 6.01 % |
| MFC.PR.K | FixedReset Ins Non | 1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 20.74 Evaluated at bid price : 20.74 Bid-YTW : 6.59 % |
| PWF.PR.P | FixedReset Disc | 1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 14.33 Evaluated at bid price : 14.33 Bid-YTW : 7.44 % |
| SLF.PR.H | FixedReset Ins Non | 1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 17.32 Evaluated at bid price : 17.32 Bid-YTW : 6.95 % |
| TD.PF.E | FixedReset Disc | 1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 21.92 Evaluated at bid price : 22.25 Bid-YTW : 6.33 % |
| BIP.PR.A | FixedReset Disc | 1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 20.75 Evaluated at bid price : 20.75 Bid-YTW : 7.70 % |
| IFC.PR.E | Insurance Straight | 1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 22.19 Evaluated at bid price : 22.50 Bid-YTW : 5.87 % |
| TRP.PR.G | FixedReset Disc | 1.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 20.10 Evaluated at bid price : 20.10 Bid-YTW : 7.01 % |
| BAM.PR.X | FixedReset Disc | 1.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 18.02 Evaluated at bid price : 18.02 Bid-YTW : 6.99 % |
| BAM.PF.I | FixedReset Disc | 1.92 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-03-31 Maturity Price : 25.00 Evaluated at bid price : 25.50 Bid-YTW : 5.15 % |
| MFC.PR.M | FixedReset Ins Non | 2.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 19.45 Evaluated at bid price : 19.45 Bid-YTW : 6.94 % |
| MIC.PR.A | Perpetual-Discount | 3.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 21.45 Evaluated at bid price : 21.45 Bid-YTW : 6.42 % |
| BAM.PR.Z | FixedReset Disc | 3.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 22.15 Evaluated at bid price : 22.80 Bid-YTW : 6.90 % |
| BAM.PF.G | FixedReset Disc | 3.93 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 18.50 Evaluated at bid price : 18.50 Bid-YTW : 7.64 % |
| NA.PR.S | FixedReset Disc | 4.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 20.90 Evaluated at bid price : 20.90 Bid-YTW : 6.66 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TRP.PR.A | FixedReset Disc | 77,100 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 16.25 Evaluated at bid price : 16.25 Bid-YTW : 7.68 % |
| BAM.PR.K | Floater | 51,772 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 13.05 Evaluated at bid price : 13.05 Bid-YTW : 6.42 % |
| PWF.PR.H | Perpetual-Discount | 43,307 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 22.97 Evaluated at bid price : 23.24 Bid-YTW : 6.26 % |
| MFC.PR.I | FixedReset Ins Non | 36,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 23.27 Evaluated at bid price : 24.40 Bid-YTW : 6.27 % |
| NA.PR.W | FixedReset Disc | 27,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 20.81 Evaluated at bid price : 20.81 Bid-YTW : 6.40 % |
| SLF.PR.D | Insurance Straight | 17,508 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-08-29 Maturity Price : 18.96 Evaluated at bid price : 18.96 Bid-YTW : 5.87 % |
| There were 3 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| CU.PR.F | Perpetual-Discount | Quote: 19.30 – 24.43 Spot Rate : 5.1300 Average : 4.7998 YTW SCENARIO |
| TRP.PR.F | FloatingReset | Quote: 16.80 – 17.60 Spot Rate : 0.8000 Average : 0.5454 YTW SCENARIO |
| IFC.PR.G | FixedReset Ins Non | Quote: 22.00 – 23.00 Spot Rate : 1.0000 Average : 0.7619 YTW SCENARIO |
| SLF.PR.C | Insurance Straight | Quote: 18.95 – 19.74 Spot Rate : 0.7900 Average : 0.5716 YTW SCENARIO |
| NA.PR.W | FixedReset Disc | Quote: 20.81 – 21.50 Spot Rate : 0.6900 Average : 0.4900 YTW SCENARIO |
| RY.PR.S | FixedReset Disc | Quote: 23.87 – 24.45 Spot Rate : 0.5800 Average : 0.3848 YTW SCENARIO |