TXPR closed at 569.72, down 0.53% on the day. Volume today was 1.46-million, third-highest of the past 21 trading days.
CPD closed at 11.31, down 0.53% on the day. Volume was 103,020, above the median of the past 21 trading days.
ZPR closed at 9.49, down 0.63% on the day. Volume was 250,400, third-highest of the past 21 trading days.
Five-year Canada yields were up a few beeps to 3.30% today.
I really don’t know how low this market can go. Yields are already phenomenally high due to pending dividend increases and current price declines. I had some vague hopes that the reset of TD.PF.I to 6.301% would spark a little interest, but it appears that the market is sneering at a mere 6.3% preferred dividend yield from a major bank.
I am left with the suspicion that the market is expecting an imminent recession and the return of near-zero yields:
U.S. and Canadian stocks rallied for a second straight day on Tuesday after softer U.S. economic data and a smaller-than-expected interest rate hike by the Australian central bank stirred hope that the Federal Reserve might temper its aggressive raising of rates. After gaining 2.4% on Monday, the Canadian benchmark stock index rose almost another 2.6% for its best gain in two-and-a-half years.
While labour demand remains fairly strong, U.S. job openings fell by the most in nearly 2-1/2 years in August in a sign the Fed’s mission to tame inflation by hiking rates was working to slow the economy.
Earlier, the Reserve Bank of Australia surprised markets with a smaller-than-expected interest rate hike of 25 basis points. Its cash rate rose to a nine-year peak after six rate hikes in as many months in a tightening cycle other central banks are engaged in as well.
…
Still, Fed Governor Philip Jefferson said inflation is the most serious problem facing the U.S. central bank and it “may take some time” to address. San Francisco Fed President Mary Daly said the central bank needs to deliver more rate hikes.
How long will it take before the market decides that a 3.25% yield on five year Canada’s when inflation expectations are 2% is reasonably normal and that 0.5% with the same expectations is grossly abnormal? Will we all be dead by then?
The Delaware Court of Chancery released a trove of Elon Musk’s eMails (Exhibit H, page 82 of the PDF) that are public due to his lawsuit with Twitter. Reading them is, apparently, an emperor has no clothes moment:
What is so illuminating about the Musk messages is just how unimpressive, unimaginative, and sycophantic the powerful men in Musk’s contacts appear to be. Whoever said there are no bad ideas in brainstorming never had access to Elon Musk’s phone.
…
In no time, the texts were the central subject of discussion among tech workers and watchers. “The dominant reaction from all the threads I’m in is Everyone looks fucking dumb,” one former social-media executive, whom I’ve granted anonymity because they have relationships with many of the people in Musk’s texts, told me. “It’s been a general Is this really how business is done? There’s no real strategic thought or analysis. It’s just emotional and done without any real care for consequence.”
I have long taken the view that hard (and smart!) work and good ideas will get you a decent life and a lottery ticket. If your ticket is a winner, you can get unimaginably rich and there’s nothing more to the process than that; but if your ticket doesn’t come up, at least you’ve still got the decent life! Before entering the full-time workforce, I thought that the business world was run by smart, careful individuals who spent a lot of time checking their data and considering arguments. Then I started working and …. nahhhhh.
| 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 | 0.1992 % | 2,417.0 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1992 % | 4,635.8 |
| Floater | 7.58 % | 7.62 % | 60,350 | 11.83 | 2 | 0.1992 % | 2,671.6 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.5239 % | 3,381.5 |
| SplitShare | 4.97 % | 6.33 % | 34,239 | 3.09 | 7 | 0.5239 % | 4,038.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.5239 % | 3,150.8 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.6904 % | 2,686.6 |
| Perpetual-Discount | 6.34 % | 6.48 % | 70,920 | 13.19 | 33 | 0.6904 % | 2,929.6 |
| FixedReset Disc | 5.23 % | 7.01 % | 90,459 | 12.66 | 63 | -1.3780 % | 2,287.6 |
| Insurance Straight | 6.29 % | 6.30 % | 74,301 | 13.50 | 19 | 0.5633 % | 2,861.3 |
| FloatingReset | 8.66 % | 9.00 % | 36,215 | 10.42 | 2 | -1.2796 % | 2,504.8 |
| FixedReset Prem | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -1.3780 % | 2,421.1 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -1.3780 % | 2,338.4 |
| FixedReset Ins Non | 5.44 % | 7.53 % | 44,852 | 12.40 | 14 | -0.8793 % | 2,316.5 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BMO.PR.Y | FixedReset Disc | -7.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.43 Evaluated at bid price : 19.43 Bid-YTW : 7.05 % |
| CM.PR.P | FixedReset Disc | -7.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.00 Evaluated at bid price : 18.00 Bid-YTW : 7.29 % |
| BMO.PR.T | FixedReset Disc | -5.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.50 Evaluated at bid price : 18.50 Bid-YTW : 7.22 % |
| CM.PR.O | FixedReset Disc | -3.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.93 Evaluated at bid price : 18.93 Bid-YTW : 7.07 % |
| PWF.PR.P | FixedReset Disc | -3.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 12.54 Evaluated at bid price : 12.54 Bid-YTW : 8.44 % |
| RY.PR.H | FixedReset Disc | -3.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.05 Evaluated at bid price : 19.05 Bid-YTW : 7.04 % |
| TD.PF.A | FixedReset Disc | -3.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.95 Evaluated at bid price : 18.95 Bid-YTW : 7.05 % |
| TD.PF.B | FixedReset Disc | -3.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.97 Evaluated at bid price : 18.97 Bid-YTW : 7.12 % |
| RY.PR.M | FixedReset Disc | -3.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.16 Evaluated at bid price : 19.16 Bid-YTW : 6.99 % |
| TD.PF.D | FixedReset Disc | -3.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 20.40 Evaluated at bid price : 20.40 Bid-YTW : 6.88 % |
| TRP.PR.G | FixedReset Disc | -2.98 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 17.59 Evaluated at bid price : 17.59 Bid-YTW : 7.97 % |
| BMO.PR.W | FixedReset Disc | -2.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.96 Evaluated at bid price : 18.96 Bid-YTW : 7.03 % |
| BMO.PR.E | FixedReset Disc | -2.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 21.86 Evaluated at bid price : 22.38 Bid-YTW : 6.63 % |
| TD.PF.J | FixedReset Disc | -2.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 21.82 Evaluated at bid price : 22.30 Bid-YTW : 6.75 % |
| TD.PF.K | FixedReset Disc | -2.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 21.43 Evaluated at bid price : 21.75 Bid-YTW : 6.76 % |
| IAF.PR.I | FixedReset Ins Non | -2.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 21.56 Evaluated at bid price : 21.56 Bid-YTW : 6.98 % |
| TD.PF.I | FixedReset Disc | -2.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 22.82 Evaluated at bid price : 24.10 Bid-YTW : 6.58 % |
| RY.PR.Z | FixedReset Disc | -2.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.20 Evaluated at bid price : 19.20 Bid-YTW : 6.98 % |
| BMO.PR.S | FixedReset Disc | -2.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.55 Evaluated at bid price : 19.55 Bid-YTW : 7.02 % |
| RY.PR.J | FixedReset Disc | -2.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.96 Evaluated at bid price : 19.96 Bid-YTW : 7.00 % |
| TD.PF.E | FixedReset Disc | -2.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 20.55 Evaluated at bid price : 20.55 Bid-YTW : 6.86 % |
| MFC.PR.F | FixedReset Ins Non | -2.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 12.73 Evaluated at bid price : 12.73 Bid-YTW : 8.06 % |
| NA.PR.S | FixedReset Disc | -2.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.60 Evaluated at bid price : 19.60 Bid-YTW : 7.12 % |
| TD.PF.C | FixedReset Disc | -2.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.16 Evaluated at bid price : 19.16 Bid-YTW : 6.99 % |
| CM.PR.S | FixedReset Disc | -1.98 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 22.12 Evaluated at bid price : 22.75 Bid-YTW : 6.23 % |
| BNS.PR.I | FixedReset Disc | -1.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 21.31 Evaluated at bid price : 21.59 Bid-YTW : 6.52 % |
| IFC.PR.I | Perpetual-Discount | -1.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 21.77 Evaluated at bid price : 22.12 Bid-YTW : 6.14 % |
| RY.PR.S | FixedReset Disc | -1.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 21.35 Evaluated at bid price : 21.35 Bid-YTW : 6.62 % |
| TRP.PR.E | FixedReset Disc | -1.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 8.37 % |
| TRP.PR.F | FloatingReset | -1.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 15.75 Evaluated at bid price : 15.75 Bid-YTW : 9.00 % |
| MFC.PR.N | FixedReset Ins Non | -1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 16.55 Evaluated at bid price : 16.55 Bid-YTW : 8.00 % |
| BAM.PF.E | FixedReset Disc | -1.59 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 16.14 Evaluated at bid price : 16.14 Bid-YTW : 8.39 % |
| BAM.PR.R | FixedReset Disc | -1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 14.42 Evaluated at bid price : 14.42 Bid-YTW : 8.62 % |
| NA.PR.E | FixedReset Disc | -1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 21.67 Evaluated at bid price : 22.07 Bid-YTW : 6.66 % |
| IFC.PR.C | FixedReset Disc | -1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 16.80 Evaluated at bid price : 16.80 Bid-YTW : 7.87 % |
| BIP.PR.F | FixedReset Disc | -1.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 20.71 Evaluated at bid price : 20.71 Bid-YTW : 7.41 % |
| NA.PR.W | FixedReset Disc | -1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.10 Evaluated at bid price : 19.10 Bid-YTW : 6.98 % |
| TRP.PR.B | FixedReset Disc | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 11.75 Evaluated at bid price : 11.75 Bid-YTW : 8.52 % |
| MFC.PR.M | FixedReset Ins Non | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 16.89 Evaluated at bid price : 16.89 Bid-YTW : 7.99 % |
| MFC.PR.L | FixedReset Ins Non | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 16.70 Evaluated at bid price : 16.70 Bid-YTW : 7.92 % |
| FTS.PR.M | FixedReset Disc | -1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 17.65 Evaluated at bid price : 17.65 Bid-YTW : 7.85 % |
| IFC.PR.E | Insurance Straight | -1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 21.21 Evaluated at bid price : 21.21 Bid-YTW : 6.18 % |
| PWF.PR.L | Perpetual-Discount | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.90 Evaluated at bid price : 19.90 Bid-YTW : 6.55 % |
| FTS.PR.J | Perpetual-Discount | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.60 Evaluated at bid price : 19.60 Bid-YTW : 6.15 % |
| BAM.PF.C | Perpetual-Discount | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.55 Evaluated at bid price : 18.55 Bid-YTW : 6.60 % |
| CU.PR.F | Perpetual-Discount | 1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.20 Evaluated at bid price : 18.20 Bid-YTW : 6.27 % |
| PWF.PR.H | Perpetual-Discount | 1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 22.17 Evaluated at bid price : 22.45 Bid-YTW : 6.53 % |
| BAM.PF.B | FixedReset Disc | 1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 17.80 Evaluated at bid price : 17.80 Bid-YTW : 8.11 % |
| CU.PR.E | Perpetual-Discount | 1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.60 Evaluated at bid price : 19.60 Bid-YTW : 6.34 % |
| MFC.PR.C | Insurance Straight | 1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.45 Evaluated at bid price : 18.45 Bid-YTW : 6.16 % |
| IFC.PR.K | Perpetual-Discount | 1.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 21.31 Evaluated at bid price : 21.31 Bid-YTW : 6.21 % |
| POW.PR.C | Perpetual-Discount | 1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 22.39 Evaluated at bid price : 22.65 Bid-YTW : 6.42 % |
| PVS.PR.K | SplitShare | 2.07 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2029-05-31 Maturity Price : 25.00 Evaluated at bid price : 22.15 Bid-YTW : 6.70 % |
| BAM.PF.D | Perpetual-Discount | 2.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.90 Evaluated at bid price : 18.90 Bid-YTW : 6.54 % |
| BAM.PR.N | Perpetual-Discount | 2.95 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.50 Evaluated at bid price : 18.50 Bid-YTW : 6.48 % |
| ELF.PR.H | Perpetual-Discount | 4.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 21.49 Evaluated at bid price : 21.75 Bid-YTW : 6.34 % |
| IFC.PR.F | Insurance Straight | 6.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 21.76 Evaluated at bid price : 21.76 Bid-YTW : 6.14 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PF.I | FixedReset Disc | 60,290 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 22.82 Evaluated at bid price : 24.10 Bid-YTW : 6.58 % |
| TD.PF.A | FixedReset Disc | 55,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.95 Evaluated at bid price : 18.95 Bid-YTW : 7.05 % |
| RY.PR.Z | FixedReset Disc | 39,905 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 19.20 Evaluated at bid price : 19.20 Bid-YTW : 6.98 % |
| TRP.PR.D | FixedReset Disc | 27,550 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 16.29 Evaluated at bid price : 16.29 Bid-YTW : 8.40 % |
| BMO.PR.T | FixedReset Disc | 27,390 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 18.50 Evaluated at bid price : 18.50 Bid-YTW : 7.22 % |
| TD.PF.D | FixedReset Disc | 21,877 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-10-04 Maturity Price : 20.40 Evaluated at bid price : 20.40 Bid-YTW : 6.88 % |
| There were 15 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| MIC.PR.A | Perpetual-Discount | Quote: 19.95 – 28.99 Spot Rate : 9.0400 Average : 5.6998 YTW SCENARIO |
| IFC.PR.G | FixedReset Ins Non | Quote: 19.36 – 22.25 Spot Rate : 2.8900 Average : 1.6710 YTW SCENARIO |
| PWF.PR.S | Perpetual-Discount | Quote: 18.79 – 20.44 Spot Rate : 1.6500 Average : 0.9784 YTW SCENARIO |
| BIP.PR.F | FixedReset Disc | Quote: 20.71 – 22.95 Spot Rate : 2.2400 Average : 1.7916 YTW SCENARIO |
| CM.PR.P | FixedReset Disc | Quote: 18.00 – 19.95 Spot Rate : 1.9500 Average : 1.5145 YTW SCENARIO |
| TD.PF.A | FixedReset Disc | Quote: 18.95 – 20.39 Spot Rate : 1.4400 Average : 1.0701 YTW SCENARIO |
Hi Sir, its nice to follow you, thanks ! My question for you is, do you think it would be a good thing to convert my TD.PF.I into floaters ? Rates could be better for 2 years possibly and maybe more. Thanks!
“I thought that the business world was run by smart, careful individuals who spent a lot of time checking their data and considering arguments. Then I started working and …. nahhhhh.”
James, you ever have the “privilege” of working in the “public” sector?
… it’s far worse.