TXPR closed at 540.84, down 0.72% on the day and setting a new 52-week low of 540.55. Volume today was 3.38-million, highest of the past 21 trading days.
CPD closed at 10.78, down 1.64% on the day. Volume was 205,080, second-highest of the past 21 trading days.
ZPR closed at 8.96, down 1.32% on the day; the close is a new 52-week low. Volume was 387,830, fourth-highest of the past 21 trading days.
Five-year Canada yields were up a bit to 2.98% today.
Equities got hit again today, with the chattering class blaming the usual suspects:
U.S. and Canadian equities closed lower on Monday for a fourth straight session, with Nasdaq leading declines, as investors shied away from riskier bets, worried the Federal Reserve’s tightening campaign could push the U.S. economy into a recession. All major sectors on the TSX ended with losses, with Algonquin Power and Utilities falling to its lowest point in more than seven years after an analyst cut his price target on the utility.
Major North American stock indexes have been under pressure since Wednesday, when Fed Chair Jerome Powell took a hawkish tone while the central bank raised interest rates. Powell promised further rate increases even as data showed signs of a weakening economy.
The S&P 500, the Dow Jones industrials and the Nasdaq have sold off sharply for December and are on track for their biggest annual declines since the 2008 financial crisis.
I feel that a sigificant contributor to preferred market losses in the month to date has been pressure from tax loss sellers – those individuals who are so often happy to take an additional loss of $1.00 if it will save them a dime in taxes.
It this is correct, then we may be heading for a reprise of December, 2008; losses had of course been very heavy in the preceding year and tax loss selling was very popular. So the market popped as soon as trades started having 2009 settlement dates and the selling pressure came off. We see the same effect, although not as nicely, in 2015, which was the other bad year for which I have convenient records.
Some Assiduous Readers might be amused to learn that the TXPR price index in 2008 was in the 650-700 range, while in 2022 it’s in the 545-560 range – call it a little over one-sixth lower. In 2015, price levels were intermediate.
So anyway, what I’m suggesting is that there is a chance of a market pop on December 29 and 30 of this year, when trades will start settling in 2023 and losses will no longer count towards 2022 taxes. Far be it from me to suggest such a crazy notion as market timing, but risk avoidance is another matter – those investors who are currently underweight preferred shares (relative to their desired allocation) may consider it prudent to rebalance prior to December 29, rather than waiting until the new year. Note that the market may well be relatively illiquid in the last week of the year.
| 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 | -2.0990 % | 2,375.7 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -2.0990 % | 4,556.6 |
| Floater | 9.13 % | 9.08 % | 45,579 | 10.36 | 2 | -2.0990 % | 2,626.0 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -1.2646 % | 3,182.1 |
| SplitShare | 5.34 % | 8.43 % | 61,209 | 2.73 | 8 | -1.2646 % | 3,800.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -1.2646 % | 2,965.0 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2324 % | 2,644.9 |
| Perpetual-Discount | 6.44 % | 6.58 % | 103,939 | 13.03 | 35 | -0.2324 % | 2,884.1 |
| FixedReset Disc | 5.59 % | 7.42 % | 101,966 | 12.24 | 62 | -0.8514 % | 2,149.6 |
| Insurance Straight | 6.44 % | 6.54 % | 120,105 | 13.20 | 20 | -0.0624 % | 2,790.7 |
| FloatingReset | 9.73 % | 9.36 % | 35,300 | 10.10 | 2 | 0.0000 % | 2,471.5 |
| FixedReset Prem | 6.60 % | 6.45 % | 194,435 | 12.79 | 2 | -0.1188 % | 2,379.5 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.8514 % | 2,197.3 |
| FixedReset Ins Non | 5.60 % | 7.60 % | 63,414 | 12.31 | 14 | -0.4618 % | 2,245.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PVS.PR.G | SplitShare | -5.77 % | YTW SCENARIO Maturity Type : Option Certainty Maturity Date : 2026-02-28 Maturity Price : 25.00 Evaluated at bid price : 21.39 Bid-YTW : 10.46 % |
| BN.PF.I | FixedReset Disc | -4.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 21.71 Evaluated at bid price : 22.06 Bid-YTW : 7.31 % |
| BN.PR.B | Floater | -3.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 12.20 Evaluated at bid price : 12.20 Bid-YTW : 9.32 % |
| BIP.PR.E | FixedReset Disc | -3.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 19.45 Evaluated at bid price : 19.45 Bid-YTW : 7.74 % |
| BN.PF.A | FixedReset Disc | -3.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 18.38 Evaluated at bid price : 18.38 Bid-YTW : 8.01 % |
| BN.PF.E | FixedReset Disc | -3.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 15.08 Evaluated at bid price : 15.08 Bid-YTW : 8.68 % |
| BMO.PR.E | FixedReset Disc | -2.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 20.16 Evaluated at bid price : 20.16 Bid-YTW : 7.06 % |
| BN.PF.J | FixedReset Disc | -2.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 22.10 Evaluated at bid price : 22.70 Bid-YTW : 6.70 % |
| BN.PR.N | Perpetual-Discount | -2.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 17.80 Evaluated at bid price : 17.80 Bid-YTW : 6.71 % |
| PVS.PR.H | SplitShare | -2.73 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2027-02-28 Maturity Price : 25.00 Evaluated at bid price : 21.40 Bid-YTW : 9.00 % |
| BN.PR.X | FixedReset Disc | -2.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 15.10 Evaluated at bid price : 15.10 Bid-YTW : 7.88 % |
| BN.PF.B | FixedReset Disc | -2.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 16.51 Evaluated at bid price : 16.51 Bid-YTW : 8.40 % |
| BN.PR.T | FixedReset Disc | -2.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 14.65 Evaluated at bid price : 14.65 Bid-YTW : 8.33 % |
| BN.PF.F | FixedReset Disc | -2.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 16.43 Evaluated at bid price : 16.43 Bid-YTW : 8.59 % |
| TRP.PR.C | FixedReset Disc | -1.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 11.68 Evaluated at bid price : 11.68 Bid-YTW : 8.53 % |
| IFC.PR.G | FixedReset Ins Non | -1.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 18.60 Evaluated at bid price : 18.60 Bid-YTW : 7.46 % |
| RY.PR.S | FixedReset Disc | -1.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 19.90 Evaluated at bid price : 19.90 Bid-YTW : 6.77 % |
| NA.PR.E | FixedReset Disc | -1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 19.42 Evaluated at bid price : 19.42 Bid-YTW : 7.25 % |
| BN.PR.M | Perpetual-Discount | -1.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 17.84 Evaluated at bid price : 17.84 Bid-YTW : 6.70 % |
| PVS.PR.K | SplitShare | -1.56 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2029-05-31 Maturity Price : 25.00 Evaluated at bid price : 20.18 Bid-YTW : 8.47 % |
| BMO.PR.T | FixedReset Disc | -1.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 17.00 Evaluated at bid price : 17.00 Bid-YTW : 7.51 % |
| CM.PR.Y | FixedReset Disc | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 24.00 Evaluated at bid price : 24.35 Bid-YTW : 6.70 % |
| RY.PR.Z | FixedReset Disc | -1.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 17.06 Evaluated at bid price : 17.06 Bid-YTW : 7.50 % |
| CU.PR.C | FixedReset Disc | -1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 19.00 Evaluated at bid price : 19.00 Bid-YTW : 7.10 % |
| BN.PR.R | FixedReset Disc | -1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 14.08 Evaluated at bid price : 14.08 Bid-YTW : 8.50 % |
| BN.PF.D | Perpetual-Discount | -1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 18.23 Evaluated at bid price : 18.23 Bid-YTW : 6.76 % |
| NA.PR.W | FixedReset Disc | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 16.40 Evaluated at bid price : 16.40 Bid-YTW : 7.77 % |
| BMO.PR.Y | FixedReset Disc | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 18.05 Evaluated at bid price : 18.05 Bid-YTW : 7.30 % |
| TD.PF.D | FixedReset Disc | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 18.88 Evaluated at bid price : 18.88 Bid-YTW : 7.15 % |
| BNS.PR.I | FixedReset Disc | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 20.10 Evaluated at bid price : 20.10 Bid-YTW : 6.81 % |
| MFC.PR.J | FixedReset Ins Non | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 19.56 Evaluated at bid price : 19.56 Bid-YTW : 7.21 % |
| CU.PR.H | Perpetual-Discount | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 6.48 % |
| IFC.PR.I | Perpetual-Discount | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 6.31 % |
| NA.PR.S | FixedReset Disc | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 17.25 Evaluated at bid price : 17.25 Bid-YTW : 7.73 % |
| BMO.PR.W | FixedReset Disc | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 17.35 Evaluated at bid price : 17.35 Bid-YTW : 7.34 % |
| CU.PR.F | Perpetual-Discount | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 17.40 Evaluated at bid price : 17.40 Bid-YTW : 6.54 % |
| TD.PF.C | FixedReset Disc | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 17.01 Evaluated at bid price : 17.01 Bid-YTW : 7.53 % |
| TD.PF.E | FixedReset Disc | -1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 19.14 Evaluated at bid price : 19.14 Bid-YTW : 7.09 % |
| TRP.PR.A | FixedReset Disc | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 13.75 Evaluated at bid price : 13.75 Bid-YTW : 8.59 % |
| MIC.PR.A | Perpetual-Discount | -1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 18.45 Evaluated at bid price : 18.45 Bid-YTW : 7.37 % |
| BN.PF.C | Perpetual-Discount | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 18.23 Evaluated at bid price : 18.23 Bid-YTW : 6.69 % |
| CM.PR.S | FixedReset Disc | -1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 20.51 Evaluated at bid price : 20.51 Bid-YTW : 6.72 % |
| BMO.PR.F | FixedReset Disc | 1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 23.57 Evaluated at bid price : 24.00 Bid-YTW : 6.70 % |
| FTS.PR.H | FixedReset Disc | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 12.30 Evaluated at bid price : 12.30 Bid-YTW : 8.17 % |
| IAF.PR.B | Insurance Straight | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 18.76 Evaluated at bid price : 18.76 Bid-YTW : 6.16 % |
| POW.PR.D | Perpetual-Discount | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 19.55 Evaluated at bid price : 19.55 Bid-YTW : 6.53 % |
| BN.PF.H | FixedReset Disc | 3.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 22.72 Evaluated at bid price : 23.50 Bid-YTW : 7.16 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BIP.PR.E | FixedReset Disc | 212,346 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 19.45 Evaluated at bid price : 19.45 Bid-YTW : 7.74 % |
| TD.PF.K | FixedReset Disc | 70,118 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 19.78 Evaluated at bid price : 19.78 Bid-YTW : 7.11 % |
| GWO.PR.R | Insurance Straight | 68,970 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 18.38 Evaluated at bid price : 18.38 Bid-YTW : 6.57 % |
| PWF.PR.S | Perpetual-Discount | 60,146 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 18.55 Evaluated at bid price : 18.55 Bid-YTW : 6.59 % |
| TD.PF.C | FixedReset Disc | 49,984 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 17.01 Evaluated at bid price : 17.01 Bid-YTW : 7.53 % |
| CM.PR.S | FixedReset Disc | 49,564 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-12-19 Maturity Price : 20.51 Evaluated at bid price : 20.51 Bid-YTW : 6.72 % |
| There were 82 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| PVS.PR.G | SplitShare | Quote: 21.39 – 23.25 Spot Rate : 1.8600 Average : 1.0621 YTW SCENARIO |
| PVS.PR.I | SplitShare | Quote: 22.77 – 23.80 Spot Rate : 1.0300 Average : 0.5992 YTW SCENARIO |
| PVS.PR.K | SplitShare | Quote: 20.18 – 21.24 Spot Rate : 1.0600 Average : 0.6820 YTW SCENARIO |
| CU.PR.C | FixedReset Disc | Quote: 19.00 – 19.99 Spot Rate : 0.9900 Average : 0.6272 YTW SCENARIO |
| BIP.PR.E | FixedReset Disc | Quote: 19.45 – 20.40 Spot Rate : 0.9500 Average : 0.6436 YTW SCENARIO |
| MFC.PR.Q | FixedReset Ins Non | Quote: 18.90 – 19.60 Spot Rate : 0.7000 Average : 0.4142 YTW SCENARIO |
the shocker of the day was the BoJ expanding it’s target rate today. wow