François Villeroy de Galhau, Governor of the Bank of France, gave a speech titled How central banks should face instability and fragmentation:
French and European banks benefit from a well-diversified and profitable business base, be it on the deposits or on the credit side, unlike SVB. The increase in interest rates has even started to boost their net interest income, which grew by 12.7 % in 2022 at the twenty main Euro area banks – this should also raise questions over the alleged trade off between price stability and financial stability.
This trade off is a fashionable idea at the moment, but I find it overdone. The goals are not necessarily incompatible, and we have separate instruments to achieve them. For the great majority of European banks, higher interest rates are beneficial. If however action were needed on financial stability, this would be effected chiefly through temporary liquidity instruments, which would not conflict with the increase in interest rates needed to ensure price stability.
Be they energy price pressures or financial spill-overs, the challenges currently faced by central banks require more than individual actions – they call for strong and effective multilateral impetus. I say it here in Washington, during the IMF Spring Meetings.
However, the tide has been turning the other way since the Russian invasion of Ukraine. As geopolitical rifts deepen and trust fades, it is becoming more and more difficult for the G20 to deliver on its mandate, despite remarkable efforts from the Indonesian and now the Indian presidency. We need to find pragmatic ways forward to overcome deadlocks in global action and adapt to the new realities.
Alternatives to multilateral cooperation, such as regionalism, “minilateralism”,ii or “polylateralism”iii can usefully supplement it. Working on smaller scales, or relying on non-state actors could help achieve breakthroughs. Yet they cannot replace it. They lack the global reach of international state cooperation.iv Hence my call for a focused or pragmatic multilateralism. v The principle is simple: rather than pursuing an exaggerated ambition, focus at present multilateral efforts on a few selected global issues, where there are clear common interests. In my view, without pretending to be exhaustive, these global issues on which interests and deliverables could converge encompass the following three “Cs”: climate, crypto-assets, cross-border payments.
The BoC has released a Staff Working Paper by Andrew Glover and Jacob Short titled Demographic Origins of the Decline in Labor’s Share:
Since 1980, the earnings share of older workers has risen in the United States. At the same time, labor’s share of income has declined significantly. We hypothesize that an aging workforce has contributed to the decline in labor’s share of income. We formalize this hypothesis in an onthe-job search model in which employers of older workers may have substantial monopsony power due to the decline in labor market dynamism that accompanies aging. The greater monopsony power manifests as a growing wedge between a worker’s earnings and their marginal product over the life cycle. We estimate the profile of these wedges using crossindustry variation in labor’s share and the age distribution of earnings. We find that a 60-yearold worker receives half the marginal product relative to when they were 20. Together with recent demographic trends, this can account for 59% of the recent decline in labor’s share of earnings in the United States.
And the BoC has released a Staff Working Paper by Stephen Ayerst, Faisal Ibrahim, Gaelan MacKenzie and Swapnika Rachapalli titled Trade and Diffusion of Embodied Technology: An Empirical Analysis:
Using data from patents, citations, inter-sectoral sales and customs, we examine the international diffusion of technology through imports of sectoral knowledge and production inputs. We construct measures of the flow of technology embodied in imports. These measures are weighted by inter-sectoral knowledge and production input-output linkages that capture the relevance of this technology for generating new innovations in different sectors in importing countries. We develop an instrumental variable strategy to identify the causal effects of technology embodied in imports on innovation and diffusion outcomes. For sectors in importing countries, increases in both knowledge- and production-weighted embodied technology imports lead to technology diffusion (measured using backward citations in new patent applications) and increases in the rate of new innovations (measured using the forward citations those patents receive). Effects are substantially larger for knowledge-weighted imports of embodied technology, which also lead to improvements in the average quality of new innovations.
| 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 | 0.1658 % | 2,321.9 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1658 % | 4,453.3 |
| Floater | 9.71 % | 9.84 % | 53,153 | 9.68 | 2 | 0.1658 % | 2,566.5 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4887 % | 3,339.8 |
| SplitShare | 5.03 % | 7.32 % | 43,932 | 2.63 | 7 | -0.4887 % | 3,988.4 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4887 % | 3,111.9 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0711 % | 2,762.5 |
| Perpetual-Discount | 6.18 % | 6.22 % | 53,528 | 13.57 | 34 | 0.0711 % | 3,012.4 |
| FixedReset Disc | 5.77 % | 7.56 % | 89,811 | 12.15 | 63 | 0.3320 % | 2,135.7 |
| Insurance Straight | 6.07 % | 6.11 % | 74,820 | 13.74 | 19 | 0.0928 % | 2,961.3 |
| FloatingReset | 10.36 % | 10.96 % | 36,161 | 8.84 | 2 | 0.6789 % | 2,407.4 |
| FixedReset Prem | 6.92 % | 6.45 % | 321,608 | 12.96 | 1 | 0.0000 % | 2,336.6 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3320 % | 2,183.1 |
| FixedReset Ins Non | 5.99 % | 7.41 % | 70,665 | 12.04 | 11 | 0.1516 % | 2,304.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| MIC.PR.A | Perpetual-Discount | -3.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 20.31 Evaluated at bid price : 20.31 Bid-YTW : 6.72 % |
| PWF.PR.P | FixedReset Disc | -2.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 12.20 Evaluated at bid price : 12.20 Bid-YTW : 8.39 % |
| PVS.PR.H | SplitShare | -1.94 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2027-02-28 Maturity Price : 25.00 Evaluated at bid price : 22.75 Bid-YTW : 7.61 % |
| BN.PF.B | FixedReset Disc | -1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 8.88 % |
| PVS.PR.G | SplitShare | -1.05 % | YTW SCENARIO Maturity Type : Option Certainty Maturity Date : 2026-02-28 Maturity Price : 25.00 Evaluated at bid price : 23.55 Bid-YTW : 7.40 % |
| BMO.PR.F | FixedReset Disc | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 23.50 Evaluated at bid price : 24.01 Bid-YTW : 6.83 % |
| BIP.PR.E | FixedReset Disc | 1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 21.50 Evaluated at bid price : 21.80 Bid-YTW : 7.01 % |
| BN.PF.A | FixedReset Disc | 1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 18.55 Evaluated at bid price : 18.55 Bid-YTW : 8.11 % |
| FTS.PR.M | FixedReset Disc | 1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 16.81 Evaluated at bid price : 16.81 Bid-YTW : 8.10 % |
| FTS.PR.K | FixedReset Disc | 1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 16.20 Evaluated at bid price : 16.20 Bid-YTW : 7.92 % |
| GWO.PR.N | FixedReset Ins Non | 1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 12.00 Evaluated at bid price : 12.00 Bid-YTW : 8.11 % |
| FTS.PR.G | FixedReset Disc | 1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 17.45 Evaluated at bid price : 17.45 Bid-YTW : 7.55 % |
| CCS.PR.C | Insurance Straight | 1.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 20.16 Evaluated at bid price : 20.16 Bid-YTW : 6.26 % |
| TD.PF.K | FixedReset Disc | 1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 20.30 Evaluated at bid price : 20.30 Bid-YTW : 6.95 % |
| SLF.PR.J | FloatingReset | 1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 14.81 Evaluated at bid price : 14.81 Bid-YTW : 10.10 % |
| PWF.PF.A | Perpetual-Discount | 1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 18.57 Evaluated at bid price : 18.57 Bid-YTW : 6.08 % |
| MFC.PR.Q | FixedReset Ins Non | 1.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 19.21 Evaluated at bid price : 19.21 Bid-YTW : 7.41 % |
| BIP.PR.F | FixedReset Disc | 2.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 19.40 Evaluated at bid price : 19.40 Bid-YTW : 7.75 % |
| TRP.PR.B | FixedReset Disc | 2.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 10.84 Evaluated at bid price : 10.84 Bid-YTW : 9.07 % |
| BIP.PR.B | FixedReset Disc | 2.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 21.52 Evaluated at bid price : 21.90 Bid-YTW : 8.28 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| NA.PR.C | FixedReset Prem | 130,083 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 23.32 Evaluated at bid price : 25.40 Bid-YTW : 6.45 % |
| TD.PF.C | FixedReset Disc | 54,900 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 16.83 Evaluated at bid price : 16.83 Bid-YTW : 7.63 % |
| CU.PR.J | Perpetual-Discount | 45,542 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 19.44 Evaluated at bid price : 19.44 Bid-YTW : 6.21 % |
| RY.PR.J | FixedReset Disc | 34,496 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 18.21 Evaluated at bid price : 18.21 Bid-YTW : 7.56 % |
| CM.PR.Y | FixedReset Disc | 31,513 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 22.78 Evaluated at bid price : 23.25 Bid-YTW : 7.04 % |
| BN.PF.I | FixedReset Disc | 31,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-04-13 Maturity Price : 19.97 Evaluated at bid price : 19.97 Bid-YTW : 8.21 % |
| There were 14 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BIP.PR.A | FixedReset Disc | Quote: 16.91 – 19.10 Spot Rate : 2.1900 Average : 1.1963 YTW SCENARIO |
| MFC.PR.C | Insurance Straight | Quote: 18.75 – 19.70 Spot Rate : 0.9500 Average : 0.5991 YTW SCENARIO |
| CCS.PR.C | Insurance Straight | Quote: 20.16 – 21.00 Spot Rate : 0.8400 Average : 0.5437 YTW SCENARIO |
| NA.PR.S | FixedReset Disc | Quote: 17.10 – 17.77 Spot Rate : 0.6700 Average : 0.4110 YTW SCENARIO |
| PWF.PR.F | Perpetual-Discount | Quote: 21.26 – 22.00 Spot Rate : 0.7400 Average : 0.4991 YTW SCENARIO |
| IFC.PR.F | Insurance Straight | Quote: 22.20 – 23.10 Spot Rate : 0.9000 Average : 0.7016 YTW SCENARIO |