TXPR closed at 535.65, down 0.64% on the day after setting a new 52-week low. Volume today was 825,140, below the median of the past 21 trading days.
CPD closed at 10.69, down 0.09% on the day after setting a new 52-week low. Volume was 140,400, second-highest of the past 21 trading days.
ZPR closed at 8.74, down 0.68% on the day. Volume was 165,350, fourth-highest of the past 21 trading days.
Five-year Canada yields up a bit to 3.03% today.
I’ve been following the Stateview fiasco, (first discussed April 26) with great interest (published April 28):
More lenders of Ontario builder StateView Homes are demanding it repay close to $200-million in loans, casting doubt on its ability to cover its debts, according to new court documents.
Filings from KingSett Mortgage Corp. – part of KingSett Capital’s $17-billion portfolio – challenge StateViews’s recent claims that it will finish a half-dozen townhouse projects that include hundreds of future homes, making insolvency and liquidation more likely.
…
The lenders are demanding repayment of $167.8-million and $4-million that was advanced to StateView for a variety of residential and commercial properties. They are also asking the court to appoint a third-party receiver to manage a sales process on StateView’s remaining assets.StateView declined to comment on the latest filings, but issued a statement Wednesday promising the company was still solvent enough to complete its projects.
The latest legal action comes days after Atrium Mortgage Investment Company jointly filed with Dorr to recoup $24.4-million loaned to StateView for one project in Markham. With KingSett’s filing, lenders are seeking close to $200-million in payments, leaving the bulk of the Vaughan-based builder’s active projects subject of court proceedings.
… and on May 10:
A fourth lender has demanded repayment of millions in loans from troubled Toronto-area land developer StateView Homes.
On May 5, Meridian Credit Union Ltd. filed an application to appoint a receiver for StateView Homes (Elm&Co) Inc., which was planning to build 206 townhouses on raw land at 12942 York Durham Line in Stouffville, Ont., near a GO Transit station. Meridian is seeking repayment of $17.8-million it loaned StateView on Dec. 5, 2022. In its filing, it warns the court that three other lenders subsequently loaned the Elm site another $27-million, but that a $20.8-million charge registered by Bergo Investment Inc., MCO Management Inc. and Tony Karamitsos on Dec. 16, 2022 was unauthorized.
…
Property records show StateView’s financial situation was precarious long before the cheque-kiting scheme came to light. In the case of BEA Towns in Barrie, Ont., property records show StateView paid $25.6-million in April, 2022 for the land and registered a $37.5-million loan on the property from Dorr Capital at the same time. On Dec. 16, 2022, StateView registered a loan of $20.8-million from Bergo, MCO and Mr. Karamitsos – the same day it registered a $20-million loan on the Elm&Co land in Stouffville. Neither Bergo or MCO responded to requests for comment. Only initial excavation work appears to have been started at the BEA Towns site.
Ida Wolden Bache, Governor of Norges Bank gave an introductory statement:
The Bank’s forecasts in March indicate that inflation will move down towards 2 percent over the coming years. If developments turn out as projected, inflation will return to target with little rise in unemployment.
There is substantial uncertainty about the outlook. The future policy rate path will depend on economic developments.
Problems in some US and Swiss banks have led to large movements in global financial markets over the spring. The authorities in these two countries have intervened to reduce the risk of contagion to other institutions and markets.
The turmoil has had only a limited impact on funding costs for Norwegian banks and mortgage finance companies. Norwegian banks are profitable, solid, and have ample liquidity. They are well positioned to cope with higher losses and market stress. In 2022, Norges Bank decided to raise the countercyclical capital buffer rate for banks to 2.5 percent, effective from March 2023, which brings the rate back to its pre-pandemic level.
Norges Bank continuously and closely monitors financial market developments and has a contingency framework for taking measures required to safeguard financial stability if needed.
Let me conclude.
The current high rate of inflation follows a long period of low and stable inflation in our part of the world. Some of the driving forces that kept inflation low in the decades before the pandemic may be going into reverse.
Globalisation has been met with gradually growing opposition. Demographic trends are changing. Combined, this could make the job of keeping inflation low more demanding.
The global economy will increasingly be impacted by climate change and the need to reduce emissions. Understanding the economic effects of climate change and the energy transition is essential for making forecasts and the right trade-offs in the conduct of monetary policy. This is therefore defined as a focus area in Norges Bank’s Strategy 2025.
The main contribution monetary policy can make to the transition is to ensure low and stable inflation. A flexible and forward-looking inflation targeting regime, where we look through short-term inflation fluctuations, is a good basis for addressing the structural changes we are facing.
A small open economy like Norway will be exposed to shocks, as we have acutely experienced in recent years. Economic policy cannot shield the economy totally from shocks that may arise, but can dampen their impact. A framework that provides monetary policy predictability makes it easier to succeed.
| 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 | -0.2792 % | 2,059.5 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2792 % | 3,950.1 |
| Floater | 10.94 % | 10.67 % | 52,050 | 8.96 | 2 | -0.2792 % | 2,276.5 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0000 % | 3,340.2 |
| SplitShare | 5.03 % | 7.52 % | 42,573 | 2.56 | 7 | 0.0000 % | 3,988.9 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0000 % | 3,112.3 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2602 % | 2,736.9 |
| Perpetual-Discount | 6.23 % | 6.30 % | 45,263 | 13.46 | 34 | -0.2602 % | 2,984.4 |
| FixedReset Disc | 5.90 % | 7.79 % | 83,420 | 11.88 | 63 | -0.6277 % | 2,099.4 |
| Insurance Straight | 6.07 % | 6.20 % | 61,531 | 13.57 | 19 | 0.0619 % | 2,961.9 |
| FloatingReset | 10.62 % | 11.19 % | 47,654 | 8.60 | 2 | -1.0907 % | 2,355.4 |
| FixedReset Prem | 6.97 % | 6.52 % | 324,521 | 12.83 | 1 | -0.1188 % | 2,320.1 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.6277 % | 2,146.0 |
| FixedReset Ins Non | 6.02 % | 7.34 % | 76,697 | 12.09 | 11 | -0.8697 % | 2,318.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BN.PF.F | FixedReset Disc | -3.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 15.74 Evaluated at bid price : 15.74 Bid-YTW : 9.20 % |
| TRP.PR.E | FixedReset Disc | -3.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 14.46 Evaluated at bid price : 14.46 Bid-YTW : 9.10 % |
| MFC.PR.F | FixedReset Ins Non | -2.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 12.16 Evaluated at bid price : 12.16 Bid-YTW : 8.28 % |
| CU.PR.F | Perpetual-Discount | -2.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 18.05 Evaluated at bid price : 18.05 Bid-YTW : 6.26 % |
| IFC.PR.G | FixedReset Ins Non | -2.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 19.33 Evaluated at bid price : 19.33 Bid-YTW : 7.34 % |
| CU.PR.C | FixedReset Disc | -2.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 18.80 Evaluated at bid price : 18.80 Bid-YTW : 7.16 % |
| RY.PR.M | FixedReset Disc | -2.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 16.56 Evaluated at bid price : 16.56 Bid-YTW : 7.86 % |
| TRP.PR.A | FixedReset Disc | -1.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 13.38 Evaluated at bid price : 13.38 Bid-YTW : 9.06 % |
| CU.PR.I | FixedReset Disc | -1.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 22.62 Evaluated at bid price : 23.20 Bid-YTW : 6.84 % |
| TD.PF.E | FixedReset Disc | -1.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 17.60 Evaluated at bid price : 17.60 Bid-YTW : 7.74 % |
| BN.PR.R | FixedReset Disc | -1.65 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 13.15 Evaluated at bid price : 13.15 Bid-YTW : 9.31 % |
| BN.PR.B | Floater | -1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 11.26 Evaluated at bid price : 11.26 Bid-YTW : 10.67 % |
| TRP.PR.B | FixedReset Disc | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 10.10 Evaluated at bid price : 10.10 Bid-YTW : 9.68 % |
| TRP.PR.D | FixedReset Disc | -1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 15.10 Evaluated at bid price : 15.10 Bid-YTW : 8.90 % |
| FTS.PR.H | FixedReset Disc | -1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 12.35 Evaluated at bid price : 12.35 Bid-YTW : 8.39 % |
| BN.PF.D | Perpetual-Discount | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 18.68 Evaluated at bid price : 18.68 Bid-YTW : 6.67 % |
| BN.PR.Z | FixedReset Disc | -1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 19.25 Evaluated at bid price : 19.25 Bid-YTW : 7.97 % |
| RY.PR.H | FixedReset Disc | -1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 16.61 Evaluated at bid price : 16.61 Bid-YTW : 7.79 % |
| BN.PF.B | FixedReset Disc | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 8.89 % |
| FTS.PR.G | FixedReset Disc | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 17.35 Evaluated at bid price : 17.35 Bid-YTW : 7.59 % |
| FTS.PR.M | FixedReset Disc | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 16.53 Evaluated at bid price : 16.53 Bid-YTW : 8.24 % |
| IFC.PR.A | FixedReset Ins Non | -1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 17.10 Evaluated at bid price : 17.10 Bid-YTW : 7.10 % |
| TRP.PR.F | FloatingReset | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 14.72 Evaluated at bid price : 14.72 Bid-YTW : 11.19 % |
| BIK.PR.A | FixedReset Disc | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 21.94 Evaluated at bid price : 22.50 Bid-YTW : 7.80 % |
| BN.PR.T | FixedReset Disc | -1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 13.60 Evaluated at bid price : 13.60 Bid-YTW : 9.16 % |
| GWO.PR.N | FixedReset Ins Non | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 12.12 Evaluated at bid price : 12.12 Bid-YTW : 8.02 % |
| PWF.PR.H | Perpetual-Discount | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 22.50 Evaluated at bid price : 22.76 Bid-YTW : 6.37 % |
| SLF.PR.J | FloatingReset | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 14.30 Evaluated at bid price : 14.30 Bid-YTW : 10.59 % |
| BMO.PR.W | FixedReset Disc | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 16.33 Evaluated at bid price : 16.33 Bid-YTW : 7.85 % |
| NA.PR.W | FixedReset Disc | -1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 7.79 % |
| RY.PR.J | FixedReset Disc | -1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 17.65 Evaluated at bid price : 17.65 Bid-YTW : 7.70 % |
| BN.PR.K | Floater | 1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 10.17 Evaluated at bid price : 10.17 Bid-YTW : 11.85 % |
| BNS.PR.I | FixedReset Disc | 1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 20.66 Evaluated at bid price : 20.66 Bid-YTW : 6.64 % |
| BIP.PR.E | FixedReset Disc | 2.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 7.38 % |
| NA.PR.G | FixedReset Disc | 2.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 6.84 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| NA.PR.G | FixedReset Disc | 24,434 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 6.84 % |
| CM.PR.S | FixedReset Disc | 20,099 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 21.20 Evaluated at bid price : 21.20 Bid-YTW : 6.67 % |
| BN.PF.B | FixedReset Disc | 14,945 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 8.89 % |
| MFC.PR.J | FixedReset Ins Non | 12,800 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 21.80 Evaluated at bid price : 22.22 Bid-YTW : 6.63 % |
| BMO.PR.S | FixedReset Disc | 12,465 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 17.22 Evaluated at bid price : 17.22 Bid-YTW : 7.68 % |
| TRP.PR.F | FloatingReset | 11,810 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-05-12 Maturity Price : 14.72 Evaluated at bid price : 14.72 Bid-YTW : 11.19 % |
| There were 3 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: 21.00 – 21.98 Spot Rate : 0.9800 Average : 0.6361 YTW SCENARIO |
| CU.PR.E | Perpetual-Discount | Quote: 19.69 – 23.72 Spot Rate : 4.0300 Average : 3.7004 YTW SCENARIO |
| IFC.PR.C | FixedReset Disc | Quote: 17.49 – 18.49 Spot Rate : 1.0000 Average : 0.6731 YTW SCENARIO |
| RY.PR.M | FixedReset Disc | Quote: 16.56 – 17.50 Spot Rate : 0.9400 Average : 0.6815 YTW SCENARIO |
| BN.PF.F | FixedReset Disc | Quote: 15.74 – 16.65 Spot Rate : 0.9100 Average : 0.6559 YTW SCENARIO |
| CU.PR.C | FixedReset Disc | Quote: 18.80 – 19.70 Spot Rate : 0.9000 Average : 0.6511 YTW SCENARIO |