A bit of good news on US inflation:
The Federal Reserve’s preferred measure of prices fell last month, another sign that inflation is easing and that Americans should benefit from reduced interest rates and get relief from painful price shocks in 2024.
Friday’s report from the Commerce Department showed that U.S. consumer prices slid 0.1 per cent last month from October and rose 2.6 per cent from November, 2022. The month-over-month drop was the largest since April, 2020, when the economy was reeling from the COVID-19 pandemic.
Excluding volatile food and energy prices, so-called core inflation last month rose 0.1 per cent from October and 3.2 per cent from a year earlier.
The numbers show somewhat more progress against inflation than economists had expected. Inflation is steadily moving down to the Fed’s year-over-year target of 2 per cent and appears to be clearing the way for Fed rate cuts in 2024. That, in turn, could translate into lower rates on everything from mortgages to credit cards.
… and Merry Christmas, everyone!
| 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 | -0.4454 % | 2,159.6 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4454 % | 4,142.1 |
| Floater | 11.28 % | 11.37 % | 55,015 | 8.60 | 2 | -0.4454 % | 2,387.1 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0106 % | 3,377.6 |
| SplitShare | 4.97 % | 7.46 % | 57,583 | 1.75 | 8 | 0.0106 % | 4,033.6 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0106 % | 3,147.2 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2415 % | 2,539.9 |
| Perpetual-Discount | 6.77 % | 6.96 % | 63,928 | 12.58 | 33 | 0.2415 % | 2,769.6 |
| FixedReset Disc | 5.89 % | 7.86 % | 126,418 | 11.71 | 60 | 0.3112 % | 2,211.1 |
| Insurance Straight | 6.63 % | 6.80 % | 80,815 | 12.85 | 19 | 0.3019 % | 2,728.6 |
| FloatingReset | 10.68 % | 10.86 % | 37,503 | 8.93 | 3 | 0.0952 % | 2,473.7 |
| FixedReset Prem | 6.91 % | 6.73 % | 176,229 | 12.57 | 1 | -0.1964 % | 2,532.3 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3112 % | 2,260.2 |
| FixedReset Ins Non | 5.71 % | 7.38 % | 90,316 | 12.37 | 14 | 0.6986 % | 2,490.6 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| CCS.PR.C | Insurance Straight | -3.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 18.51 Evaluated at bid price : 18.51 Bid-YTW : 6.80 % |
| SLF.PR.G | FixedReset Ins Non | -2.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 13.55 Evaluated at bid price : 13.55 Bid-YTW : 8.22 % |
| BN.PF.E | FixedReset Disc | -1.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 14.80 Evaluated at bid price : 14.80 Bid-YTW : 9.63 % |
| TD.PF.D | FixedReset Disc | -1.59 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 18.60 Evaluated at bid price : 18.60 Bid-YTW : 7.90 % |
| PVS.PR.K | SplitShare | -1.57 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2029-05-31 Maturity Price : 25.00 Evaluated at bid price : 22.00 Bid-YTW : 7.24 % |
| RY.PR.N | Perpetual-Discount | -1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 21.10 Evaluated at bid price : 21.10 Bid-YTW : 5.88 % |
| CM.PR.S | FixedReset Disc | -1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 21.35 Evaluated at bid price : 21.35 Bid-YTW : 6.93 % |
| BIP.PR.F | FixedReset Disc | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 19.26 Evaluated at bid price : 19.26 Bid-YTW : 8.16 % |
| PWF.PR.G | Perpetual-Discount | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 21.50 Evaluated at bid price : 21.76 Bid-YTW : 6.90 % |
| MFC.PR.K | FixedReset Ins Non | -1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 21.65 Evaluated at bid price : 22.00 Bid-YTW : 6.61 % |
| BN.PF.H | FixedReset Disc | -1.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 19.75 Evaluated at bid price : 19.75 Bid-YTW : 9.07 % |
| CU.PR.I | FixedReset Disc | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 20.58 Evaluated at bid price : 20.58 Bid-YTW : 8.20 % |
| BN.PF.J | FixedReset Disc | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 19.50 Evaluated at bid price : 19.50 Bid-YTW : 8.23 % |
| GWO.PR.L | Insurance Straight | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 20.80 Evaluated at bid price : 20.80 Bid-YTW : 6.84 % |
| GWO.PR.T | Insurance Straight | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 18.97 Evaluated at bid price : 18.97 Bid-YTW : 6.83 % |
| CU.PR.F | Perpetual-Discount | 1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 17.30 Evaluated at bid price : 17.30 Bid-YTW : 6.58 % |
| NA.PR.E | FixedReset Disc | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 21.26 Evaluated at bid price : 21.26 Bid-YTW : 7.02 % |
| CIU.PR.A | Perpetual-Discount | 1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 17.01 Evaluated at bid price : 17.01 Bid-YTW : 6.85 % |
| FTS.PR.F | Perpetual-Discount | 1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 18.90 Evaluated at bid price : 18.90 Bid-YTW : 6.56 % |
| MFC.PR.I | FixedReset Ins Non | 1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 21.91 Evaluated at bid price : 22.30 Bid-YTW : 6.92 % |
| SLF.PR.C | Insurance Straight | 1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 18.07 Evaluated at bid price : 18.07 Bid-YTW : 6.19 % |
| PWF.PF.A | Perpetual-Discount | 1.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 16.37 Evaluated at bid price : 16.37 Bid-YTW : 7.01 % |
| CU.PR.G | Perpetual-Discount | 1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 17.18 Evaluated at bid price : 17.18 Bid-YTW : 6.63 % |
| FTS.PR.G | FixedReset Disc | 1.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 20.55 Evaluated at bid price : 20.55 Bid-YTW : 6.97 % |
| MFC.PR.F | FixedReset Ins Non | 1.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 13.95 Evaluated at bid price : 13.95 Bid-YTW : 7.81 % |
| CU.PR.C | FixedReset Disc | 1.99 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 18.41 Evaluated at bid price : 18.41 Bid-YTW : 7.70 % |
| GWO.PR.R | Insurance Straight | 2.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 17.72 Evaluated at bid price : 17.72 Bid-YTW : 6.82 % |
| BIP.PR.A | FixedReset Disc | 2.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 16.72 Evaluated at bid price : 16.72 Bid-YTW : 9.85 % |
| BN.PR.Z | FixedReset Disc | 2.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 18.20 Evaluated at bid price : 18.20 Bid-YTW : 8.62 % |
| BN.PR.X | FixedReset Disc | 3.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 14.50 Evaluated at bid price : 14.50 Bid-YTW : 8.67 % |
| SLF.PR.H | FixedReset Ins Non | 12.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 17.42 Evaluated at bid price : 17.42 Bid-YTW : 7.25 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| FFH.PR.G | FixedReset Disc | 187,700 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 15.16 Evaluated at bid price : 15.16 Bid-YTW : 9.12 % |
| BN.PF.J | FixedReset Disc | 36,743 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 19.50 Evaluated at bid price : 19.50 Bid-YTW : 8.23 % |
| MFC.PR.N | FixedReset Ins Non | 29,900 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 17.85 Evaluated at bid price : 17.85 Bid-YTW : 7.73 % |
| CU.PR.I | FixedReset Disc | 25,100 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 20.58 Evaluated at bid price : 20.58 Bid-YTW : 8.20 % |
| CU.PR.J | Perpetual-Discount | 20,696 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 17.66 Evaluated at bid price : 17.66 Bid-YTW : 6.81 % |
| IFC.PR.F | Insurance Straight | 15,200 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2053-12-22 Maturity Price : 19.36 Evaluated at bid price : 19.36 Bid-YTW : 6.89 % |
| There were 12 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: 17.30 – 20.00 Spot Rate : 2.7000 Average : 1.4985 YTW SCENARIO |
| TD.PF.J | FixedReset Disc | Quote: 21.90 – 23.12 Spot Rate : 1.2200 Average : 0.7291 YTW SCENARIO |
| CCS.PR.C | Insurance Straight | Quote: 18.51 – 19.40 Spot Rate : 0.8900 Average : 0.6532 YTW SCENARIO |
| TD.PF.D | FixedReset Disc | Quote: 18.60 – 19.24 Spot Rate : 0.6400 Average : 0.4557 YTW SCENARIO |
| CU.PR.C | FixedReset Disc | Quote: 18.41 – 19.16 Spot Rate : 0.7500 Average : 0.5667 YTW SCENARIO |
| TD.PF.E | FixedReset Disc | Quote: 18.60 – 19.49 Spot Rate : 0.8900 Average : 0.7361 YTW SCENARIO |