June 7, 2024

TXPR closed at 586.45, down 0.89% on the day. Volume today was 1.60-million, near the median of the past 21 trading days.

CPD closed at 11.64, down 0.77% on the day. Volume was 46,850, below the median of the past 21 trading days.

ZPR closed at 9.94, down 1.19% on the day. Volume was 555,690, highest by far of the past 21 trading days.

Five-year Canada yields were up to 3.53%.

Jobs, jobs, jobs!

  • Services powered the gains: Overall, U.S. employers added 272,000 jobs last month, with health care again accounting for the most growth, adding 68,000 jobs. Government hiring rebounded from April, with 43,000 additional jobs, as did leisure and hospitality work, with 42,000.
  • Wages were strong: Average hourly earnings rose 0.4 percent, or 4.1 percent from a year earlier. That was also stronger than expected, since wage increases have been easing since early 2022. Wage growth isn’t the primary reason that inflation has been high, but economists worry that it will be difficult to bring inflation fully under control if pay keeps rising at its recent pace.
  • But the unemployment rate rose: The jobless rate hit 4 percent for the first time since January 2022, ending one of the longest streaks of sub-4 percent unemployment on record.

Things were a bit different in the Frozen North:

Statistics Canada’s latest labour force survey showed the economy added 27,000 jobs last month – too modest of a gain to keep the unemployment rate from rising by a tenth of a percentage point.

“It didn’t take much digging to unearth the fact that this report is considerably softer than the headline, as all of the gains were in part-time jobs, in one province (Ontario), and the unemployment rate ticked up to 6.2 per cent, as expected,” wrote BMO chief economist Douglas Porter in a client note.

Statistics Canada says the involuntary part-time rate, which refers to the proportion of part-time workers who could not find full-time work or worked part-time because of weak business conditions – was 18.2 per cent in May. That’s up from 15.4 per cent a year prior.

Wage growth remained strong in May as average hourly wages rose 5.1 per cent from a year ago, reaching $34.94.

… and all in all:

Canada’s main stock index fell 1% on Friday as a jump in the U.S. dollar following the release of stronger-than-expected U.S. jobs data pressured metal mining stocks, while investors braced for increased volatility in the months ahead. Wall Street stocks ended slightly lower.

The Toronto Stock Exchange’s S&P/TSX composite index ended down 222.10 points at 22,007.00. For the week, the index lost 1.2%, its third consecutive weekly decline.

The benchmark S&P 500 slipped immediately after the report while U.S Treasury yields climbed as traders slashed bets on a September rate reduction. The index recovered and briefly hit a fresh intraday record high as investors noted the data pointed to underlying economic health.

Traders now see a 56% chance of a September rate reduction, according to the CME’s FedWatch tool.

GameStop slumped 39% in volatile trading just as stock influencer “Roaring Kitty” kicked off his first livestream in three years. The gaming retailer had announced a potential stock offering and a drop in quarterly sales.

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 -1.2605 % 2,243.9
FixedFloater 0.00 % 0.00 % 0 0.00 0 -1.2605 % 4,303.9
Floater 10.35 % 10.70 % 61,158 8.89 1 -1.2605 % 2,480.3
OpRet 0.00 % 0.00 % 0 0.00 0 0.1713 % 3,479.4
SplitShare 4.84 % 6.46 % 32,118 1.64 7 0.1713 % 4,155.2
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.1713 % 3,242.0
Perpetual-Premium 0.00 % 0.00 % 0 0.00 0 -0.5581 % 2,687.3
Perpetual-Discount 6.40 % 6.57 % 55,024 13.05 28 -0.5581 % 2,930.3
FixedReset Disc 5.31 % 7.56 % 118,737 12.08 49 -1.5778 % 2,516.1
Insurance Straight 6.34 % 6.45 % 58,523 13.33 20 -0.1246 % 2,860.6
FloatingReset 9.45 % 9.39 % 35,649 9.97 3 -1.4567 % 2,741.5
FixedReset Prem 6.39 % 6.82 % 219,180 12.14 7 -0.1930 % 2,517.8
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 -1.5778 % 2,572.0
FixedReset Ins Non 5.34 % 7.22 % 105,613 12.66 14 -1.8775 % 2,663.7
Performance Highlights
Issue Index Change Notes
PWF.PR.T FixedReset Disc -23.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 16.75
Evaluated at bid price : 16.75
Bid-YTW : 8.94 %
FFH.PR.K FixedReset Disc -8.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 19.60
Evaluated at bid price : 19.60
Bid-YTW : 8.71 %
SLF.PR.H FixedReset Ins Non -6.96 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 18.05
Evaluated at bid price : 18.05
Bid-YTW : 7.42 %
CM.PR.P FixedReset Disc -5.46 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 21.36
Evaluated at bid price : 21.65
Bid-YTW : 6.77 %
RY.PR.S FixedReset Disc -4.74 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 22.35
Evaluated at bid price : 23.10
Bid-YTW : 6.51 %
CU.PR.C FixedReset Disc -4.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 19.00
Evaluated at bid price : 19.00
Bid-YTW : 7.79 %
IFC.PR.C FixedReset Ins Non -3.82 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 20.15
Evaluated at bid price : 20.15
Bid-YTW : 7.34 %
MFC.PR.I FixedReset Ins Non -3.79 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 22.32
Evaluated at bid price : 22.85
Bid-YTW : 7.01 %
NA.PR.E FixedReset Disc -3.63 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 22.55
Evaluated at bid price : 23.37
Bid-YTW : 6.59 %
MFC.PR.F FixedReset Ins Non -3.60 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 15.81
Evaluated at bid price : 15.81
Bid-YTW : 7.39 %
TD.PF.D FixedReset Disc -3.30 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 21.61
Evaluated at bid price : 22.00
Bid-YTW : 7.07 %
MFC.PR.M FixedReset Ins Non -2.96 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 20.00
Evaluated at bid price : 20.00
Bid-YTW : 7.45 %
MFC.PR.K FixedReset Ins Non -2.60 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 21.98
Evaluated at bid price : 22.45
Bid-YTW : 6.70 %
BN.PF.F FixedReset Disc -2.54 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 19.60
Evaluated at bid price : 19.60
Bid-YTW : 8.39 %
NA.PR.S FixedReset Disc -2.50 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 22.29
Evaluated at bid price : 23.01
Bid-YTW : 6.68 %
FFH.PR.D FloatingReset -2.21 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 21.82
Evaluated at bid price : 22.10
Bid-YTW : 9.34 %
NA.PR.W FixedReset Disc -2.19 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 20.55
Evaluated at bid price : 20.55
Bid-YTW : 7.13 %
FFH.PR.C FixedReset Disc -2.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 21.45
Evaluated at bid price : 21.45
Bid-YTW : 7.97 %
CU.PR.E Perpetual-Discount -1.82 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 18.85
Evaluated at bid price : 18.85
Bid-YTW : 6.56 %
BIP.PR.F FixedReset Disc -1.78 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 20.41
Evaluated at bid price : 20.41
Bid-YTW : 8.03 %
BN.PF.C Perpetual-Discount -1.76 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 17.88
Evaluated at bid price : 17.88
Bid-YTW : 6.94 %
SLF.PR.J FloatingReset -1.75 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 16.80
Evaluated at bid price : 16.80
Bid-YTW : 9.39 %
CM.PR.Q FixedReset Disc -1.75 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 21.94
Evaluated at bid price : 22.50
Bid-YTW : 6.91 %
RY.PR.N Perpetual-Discount -1.72 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 22.64
Evaluated at bid price : 22.90
Bid-YTW : 5.38 %
GWO.PR.N FixedReset Ins Non -1.71 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 14.35
Evaluated at bid price : 14.35
Bid-YTW : 7.97 %
SLF.PR.G FixedReset Ins Non -1.67 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 16.52
Evaluated at bid price : 16.52
Bid-YTW : 7.30 %
IFC.PR.A FixedReset Ins Non -1.59 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 18.55
Evaluated at bid price : 18.55
Bid-YTW : 7.22 %
MFC.PR.N FixedReset Ins Non -1.59 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 19.80
Evaluated at bid price : 19.80
Bid-YTW : 7.39 %
BN.PF.D Perpetual-Discount -1.58 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 18.07
Evaluated at bid price : 18.07
Bid-YTW : 6.94 %
TD.PF.C FixedReset Disc -1.54 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 21.84
Evaluated at bid price : 22.32
Bid-YTW : 6.56 %
FFH.PR.I FixedReset Disc -1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 18.12
Evaluated at bid price : 18.12
Bid-YTW : 8.55 %
IFC.PR.F Insurance Straight -1.48 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 20.70
Evaluated at bid price : 20.70
Bid-YTW : 6.54 %
MFC.PR.L FixedReset Ins Non -1.38 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 20.76
Evaluated at bid price : 20.76
Bid-YTW : 7.04 %
GWO.PR.M Insurance Straight -1.33 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 22.07
Evaluated at bid price : 22.30
Bid-YTW : 6.51 %
BN.PR.B Floater -1.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 11.75
Evaluated at bid price : 11.75
Bid-YTW : 10.70 %
MIC.PR.A Perpetual-Discount -1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 19.60
Evaluated at bid price : 19.60
Bid-YTW : 7.05 %
FTS.PR.K FixedReset Disc -1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 18.80
Evaluated at bid price : 18.80
Bid-YTW : 7.56 %
CU.PR.D Perpetual-Discount -1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 19.08
Evaluated at bid price : 19.08
Bid-YTW : 6.48 %
PWF.PR.F Perpetual-Discount -1.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 20.13
Evaluated at bid price : 20.13
Bid-YTW : 6.63 %
BN.PF.G FixedReset Disc -1.08 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 18.30
Evaluated at bid price : 18.30
Bid-YTW : 8.62 %
TD.PF.A FixedReset Disc -1.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 22.34
Evaluated at bid price : 23.15
Bid-YTW : 6.33 %
CU.PR.G Perpetual-Discount -1.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 17.63
Evaluated at bid price : 17.63
Bid-YTW : 6.44 %
FTS.PR.M FixedReset Disc -1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 19.55
Evaluated at bid price : 19.55
Bid-YTW : 7.80 %
PWF.PR.L Perpetual-Discount -1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 19.54
Evaluated at bid price : 19.54
Bid-YTW : 6.63 %
BN.PR.N Perpetual-Discount -1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 17.60
Evaluated at bid price : 17.60
Bid-YTW : 6.90 %
CU.PR.J Perpetual-Discount -1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 18.62
Evaluated at bid price : 18.62
Bid-YTW : 6.44 %
CCS.PR.C Insurance Straight 1.68 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 19.32
Evaluated at bid price : 19.32
Bid-YTW : 6.49 %
IFC.PR.E Insurance Straight 1.70 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 20.95
Evaluated at bid price : 20.95
Bid-YTW : 6.34 %
TD.PF.J FixedReset Disc 3.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 22.63
Evaluated at bid price : 23.52
Bid-YTW : 6.64 %
BN.PR.M Perpetual-Discount 3.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 17.95
Evaluated at bid price : 17.95
Bid-YTW : 6.77 %
IFC.PR.G FixedReset Ins Non 4.78 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 21.77
Evaluated at bid price : 22.13
Bid-YTW : 7.09 %
BIP.PR.A FixedReset Disc 5.85 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 21.39
Evaluated at bid price : 21.70
Bid-YTW : 8.02 %
Volume Highlights
Issue Index Shares
Traded
Notes
BN.PF.J FixedReset Disc 145,385 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 22.29
Evaluated at bid price : 22.85
Bid-YTW : 7.39 %
TD.PF.B FixedReset Disc 104,273 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 23.06
Evaluated at bid price : 24.18
Bid-YTW : 6.12 %
BN.PR.N Perpetual-Discount 76,462 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 17.60
Evaluated at bid price : 17.60
Bid-YTW : 6.90 %
CM.PR.S FixedReset Disc 75,535 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 23.75
Evaluated at bid price : 23.75
Bid-YTW : 6.47 %
NA.PR.S FixedReset Disc 68,300 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 22.29
Evaluated at bid price : 23.01
Bid-YTW : 6.68 %
FTS.PR.K FixedReset Disc 34,710 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 18.80
Evaluated at bid price : 18.80
Bid-YTW : 7.56 %
There were 12 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
PWF.PR.T FixedReset Disc Quote: 16.75 – 21.70
Spot Rate : 4.9500
Average : 2.7675

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 16.75
Evaluated at bid price : 16.75
Bid-YTW : 8.94 %

IFC.PR.I Insurance Straight Quote: 21.40 – 23.99
Spot Rate : 2.5900
Average : 1.6998

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 21.40
Evaluated at bid price : 21.40
Bid-YTW : 6.45 %

CM.PR.P FixedReset Disc Quote: 21.65 – 23.00
Spot Rate : 1.3500
Average : 0.7958

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 21.36
Evaluated at bid price : 21.65
Bid-YTW : 6.77 %

FFH.PR.K FixedReset Disc Quote: 19.60 – 20.80
Spot Rate : 1.2000
Average : 0.7051

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 19.60
Evaluated at bid price : 19.60
Bid-YTW : 8.71 %

RY.PR.S FixedReset Disc Quote: 23.10 – 24.24
Spot Rate : 1.1400
Average : 0.7511

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 22.35
Evaluated at bid price : 23.10
Bid-YTW : 6.51 %

SLF.PR.H FixedReset Ins Non Quote: 18.05 – 19.25
Spot Rate : 1.2000
Average : 0.8223

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2054-06-07
Maturity Price : 18.05
Evaluated at bid price : 18.05
Bid-YTW : 7.42 %

3 Responses to “June 7, 2024”

  1. niagara says:

    Just saw this news on CIBC issuing new NVCC debentures (a bit dated this news):

    https://cibc.mediaroom.com/2024-06-05-CIBC-to-Issue-4-90-NVCC-Subordinated-Debentures-due-June-12,-2034

    I must admit, I am a bit confused at how these are priced. 4.90%? Then CORRA plus 1.56% after 2029? Weren’t the banks just issuing this stuff at well over 7%? Rates have come off a bit but not that much.

    I am guessing that some of the proceeds of this will be used to redeem CM.PR.Y and CM.PR.O at the end of next month which have a combined outstanding amount of CAD 650mm.

    I always laugh when they put this in the press releases: “The net proceeds from this transaction will be used for general purposes of CIBC.”
    General purposes….well, that certainly is really specific.

  2. jiHymas says:

    I must admit, I am a bit confused at how these are priced. 4.90%? Then CORRA plus 1.56% after 2029?

    It’s subordinated debt. Tier 2, not Tier 1. With, almost certainly – I haven’t looked at the actual prospectus – a ‘pretend maturity’ in five years.

  3. niagara says:

    Thank you, James. The banks like to pretend a lot!

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