PrefBlog

I have to give a shout-out here to Buñuelos de Viento, a Mexican dessert snack thingy. I’ve discovered these wonderful confections at a new Mexican cafe near me on the south side of Dundas between Jane & Runnymede (3421 Dundas St. W., I think) – just a small place on the second level of a small building, just a handwritten sign in the window. Anyway, this particular kind of buñuelos is a very thin, very crispy piece of deep-fried batter that looks like its been made on a waffle iron (but wasn’t) and liberally topped with sugar and cinnamon. Delicious! Why have I not known about these things all my life?

The Canadian preferred share market only scored a double today, with TXPR and ZPR hitting new 52-week highs and CPD gaining overall, but falling short of a new high. The market appears to made the bulk of its gains in the last ten minutes of continuous trading.

PerpetualDiscounts now yield 6.06%, equivalent to 7.88% interest at the standard equivalency factor of 1.3x. Long corporates yielded 4.62% on 2025-1-7 and since then the closing price of ZLC changed from 15.41 to 15.365, a total return of -0.29%, implying an increase in yields (assuming that the “Duration” reported by BMO is Modified Duration) of about 2bp to 4.64. Therefore, the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has narrowed slightly (and perhaps spuriously) to 325bp from the 330bp reported January 2.

This entry was posted on Wednesday, January 8th, 2025 at 10:02 pm and is filed under Market Action. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.