TXPR closed at 677.46, down 0.52% on the day. Volume today was 1.17-million, well below the median of the past 21 trading days.
CPD closed at 13.43, down 0.44% on the day. Volume was 35,450, below the median of the past 21 trading days.
ZPR closed at 11.81, down 0.59% on the day. Volume was 102,240, second-highest of the past 21 trading days.
Five-year Canada yields were down 8bp to 2.94%.
Equities got whacked:
Stocks suffered heavy losses Friday and shorter-term U.S. Treasury yields plunged the most in two years after an unexpectedly weak jobs report shattered investors’ confidence in the strength of the American economy as historic tariffs were imposed against several trading partners.
…
Money markets are now putting odds of a quarter-point cut by the Federal Reserve at around 85 per cent, from just under 40 per cent a day earlier, according to data from CME FedWatch. Rate futures are now pricing in more than 50 basis points of easing over the course of this year.
…
The Dow Jones Industrial Average fell 542.40 points, or 1.23 per cent, to 43,588.58, the S&P 500 lost 101.38 points, or 1.60 per cent, to 6,238.01 and the Nasdaq Composite lost 472.32 points, or 2.24 per cent, to 20,650.13.For the week, the S&P 500 fell 2.36 per cent, the Nasdaq declined 2.17 per cent, and the Dow fell 2.92 per cent.
…
The S&P/TSX Composite Index ended down 239.35 points, or 0.9 per cent, at 27,020.43, extending its pullback from a record closing high on Tuesday. For the week, the TSX was down 1.7 per cent.Canadian data was also downbeat Friday. Canada’s manufacturing sector contracted for a sixth straight month in July as tariffs undercut trade with the U.S. and spurred firms to reduce inventory as well as staffing levels.
All ten major sectors on the TSX ended lower, led by a 2.4-per-cent decline for technology.
With all that, today’s fall in TXPR basically offsets its 45bp rise yesterday, July 31 – and much of the movement may be ascribed to reinvestment of the CM.PR.Q and TD.PF.D redemption money on July 31 and subsequent snap-back.
This is a day late – sorry about that!
The US jobs number disappointed yesterday:
Employers continued to create jobs but pulled back on hiring, a sign that more businesses are putting expansion plans on hold as they deal with economic uncertainty created by President Trump.
The economy added 73,000 jobs last month, the Labor Department reported on Friday, lower than economists’ expectations. The unemployment rate slightly rose to 4.2 percent, up from 4.1 percent the month before.
In a sign that the labor market may not have been as robust as it seemed earlier this year, job gains from the previous two months were also revised down by a total of 258,000, an unusually high number.
…
Wages continued to grow in July. Average hourly earnings climbed 0.3 percent from the prior month and 3.9 percent over the year.
The disappointment infuriated the WhackADoodle:
President Donald Trump has fired Dr. Erika McEntarfer, the commissioner of the Bureau of Labor Statistics, whom he accused, without evidence, of manipulating the monthly jobs reports for “political purposes.”
…
“In my opinion, today’s Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad,” Trump said in a Truth Social post.
…
Trump said McEntarfer “faked” the jobs numbers before the election to try to boost former Vice President Kamala Harris’ chances in the 2024 presidential election.
Firing the bearer of bad news is the most clear-cut evidence of bad management I can imagine. But I am leaning towards the idea that the objective is to undermine confidence in the American government:
All of this badgering coincides with what already appears to be a long-term decline in the trust for the Fed. For now, inflation expectations remain reasonable, and Mr. Trump has backed away from firing Mr. Powell outright. But the far-flung consequences of undermining people’s belief in the central bank is that they may decide they no longer value its independence. It is this weakening of that value that may be Trump’s true legacy on the U.S. monetary system, which, if it persists, will have far more severe consequences than the soundbites alone.
To the extent that this succeeds, the influence of American oligarchs will be enhanced. Too conspiratorial? Perhaps. But what other explanation is there?
| 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 | -0.0783 % | 2,353.3 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0783 % | 4,581.0 |
| Floater | 6.79 % | 6.88 % | 67,073 | 12.67 | 2 | -0.0783 % | 2,640.0 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0281 % | 3,679.8 |
| SplitShare | 4.76 % | 4.35 % | 52,995 | 2.41 | 7 | 0.0281 % | 4,394.5 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0281 % | 3,428.7 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1195 % | 3,044.0 |
| Perpetual-Discount | 5.65 % | 5.74 % | 46,312 | 14.25 | 32 | -0.1195 % | 3,319.3 |
| FixedReset Disc | 5.63 % | 6.33 % | 120,281 | 13.19 | 39 | -0.2529 % | 3,023.9 |
| Insurance Straight | 5.56 % | 5.67 % | 60,136 | 14.38 | 19 | -0.1174 % | 3,254.2 |
| FloatingReset | 5.50 % | 5.37 % | 37,607 | 14.82 | 2 | -0.3058 % | 3,712.9 |
| FixedReset Prem | 5.89 % | 4.93 % | 113,076 | 2.57 | 15 | -0.2125 % | 2,628.8 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2529 % | 3,091.0 |
| FixedReset Ins Non | 5.23 % | 5.74 % | 68,270 | 14.01 | 14 | -0.8772 % | 3,060.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BN.PR.R | FixedReset Disc | -5.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 19.10 Evaluated at bid price : 19.10 Bid-YTW : 6.95 % |
| SLF.PR.G | FixedReset Ins Non | -3.95 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 18.00 Evaluated at bid price : 18.00 Bid-YTW : 6.22 % |
| MFC.PR.M | FixedReset Ins Non | -3.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 22.63 Evaluated at bid price : 23.60 Bid-YTW : 5.84 % |
| IFC.PR.I | Insurance Straight | -3.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 22.59 Evaluated at bid price : 23.00 Bid-YTW : 5.93 % |
| MFC.PR.C | Insurance Straight | -2.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 21.03 Evaluated at bid price : 21.03 Bid-YTW : 5.43 % |
| PWF.PR.T | FixedReset Disc | -2.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 22.79 Evaluated at bid price : 23.74 Bid-YTW : 5.77 % |
| BN.PF.D | Perpetual-Discount | -2.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 20.77 Evaluated at bid price : 20.77 Bid-YTW : 5.98 % |
| MFC.PR.L | FixedReset Ins Non | -1.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 22.75 Evaluated at bid price : 23.75 Bid-YTW : 5.69 % |
| POW.PR.D | Perpetual-Discount | -1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 21.75 Evaluated at bid price : 22.00 Bid-YTW : 5.73 % |
| SLF.PR.C | Insurance Straight | -1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 21.24 Evaluated at bid price : 21.24 Bid-YTW : 5.30 % |
| POW.PR.A | Perpetual-Discount | -1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 23.85 Evaluated at bid price : 24.10 Bid-YTW : 5.86 % |
| BN.PF.E | FixedReset Disc | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 6.49 % |
| CU.PR.D | Perpetual-Discount | -1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 21.81 Evaluated at bid price : 22.05 Bid-YTW : 5.64 % |
| FTS.PR.J | Perpetual-Discount | -1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 21.91 Evaluated at bid price : 22.15 Bid-YTW : 5.44 % |
| BIP.PR.F | FixedReset Disc | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 23.21 Evaluated at bid price : 24.70 Bid-YTW : 6.20 % |
| ENB.PR.J | FixedReset Disc | -1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 21.97 Evaluated at bid price : 22.37 Bid-YTW : 6.53 % |
| PWF.PR.S | Perpetual-Discount | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 21.20 Evaluated at bid price : 21.20 Bid-YTW : 5.70 % |
| FTS.PR.G | FixedReset Disc | 1.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 23.07 Evaluated at bid price : 24.23 Bid-YTW : 5.61 % |
| GWO.PR.R | Insurance Straight | 1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 21.41 Evaluated at bid price : 21.41 Bid-YTW : 5.68 % |
| CU.PR.J | Perpetual-Discount | 1.59 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 21.38 Evaluated at bid price : 21.67 Bid-YTW : 5.56 % |
| PWF.PR.E | Perpetual-Discount | 1.65 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 23.84 Evaluated at bid price : 24.09 Bid-YTW : 5.74 % |
| SLF.PR.E | Insurance Straight | 3.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 21.42 Evaluated at bid price : 21.42 Bid-YTW : 5.32 % |
| MFC.PR.B | Insurance Straight | 4.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 21.25 Evaluated at bid price : 21.52 Bid-YTW : 5.46 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BN.PR.Z | FixedReset Disc | 81,041 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 22.98 Evaluated at bid price : 23.81 Bid-YTW : 6.41 % |
| BEP.PR.G | FixedReset Ins Non | 51,700 | YTW SCENARIO Maturity Type : Call Maturity Date : 2026-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.09 Bid-YTW : 4.79 % |
| CU.PR.C | FixedReset Disc | 40,900 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 23.57 Evaluated at bid price : 23.92 Bid-YTW : 5.79 % |
| BN.PF.A | FixedReset Disc | 36,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 23.30 Evaluated at bid price : 24.85 Bid-YTW : 6.20 % |
| RY.PR.M | FixedReset Disc | 27,350 | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-11-24 Maturity Price : 25.00 Evaluated at bid price : 24.82 Bid-YTW : 4.72 % |
| ENB.PR.T | FixedReset Disc | 27,095 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-01 Maturity Price : 22.16 Evaluated at bid price : 22.68 Bid-YTW : 6.48 % |
| There were 9 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| See TMX DataLinx: ‘Last’ != ‘Close’ and the posts linked therein for an idea of why these quotes are so horrible. | ||
| Issue | Index | Quote Data and Yield Notes |
| PVS.PR.L | SplitShare | Quote: 26.08 – 28.25 Spot Rate : 2.1700 Average : 1.2893 YTW SCENARIO |
| CU.PR.D | Perpetual-Discount | Quote: 22.05 – 23.30 Spot Rate : 1.2500 Average : 0.7746 YTW SCENARIO |
| BN.PR.R | FixedReset Disc | Quote: 19.10 – 21.00 Spot Rate : 1.9000 Average : 1.4589 YTW SCENARIO |
| SLF.PR.G | FixedReset Ins Non | Quote: 18.00 – 19.00 Spot Rate : 1.0000 Average : 0.5645 YTW SCENARIO |
| IFC.PR.I | Insurance Straight | Quote: 23.00 – 24.25 Spot Rate : 1.2500 Average : 0.8160 YTW SCENARIO |
| PVS.PR.M | SplitShare | Quote: 25.69 – 26.69 Spot Rate : 1.0000 Average : 0.6564 YTW SCENARIO |