Market Action

January 25, 2018

So, how about the industry reactions to the Pacific trade deal, eh?:

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which Trade Minister François-Philippe Champagne announced on Tuesday, will benefit Canada’s agricultural sector, chiefly beef and pork producers, which are being granted market access to the once-sheltered Japanese market – access that rivals in Australia already enjoy.

But Canada’s dairy farmers, the head of the country’s largest private-sector union and a major portion of the Canadian auto industry say the new deal makes major concessions to foreign competitors that will cost jobs in Canada without yielding sufficient reciprocal benefits.

Key sectors of the auto industry in Canada oppose the new agreement.

Auto-parts makers say the TPP would open them up to more intense competition from low-cost countries such as Vietnam and Malaysia. The Detroit Three auto makers say it will eliminate tariffs on Japan-made vehicles entering the Canadian market while not removing existing non-tariff barriers in Japan.

So confident exporters love it and coddled parasites hate it? I like this deal already!

Clare O’Hara of the Globe continues the whitewashing of the Canadian discount brokerages negligence:

Online discount brokerages at Canada’s Big Six banks are continuing to see a surge in trading volumes and new account openings amid the investor frenzy centred on cannabis and cryptocurrency-related stocks.

The increased activity has been testing the limits of what some of the brokerages can handle during peak periods in the North American trading day.

Royal Bank of Canada’s RBC Direct Investing experienced outages on Tuesday morning that blocked some investors from accessing their online trading accounts for approximately an hour.

Meanwhile, Toronto-Dominion Bank has had to postpone a new online system for opening accounts, forcing investors to visit branches in person and endure at least a one-week waiting period.

Officials for other online brokerages at Bank of Montreal, National Bank of Canada, Canadian Imperial Bank of Commerce and Bank of Nova Scotia have all confirmed they also have been seeing higher-than-normal trading volumes.

For some of them, account opening requests have been running more than three times the average rates of 2017.

Scotiabank confirmed it has seen an increase of account openings of more than three times the daily average of last year, as well as almost double the trading volume than expected for this month.

BMO InvestorLine has seen its traffic volume increase steadily each month since September; since November, it has a 26-per-cent increase in new accounts, according to the bank.

I don’t give a rat’s putootie about “double the trading volume expected for this month.” I have two questions instead: How was the expectation developed? And mainly, how does that expectation compare with what might be reasonably expected during an actual market break?

I also don’t give a rat’s putootie about account openings of “three times the average rates of 2017”. 2017 was a nothing year. Nothing significant happened. Who cares about 2017? What might the account opening rate be during an actual market break?

These clowns have had a mild stress test and failed miserably.

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 0.3712 % 2,891.7
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.3712 % 5,306.1
Floater 3.44 % 3.57 % 43,525 18.36 4 0.3712 % 3,057.9
OpRet 0.00 % 0.00 % 0 0.00 0 0.1163 % 3,165.6
SplitShare 4.64 % 4.11 % 66,526 3.38 5 0.1163 % 3,780.4
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.1163 % 2,949.6
Perpetual-Premium 5.37 % -1.13 % 67,476 0.09 18 0.0656 % 2,865.9
Perpetual-Discount 5.30 % 5.29 % 69,172 14.98 16 -0.0963 % 3,001.6
FixedReset 4.20 % 4.47 % 147,433 3.89 101 0.2177 % 2,537.3
Deemed-Retractible 5.06 % 5.48 % 83,606 5.82 28 0.0547 % 2,956.3
FloatingReset 3.04 % 2.96 % 40,932 3.78 10 0.0694 % 2,771.2
Performance Highlights
Issue Index Change Notes
PWF.PR.Z Perpetual-Discount -1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-25
Maturity Price : 23.99
Evaluated at bid price : 24.36
Bid-YTW : 5.29 %
MFC.PR.M FixedReset 1.00 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.24
Bid-YTW : 4.86 %
SLF.PR.H FixedReset 1.04 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.24
Bid-YTW : 5.43 %
BAM.PR.B Floater 1.13 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-25
Maturity Price : 17.03
Evaluated at bid price : 17.03
Bid-YTW : 3.57 %
MFC.PR.J FixedReset 1.18 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.79
Bid-YTW : 4.88 %
TRP.PR.H FloatingReset 1.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-25
Maturity Price : 17.25
Evaluated at bid price : 17.25
Bid-YTW : 3.61 %
IFC.PR.C FixedReset 1.91 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-09-30
Maturity Price : 25.00
Evaluated at bid price : 23.96
Bid-YTW : 4.66 %
Volume Highlights
Issue Index Shares
Traded
Notes
TD.PF.A FixedReset 308,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-25
Maturity Price : 23.49
Evaluated at bid price : 23.86
Bid-YTW : 4.43 %
BNS.PR.G FixedReset 208,500 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-07-25
Maturity Price : 25.00
Evaluated at bid price : 26.72
Bid-YTW : 3.41 %
BAM.PR.Z FixedReset 132,393 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-25
Maturity Price : 23.11
Evaluated at bid price : 24.85
Bid-YTW : 4.89 %
RY.PR.Q FixedReset 107,957 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-24
Maturity Price : 25.00
Evaluated at bid price : 26.56
Bid-YTW : 3.38 %
BNS.PR.Q FixedReset 102,700 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2018-10-25
Maturity Price : 25.00
Evaluated at bid price : 24.99
Bid-YTW : 3.68 %
BMO.PR.S FixedReset 102,635 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-25
Maturity Price : 24.00
Evaluated at bid price : 24.40
Bid-YTW : 4.48 %
There were 24 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
BAM.PF.J FixedReset Quote: 25.50 – 26.39
Spot Rate : 0.8900
Average : 0.5165

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-12-31
Maturity Price : 25.00
Evaluated at bid price : 25.50
Bid-YTW : 4.39 %

BAM.PR.N Perpetual-Discount Quote: 21.84 – 22.23
Spot Rate : 0.3900
Average : 0.2462

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-25
Maturity Price : 21.58
Evaluated at bid price : 21.84
Bid-YTW : 5.48 %

BAM.PF.E FixedReset Quote: 24.10 – 24.45
Spot Rate : 0.3500
Average : 0.2277

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-25
Maturity Price : 23.17
Evaluated at bid price : 24.10
Bid-YTW : 4.72 %

PWF.PR.Z Perpetual-Discount Quote: 24.36 – 24.75
Spot Rate : 0.3900
Average : 0.2683

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-01-25
Maturity Price : 23.99
Evaluated at bid price : 24.36
Bid-YTW : 5.29 %

BMO.PR.Q FixedReset Quote: 22.81 – 23.07
Spot Rate : 0.2600
Average : 0.1664

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.81
Bid-YTW : 4.46 %

BAM.PF.H FixedReset Quote: 26.24 – 26.50
Spot Rate : 0.2600
Average : 0.1813

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-12-31
Maturity Price : 25.00
Evaluated at bid price : 26.24
Bid-YTW : 3.35 %

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