Market Action

October 7, 2025

A new Survey of Consumer Expectations is out:

September Survey: Inflation Expectations Tick Up at Short- and Longer-Term Horizons; Labor Market Expectations Deteriorate

  • Median inflation expectations increased at the one-year-ahead horizon to 3.4 percent from 3.2 percent and at the five-year-ahead horizon to 3.0 percent from 2.9 percent. They remained steady at the three-year-ahead horizon at 3.0 percent. The increase in the year-ahead measure was largest for those with at most a high school education and those with household incomes under $50,000.
  • Median one-year-ahead earnings growth expectations decreased by 0.1 percentage point (ppt) to 2.4 percent in September, the lowest reading since April 2021.
  • Mean unemployment expectations—or the mean probability that the U.S. unemployment rate will be higher one year from now—increased 2.0 ppts to 41.1 percent.
  • The mean perceived probability of losing one’s job in the next twelve months increased by 0.4 ppt to 14.9 percent, above the trailing twelve-month average of 14.1 percent.

I’ve been spending my programming time recently speeding up HIMIPref™ and stumbled across the following interesting comparison of access times for data in various places:

L1 cache reference 0.5 ns
Branch mispredict 5 ns
L2 cache reference 7 ns
Mutex lock/unlock 100 ns (25)
Main memory reference 100 ns
Compress 1K bytes with Zippy 10,000 ns (3,000)
Send 2K bytes over 1 Gbps network 20,000 ns
Read 1 MB sequentially from memory 250,000 ns
Round trip within same datacenter 500,000 ns
Disk seek 10,000,000 ns
Read 1 MB sequentially from network 10,000,000 ns
Read 1 MB sequentially from disk 30,000,000 ns (20,000,000)
Send packet CA->Netherlands->CA 150,000,000 ns

… which is kind of cool. Puts things in perspective! They also have L3 cache, nowadays, that services all the cores on the CPU, not just one; and even, so I am informed, L4 cache!

Which reminds me of a funny story. The nineties was an interesting time to be buying computers, which I was doing for my prior employer, since everything about them was changing at breakneck speed; performance bottlenecks were shifting kaleidoscopically every time you looked. So I read PC Magazine every month and tried to keep up with what was going on; at one point, PC Mag concluded that for computationally intensive work (like we were doing) the most usual bottleneck had become the speed of the L2 cache. If I remember correctly, the speed of the good kind at the time was 15ns.

So next time I ordered a (small) batch of computers and asked my salesman for quotes, I asked what the speed of the L2 cache was. Silence. He obviously had no idea what that was and eventually told me he’d have to call his vendor and get back to me.

We needed the order filled! So I called him up (a few days? a week?) later and asked about the speed of the L2 cache was on the machines he was quoting.

He got mad and snapped “Look, James, it’s fast, OK?”

Shortly afterwards we changed computer vendors.

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 6.67 % 7.11 % 27,166 13.38 1 0.0000 % 2,428.3
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.2294 % 4,598.5
Floater 6.27 % 6.56 % 54,064 13.13 3 0.2294 % 2,650.2
OpRet 0.00 % 0.00 % 0 0.00 0 0.0000 % 3,654.3
SplitShare 4.78 % 4.53 % 66,668 3.34 5 0.0000 % 4,364.0
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0000 % 3,405.0
Perpetual-Premium 5.49 % 4.80 % 82,796 0.09 8 0.0494 % 3,097.9
Perpetual-Discount 5.60 % 5.65 % 46,596 14.38 26 -0.4586 % 3,370.3
FixedReset Disc 5.98 % 6.01 % 113,980 13.71 30 0.2779 % 3,052.7
Insurance Straight 5.49 % 5.54 % 53,256 14.60 21 0.8478 % 3,309.9
FloatingReset 0.00 % 0.00 % 0 0.00 0 0.2779 % 3,631.5
FixedReset Prem 5.63 % 4.81 % 128,549 2.81 22 -0.0336 % 2,632.3
FixedReset Bank Non 0.00 % 0.00 % 0 0.00 0 0.2779 % 3,120.5
FixedReset Ins Non 5.22 % 5.36 % 53,801 14.53 15 0.0871 % 3,069.5
Performance Highlights
Issue Index Change Notes
CU.PR.G Perpetual-Discount -13.88 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 18.00
Evaluated at bid price : 18.00
Bid-YTW : 6.35 %
PWF.PR.Z Perpetual-Discount -1.81 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 22.46
Evaluated at bid price : 22.75
Bid-YTW : 5.76 %
ELF.PR.F Insurance Straight -1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 22.98
Evaluated at bid price : 23.25
Bid-YTW : 5.71 %
GWO.PR.G Insurance Straight -1.05 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 23.20
Evaluated at bid price : 23.50
Bid-YTW : 5.56 %
IFC.PR.E Insurance Straight -1.04 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 23.47
Evaluated at bid price : 23.75
Bid-YTW : 5.50 %
NA.PR.K FixedReset Prem -1.04 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2029-05-01
Maturity Price : 25.00
Evaluated at bid price : 27.71
Bid-YTW : 4.79 %
BN.PF.F FixedReset Disc 1.06 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 22.76
Evaluated at bid price : 23.80
Bid-YTW : 5.96 %
POW.PR.D Perpetual-Discount 1.12 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 22.35
Evaluated at bid price : 22.62
Bid-YTW : 5.54 %
NA.PR.G FixedReset Prem 1.14 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2028-11-16
Maturity Price : 25.00
Evaluated at bid price : 26.55
Bid-YTW : 4.66 %
GWO.PR.L Insurance Straight 1.20 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-11-06
Maturity Price : 25.00
Evaluated at bid price : 25.20
Bid-YTW : -2.73 %
POW.PR.C Perpetual-Premium 1.39 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2025-11-06
Maturity Price : 25.00
Evaluated at bid price : 25.45
Bid-YTW : -16.73 %
GWO.PR.Q Insurance Straight 1.43 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 22.39
Evaluated at bid price : 22.65
Bid-YTW : 5.72 %
SLF.PR.C Insurance Straight 1.71 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 21.41
Evaluated at bid price : 21.41
Bid-YTW : 5.24 %
BN.PF.E FixedReset Disc 2.85 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 21.35
Evaluated at bid price : 21.65
Bid-YTW : 6.13 %
IFC.PR.F Insurance Straight 3.28 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 23.31
Evaluated at bid price : 23.60
Bid-YTW : 5.65 %
GWO.PR.R Insurance Straight 3.41 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 21.59
Evaluated at bid price : 21.85
Bid-YTW : 5.52 %
BN.PR.X FixedReset Disc 7.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 20.07
Evaluated at bid price : 20.07
Bid-YTW : 5.74 %
GWO.PR.H Insurance Straight 8.51 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 21.67
Evaluated at bid price : 21.92
Bid-YTW : 5.56 %
Volume Highlights
Issue Index Shares
Traded
Notes
GWO.PR.Z Perpetual-Premium 107,872 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2034-09-30
Maturity Price : 25.00
Evaluated at bid price : 25.50
Bid-YTW : 5.48 %
ENB.PF.G FixedReset Disc 57,200 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 21.48
Evaluated at bid price : 21.78
Bid-YTW : 6.39 %
ENB.PF.K FixedReset Disc 53,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 23.46
Evaluated at bid price : 24.91
Bid-YTW : 6.01 %
GWO.PR.N FixedReset Ins Non 50,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 17.65
Evaluated at bid price : 17.65
Bid-YTW : 5.74 %
BMO.PR.E FixedReset Prem 41,000 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2028-11-25
Maturity Price : 25.00
Evaluated at bid price : 26.70
Bid-YTW : 4.77 %
ENB.PF.E FixedReset Disc 38,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 21.38
Evaluated at bid price : 21.38
Bid-YTW : 6.43 %
There were 16 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
CU.PR.G Perpetual-Discount Quote: 18.00 – 20.94
Spot Rate : 2.9400
Average : 1.6916

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 18.00
Evaluated at bid price : 18.00
Bid-YTW : 6.35 %

GWO.PR.G Insurance Straight Quote: 23.50 – 25.00
Spot Rate : 1.5000
Average : 0.9987

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 23.20
Evaluated at bid price : 23.50
Bid-YTW : 5.56 %

BN.PR.R FixedReset Disc Quote: 19.90 – 20.95
Spot Rate : 1.0500
Average : 0.7122

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 19.90
Evaluated at bid price : 19.90
Bid-YTW : 6.29 %

PWF.PR.K Perpetual-Discount Quote: 22.09 – 23.00
Spot Rate : 0.9100
Average : 0.7057

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 21.85
Evaluated at bid price : 22.09
Bid-YTW : 5.70 %

PWF.PR.Z Perpetual-Discount Quote: 22.75 – 23.35
Spot Rate : 0.6000
Average : 0.4262

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 22.46
Evaluated at bid price : 22.75
Bid-YTW : 5.76 %

BN.PR.T FixedReset Disc Quote: 19.90 – 20.65
Spot Rate : 0.7500
Average : 0.5877

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2055-10-07
Maturity Price : 19.90
Evaluated at bid price : 19.90
Bid-YTW : 6.27 %

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