Trump has indicated his disdain for the World Trade Organization and for the Trans-Pacific Partnership while starting mini-trade wars with US allies, eliminating those potential avenues to increase pressure on China to be a freer trader. He’s got his own way of doing things:
Investors are dealing with a painful new reality: The trade war between the United States and China could last indefinitely.
The anxiety caused by that realization rippled through the stock markets on Monday. The S&P 500 tumbled 2.4 percent after China said it would increase tariffs on nearly $60 billion of American-made goods in response to a similar move last week by the Trump administration.
…
On Friday, Mr. Trump raised tariffs on $200 billion worth of Chinese-made goods.But signs of economic worry also emerged in other financial markets on Monday. The price of Treasury bonds rose, as investors sought the safety of government securities. Prices for soybeans and copper, both of which are sensitive to global growth and trade, dropped. Interest rates rose in corporate bond markets, an indication that investors were seeking higher premiums in response to the increased economic risks of a worsening trade fight.
The trouble is, I think, that he doesn’t care. The point of all this is to impress Joe Lunchbucket, who is tired of all this pusillanimous talking and wants to see some action. And there’s no other point.
The five-year Canada yield was down 7bp to 1.55%, which didn’t do FixedResets a lot of good.
| 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 | -0.7457 % | 2,036.1 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.7457 % | 3,736.2 |
| Floater | 5.77 % | 6.11 % | 47,326 | 13.68 | 3 | -0.7457 % | 2,153.2 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0679 % | 3,291.8 |
| SplitShare | 4.68 % | 4.91 % | 77,926 | 4.26 | 7 | -0.0679 % | 3,931.1 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0679 % | 3,067.2 |
| Perpetual-Premium | 5.53 % | 3.12 % | 90,373 | 0.09 | 12 | 0.0329 % | 2,953.2 |
| Perpetual-Discount | 5.43 % | 5.48 % | 76,360 | 14.67 | 20 | -0.1210 % | 3,107.6 |
| FixedReset Disc | 5.30 % | 5.43 % | 161,036 | 14.90 | 63 | -0.3464 % | 2,167.8 |
| Deemed-Retractible | 5.24 % | 5.89 % | 94,159 | 8.05 | 27 | -0.3499 % | 3,070.0 |
| FloatingReset | 3.98 % | 4.36 % | 49,970 | 2.61 | 4 | -0.2564 % | 2,398.5 |
| FixedReset Prem | 5.11 % | 3.81 % | 255,628 | 2.12 | 21 | -0.0815 % | 2,584.1 |
| FixedReset Bank Non | 1.98 % | 4.04 % | 152,540 | 2.62 | 3 | -0.1526 % | 2,648.6 |
| FixedReset Ins Non | 5.10 % | 6.84 % | 97,511 | 8.25 | 22 | -0.1838 % | 2,228.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PWF.PR.A | Floater | -2.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 13.07 Evaluated at bid price : 13.07 Bid-YTW : 5.30 % |
| BAM.PF.E | FixedReset Disc | -2.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 17.10 Evaluated at bid price : 17.10 Bid-YTW : 6.17 % |
| BIP.PR.E | FixedReset Disc | -2.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 20.51 Evaluated at bid price : 20.51 Bid-YTW : 6.19 % |
| MFC.PR.F | FixedReset Ins Non | -1.99 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.88 Bid-YTW : 9.49 % |
| MFC.PR.H | FixedReset Ins Non | -1.87 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.31 Bid-YTW : 6.50 % |
| IFC.PR.E | Deemed-Retractible | -1.83 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.60 Bid-YTW : 6.03 % |
| BMO.PR.Y | FixedReset Disc | -1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 20.73 Evaluated at bid price : 20.73 Bid-YTW : 5.17 % |
| BAM.PF.B | FixedReset Disc | -1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 18.15 Evaluated at bid price : 18.15 Bid-YTW : 6.00 % |
| BAM.PR.R | FixedReset Disc | -1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 15.53 Evaluated at bid price : 15.53 Bid-YTW : 6.17 % |
| SLF.PR.I | FixedReset Ins Non | -1.33 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.02 Bid-YTW : 6.92 % |
| BAM.PR.T | FixedReset Disc | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 15.65 Evaluated at bid price : 15.65 Bid-YTW : 6.20 % |
| CM.PR.P | FixedReset Disc | -1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 17.52 Evaluated at bid price : 17.52 Bid-YTW : 5.51 % |
| TRP.PR.F | FloatingReset | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 14.55 Evaluated at bid price : 14.55 Bid-YTW : 6.28 % |
| BAM.PF.G | FixedReset Disc | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 18.65 Evaluated at bid price : 18.65 Bid-YTW : 6.04 % |
| CM.PR.O | FixedReset Disc | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 18.03 Evaluated at bid price : 18.03 Bid-YTW : 5.47 % |
| IFC.PR.C | FixedReset Ins Non | -1.15 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.06 Bid-YTW : 7.99 % |
| MFC.PR.C | Deemed-Retractible | -1.13 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.61 Bid-YTW : 6.81 % |
| GWO.PR.T | Deemed-Retractible | -1.05 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.60 Bid-YTW : 5.98 % |
| HSE.PR.E | FixedReset Disc | 1.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 20.20 Evaluated at bid price : 20.20 Bid-YTW : 6.43 % |
| BAM.PR.K | Floater | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 11.47 Evaluated at bid price : 11.47 Bid-YTW : 6.11 % |
| MFC.PR.M | FixedReset Ins Non | 1.11 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.26 Bid-YTW : 7.66 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PF.B | FixedReset Disc | 134,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 18.22 Evaluated at bid price : 18.22 Bid-YTW : 5.34 % |
| SLF.PR.A | Deemed-Retractible | 61,826 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.30 Bid-YTW : 6.25 % |
| BMO.PR.B | FixedReset Prem | 53,800 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-02-25 Maturity Price : 25.00 Evaluated at bid price : 25.65 Bid-YTW : 3.81 % |
| BNS.PR.E | FixedReset Prem | 52,505 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-25 Maturity Price : 25.00 Evaluated at bid price : 25.95 Bid-YTW : 3.61 % |
| MFC.PR.R | FixedReset Ins Non | 52,015 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-03-19 Maturity Price : 25.00 Evaluated at bid price : 24.88 Bid-YTW : 4.87 % |
| EMA.PR.H | FixedReset Disc | 52,015 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-05-13 Maturity Price : 22.49 Evaluated at bid price : 23.31 Bid-YTW : 5.24 % |
| There were 35 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| TRP.PR.F | FloatingReset | Quote: 14.55 – 15.03 Spot Rate : 0.4800 Average : 0.3020 YTW SCENARIO |
| BAM.PR.Z | FixedReset Disc | Quote: 19.88 – 20.32 Spot Rate : 0.4400 Average : 0.2679 YTW SCENARIO |
| IFC.PR.E | Deemed-Retractible | Quote: 23.60 – 24.00 Spot Rate : 0.4000 Average : 0.2728 YTW SCENARIO |
| BIP.PR.F | FixedReset Disc | Quote: 21.28 – 21.74 Spot Rate : 0.4600 Average : 0.3408 YTW SCENARIO |
| GWO.PR.T | Deemed-Retractible | Quote: 23.60 – 23.94 Spot Rate : 0.3400 Average : 0.2338 YTW SCENARIO |
| BAM.PR.R | FixedReset Disc | Quote: 15.53 – 15.95 Spot Rate : 0.4200 Average : 0.3149 YTW SCENARIO |