Carnage and despair was the order of the day:
Wall Street ended sharply lower on Thursday, with steep losses in Nvidia and other AI heavyweights, as investors scaled back expectations of interest rate cuts due to inflation worries and divisions among central bankers about the U.S. economy’s health. The selloff extended to Canada, where the main index posted its biggest decline in seven months, with tech stocks leading the fall.
All three major U.S. stock indexes posted their steepest daily percentage declines in over a month. The U.S. government reopened after a record 43-day shutdown that had worried investors and disrupted the flow of economic data.
A growing number of Federal Reserve policymakers in recent days have signaled hesitation about further interest rate cuts, pushing financial market-based odds of a reduction in borrowing costs in December to near even. Fed officials who spoke recently cited worries about inflation and signs of relative stability in the labour market after two U.S. interest rate cuts this year.
…
Traders are pricing in about a 47% chance of a 25-basis-point rate cut in December, lower than last week’s 70% probability, according to CME Group’s FedWatch tool.Shares fell for some of the U.S. stock market’s strongest performers in recent years, as investors fretted about high valuations fueled by optimism about artificial intelligence.
Nvidia, the world’s most valuable company, dropped 3.6%, Tesla fell 6.6% and Broadcom declined 4.3%.
…
The S&P 500 declined 1.66% to end the session at 6,737.49 points. The Nasdaq fell 2.29% to 22,870.36 points, while the Dow Jones Industrial Average declined 1.65% to 47,457.22 points.The S&P/TSX composite index ended down 573.94 points, or 1.9%, at 30,253.64, after posting a record high closing level on Wednesday.
Canadian preferreds got off lightly, with the TXPR Price Index down 22bp.
| 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 | 0.1276 % | 2,419.0 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1276 % | 4,586.8 |
| Floater | 5.96 % | 6.24 % | 57,631 | 13.51 | 3 | 0.1276 % | 2,643.4 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3744 % | 3,685.2 |
| SplitShare | 4.74 % | 4.56 % | 66,290 | 3.24 | 5 | -0.3744 % | 4,400.9 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3744 % | 3,433.8 |
| Perpetual-Premium | 5.67 % | -2.44 % | 79,514 | 0.09 | 7 | -0.5340 % | 3,095.9 |
| Perpetual-Discount | 5.46 % | 5.57 % | 48,809 | 14.54 | 25 | -0.7836 % | 3,424.9 |
| FixedReset Disc | 5.78 % | 6.00 % | 106,213 | 13.72 | 30 | -0.9970 % | 3,095.8 |
| Insurance Straight | 5.44 % | 5.49 % | 59,861 | 14.59 | 21 | -1.5198 % | 3,341.6 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.9970 % | 3,682.8 |
| FixedReset Prem | 5.89 % | 4.99 % | 110,275 | 2.71 | 21 | -0.4271 % | 2,633.7 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.9970 % | 3,164.6 |
| FixedReset Ins Non | 5.18 % | 5.33 % | 64,280 | 14.49 | 15 | -0.3439 % | 3,094.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| SLF.PR.E | Insurance Straight | -10.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 19.90 Evaluated at bid price : 19.90 Bid-YTW : 5.74 % |
| PWF.PR.P | FixedReset Disc | -4.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 17.60 Evaluated at bid price : 17.60 Bid-YTW : 6.20 % |
| ENB.PR.F | FixedReset Disc | -3.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 21.05 Evaluated at bid price : 21.05 Bid-YTW : 6.47 % |
| BN.PF.B | FixedReset Disc | -3.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 22.41 Evaluated at bid price : 23.03 Bid-YTW : 6.10 % |
| GWO.PR.L | Insurance Straight | -3.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 24.64 Evaluated at bid price : 24.90 Bid-YTW : 5.75 % |
| IFC.PR.C | FixedReset Ins Non | -2.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 23.00 Evaluated at bid price : 23.60 Bid-YTW : 5.66 % |
| CU.PR.C | FixedReset Disc | -2.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 22.93 Evaluated at bid price : 23.35 Bid-YTW : 5.52 % |
| ENB.PR.N | FixedReset Disc | -2.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 22.97 Evaluated at bid price : 24.00 Bid-YTW : 5.99 % |
| BN.PF.I | FixedReset Prem | -2.68 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-03-31 Maturity Price : 25.00 Evaluated at bid price : 25.06 Bid-YTW : 5.74 % |
| FTS.PR.K | FixedReset Disc | -2.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 22.28 Evaluated at bid price : 22.79 Bid-YTW : 5.51 % |
| POW.PR.D | Perpetual-Discount | -2.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 22.49 Evaluated at bid price : 22.75 Bid-YTW : 5.55 % |
| GWO.PR.M | Insurance Straight | -2.25 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-12-13 Maturity Price : 25.00 Evaluated at bid price : 25.25 Bid-YTW : 2.12 % |
| POW.PR.H | Perpetual-Premium | -2.16 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2034-10-15 Maturity Price : 25.00 Evaluated at bid price : 25.39 Bid-YTW : 5.69 % |
| BN.PF.A | FixedReset Prem | -2.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 23.45 Evaluated at bid price : 25.15 Bid-YTW : 5.84 % |
| PWF.PF.A | Perpetual-Discount | -1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 20.80 Evaluated at bid price : 20.80 Bid-YTW : 5.46 % |
| GWO.PR.I | Insurance Straight | -1.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 21.20 Evaluated at bid price : 21.20 Bid-YTW : 5.39 % |
| CU.PR.F | Perpetual-Discount | -1.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 20.81 Evaluated at bid price : 20.81 Bid-YTW : 5.43 % |
| PWF.PR.Z | Perpetual-Discount | -1.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 22.91 Evaluated at bid price : 23.18 Bid-YTW : 5.59 % |
| POW.PR.A | Perpetual-Discount | -1.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 24.68 Evaluated at bid price : 25.00 Bid-YTW : 5.65 % |
| BN.PF.J | FixedReset Prem | -1.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 23.66 Evaluated at bid price : 25.30 Bid-YTW : 5.86 % |
| PWF.PR.L | Perpetual-Discount | -1.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 22.77 Evaluated at bid price : 23.05 Bid-YTW : 5.57 % |
| FTS.PR.G | FixedReset Disc | -1.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 23.28 Evaluated at bid price : 24.63 Bid-YTW : 5.22 % |
| GWO.PR.Q | Insurance Straight | -1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 23.23 Evaluated at bid price : 23.53 Bid-YTW : 5.54 % |
| GWO.PR.Z | Insurance Straight | -1.56 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2034-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.32 Bid-YTW : 5.67 % |
| PWF.PR.E | Perpetual-Discount | -1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 24.21 Evaluated at bid price : 24.50 Bid-YTW : 5.65 % |
| PWF.PR.R | Perpetual-Discount | -1.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 24.20 Evaluated at bid price : 24.49 Bid-YTW : 5.65 % |
| BN.PF.C | Perpetual-Discount | -1.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 21.40 Evaluated at bid price : 21.40 Bid-YTW : 5.75 % |
| GWO.PR.P | Insurance Straight | -1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 24.16 Evaluated at bid price : 24.41 Bid-YTW : 5.60 % |
| BN.PR.Z | FixedReset Disc | -1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 23.40 Evaluated at bid price : 24.60 Bid-YTW : 5.90 % |
| PWF.PR.T | FixedReset Disc | -1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 23.16 Evaluated at bid price : 24.50 Bid-YTW : 5.30 % |
| IFC.PR.E | Insurance Straight | -1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 23.64 Evaluated at bid price : 23.90 Bid-YTW : 5.51 % |
| ENB.PR.T | FixedReset Disc | -1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 22.56 Evaluated at bid price : 23.32 Bid-YTW : 6.00 % |
| BIP.PR.E | FixedReset Prem | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 23.60 Evaluated at bid price : 25.31 Bid-YTW : 5.84 % |
| SLF.PR.D | Insurance Straight | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 21.59 Evaluated at bid price : 21.85 Bid-YTW : 5.15 % |
| SLF.PR.C | Insurance Straight | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 21.59 Evaluated at bid price : 21.85 Bid-YTW : 5.15 % |
| BN.PF.E | FixedReset Disc | -1.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 21.63 Evaluated at bid price : 21.95 Bid-YTW : 6.09 % |
| MFC.PR.B | Insurance Straight | -1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 22.01 Evaluated at bid price : 22.25 Bid-YTW : 5.30 % |
| IFC.PR.A | FixedReset Ins Non | -1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 21.39 Evaluated at bid price : 21.71 Bid-YTW : 5.27 % |
| ENB.PR.A | Perpetual-Discount | -1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 24.82 Evaluated at bid price : 25.04 Bid-YTW : 5.59 % |
| IFC.PR.G | FixedReset Ins Non | -1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 23.46 Evaluated at bid price : 25.05 Bid-YTW : 5.41 % |
| GWO.PR.R | Insurance Straight | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 21.91 Evaluated at bid price : 22.15 Bid-YTW : 5.48 % |
| SLF.PR.G | FixedReset Ins Non | 2.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 19.25 Evaluated at bid price : 19.25 Bid-YTW : 5.52 % |
| CIU.PR.A | Perpetual-Discount | 2.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 5.50 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| FFH.PR.K | FixedReset Prem | 269,407 | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-03-31 Maturity Price : 25.00 Evaluated at bid price : 25.50 Bid-YTW : 4.03 % |
| IFC.PR.M | Perpetual-Premium | 180,172 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-13 Maturity Price : 24.43 Evaluated at bid price : 24.82 Bid-YTW : 5.56 % |
| RY.PR.M | FixedReset Disc | 100,249 | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-12-24 Maturity Price : 25.00 Evaluated at bid price : 24.98 Bid-YTW : 4.70 % |
| GWO.PR.Z | Insurance Straight | 57,830 | YTW SCENARIO Maturity Type : Call Maturity Date : 2034-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.32 Bid-YTW : 5.67 % |
| CU.PR.I | FixedReset Prem | 55,315 | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-12-31 Maturity Price : 25.00 Evaluated at bid price : 24.96 Bid-YTW : 5.31 % |
| POW.PR.H | Perpetual-Premium | 52,190 | YTW SCENARIO Maturity Type : Call Maturity Date : 2034-10-15 Maturity Price : 25.00 Evaluated at bid price : 25.39 Bid-YTW : 5.69 % |
| 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 |
| SLF.PR.E | Insurance Straight | Quote: 19.90 – 22.45 Spot Rate : 2.5500 Average : 1.4276 YTW SCENARIO |
| CU.PR.C | FixedReset Disc | Quote: 23.35 – 24.90 Spot Rate : 1.5500 Average : 1.0675 YTW SCENARIO |
| ENB.PR.F | FixedReset Disc | Quote: 21.05 – 22.35 Spot Rate : 1.3000 Average : 0.8319 YTW SCENARIO |
| IFC.PR.C | FixedReset Ins Non | Quote: 23.60 – 24.60 Spot Rate : 1.0000 Average : 0.6201 YTW SCENARIO |
| PWF.PR.S | Perpetual-Discount | Quote: 20.50 – 22.38 Spot Rate : 1.8800 Average : 1.5022 YTW SCENARIO |
| ENB.PR.N | FixedReset Disc | Quote: 24.00 – 24.87 Spot Rate : 0.8700 Average : 0.5166 YTW SCENARIO |