Soon we will all have a chance to invest in Canada’s version of State Capitalism!
Ottawa plans to grow its new sovereign wealth fund through a combination of buy-in from retail investors and efforts to reallocate money that is tied up in airports and other federal assets.
On Monday, the Prime Minister Mark Carney announced a new $25-billion sovereign wealth fund, which will focus on investing in companies and infrastructure projects that are part of the government’s major projects agenda.
The spring economic update on Tuesday offered few additional details about how the fund will work in practice.
But it did say the government will look to grow the pool of capital beyond the initial $25-billion in seed funding by allowing Canadians to invest in the fund, and by what the government says is optimizing existing federal assets.
I’m busy warming up my cheque-book to get in on the ground floor of this opportunity … we can bring back the Avro Arrow! We can monetize our expertise in building large pay-roll systems! Most excitingly, we can build secure apps for mobile ‘phones! Apps are cool, right? We’ll sell millions of them!
| 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 | 0.2987 % | 2,498.2 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2987 % | 4,737.0 |
| Floater | 5.80 % | 5.93 % | 34,297 | 13.99 | 4 | 0.2987 % | 2,729.9 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0551 % | 3,661.3 |
| SplitShare | 4.77 % | 4.53 % | 66,765 | 2.85 | 5 | -0.0551 % | 4,372.3 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0551 % | 3,411.5 |
| Perpetual-Premium | 5.84 % | -6.51 % | 59,460 | 0.08 | 1 | 0.1984 % | 3,031.7 |
| Perpetual-Discount | 5.67 % | 5.72 % | 49,455 | 14.29 | 34 | 0.1459 % | 3,342.9 |
| FixedReset Disc | 5.76 % | 5.97 % | 126,020 | 13.79 | 27 | 0.2931 % | 3,269.2 |
| Insurance Straight | 5.55 % | 5.62 % | 52,435 | 14.44 | 22 | -0.4094 % | 3,278.6 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2931 % | 3,889.0 |
| FixedReset Prem | 5.99 % | 4.59 % | 93,256 | 1.93 | 21 | 0.3132 % | 2,648.2 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2931 % | 3,341.8 |
| FixedReset Ins Non | 5.10 % | 5.35 % | 74,186 | 14.50 | 14 | 0.1930 % | 3,240.3 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IFC.PR.I | Insurance Straight | -9.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 21.80 Evaluated at bid price : 22.06 Bid-YTW : 6.19 % |
| MFC.PR.B | Insurance Straight | -3.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 5.62 % |
| PWF.PF.A | Perpetual-Discount | -1.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 19.75 Evaluated at bid price : 19.75 Bid-YTW : 5.73 % |
| GWO.PR.R | Insurance Straight | -1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 21.35 Evaluated at bid price : 21.35 Bid-YTW : 5.69 % |
| ENB.PF.G | FixedReset Disc | 1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 22.59 Evaluated at bid price : 23.50 Bid-YTW : 6.18 % |
| IFC.PR.A | FixedReset Ins Non | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 22.17 Evaluated at bid price : 22.50 Bid-YTW : 5.41 % |
| CIU.PR.A | Perpetual-Discount | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 20.60 Evaluated at bid price : 20.60 Bid-YTW : 5.68 % |
| ENB.PR.D | FixedReset Disc | 1.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 21.82 Evaluated at bid price : 22.33 Bid-YTW : 6.22 % |
| BN.PF.A | FixedReset Prem | 1.65 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.92 Bid-YTW : 5.37 % |
| SLF.PR.H | FixedReset Ins Non | 1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 23.63 Evaluated at bid price : 24.40 Bid-YTW : 5.35 % |
| SLF.PR.C | Insurance Straight | 1.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 21.39 Evaluated at bid price : 21.39 Bid-YTW : 5.26 % |
| BN.PR.T | FixedReset Disc | 1.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 21.54 Evaluated at bid price : 21.90 Bid-YTW : 6.12 % |
| PWF.PR.E | Perpetual-Discount | 2.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 23.63 Evaluated at bid price : 23.90 Bid-YTW : 5.78 % |
| PWF.PR.S | Perpetual-Discount | 3.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 21.39 Evaluated at bid price : 21.39 Bid-YTW : 5.65 % |
| MFC.PR.C | Insurance Straight | 4.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 21.28 Evaluated at bid price : 21.55 Bid-YTW : 5.27 % |
| BN.PR.Z | FixedReset Prem | 5.82 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.45 Bid-YTW : 5.28 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| ENB.PF.C | FixedReset Disc | 62,093 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 22.52 Evaluated at bid price : 23.30 Bid-YTW : 6.17 % |
| ENB.PR.T | FixedReset Disc | 39,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 23.10 Evaluated at bid price : 24.32 Bid-YTW : 5.97 % |
| PWF.PR.A | Floater | 33,025 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 14.12 Evaluated at bid price : 14.12 Bid-YTW : 5.53 % |
| ENB.PR.H | FixedReset Disc | 32,150 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 22.88 Evaluated at bid price : 23.60 Bid-YTW : 5.76 % |
| FTS.PR.G | FixedReset Disc | 29,272 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-04-28 Maturity Price : 23.53 Evaluated at bid price : 25.08 Bid-YTW : 5.37 % |
| BIP.PR.E | FixedReset Prem | 28,820 | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-03-31 Maturity Price : 25.00 Evaluated at bid price : 25.61 Bid-YTW : 5.61 % |
| There were 6 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 |
| IFC.PR.I | Insurance Straight | Quote: 22.06 – 24.67 Spot Rate : 2.6100 Average : 1.5693 YTW SCENARIO |
| BN.PR.M | Perpetual-Discount | Quote: 20.35 – 20.99 Spot Rate : 0.6400 Average : 0.3669 YTW SCENARIO |
| MFC.PR.B | Insurance Straight | Quote: 21.00 – 22.30 Spot Rate : 1.3000 Average : 1.0342 YTW SCENARIO |
| ENB.PR.B | FixedReset Disc | Quote: 22.40 – 24.00 Spot Rate : 1.6000 Average : 1.3376 YTW SCENARIO |
| PWF.PR.Z | Perpetual-Discount | Quote: 22.42 – 22.99 Spot Rate : 0.5700 Average : 0.3777 YTW SCENARIO |
| POW.PR.D | Perpetual-Discount | Quote: 22.00 – 23.15 Spot Rate : 1.1500 Average : 0.9796 YTW SCENARIO |
i take it you’re skeptical of Canada’s new Debt Fund? i’m hoping they list the shares on an exchange so i can short this new enterprise. not only is the government borrowing money it doesn’t have, making the taxpayer foot the bill,… they’re going to ask retail investors to contribute funds.. and if it’s a debacle, the investor won’t lose money, but the taxpayer will make them whole.
i don’t know.. have they ever done anything right?? we can’t even build a cross town LRT that’s on budget and on time,.. let alone work properly. what makes them think they can tackle larger projects? we get a say in what gets built? high speed rail a go now?
what a mess
So you want to short something that you say can’t lose value. That’s interesting 😉
i wonder how they will do it. mark to market? lol.. not likely.. probably use the GIC model…. we’ll guarantee you a minimum 3% with some potential upside if we have it…
i think the best thing to do is short canadian bonds… who in their right mind would lend these clowns money for 10 years? given the previous 10 year record of debt and deficits.
I guess I have lost my mind then :O
Over the last few months I have drastically reduced my share of Canadian perpetuals and used the proceeds to buy US Treasuries (TLT equivalent but listed in the TSX) but mostly long dated provincial strip bonds.
Most of them have a maturity in 20 years (when I plan to retire) and yield about 4.8% which means I will get back about 2.5x my investment.
I am quite happy with that for what I believe to be, still, a safe investment.
Sure, I have no idea where yields and inflation are heading but if everything climbs, I will buy more bonds and if we get a severe downturn and yields collapse, they will enjoy a nice ride.
Anyway, I am certainly dumb ha ha … but I like this part of my portfolio.
personally, i think we’re in a secular bear market for bonds. given your 20 year time horizon, you might be ok. you might not. but i am not positioned that way. my view is the US (and Canada and Europe etc) have no way of getting out of this mess without massive inflation. you may get 2.5X your investment, but you may still loose purchasing power in the end. the total return of the TLT adjusted for CPI is 0 for the last 17 years…. the TLT adjusted for CPI returned -50% the last 5 years. i don’t think we see rates at 1980 levels, but i think we see US 10 year at 7.5% first before rates start to come back down. i would still rather own floating and rate reset prefs over long term bonds …