Interesting times for equities!
Stocks tumbled on Thursday and the Nasdaq posted its steepest daily drop since early June as a batch of high-profile earnings reports ignited fresh fears about the AI spending race, sending investors scurrying to the safety of the bond market. Yields on U.S. Treasuries, which move inversely to prices, saw some of their biggest one-day declines in years.
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Meta Platforms’ results beat analyst expectations, but its stock slid 7.0% as the Facebook parent posted its first cash outflow in more than a decade due to its AI-related expenditures and announced plans to issue non-voting shares in a two-for-one split to raise capital to spend on the nascent technology.
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Domestically, markets are pricing in nearly 80% odds that the Bank of Canada will hike interest rates next week, in what would be its first move on rates in a year, as it fights off the inflationary impact of surging crude oil prices. Several economists, however, say the bank should stay on hold for now.The yield on the benchmark US 10-year Treasury note fell 19.3 basis points to 4.953%, its biggest daily drop since March 10, 2023. The yield had risen to 5.3645% on October 7, its highest since April 2002.
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The Dow Jones Industrial Average rose 11.89 points, or 0.02%, to 52,867.98, the S&P 500 lost 93.74 points, or 1.21%, to 7,663.43 and the Nasdaq Composite lost 694.00 points, or 2.60%, to 26,008.86.The S&P/TSX Composite Index ended down 351.54 points, or 1%, at 35,973.45. It posted on Wednesday its highest closing level since September 22.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| 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 | -0.1018 % | 2,772.6 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1018 % | 5,221.2 |
| Floater | 5.29 % | 5.35 % | 50,977 | 14.92 | 2 | -0.1018 % | 3,009.0 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2640 % | 3,603.5 |
| SplitShare | 4.81 % | 5.43 % | 60,822 | 2.43 | 5 | -0.2640 % | 4,303.3 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2640 % | 3,357.6 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1753 % | 3,051.7 |
| Perpetual-Discount | 5.74 % | 5.78 % | 50,675 | 14.19 | 32 | -0.1753 % | 3,283.6 |
| FixedReset Disc | 5.72 % | 6.33 % | 84,171 | 13.26 | 25 | -0.1436 % | 3,352.8 |
| Insurance Straight | 5.69 % | 5.77 % | 71,726 | 14.21 | 19 | -0.0456 % | 3,163.2 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1436 % | 4,093.8 |
| FixedReset Prem | 6.02 % | 4.81 % | 77,694 | 1.93 | 24 | -0.1395 % | 2,621.7 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1436 % | 3,427.3 |
| FixedReset Ins Non | 5.62 % | 5.77 % | 48,801 | 13.70 | 13 | -0.4685 % | 3,239.4 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| FTS.PR.J | Perpetual-Discount | -5.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 20.80 Evaluated at bid price : 20.80 Bid-YTW : 5.81 % |
| GWO.PR.H | Insurance Straight | -3.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 20.51 Evaluated at bid price : 20.51 Bid-YTW : 5.98 % |
| MFC.PR.M | FixedReset Ins Non | -3.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 23.12 Evaluated at bid price : 24.39 Bid-YTW : 6.11 % |
| PWF.PR.O | Perpetual-Discount | -2.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 23.93 Evaluated at bid price : 24.17 Bid-YTW : 6.02 % |
| GWO.PR.R | Insurance Straight | -2.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 20.65 Evaluated at bid price : 20.65 Bid-YTW : 5.88 % |
| BMO.PR.E | FixedReset Prem | -1.83 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-11-25 Maturity Price : 25.00 Evaluated at bid price : 26.26 Bid-YTW : 4.84 % |
| IFC.PR.G | FixedReset Ins Non | -1.61 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-06-30 Maturity Price : 25.00 Evaluated at bid price : 25.10 Bid-YTW : 6.03 % |
| CU.PR.E | Perpetual-Discount | -1.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 21.97 Evaluated at bid price : 22.20 Bid-YTW : 5.60 % |
| BN.PR.T | FixedReset Disc | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 22.50 Evaluated at bid price : 23.45 Bid-YTW : 6.33 % |
| BN.PR.X | FixedReset Disc | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 21.33 Evaluated at bid price : 21.60 Bid-YTW : 6.35 % |
| PWF.PR.Z | Perpetual-Discount | -1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 21.56 Evaluated at bid price : 21.82 Bid-YTW : 5.92 % |
| IFC.PR.F | Insurance Straight | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 23.20 Evaluated at bid price : 23.50 Bid-YTW : 5.69 % |
| POW.PR.B | Perpetual-Discount | 1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 23.38 Evaluated at bid price : 23.67 Bid-YTW : 5.68 % |
| PWF.PR.K | Perpetual-Discount | 1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 5.79 % |
| IFC.PR.E | Insurance Straight | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 22.82 Evaluated at bid price : 23.10 Bid-YTW : 5.68 % |
| ENB.PF.G | FixedReset Disc | 1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 22.87 Evaluated at bid price : 24.00 Bid-YTW : 6.49 % |
| FTS.PR.F | Perpetual-Discount | 1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 22.34 Evaluated at bid price : 22.61 Bid-YTW : 5.49 % |
| GWO.PR.Z | Insurance Straight | 2.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 24.47 Evaluated at bid price : 24.88 Bid-YTW : 5.77 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BN.PF.N | FixedReset Disc | 466,011 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 23.13 Evaluated at bid price : 24.93 Bid-YTW : 5.74 % |
| PVS.PR.N | SplitShare | 161,767 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2033-09-29 Maturity Price : 25.00 Evaluated at bid price : 24.75 Bid-YTW : 5.51 % |
| CU.PR.G | Perpetual-Discount | 66,200 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 20.60 Evaluated at bid price : 20.60 Bid-YTW : 5.55 % |
| PVS.PR.H | SplitShare | 63,162 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2027-02-28 Maturity Price : 25.00 Evaluated at bid price : 25.06 Bid-YTW : 5.72 % |
| ENB.PR.B | FixedReset Disc | 58,900 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 22.99 Evaluated at bid price : 23.70 Bid-YTW : 6.45 % |
| ENB.PR.J | FixedReset Disc | 56,100 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-22 Maturity Price : 23.38 Evaluated at bid price : 24.68 Bid-YTW : 6.34 % |
| There were 5 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.C | Insurance Straight | Quote: 20.11 – 21.95 Spot Rate : 1.8400 Average : 1.0611 YTW SCENARIO |
| FTS.PR.J | Perpetual-Discount | Quote: 20.80 – 22.15 Spot Rate : 1.3500 Average : 0.8969 YTW SCENARIO |
| MFC.PR.M | FixedReset Ins Non | Quote: 24.39 – 25.39 Spot Rate : 1.0000 Average : 0.6551 YTW SCENARIO |
| PWF.PR.O | Perpetual-Discount | Quote: 24.17 – 24.95 Spot Rate : 0.7800 Average : 0.4787 YTW SCENARIO |
| BMO.PR.E | FixedReset Prem | Quote: 26.26 – 26.96 Spot Rate : 0.7000 Average : 0.4088 YTW SCENARIO |
| GWO.PR.H | Insurance Straight | Quote: 20.51 – 21.40 Spot Rate : 0.8900 Average : 0.6070 YTW SCENARIO |