The Fed has announced:
a new section of its website expanding the information provided about the policy tools the Federal Reserve has employed to address the financial crisis and simplifying access to that information.
The website section–“Credit and Liquidity Programs and the Balance Sheet”–presents a wide range of material, including a detailed explanation of the Federal Reserve’s balance sheet; descriptions of all of the Federal Reserve’s liquidity and credit facilities; discussion of the Federal Reserve’s risk-management practices; information on the types and amounts of collateral being pledged at the various lending facilities; and an extensive set of links to congressional reports and other resources.
…
The new section of the Board’s website can be accessed at: http://www.federalreserve.gov/monetarypolicy/bst.htm.
There has also been a Treasury, FDIC, OCC, OTS & the Fed regarding yet another iteration of TARP:
“We announced on February 10, 2009, a Capital Assistance Program to ensure that our banking institutions are appropriately capitalized, with high-quality capital. Under this program, which will be initiated on February 25, the capital needs of the major U.S. banking institutions will be evaluated under a more challenging economic environment. Should that assessment indicate that an additional capital buffer is warranted, institutions will have an opportunity to turn first to private sources of capital. Otherwise, the temporary capital buffer will be made available from the government. This additional capital does not imply a new capital standard and it is not expected to be maintained on an ongoing basis. Instead, it is available to provide a cushion against larger than expected future losses, should they occur due to a more severe economic environment, and to support lending to creditworthy borrowers. Any government capital will be in the form of mandatory convertible preferred shares, which would be converted into common equity shares only as needed over time to keep banks in a well-capitalized position and can be retired under improved financial conditions before the conversion becomes mandatory. Previous capital injections under the Troubled Asset Relief Program will also be eligible to be exchanged for the mandatory convertible preferred shares. The conversion feature will enable institutions to maintain or enhance the quality of their capital.
Rather than the either/or choice envisaged in the release, I would rather see a system whereby Treasury backstopped a public offering of the securites. There’s a lot of private capital that would love to get involved if it could invest on the same terms as the government.
Yet another proposal for resolution of the credit crisis has come forward … but I don’t think it will find a lot of political support!
Creating a “bad bank” or “aggregator bank” that would use federal funds to acquire and warehouse the assets, as some have proposed, would be costly for taxpayers and require too much government interference, say two experts on distressed securities who have pitched an alternative plan to officials.
John Ryding, chief economist at RDQ Economics LLC in New York, and Matt Chasin, chief operating officer of Sorin Capital Management LLC, a Stamford, Connecticut-based hedge fund that manages about $1 billion, say the Treasury Department should provide loans at commercial rates to investors for up to 50 percent of the purchase price of securities. The financing would be for as long as the maturities of the assets being acquired.
“One of the problems the banks have been facing is that the markets have forced artificially low prices on these assets because there’s not enough financing available for buyers,” said Ryding, 51, a former Federal Reserve economist who advises hedge funds. “There’s a lot of capital looking for distressed assets, if hedge funds can get good financing.”
Along similar lines, the Bank of Canada is adding corporate bonds to the acceptable collateral list for Term PRAs. The lowest rated, longest term bonds accepted, A- & 10+ years, will be subject to a 15% haircut.
Whoosh! Prefs got hammered today – particularly PerpetualDiscounts and SplitShares – as common equity got hammered:
Canadian stocks fell, driving the Standard & Poor’s/TSX Composite Index to the lowest level since 2003, as worse-than-estimated retail sales signaled the recession is deepening while oil and metal prices retreated.
…
Canadian retail sales fell 5.4 percent in December, the most since January 1991 and twice the average economist estimate, as consumers curtailed spending on cars, building supplies and clothes, Statistics Canada said today in Ottawa. Bank of Canada Senior Deputy Governor Paul Jenkins said 2009 will be a difficult year for the Canadian economy, reiterating the central bank’s forecast that the economy will shrink 1.2 percent.
| 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 | 5.25 % | 3.67 % | 23,725 | 18.02 | 2 | -0.0766 % | 858.6 |
| FixedFloater | 7.36 % | 6.91 % | 73,384 | 14.00 | 7 | 0.2235 % | 1,364.6 |
| Floater | 5.08 % | 4.24 % | 27,462 | 16.95 | 4 | 0.0242 % | 1,034.2 |
| OpRet | 5.24 % | 4.96 % | 138,801 | 3.97 | 15 | -0.0203 % | 2,051.8 |
| SplitShare | 6.95 % | 12.99 % | 67,097 | 3.97 | 15 | -1.1647 % | 1,609.3 |
| Interest-Bearing | 7.49 % | 11.34 % | 33,939 | 0.81 | 2 | -3.7102 % | 1,888.1 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -1.0310 % | 1,519.5 |
| Perpetual-Discount | 7.09 % | 7.17 % | 179,201 | 12.31 | 71 | -1.0310 % | 1,399.5 |
| FixedReset | 6.09 % | 5.76 % | 568,683 | 13.86 | 27 | -0.3924 % | 1,807.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| FIG.PR.A | Interest-Bearing | -7.59 % | Asset coverage of 1.0+:1 as of February 20, based on Capital units at $0.39 and 0.53 Capital Units per preferred. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2014-12-31 Maturity Price : 10.00 Evaluated at bid price : 6.70 Bid-YTW : 15.37 % |
| RY.PR.H | Perpetual-Discount | -5.77 % | It’s about time somebody noticed how expensive the Royal issues are! This is a real, albeit fragile, decline: 6,230 shares traded in a range of 20.07-21.74 before closing at 20.09-21.22 (!), 5×3. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 20.09 Evaluated at bid price : 20.09 Bid-YTW : 7.10 % |
| BMO.PR.H | Perpetual-Discount | -5.48 % | This one is not quite so real; it was simply that the bids disappeared. Traded 1,975 shares in a range of 21.00-16 before closing at 20.01-21.70 (!), 11×3. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 20.01 Evaluated at bid price : 20.01 Bid-YTW : 6.68 % |
| LFE.PR.A | SplitShare | -5.03 % | Asset coverage of 1.2+:1 as of February 13 according to the company. An absence of bids! Traded 1,000 shares in a range of 7.56-75 before closing at 7.36-74, 1×2. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2012-12-01 Maturity Price : 10.00 Evaluated at bid price : 7.36 Bid-YTW : 14.89 % |
| RY.PR.F | Perpetual-Discount | -5.00 % | Vanishing bids! Traded 3,210 shares in a range of 16.50-17.26 before closing at 16.16-95, 3×5. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 16.16 Evaluated at bid price : 16.16 Bid-YTW : 6.95 % |
| SLF.PR.B | Perpetual-Discount | -4.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 15.13 Evaluated at bid price : 15.13 Bid-YTW : 7.94 % |
| RY.PR.A | Perpetual-Discount | -4.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 16.20 Evaluated at bid price : 16.20 Bid-YTW : 6.93 % |
| PWF.PR.K | Perpetual-Discount | -4.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 16.08 Evaluated at bid price : 16.08 Bid-YTW : 7.81 % |
| SBN.PR.A | SplitShare | -3.34 % | Asset coverage of 1.6+:1 as of February 12, according to Mulvihill. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2014-12-01 Maturity Price : 10.00 Evaluated at bid price : 8.11 Bid-YTW : 9.70 % |
| BAM.PR.K | Floater | -3.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 7.70 Evaluated at bid price : 7.70 Bid-YTW : 6.95 % |
| RY.PR.E | Perpetual-Discount | -3.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 16.66 Evaluated at bid price : 16.66 Bid-YTW : 6.81 % |
| SLF.PR.E | Perpetual-Discount | -2.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 14.32 Evaluated at bid price : 14.32 Bid-YTW : 7.86 % |
| RY.PR.G | Perpetual-Discount | -2.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 16.52 Evaluated at bid price : 16.52 Bid-YTW : 6.87 % |
| BNA.PR.C | SplitShare | -2.81 % | Asset coverage of 1.9-:1 as of January 31, according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2019-01-10 Maturity Price : 25.00 Evaluated at bid price : 11.08 Bid-YTW : 15.66 % |
| ELF.PR.G | Perpetual-Discount | -2.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 13.66 Evaluated at bid price : 13.66 Bid-YTW : 8.88 % |
| MFC.PR.C | Perpetual-Discount | -2.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 15.05 Evaluated at bid price : 15.05 Bid-YTW : 7.50 % |
| PWF.PR.E | Perpetual-Discount | -2.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 18.51 Evaluated at bid price : 18.51 Bid-YTW : 7.54 % |
| POW.PR.A | Perpetual-Discount | -2.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 19.00 Evaluated at bid price : 19.00 Bid-YTW : 7.50 % |
| CM.PR.K | FixedReset | -2.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 21.79 Evaluated at bid price : 22.25 Bid-YTW : 5.04 % |
| W.PR.H | Perpetual-Discount | -2.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 19.22 Evaluated at bid price : 19.22 Bid-YTW : 7.28 % |
| FTN.PR.A | SplitShare | -2.31 % | Asset coverage of 1.2-:1 as of February 13, according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2015-12-01 Maturity Price : 10.00 Evaluated at bid price : 6.76 Bid-YTW : 12.72 % |
| SLF.PR.A | Perpetual-Discount | -2.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 15.22 Evaluated at bid price : 15.22 Bid-YTW : 7.81 % |
| RY.PR.L | FixedReset | -2.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 23.66 Evaluated at bid price : 23.70 Bid-YTW : 5.15 % |
| POW.PR.D | Perpetual-Discount | -2.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 16.79 Evaluated at bid price : 16.79 Bid-YTW : 7.58 % |
| TD.PR.S | FixedReset | -1.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 4.51 % |
| RY.PR.D | Perpetual-Discount | -1.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 16.75 Evaluated at bid price : 16.75 Bid-YTW : 6.78 % |
| NA.PR.M | Perpetual-Discount | -1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 20.78 Evaluated at bid price : 20.78 Bid-YTW : 7.30 % |
| NA.PR.L | Perpetual-Discount | -1.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 17.40 Evaluated at bid price : 17.40 Bid-YTW : 7.04 % |
| FBS.PR.B | SplitShare | -1.74 % | Asset coverage of 0.9+:1 as of February 19, according to TD Securities. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2011-12-15 Maturity Price : 10.00 Evaluated at bid price : 6.20 Bid-YTW : 25.01 % |
| CM.PR.P | Perpetual-Discount | -1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 18.76 Evaluated at bid price : 18.76 Bid-YTW : 7.44 % |
| FFN.PR.A | SplitShare | -1.50 % | Asset coverage of 1.0+:1 as of February 13 according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2014-12-01 Maturity Price : 10.00 Evaluated at bid price : 5.91 Bid-YTW : 16.85 % |
| BAM.PR.N | Perpetual-Discount | -1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 12.71 Evaluated at bid price : 12.71 Bid-YTW : 9.60 % |
| TD.PR.R | Perpetual-Discount | -1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 20.41 Evaluated at bid price : 20.41 Bid-YTW : 6.95 % |
| NA.PR.O | FixedReset | -1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 24.86 Evaluated at bid price : 24.91 Bid-YTW : 6.68 % |
| SBC.PR.A | SplitShare | -1.30 % | Asset coverage of 1.2+:1 as of February 19, according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2012-11-30 Maturity Price : 10.00 Evaluated at bid price : 7.60 Bid-YTW : 13.95 % |
| PPL.PR.A | SplitShare | -1.28 % | Asset coverage of 1.3+:1 as of February 13, according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2012-12-01 Maturity Price : 10.00 Evaluated at bid price : 7.70 Bid-YTW : 13.06 % |
| GWO.PR.H | Perpetual-Discount | -1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 16.06 Evaluated at bid price : 16.06 Bid-YTW : 7.72 % |
| ENB.PR.A | Perpetual-Discount | -1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 23.54 Evaluated at bid price : 23.81 Bid-YTW : 5.79 % |
| BAM.PR.J | OpRet | -1.15 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2018-03-30 Maturity Price : 25.00 Evaluated at bid price : 18.10 Bid-YTW : 10.37 % |
| SLF.PR.D | Perpetual-Discount | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 14.55 Evaluated at bid price : 14.55 Bid-YTW : 7.65 % |
| BNS.PR.Q | FixedReset | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 21.30 Evaluated at bid price : 21.57 Bid-YTW : 4.59 % |
| BMO.PR.J | Perpetual-Discount | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 16.01 Evaluated at bid price : 16.01 Bid-YTW : 7.09 % |
| RY.PR.C | Perpetual-Discount | -1.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 17.00 Evaluated at bid price : 17.00 Bid-YTW : 6.83 % |
| TD.PR.C | FixedReset | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 23.71 Evaluated at bid price : 23.75 Bid-YTW : 5.21 % |
| PWF.PR.H | Perpetual-Discount | -1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 19.55 Evaluated at bid price : 19.55 Bid-YTW : 7.46 % |
| POW.PR.B | Perpetual-Discount | -1.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 17.75 Evaluated at bid price : 17.75 Bid-YTW : 7.68 % |
| BCE.PR.Z | FixedFloater | 1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 25.00 Evaluated at bid price : 14.99 Bid-YTW : 7.06 % |
| TCA.PR.X | Perpetual-Discount | 1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 45.12 Evaluated at bid price : 47.01 Bid-YTW : 5.98 % |
| TD.PR.A | FixedReset | 1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 22.86 Evaluated at bid price : 22.90 Bid-YTW : 4.57 % |
| BCE.PR.F | FixedFloater | 1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 25.00 Evaluated at bid price : 14.50 Bid-YTW : 7.13 % |
| CM.PR.I | Perpetual-Discount | 1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 16.25 Evaluated at bid price : 16.25 Bid-YTW : 7.34 % |
| BNS.PR.L | Perpetual-Discount | 1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 18.00 Evaluated at bid price : 18.00 Bid-YTW : 6.33 % |
| TRI.PR.B | Floater | 1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 13.20 Evaluated at bid price : 13.20 Bid-YTW : 4.02 % |
| BNS.PR.P | FixedReset | 1.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 22.81 Evaluated at bid price : 22.90 Bid-YTW : 4.60 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| FTN.PR.A | SplitShare | 107,200 | RBC bought twol lots from Nesbitt at 6.94; the first for 15,600 shares, the second for 25,000. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2015-12-01 Maturity Price : 10.00 Evaluated at bid price : 6.76 Bid-YTW : 12.72 % |
| CU.PR.B | Perpetual-Discount | 86,000 | Nesbitt crossed 75,000 at 22.75. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 22.51 Evaluated at bid price : 22.71 Bid-YTW : 6.64 % |
| TD.PR.G | FixedReset | 70,027 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-30 Maturity Price : 25.00 Evaluated at bid price : 25.25 Bid-YTW : 6.17 % |
| BNS.PR.X | FixedReset | 68,064 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-25 Maturity Price : 25.00 Evaluated at bid price : 25.06 Bid-YTW : 6.34 % |
| SLF.PR.C | Perpetual-Discount | 63,012 | Nesbitt crossed 33,300 at 14.90; Scotia crossed 25,000 at the same price. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-02-23 Maturity Price : 14.71 Evaluated at bid price : 14.71 Bid-YTW : 7.57 % |
| CM.PR.L | FixedReset | 48,895 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-30 Maturity Price : 25.00 Evaluated at bid price : 25.25 Bid-YTW : 6.40 % |
| There were 31 other index-included issues trading in excess of 10,000 shares. | |||