Bernanke & Geithner continued their campaign to have the Fed become the regulator of everything:
The top two U.S. economic leaders called for new powers to take over and wind down failing financial companies after the government’s troubled rescue of American International Group Inc.
“As we have seen with AIG, distress at large, interconnected, non-depository financial institutions can pose systemic risks just as distress at banks can,” Treasury Secretary Timothy Geithner said in testimony to a House Financial Services Committee hearing today in Washington. Federal Reserve Chairman Ben S. Bernanke said “AIG highlights the urgent need for new resolution procedures.”
I can’t support it. The only reason AIG posed a risk to the banking system was because the banks were insufficiently regulated … by the Fed. Why were the banks allowed to pair off their long/short CDS positions to such an extent? This would only be appropriate in the case in which AIG had posted a lot of collateral … and they didn’t post any collateral. Had the banks & brokerages been required to put up capital against this lack of collateralization, it wouldn’t have been a problem.
PerpetualDiscounts advanced and FixedResets declined, the latter on heavy volume as it appears that the RY new issue announcement caused a certain amount of portfolio rejigging.
| 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 | 1.1433 % | 853.4 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 1.1433 % | 1,380.1 |
| Floater | 4.64 % | 5.62 % | 59,547 | 14.49 | 3 | 1.1433 % | 1,066.1 |
| OpRet | 5.24 % | 4.91 % | 129,977 | 3.88 | 15 | 0.2179 % | 2,064.4 |
| SplitShare | 6.79 % | 9.81 % | 51,656 | 4.78 | 6 | 0.3089 % | 1,636.7 |
| Interest-Bearing | 6.07 % | 9.27 % | 35,953 | 0.73 | 1 | -0.9027 % | 1,933.6 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1216 % | 1,508.5 |
| Perpetual-Discount | 7.17 % | 7.28 % | 154,645 | 12.17 | 71 | 0.1216 % | 1,389.3 |
| FixedReset | 6.13 % | 5.78 % | 655,501 | 13.77 | 31 | -0.2992 % | 1,808.4 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PWF.PR.H | Perpetual-Discount | -3.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 17.26 Evaluated at bid price : 17.26 Bid-YTW : 8.53 % |
| CM.PR.K | FixedReset | -2.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 21.98 Evaluated at bid price : 22.02 Bid-YTW : 4.89 % |
| RY.PR.P | FixedReset | -2.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 25.17 Evaluated at bid price : 25.22 Bid-YTW : 5.99 % |
| RY.PR.F | Perpetual-Discount | -2.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 16.51 Evaluated at bid price : 16.51 Bid-YTW : 6.84 % |
| RY.PR.R | FixedReset | -2.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 25.23 Evaluated at bid price : 25.28 Bid-YTW : 6.17 % |
| BNS.PR.L | Perpetual-Discount | -1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 16.90 Evaluated at bid price : 16.90 Bid-YTW : 6.79 % |
| RY.PR.N | FixedReset | -1.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 25.25 Evaluated at bid price : 25.30 Bid-YTW : 5.50 % |
| RY.PR.G | Perpetual-Discount | -1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 16.77 Evaluated at bid price : 16.77 Bid-YTW : 6.81 % |
| BAM.PR.K | Floater | -1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 7.50 Evaluated at bid price : 7.50 Bid-YTW : 5.85 % |
| SLF.PR.B | Perpetual-Discount | -1.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 15.16 Evaluated at bid price : 15.16 Bid-YTW : 7.98 % |
| BNS.PR.N | Perpetual-Discount | -1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 19.58 Evaluated at bid price : 19.58 Bid-YTW : 6.84 % |
| RY.PR.W | Perpetual-Discount | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 18.51 Evaluated at bid price : 18.51 Bid-YTW : 6.72 % |
| RY.PR.T | FixedReset | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 23.15 Evaluated at bid price : 25.05 Bid-YTW : 5.78 % |
| TD.PR.G | FixedReset | -1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 25.40 Evaluated at bid price : 25.45 Bid-YTW : 6.05 % |
| CM.PR.D | Perpetual-Discount | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 19.80 Evaluated at bid price : 19.80 Bid-YTW : 7.42 % |
| NA.PR.L | Perpetual-Discount | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 17.57 Evaluated at bid price : 17.57 Bid-YTW : 7.02 % |
| BAM.PR.H | OpRet | 1.09 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2012-03-30 Maturity Price : 25.00 Evaluated at bid price : 23.25 Bid-YTW : 8.44 % |
| BNS.PR.P | FixedReset | 1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 22.81 Evaluated at bid price : 22.91 Bid-YTW : 4.34 % |
| CU.PR.A | Perpetual-Discount | 1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 21.35 Evaluated at bid price : 21.35 Bid-YTW : 6.88 % |
| BAM.PR.O | OpRet | 1.16 % | YTW SCENARIO Maturity Type : Option Certainty Maturity Date : 2013-06-30 Maturity Price : 25.00 Evaluated at bid price : 21.80 Bid-YTW : 8.68 % |
| CU.PR.B | Perpetual-Discount | 1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 21.94 Evaluated at bid price : 22.28 Bid-YTW : 6.81 % |
| NA.PR.K | Perpetual-Discount | 1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 20.91 Evaluated at bid price : 20.91 Bid-YTW : 7.12 % |
| RY.PR.H | Perpetual-Discount | 1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 21.40 Evaluated at bid price : 21.40 Bid-YTW : 6.70 % |
| PWF.PR.G | Perpetual-Discount | 1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 19.31 Evaluated at bid price : 19.31 Bid-YTW : 7.81 % |
| BNS.PR.J | Perpetual-Discount | 1.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 19.70 Evaluated at bid price : 19.70 Bid-YTW : 6.80 % |
| LFE.PR.A | SplitShare | 1.47 % | Asset coverage of 1.1-:1 as of March 13 according to the company. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2012-12-01 Maturity Price : 10.00 Evaluated at bid price : 7.61 Bid-YTW : 13.97 % |
| TD.PR.A | FixedReset | 1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 22.71 Evaluated at bid price : 22.75 Bid-YTW : 4.36 % |
| GWO.PR.E | OpRet | 1.65 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2014-03-30 Maturity Price : 25.00 Evaluated at bid price : 24.70 Bid-YTW : 4.98 % |
| ELF.PR.G | Perpetual-Discount | 1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 13.45 Evaluated at bid price : 13.45 Bid-YTW : 9.09 % |
| POW.PR.A | Perpetual-Discount | 1.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 18.60 Evaluated at bid price : 18.60 Bid-YTW : 7.56 % |
| MFC.PR.A | OpRet | 1.93 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2015-12-18 Maturity Price : 25.00 Evaluated at bid price : 24.80 Bid-YTW : 4.27 % |
| BAM.PR.M | Perpetual-Discount | 2.65 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 13.16 Evaluated at bid price : 13.16 Bid-YTW : 9.11 % |
| PWF.PR.E | Perpetual-Discount | 2.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 17.99 Evaluated at bid price : 17.99 Bid-YTW : 7.81 % |
| SLF.PR.D | Perpetual-Discount | 3.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 14.75 Evaluated at bid price : 14.75 Bid-YTW : 7.60 % |
| PWF.PR.A | Floater | 3.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 13.00 Evaluated at bid price : 13.00 Bid-YTW : 3.39 % |
| CIU.PR.A | Perpetual-Discount | 3.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 17.56 Evaluated at bid price : 17.56 Bid-YTW : 6.63 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| RY.PR.T | FixedReset | 221,841 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 23.15 Evaluated at bid price : 25.05 Bid-YTW : 5.78 % |
| RY.PR.R | FixedReset | 165,755 | RBC bought 15,000 from HSBC at 25.20. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 25.23 Evaluated at bid price : 25.28 Bid-YTW : 6.17 % |
| TD.PR.I | FixedReset | 122,790 | Recent new issue YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 25.06 Evaluated at bid price : 25.11 Bid-YTW : 5.94 % |
| TD.PR.G | FixedReset | 112,885 | TD bought 10,000 from National at 25.50. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 25.40 Evaluated at bid price : 25.45 Bid-YTW : 6.05 % |
| CM.PR.L | FixedReset | 97,113 | National bought 19,000 from TD at 25.20. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 25.20 Evaluated at bid price : 25.25 Bid-YTW : 6.23 % |
| RY.PR.P | FixedReset | 78,065 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-03-24 Maturity Price : 25.17 Evaluated at bid price : 25.22 Bid-YTW : 5.99 % |
| There were 42 other index-included issues trading in excess of 10,000 shares. | |||