Remember the world’s worst bond fund? I discussed it on February 15, 2008. Now the sponsor has received a comeuppance:
Former Chicago Bull Horace Grant won a $1.46 million arbitration award against Morgan Keegan & Co. for losses in some bond mutual funds, the largest victory against the brokerage firm to date for his Chicago-based lawyer.
The award, announced Friday, represents nearly all of the unrealized losses Grant allegedly suffered as of January 2008, said his attorney, Andrew Stoltmann.
…
The brokerage firm, a unit of Regions Financial Corp., a bank based in Birmingham, Ala., faces a flood of arbitration claims from investors related to its high-yield bond funds. Investors in the funds reportedly lost more than $2 billion in 2007.
PerpetualDiscounts halted their recent slide today, gaining 3bp, but were outperformed by FixedResets which were up 15bp. Volume was quite good but there wasn’t much price volatility.
The Financial Post has updated its calendar and is again providing a timely block trade report.
| 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 | -0.5915 % | 1,447.3 |
| FixedFloater | 5.73 % | 3.99 % | 56,454 | 18.61 | 1 | 0.4762 % | 2,681.7 |
| Floater | 2.53 % | 2.12 % | 31,269 | 22.15 | 4 | -0.5915 % | 1,808.1 |
| OpRet | 4.87 % | -13.00 % | 136,002 | 0.09 | 15 | -0.0051 % | 2,284.6 |
| SplitShare | 6.42 % | 6.46 % | 965,031 | 4.05 | 2 | -0.2870 % | 2,059.4 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0051 % | 2,089.1 |
| Perpetual-Premium | 5.77 % | 5.66 % | 148,538 | 2.84 | 12 | -0.0198 % | 1,878.8 |
| Perpetual-Discount | 5.72 % | 5.77 % | 197,303 | 14.19 | 59 | 0.0307 % | 1,797.4 |
| FixedReset | 5.49 % | 4.03 % | 464,161 | 4.08 | 40 | 0.1541 % | 2,111.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| GWO.PR.I | Perpetual-Discount | -1.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-15 Maturity Price : 19.35 Evaluated at bid price : 19.35 Bid-YTW : 5.84 % |
| SLF.PR.E | Perpetual-Discount | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-15 Maturity Price : 19.10 Evaluated at bid price : 19.10 Bid-YTW : 5.92 % |
| TRI.PR.B | Floater | -1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-15 Maturity Price : 18.51 Evaluated at bid price : 18.51 Bid-YTW : 2.12 % |
| TD.PR.S | FixedReset | 1.11 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-08-30 Maturity Price : 25.00 Evaluated at bid price : 26.30 Bid-YTW : 3.71 % |
| RY.PR.W | Perpetual-Discount | 1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-15 Maturity Price : 22.67 Evaluated at bid price : 22.85 Bid-YTW : 5.41 % |
| ELF.PR.F | Perpetual-Discount | 1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-15 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 6.36 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| CIU.PR.B | FixedReset | 351,450 | Desjardins crossed 50,000 at 28.10; RBC crossed 100,000 at the same price; then they each crossed 50,000 at the same price; finally, Nesbitt crossed 50,000 at 28.00 and another 50,000 at 28.05. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-01 Maturity Price : 25.00 Evaluated at bid price : 28.01 Bid-YTW : 4.03 % |
| BAM.PR.B | Floater | 112,995 | Scotia bought 10,000 from TD at 12.50; Nesbitt bought 17,000 from TD at the same price; then Nesbitt crossed two blocks, 25,000 and 23,500 shares, both at 12.55. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-15 Maturity Price : 12.47 Evaluated at bid price : 12.47 Bid-YTW : 3.15 % |
| BNS.PR.T | FixedReset | 69,720 | National crossed 13,000 at 27.85, then another 10,000 at the same price. Nesbitt crossed 25,000 at 27.82. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-25 Maturity Price : 25.00 Evaluated at bid price : 27.81 Bid-YTW : 3.85 % |
| BAM.PR.P | FixedReset | 63,765 | Nesbitt crossed 50,000 at 26.50. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-10-30 Maturity Price : 25.00 Evaluated at bid price : 26.56 Bid-YTW : 5.56 % |
| BNS.PR.Q | FixedReset | 43,353 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-15 Maturity Price : 23.50 Evaluated at bid price : 25.90 Bid-YTW : 4.05 % |
| CM.PR.L | FixedReset | 35,234 | RBC crossed 23,200 at 27.85. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-30 Maturity Price : 25.00 Evaluated at bid price : 27.85 Bid-YTW : 4.06 % |
| There were 46 other index-included issues trading in excess of 10,000 shares. | |||