Deutsche Bank is using the compensation hysteria to put golden handcuffs on the peons:
A significant proportion of compensation will, where applicable, be deferred. Deferred compensation will be a combination of restricted equity awards (75%) and restricted incentive awards (25%).
* The restricted equity award will vest in nine equal instalments over 3¾ years, while the restricted incentive award will vest in three equal instalments over three years.
* All restricted equity and restricted incentive awards will continue to be subject to claw-back in the case of policy/regulatory breach.
And, of course, if they don’t feel like living up to their side of the bargain, inventing a policy/regulatory breach is easy enough. The best job of the brave new world? Employment contract litigator.
Some players are reducing their risk:
Two Citigroup Inc. executives running a proprietary-trading unit quit to join hedge fund Moore Capital Management LP, amid concern the government might order U.S. banks to exit trading businesses that don’t cater to customers, people briefed on the matter said.
Matthew Carpenter, a 15-year Citigroup veteran who had assembled the unit over the past three years, is leaving the bank along with his deputy, Matthew Newton, Citigroup spokesman Alex Samuelson said. The group trades U.S. stocks in several industries, Samuelson said.
In yet another instance of regulatory extortion, the SEC has admitted that State Street did nothing wrong but is paying $300-million anyway. Nobody’s been fired, nobody’s lost their license, back to business as usual. The trend towards bureaucratic ursurpation of the role of the courts, in all aspects of life, continues.
PerpetualDiscounts continued to slide today, losing 17bp, while FixedResets were down slightly less than 1bp. Volume continued to be on the heavy side.
| 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 | 3.08 % | 3.75 % | 28,727 | 20.12 | 1 | 1.8837 % | 1,795.1 |
| FixedFloater | 5.72 % | 3.79 % | 35,338 | 19.24 | 1 | 3.2048 % | 2,762.3 |
| Floater | 2.09 % | 1.76 % | 41,224 | 23.12 | 4 | 0.4408 % | 2,194.7 |
| OpRet | 4.86 % | -3.97 % | 110,416 | 0.09 | 13 | -0.1360 % | 2,314.5 |
| SplitShare | 6.33 % | 6.29 % | 154,966 | 3.74 | 2 | 1.7559 % | 2,120.8 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1360 % | 2,116.4 |
| Perpetual-Premium | 5.76 % | 5.46 % | 81,605 | 2.02 | 7 | 0.1114 % | 1,893.6 |
| Perpetual-Discount | 5.81 % | 5.84 % | 172,907 | 14.10 | 69 | -0.1741 % | 1,814.1 |
| FixedReset | 5.43 % | 3.61 % | 318,933 | 3.80 | 42 | -0.0071 % | 2,179.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PWF.PR.L | Perpetual-Discount | -1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-04 Maturity Price : 21.31 Evaluated at bid price : 21.31 Bid-YTW : 6.03 % |
| RY.PR.E | Perpetual-Discount | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-04 Maturity Price : 20.08 Evaluated at bid price : 20.08 Bid-YTW : 5.62 % |
| BNS.PR.K | Perpetual-Discount | -1.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-04 Maturity Price : 21.21 Evaluated at bid price : 21.21 Bid-YTW : 5.71 % |
| MFC.PR.A | OpRet | -1.23 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2015-12-18 Maturity Price : 25.00 Evaluated at bid price : 25.78 Bid-YTW : 3.62 % |
| BNA.PR.C | SplitShare | 1.51 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2019-01-10 Maturity Price : 25.00 Evaluated at bid price : 19.52 Bid-YTW : 7.99 % |
| BAM.PR.E | Ratchet | 1.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-04 Maturity Price : 25.00 Evaluated at bid price : 18.39 Bid-YTW : 3.75 % |
| BNA.PR.D | SplitShare | 1.94 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2014-07-09 Maturity Price : 25.00 Evaluated at bid price : 26.26 Bid-YTW : 6.29 % |
| BAM.PR.G | FixedFloater | 3.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-04 Maturity Price : 25.00 Evaluated at bid price : 19.00 Bid-YTW : 3.79 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PR.Q | Perpetual-Discount | 95,345 | RBC crossed 84,700 at 24.92. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-04 Maturity Price : 24.58 Evaluated at bid price : 24.81 Bid-YTW : 5.68 % |
| CM.PR.M | FixedReset | 63,500 | CIBC sold 25,000 to National at 27.80, then another 19,400 to Desjardins at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-08-30 Maturity Price : 25.00 Evaluated at bid price : 27.78 Bid-YTW : 3.88 % |
| RY.PR.Y | FixedReset | 50,760 | Desjardins crossed 48,000 at 27.71. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-12-24 Maturity Price : 25.00 Evaluated at bid price : 27.70 Bid-YTW : 3.64 % |
| MFC.PR.E | FixedReset | 41,870 | Nesbitt crossed 25,000 at 27.27. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-10-19 Maturity Price : 25.00 Evaluated at bid price : 27.10 Bid-YTW : 3.83 % |
| BMO.PR.M | FixedReset | 33,907 | Nesbitt crossed 20,000 at 26.00. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-09-24 Maturity Price : 25.00 Evaluated at bid price : 26.01 Bid-YTW : 3.68 % |
| SLF.PR.C | Perpetual-Discount | 29,565 | Nesbitt crossed 20,000 at 19.20. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-04 Maturity Price : 19.12 Evaluated at bid price : 19.12 Bid-YTW : 5.90 % |
| There were 46 other index-included issues trading in excess of 10,000 shares. | |||