{"id":1036,"date":"2007-08-02T22:15:19","date_gmt":"2007-08-03T02:15:19","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1036"},"modified":"2007-08-02T22:15:19","modified_gmt":"2007-08-03T02:15:19","slug":"august-2-2007","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1036","title":{"rendered":"August 2, 2007"},"content":{"rendered":"

Much to investors’ relief, the previously scheduled end of the world was cancelled today, which was considered good news for both American<\/a> and Canadian<\/a> equities. A good day all ’round, in fact, as Treasuries rose<\/a>, dutifully followed by Canadas<\/a>.<\/p>\n

It is entirely possible that this exuberance has been caused by reports that Stephen Harper said there had been a lot of easy credit internationally, suggesting the recent turmoil was a reassessment of risk<\/a>. We shall all sleep better tonight provided, of course, that the cheques resulting from massive redemptions of US Junk Funds<\/a> don’t bounce. Meanwhile, Flaherty says he’s from the government and he’s here to help us<\/a>.<\/p>\n

Sub-Prime had a bad day<\/a> amongst some indications that credit standards spiralled downwards<\/a> over the past few years:<\/p>\n

<\/div>\n

It makes one feel at least a little bit more sympathetic to the ratings agencies criticized for over-optimism!<\/p>\n

Fed Funds contracts<\/a> are showing a Fed easing ahead, but this is not necessarily a logical conclusion<\/a>, especially considering that Europe might tighten<\/a>.<\/p>\n

Rio Tinto’s financing<\/a> of its Alcan takeover<\/a> is reported to be doing well.<\/p>\n

As far as prefs are concerned … BSN.PR.A has been removed from the HIMIPref\u2122 universe, due to its redemption<\/a>.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n
Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version. In this version, index values are based at 1,000.0 on 2006-6-30<\/strong><\/td>\n<\/tr>\n
Index<\/td>\nMean Current Yield (at bid)<\/td>\nMean YTW<\/td>\nMean Average Trading Value<\/td>\nMean Mod Dur (YTW)<\/td>\nIssues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n4.85%<\/td>\n4.88%<\/td>\n28,446<\/td>\n15.80<\/td>\n1<\/td>\n-0.3704%<\/td>\n1,035.6<\/td>\n<\/tr>\n
Fixed-Floater<\/td>\n4.95%<\/td>\n5.01%<\/td>\n130,654<\/td>\n14.16<\/td>\n8<\/td>\n+0.6142%<\/td>\n1,027.6<\/td>\n<\/tr>\n
Floater<\/td>\n4.87%<\/td>\n-0.15%<\/td>\n75,136<\/td>\n8.20<\/td>\n4<\/td>\n-0.0197%<\/td>\n1,049.9<\/td>\n<\/tr>\n
Op. Retract<\/td>\n4.84%<\/td>\n3.95%<\/td>\n84,865<\/td>\n3.29<\/td>\n16<\/td>\n+0.0008%<\/td>\n1,022.0<\/td>\n<\/tr>\n
Split-Share<\/td>\n5.04%<\/td>\n4.56%<\/td>\n108,886<\/td>\n3.86<\/td>\n15<\/td>\n-0.0563%<\/td>\n1,046.2<\/td>\n<\/tr>\n
Interest Bearing<\/td>\n6.32%<\/td>\n6.85%<\/td>\n62,002<\/td>\n4.62<\/td>\n3<\/td>\n-0.5324%<\/td>\n1,020.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.52%<\/td>\n5.17%<\/td>\n105,558<\/td>\n5.66<\/td>\n24<\/td>\n+0.0763%<\/td>\n1,025.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.08%<\/td>\n5.12%<\/td>\n320,279<\/td>\n15.31<\/td>\n39<\/td>\n-0.0660%<\/td>\n974.5<\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n
Major Price Changes<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BSD.PR.A<\/td>\nInterestBearing<\/td>\n-2.4731%<\/td>\nEven worse than yesterday<\/a>, and now it’s just getting silly. It hit a new low of 8.40. Asset coverage is about 1.9:1<\/a> after a big hit in July. But it’s still not junk! Now with a pre-tax bid-YTW of 7.83% (as interest) based on a bid of 9.07 and a hardMaturity<\/a> 2015-3-31 at 10.00.<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetualDiscount<\/td>\n-2.0515%<\/td>\nAre the underwriters finally getting serious about clearing this out<\/a>? New low today of 20.50. Now with a pre-tax bid-YTW of 5.86% based on a bid of 20.53 and a limitMaturity<\/a>.<\/td>\n<\/tr>\n
RY.PR.A<\/td>\nPerpetualDiscount<\/td>\n-1.0667%<\/td>\nDropping back after yesterday’s gain. Now with a pre-tax bid-YTW of 5.00% based on a bid of 22.26 and a limitMaturity.<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixFloat<\/td>\n+2.5717%<\/td>\nCan we take this as meaning that the BAM.PR.N price doesn’t indicate revulsion at the Brookfield name?<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nVolume<\/td>\nNotes<\/td>\n<\/tr>\n
RY.PR.K<\/td>\nOpRet<\/td>\n97,510<\/td>\nRBC crossed 90,000 at 24.95. Callable at par commencing 2007-9-23; softMaturity<\/a> 2008-8-23.<\/td>\n<\/tr>\n
BNS.PR.J<\/td>\nPerpetualPremium<\/td>\n52,971<\/td>\nDesjardins crossed 50,000 at 25.85. Now with a pre-tax bid-YTW of 4.81% based on a bid of 25.66 and a call 2013-11-28 at 25.00.<\/td>\n<\/tr>\n
BNS.PR.K<\/td>\nPerpetualDiscount<\/td>\n26,070<\/td>\nRBC bought 10,000 from Nesbitt at 24.40. Now with a pre-tax bid-YTW of 4.95% based on a bid of 24.37 and a limitMaturity.<\/td>\n<\/tr>\n
CM.PR.I<\/td>\nPerpetualDiscount<\/td>\n18,975<\/td>\nNow with a pre-tax bid-YTW of 5.10% based on a bid of 23.16 and a limitMaturity.<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nPerpetualDiscount<\/td>\n16,750<\/td>\nNow with a pre-tax bid-YTW of 4.97% based on a bid of 24.50 and a limitMaturity.<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

There were Ten other $25-equivalent index-included issues trading over 10,000 shares today.\n<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Much to investors’ relief, the previously scheduled end of the world was cancelled today, which was considered good news for both American and Canadian equities. A good day all ’round, in fact, as Treasuries rose, …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-1036","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1036"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1036\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}