{"id":10849,"date":"2010-05-13T22:19:32","date_gmt":"2010-05-14T02:19:32","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=10849"},"modified":"2010-05-13T22:19:32","modified_gmt":"2010-05-14T02:19:32","slug":"may-13-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=10849","title":{"rendered":"May 13, 2010"},"content":{"rendered":"

Credit ratings may be politicized<\/a>:<\/p>\n

The Senate in a 64-35 vote today approved an amendment to the financial overhaul legislation that would create a ratings board overseen by the Securities and Exchange Commission. The panel would assign a credit-rating company to rank an offering.
…<\/b>
Under Franken\u2019s amendment, the SEC would determine the size of the board. The majority of members would be investors, at least one member would be from a credit-rating company and at least one member would be from an investment bank.<\/p>\n

The board would conduct an annual assessment of each credit-rating company to scrutinize the firm\u2019s accuracy in grading debt compared with competitors, according to the amendment. While credit-rating companies would set fees, the SEC would have authority to make sure payments are \u201creasonable.\u201d<\/p>\n

For the proposal to form a credit-rating board to become binding, lawmakers would have to approve the broader financial reform measure and President Barack Obama would have to sign the legislation.<\/p><\/blockquote>\n

Not quite as bad as the EU’s plan to create a government-run agency that won’t be so mean to poor old Greece, but close!<\/p>\n

The Canadian preferred share market was quieter today, with PerpetualDiscounts gaining 4bp and FixedResets losing 1bp. Volume was down to levels only slightly above normal – whatever normal means! – but the day was enlivened by the announcement of a Sun Life Financial FixedReset, 4.35%+141, to settle May 25.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n2.62 %<\/td>\n2.77 %<\/td>\n44,471<\/td>\n20.87<\/td>\n1<\/td>\n0.0000 %<\/td>\n2,112.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.12 %<\/td>\n3.18 %<\/td>\n40,563<\/td>\n20.12<\/td>\n1<\/td>\n-0.5621 %<\/td>\n3,124.6<\/td>\n<\/tr>\n
Floater<\/td>\n2.11 %<\/td>\n2.40 %<\/td>\n102,084<\/td>\n21.30<\/td>\n3<\/td>\n-0.3568 %<\/td>\n2,296.8<\/td>\n<\/tr>\n
OpRet<\/td>\n4.90 %<\/td>\n3.85 %<\/td>\n90,744<\/td>\n1.76<\/td>\n11<\/td>\n0.3170 %<\/td>\n2,303.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.44 %<\/td>\n6.44 %<\/td>\n124,665<\/td>\n3.53<\/td>\n2<\/td>\n0.3341 %<\/td>\n2,120.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3170 %<\/td>\n2,106.6<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.53 %<\/td>\n4.77 %<\/td>\n24,342<\/td>\n15.82<\/td>\n1<\/td>\n0.0000 %<\/td>\n1,824.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.32 %<\/td>\n6.39 %<\/td>\n213,425<\/td>\n13.34<\/td>\n77<\/td>\n0.0370 %<\/td>\n1,691.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.51 %<\/td>\n4.30 %<\/td>\n516,152<\/td>\n3.58<\/td>\n44<\/td>\n-0.0112 %<\/td>\n2,149.2<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
HSB.PR.C<\/td>\nPerpetual-Discount<\/td>\n-1.71 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-13
\nMaturity Price : 19.51
\nEvaluated at bid price : 19.51
\nBid-YTW : 6.65 %<\/td>\n<\/tr>\n
PWF.PR.O<\/td>\nPerpetual-Discount<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-13
\nMaturity Price : 22.39
\nEvaluated at bid price : 22.50
\nBid-YTW : 6.51 %<\/td>\n<\/tr>\n
ENB.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-13
\nMaturity Price : 23.49
\nEvaluated at bid price : 23.76
\nBid-YTW : 5.79 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nPerpetual-Discount<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-13
\nMaturity Price : 19.30
\nEvaluated at bid price : 19.30
\nBid-YTW : 6.59 %<\/td>\n<\/tr>\n
TD.PR.M<\/td>\nOpRet<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2010-06-12
\nMaturity Price : 25.75
\nEvaluated at bid price : 25.88
\nBid-YTW : 0.39 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-13
\nMaturity Price : 18.75
\nEvaluated at bid price : 18.75
\nBid-YTW : 7.17 %<\/td>\n<\/tr>\n
CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\n2.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-13
\nMaturity Price : 18.75
\nEvaluated at bid price : 18.75
\nBid-YTW : 6.16 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
PWF.PR.M<\/td>\nFixedReset<\/td>\n140,000<\/td>\nRBC crossed blocks of 25,000 shares, 24,500 and 50,000, all at 26.50. Nesbitt crossed 25,000 at the same price and bought 10,000 from National at 26.45.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-02
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.50
\nBid-YTW : 4.36 %<\/td>\n<\/tr>\n
TRP.PR.B<\/td>\nFixedReset<\/td>\n119,175<\/td>\nRBC crossed blocks of 25,000 shares, 40,000 and another 25,000, all at 24.65. RBC bought 13,000 from TD at the same price.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-13
\nMaturity Price : 24.71
\nEvaluated at bid price : 24.76
\nBid-YTW : 4.09 %<\/td>\n<\/tr>\n
PWF.PR.K<\/td>\nPerpetual-Discount<\/td>\n42,070<\/td>\nDesjardins sold 36,000 to anonymous at 19.10.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-13
\nMaturity Price : 18.80
\nEvaluated at bid price : 18.80
\nBid-YTW : 6.66 %<\/td>\n<\/tr>\n
BNS.PR.Y<\/td>\nFixedReset<\/td>\n41,280<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-13
\nMaturity Price : 24.01
\nEvaluated at bid price : 24.05
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
BNS.PR.R<\/td>\nFixedReset<\/td>\n34,345<\/td>\nNational crossed 25,000 at 25.49.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 4.48 %<\/td>\n<\/tr>\n
CM.PR.H<\/td>\nPerpetual-Discount<\/td>\n33,043<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-13
\nMaturity Price : 18.85
\nEvaluated at bid price : 18.85
\nBid-YTW : 6.43 %<\/td>\n<\/tr>\n
There were 34 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Credit ratings may be politicized: The Senate in a 64-35 vote today approved an amendment to the financial overhaul legislation that would create a ratings board overseen by the Securities and Exchange Commission. The panel …<\/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-10849","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/10849","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=10849"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/10849\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}