{"id":11098,"date":"2010-06-04T21:42:45","date_gmt":"2010-06-05T01:42:45","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=11098"},"modified":"2010-06-04T21:42:45","modified_gmt":"2010-06-05T01:42:45","slug":"june-4-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=11098","title":{"rendered":"June 4, 2010"},"content":{"rendered":"

Hungary has joined Club Med<\/a>:<\/p>\n

Credit-default swaps on sovereign bonds surged on speculation Europe\u2019s debt crisis is worsening after Hungary said it\u2019s in a \u201cvery grave situation\u201d because a previous government lied about the state of the economy.<\/p>\n

The cost of insuring against losses on Hungarian sovereign debt jumped 83.5 basis points to 391.5, according to CMA DataVision prices. Swaps on France, Austria, Belgium and Germany also rose, sending the Markit iTraxx SovX Western Europe Index of contracts on 15 governments 10 basis points higher to 163, and close to the all-time high of 167 on May 6.<\/p>\n

Hungary\u2019s bonds fell after a spokesman for Prime Minister Viktor Orban said talk of a default is \u201cnot an exaggeration\u201d because a previous administration \u201cmanipulated\u201d figures. The country was bailed out with a 20 billion-euro ($24 billion) aid package from the European Union and International Monetary Fund in 2008.<\/p><\/blockquote>\n

The delays in bank reform are now being discussed publicly<\/a>:<\/p>\n

The Group of 20 nations is split on the scale and timing of increases in bank-capital requirements that have been under discussion since governments were forced to bail out lenders, an official from a G-20 government said.<\/p>\n

Countries such as the U.S. whose economies are largely financed by markets want banks to be required to hold more assets on their balance sheets to buffer against future crises, said the official, who will attend this weekend\u2019s talks of G-20 finance chiefs in Busan, South Korea. Policy makers in continental Europe, where banks provide more financing, are concerned that too-high reserves risk choking off growth, the official told reporters on condition he not be named.<\/p><\/blockquote>\n

Goldman has set up a $450-million CLO<\/a>:<\/p>\n

Goldman Sachs Group Inc. arranged a $450 million collateralized loan obligation, according to people familiar with the transaction, making it the third widely syndicated transaction of the year.<\/p>\n

Last week\u2019s deal marks a reversal for CLO issuance, which according to Moody\u2019s Investors Service, fell to $26.5 billion in 2009, its lowest level in more than a decade as the credit crisis and subsequent drop in loan prices made it economically difficult to arrange new funds.<\/p><\/blockquote>\n

Golly, I sure hope that they pointed to investors that the fund was able to buy its holdings because other people wanted to sell them!<\/p>\n

Recovery, Schmecovery<\/a>:<\/p>\n

[US] Private payrolls rose by 41,000, Labor Department figures showed today, trailing the 180,000 gain forecast by economists. Including government workers, employment rose by 431,000, boosted by a jump in hiring of temporary census workers. The jobless rate fell to 9.7 percent from 9.9 percent. <\/p><\/blockquote>\n

There’s some whimpering about the Magna deal<\/a>:<\/p>\n

Magna has offered to pay Mr. Stronach $300-million (U.S.) in cash plus grant him nine million new subordinate-voting shares of the company for a total value of $863-million. The deal values each of his multiple-voting shares at $1,187, a massive premium over Magna\u2019s share price. Magna\u2019s widely held subordinate voting shares closed 62 cents higher at $69.86 (U.S.) Thursday.<\/p>\n

\u201cIn our minds, it is an entirely excessive, inappropriate and egregious price that we\u2019re being asked to pay, so that\u2019s why we\u2019re reacting so quickly and so strongly to what this proposal lays out,\u201d CPPIB chief executive officer David Denison said Thursday in an interview.<\/p><\/blockquote>\n

Suck it up, boys! That’s what happens when you buy participating debentures rather than, you know, actual equity.<\/p>\n

It was another day of fine performance on moderating volume in the Canadian preferred share market today, with PerpetualDiscounts gaining 31bp and FixedResets up 12bp.<\/p>\n

The Financial Post Block Trades Report<\/a> is back in operation. The link in the right-hand panel has been updated.<\/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>\n2.66 %<\/td>\n2.72 %<\/td>\n44,004<\/td>\n20.70<\/td>\n1<\/td>\n-1.3457 %<\/td>\n2,093.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.19 %<\/td>\n3.27 %<\/td>\n27,945<\/td>\n19.97<\/td>\n1<\/td>\n0.0000 %<\/td>\n3,084.9<\/td>\n<\/tr>\n
Floater<\/td>\n2.41 %<\/td>\n2.80 %<\/td>\n91,173<\/td>\n20.18<\/td>\n3<\/td>\n-0.0917 %<\/td>\n2,239.2<\/td>\n<\/tr>\n
OpRet<\/td>\n4.89 %<\/td>\n3.85 %<\/td>\n95,717<\/td>\n1.70<\/td>\n11<\/td>\n-0.0957 %<\/td>\n2,308.5<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.44 %<\/td>\n6.17 %<\/td>\n106,244<\/td>\n3.54<\/td>\n2<\/td>\n0.1112 %<\/td>\n2,152.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0957 %<\/td>\n2,110.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3090 %<\/td>\n1,848.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.13 %<\/td>\n6.19 %<\/td>\n205,357<\/td>\n13.65<\/td>\n77<\/td>\n0.3090 %<\/td>\n1,749.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.46 %<\/td>\n4.24 %<\/td>\n418,123<\/td>\n3.52<\/td>\n45<\/td>\n0.1185 %<\/td>\n2,162.7<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\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
BAM.PR.E<\/td>\nRatchet<\/td>\n-1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 21.72
\nEvaluated at bid price : 21.26
\nBid-YTW : 2.72 %<\/td>\n<\/tr>\n
PWF.PR.J<\/td>\nOpRet<\/td>\n-1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-05-30
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.54
\nBid-YTW : 3.95 %<\/td>\n<\/tr>\n
POW.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 22.31
\nEvaluated at bid price : 22.58
\nBid-YTW : 6.30 %<\/td>\n<\/tr>\n
IAG.PR.C<\/td>\nFixedReset<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.77
\nBid-YTW : 4.00 %<\/td>\n<\/tr>\n
CIU.PR.B<\/td>\nFixedReset<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.60
\nBid-YTW : 4.00 %<\/td>\n<\/tr>\n
PWF.PR.E<\/td>\nPerpetual-Discount<\/td>\n1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 22.03
\nEvaluated at bid price : 22.35
\nBid-YTW : 6.23 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 23.26
\nEvaluated at bid price : 25.50
\nBid-YTW : 4.96 %<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nPerpetual-Discount<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 21.05
\nEvaluated at bid price : 21.05
\nBid-YTW : 6.19 %<\/td>\n<\/tr>\n
GWO.PR.L<\/td>\nPerpetual-Discount<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 22.50
\nEvaluated at bid price : 22.61
\nBid-YTW : 6.26 %<\/td>\n<\/tr>\n
HSB.PR.C<\/td>\nPerpetual-Discount<\/td>\n1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 20.70
\nEvaluated at bid price : 20.70
\nBid-YTW : 6.29 %<\/td>\n<\/tr>\n
PWF.PR.H<\/td>\nPerpetual-Discount<\/td>\n1.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 22.75
\nEvaluated at bid price : 23.02
\nBid-YTW : 6.32 %<\/td>\n<\/tr>\n
ENB.PR.A<\/td>\nPerpetual-Discount<\/td>\n1.48 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 23.69
\nEvaluated at bid price : 24.00
\nBid-YTW : 5.76 %<\/td>\n<\/tr>\n
CM.PR.E<\/td>\nPerpetual-Discount<\/td>\n1.58 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 22.89
\nEvaluated at bid price : 23.15
\nBid-YTW : 6.12 %<\/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
RY.PR.X<\/td>\nFixedReset<\/td>\n105,480<\/td>\nRBC crossed 99,800 at 27.04.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-23
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.05
\nBid-YTW : 4.27 %<\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nPerpetual-Discount<\/td>\n72,744<\/td>\nRBC sold 10,000 to Desjardins at 19.00, then crossed 26,000 at 19.01. Desjardins crossed 18,900 at 19.03.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 19.12
\nEvaluated at bid price : 19.12
\nBid-YTW : 6.23 %<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n49,136<\/td>\nRBC crossed 46,200 at 19.10.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.02
\nBid-YTW : 8.34 %<\/td>\n<\/tr>\n
RY.PR.G<\/td>\nPerpetual-Discount<\/td>\n46,700<\/td>\nTD crossed two blocks of 20,000 shares each at 19.20.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 19.17
\nEvaluated at bid price : 19.17
\nBid-YTW : 5.92 %<\/td>\n<\/tr>\n
CM.PR.H<\/td>\nPerpetual-Discount<\/td>\n41,561<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 19.57
\nEvaluated at bid price : 19.57
\nBid-YTW : 6.22 %<\/td>\n<\/tr>\n
BNS.PR.K<\/td>\nPerpetual-Discount<\/td>\n40,840<\/td>\nScotia bought 10,000 from National at 20.28.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-04
\nMaturity Price : 20.24
\nEvaluated at bid price : 20.24
\nBid-YTW : 6.02 %<\/td>\n<\/tr>\n
There were 27 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Hungary has joined Club Med: Credit-default swaps on sovereign bonds surged on speculation Europe\u2019s debt crisis is worsening after Hungary said it\u2019s in a \u201cvery grave situation\u201d because a previous government lied about the state …<\/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-11098","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11098","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=11098"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11098\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}