{"id":11189,"date":"2010-06-11T21:04:02","date_gmt":"2010-06-12T01:04:02","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=11189"},"modified":"2010-06-11T21:04:02","modified_gmt":"2010-06-12T01:04:02","slug":"june-11-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=11189","title":{"rendered":"June 11, 2010"},"content":{"rendered":"

European banks are in serious trouble<\/a>:<\/p>\n

Investors have already pushed down financial stocks enough to imply the \u201cerosion\u201d in book value that may result from losses tied to a sovereign debt restructuring, said Dirk Hoffmann-Becking, an analyst at Sanford C. Bernstein in London. A Bloomberg index of European financial firms dropped as much as 22 percent since April 15 to the lowest level since July.
…<\/b>
Writedowns stemming from a Greek default would total almost $200 billion, estimates Jon Peace, an analyst at Nomura Holdings Inc. in London. Banks globally could lose as much as $900 billion in a worst-case scenario where Greece, Ireland, Italy, Portugal and Spain all have to restructure their debt, Nomura estimates.
…<\/b>
German financial companies including Deutsche Bank agreed in May to refinance maturing Greek debt and maintain existing credit lines to Greece and its lenders for the next three years. French banks made a similar pledge.<\/p>\n

A majority of European banks haven\u2019t tendered their Greek sovereign debt to the European Central Bank, according to an informal survey by Morgan Stanley analysts. One reason may be that some banks bought their Greek bonds when they were trading at 20 percent above par, meaning a sale to the ECB would prompt a loss, Morgan Stanley\u2019s London-based analyst Huw van Steenis said in a note to clients on June 9.<\/p><\/blockquote>\n

Corporate eMail is not secret<\/a>!<\/p>\n

\u201cJust between us,\u201d it may be \u201cstupid\u201d to use certain words in e-mail to \u201cdiscuss\u201d the \u201cbig trouble\u201d you might face if you\u2019re ever investigated for financial wrongdoing or a subsequent cover-up.<\/p>\n

Those are some of the terms that examiner Anton R. Valukas searched for in 34 million pages of Lehman Brothers Holdings Inc. e-mails and reports, to find out who knew what about the risks that drove the fourth-largest securities firm into bankruptcy, according to his 2,200-page study on the collapse.<\/p><\/blockquote>\n

I don’t understand why people don’t know this already. When I’m composing an eMail, I imagine an angry regulator looking over my shoulder – a regulator who feels no compunction about publishing irrelevancies for the mere joy of embarrassing me.<\/p>\n

The Canadian preferred share market rally kept on rallying today, with PerpetualDiscounts gaining 21bp while FixedResets were up 8bp. Some might be interested in the fact that volume was rather light today, and that there is considerable volatility shown in the Performance highlights table. Of course, today was the exDate for a great many issues, so perhaps a little volatility was to have been expected anyway.<\/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>\n2.69 %<\/td>\n2.74 %<\/td>\n37,075<\/td>\n20.62<\/td>\n1<\/td>\n0.0000 %<\/td>\n2,093.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.22 %<\/td>\n3.33 %<\/td>\n27,536<\/td>\n19.86<\/td>\n1<\/td>\n0.3854 %<\/td>\n3,067.2<\/td>\n<\/tr>\n
Floater<\/td>\n2.42 %<\/td>\n2.79 %<\/td>\n85,230<\/td>\n20.29<\/td>\n3<\/td>\n-0.2987 %<\/td>\n2,239.1<\/td>\n<\/tr>\n
OpRet<\/td>\n4.89 %<\/td>\n3.85 %<\/td>\n94,179<\/td>\n0.94<\/td>\n11<\/td>\n0.1351 %<\/td>\n2,319.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.39 %<\/td>\n5.61 %<\/td>\n100,755<\/td>\n0.08<\/td>\n2<\/td>\n0.3537 %<\/td>\n2,171.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1351 %<\/td>\n2,121.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2102 %<\/td>\n1,888.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.00 %<\/td>\n6.06 %<\/td>\n202,906<\/td>\n13.83<\/td>\n77<\/td>\n0.2102 %<\/td>\n1,787.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.43 %<\/td>\n4.06 %<\/td>\n396,770<\/td>\n3.50<\/td>\n45<\/td>\n0.0765 %<\/td>\n2,177.3<\/td>\n<\/tr>\n<\/table>\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.K<\/td>\nFloater<\/td>\n-2.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-11
\nMaturity Price : 15.41
\nEvaluated at bid price : 15.41
\nBid-YTW : 2.83 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.86 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-11
\nMaturity Price : 19.48
\nEvaluated at bid price : 19.48
\nBid-YTW : 6.94 %<\/td>\n<\/tr>\n
BAM.PR.J<\/td>\nOpRet<\/td>\n-1.38 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2018-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : 5.01 %<\/td>\n<\/tr>\n
CM.PR.K<\/td>\nFixedReset<\/td>\n-1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.41
\nBid-YTW : 4.07 %<\/td>\n<\/tr>\n
IGM.PR.B<\/td>\nPerpetual-Discount<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-11
\nMaturity Price : 23.68
\nEvaluated at bid price : 23.86
\nBid-YTW : 6.27 %<\/td>\n<\/tr>\n
BAM.PR.P<\/td>\nFixedReset<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.04
\nBid-YTW : 4.87 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nPerpetual-Discount<\/td>\n1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-11
\nMaturity Price : 18.82
\nEvaluated at bid price : 18.82
\nBid-YTW : 6.01 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nPerpetual-Discount<\/td>\n1.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-11
\nMaturity Price : 20.50
\nEvaluated at bid price : 20.50
\nBid-YTW : 6.12 %<\/td>\n<\/tr>\n
BAM.PR.I<\/td>\nOpRet<\/td>\n1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-07-30
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.45
\nBid-YTW : 4.50 %<\/td>\n<\/tr>\n
PWF.PR.G<\/td>\nPerpetual-Discount<\/td>\n2.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-11
\nMaturity Price : 24.07
\nEvaluated at bid price : 24.34
\nBid-YTW : 6.14 %<\/td>\n<\/tr>\n
PWF.PR.F<\/td>\nPerpetual-Discount<\/td>\n2.55 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-11
\nMaturity Price : 21.41
\nEvaluated at bid price : 21.68
\nBid-YTW : 6.14 %<\/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
W.PR.J<\/td>\nPerpetual-Discount<\/td>\n55,550<\/td>\nScotia crossed 49,500 at 22.50.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-11
\nMaturity Price : 22.22
\nEvaluated at bid price : 22.50
\nBid-YTW : 6.33 %<\/td>\n<\/tr>\n
TCA.PR.Y<\/td>\nPerpetual-Discount<\/td>\n37,750<\/td>\nScotia crossed 34,000 at 48.00.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-11
\nMaturity Price : 45.65
\nEvaluated at bid price : 47.78
\nBid-YTW : 5.89 %<\/td>\n<\/tr>\n
RY.PR.A<\/td>\nPerpetual-Discount<\/td>\n25,140<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-11
\nMaturity Price : 19.57
\nEvaluated at bid price : 19.57
\nBid-YTW : 5.74 %<\/td>\n<\/tr>\n
BMO.PR.M<\/td>\nFixedReset<\/td>\n22,250<\/td>\nTD crossed 15,000 at 26.04.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-09-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.99
\nBid-YTW : 3.76 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n21,235<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.40
\nBid-YTW : 4.18 %<\/td>\n<\/tr>\n
BNS.PR.L<\/td>\nPerpetual-Discount<\/td>\n20,730<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-11
\nMaturity Price : 19.50
\nEvaluated at bid price : 19.50
\nBid-YTW : 5.86 %<\/td>\n<\/tr>\n
There were 17 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

European banks are in serious trouble: Investors have already pushed down financial stocks enough to imply the \u201cerosion\u201d in book value that may result from losses tied to a sovereign debt restructuring, said Dirk Hoffmann-Becking, …<\/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-11189","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11189","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=11189"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11189\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}