{"id":11258,"date":"2010-06-18T19:10:45","date_gmt":"2010-06-18T23:10:45","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=11258"},"modified":"2010-06-18T19:10:45","modified_gmt":"2010-06-18T23:10:45","slug":"june-18-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=11258","title":{"rendered":"June 18, 2010"},"content":{"rendered":"

Carney talked tough on inflation<\/a>:<\/p>\n

Given the scale of the fiscal challenge, it is perhaps not surprising that some eminent economists are looking for an \u201ceasier\u201d way out. This form of denial is to allow temporarily higher inflation in order to inflate away public debt.<\/p>\n

To the Bank, this is a siren call.<\/p>\n

Those most in need of fiscal consolidation are often those with debt portfolios of the shortest duration. The \u201csurprise\u201d would have to be very sudden and very large to have a material impact. Of course, if temporary inflation becomes built into expectations, real rates may well increase, rather than fall, thereby exacerbating debt dynamics. Moreover, in the past, it has proven devilishly hard to keep inflation high temporarily. Would it be credible to have a one-off increase in the inflation target?<\/p>\n

Central banks have worked for decades to get inflation down to levels consistent with price stability. We should not risk these hard-won gains.<\/p><\/blockquote>\n

A reasonable day in the Canadian preferred share market with PerpetualDiscounts gaining 8bp and FixedResets losing 22bp. The question is rapidly becoming one of not so much ‘How long will the PD streak last?’ but ‘Can PD’s manage to make it through the entire calendar month without a down-day?’ Volume was moderate and volatility virtually non-existent.<\/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>\n2.68 %<\/td>\n2.83 %<\/td>\n36,468<\/td>\n20.69<\/td>\n1<\/td>\n1.1765 %<\/td>\n2,117.3<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.20 %<\/td>\n3.33 %<\/td>\n23,099<\/td>\n19.81<\/td>\n1<\/td>\n0.0000 %<\/td>\n3,079.0<\/td>\n<\/tr>\n
Floater<\/td>\n2.41 %<\/td>\n2.78 %<\/td>\n78,030<\/td>\n20.29<\/td>\n3<\/td>\n0.2024 %<\/td>\n2,251.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.87 %<\/td>\n3.63 %<\/td>\n91,598<\/td>\n0.92<\/td>\n11<\/td>\n0.0812 %<\/td>\n2,331.0<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.30 %<\/td>\n6.23 %<\/td>\n97,226<\/td>\n3.50<\/td>\n2<\/td>\n-0.0434 %<\/td>\n2,201.2<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0812 %<\/td>\n2,131.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0757 %<\/td>\n1,904.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.95 %<\/td>\n6.03 %<\/td>\n200,582<\/td>\n13.85<\/td>\n77<\/td>\n0.0757 %<\/td>\n1,803.0<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.42 %<\/td>\n3.99 %<\/td>\n360,996<\/td>\n3.48<\/td>\n45<\/td>\n-0.2192 %<\/td>\n2,183.4<\/td>\n<\/tr>\n<\/table>\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>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-18
\nMaturity Price : 21.10
\nEvaluated at bid price : 21.10
\nBid-YTW : 6.07 %<\/td>\n<\/tr>\n
BAM.PR.E<\/td>\nRatchet<\/td>\n1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-18
\nMaturity Price : 22.87
\nEvaluated at bid price : 21.50
\nBid-YTW : 2.83 %<\/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
SLF.PR.C<\/td>\nPerpetual-Discount<\/td>\n106,048<\/td>\nRBC crossed blocks of 25,000 and 50,000 at 18.35.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-18
\nMaturity Price : 18.36
\nEvaluated at bid price : 18.36
\nBid-YTW : 6.09 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nPerpetual-Discount<\/td>\n97,736<\/td>\nDesjardins crossed 85,500 at 18.35.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-06-18
\nMaturity Price : 18.39
\nEvaluated at bid price : 18.39
\nBid-YTW : 6.08 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n67,291<\/td>\nRBC crossed blocks of 16,000 shares, 25,000 and 10,000, all at 27.30.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-23
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.25
\nBid-YTW : 4.12 %<\/td>\n<\/tr>\n
PWF.PR.D<\/td>\nOpRet<\/td>\n63,350<\/td>\nTo be redeemed<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2010-11-30
\nMaturity Price : 25.40
\nEvaluated at bid price : 25.80
\nBid-YTW : 3.13 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n47,276<\/td>\nNesbitt crossed 15,300 at 25.45.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.46
\nBid-YTW : 4.14 %<\/td>\n<\/tr>\n
CM.PR.M<\/td>\nFixedReset<\/td>\n42,350<\/td>\nTD crossed blocks of 10,000 and 25,000 at 27.66.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.75
\nBid-YTW : 3.90 %<\/td>\n<\/tr>\n
There were 26 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Carney talked tough on inflation: Given the scale of the fiscal challenge, it is perhaps not surprising that some eminent economists are looking for an \u201ceasier\u201d way out. This form of denial is to allow …<\/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-11258","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11258","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=11258"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11258\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}