{"id":12283,"date":"2010-09-20T21:29:56","date_gmt":"2010-09-21T01:29:56","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=12283"},"modified":"2010-09-20T21:29:56","modified_gmt":"2010-09-21T01:29:56","slug":"fixedreset-index-ytw-now-through-3-00","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=12283","title":{"rendered":"FixedReset Index YTW Now Through 3.00%"},"content":{"rendered":"<p>It seems like only yesterday that I was excited that the FixedReset Index YTW had hit an all-time low of 3.26% &#8230; but no, <a href=\"http:\/\/www.prefblog.com\/?p=11925\">that happened on August 19<\/a>. It only took another month to hop over the next milestone, as the median weighted average Yield-to-Worst of the FixedReset index is now firmly below 3.00%.<\/p>\n<div align=\"center\"><a href=\"http:\/\/www.prefblog.com\/wp-content\/uploads\/2010\/09\/FixedResetYield_100920.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.prefblog.com\/wp-content\/uploads\/2010\/09\/FixedResetYield_100920.jpg\" alt=\"\" title=\"FixedResetYield_100920\" width=\"400\" height=\"331\" class=\"alignnone size-full wp-image-12284\" \/><\/a><br \/><i>Click for Big<\/i><\/div>\n<p>To celebrate, I am publishing the FixedReset index constituent list, sorted three ways:<\/p>\n<ul>\n<li><a href='http:\/\/www.prefblog.com\/wp-content\/uploads\/2010\/09\/J10_yield.pdf'>By yield<\/a>\n<li><a href='http:\/\/www.prefblog.com\/wp-content\/uploads\/2010\/09\/J10.pdf'>By ticker<\/a>\n<li><a href='http:\/\/www.prefblog.com\/wp-content\/uploads\/2010\/09\/J10_vol.pdf'>By volume<\/a><\/ul>\n<p><a href=\"http:\/\/www.canadianbondindices.com\/stbi.asp\">Short corporates<\/a> now yield about 2.7%, so one can certainly make a case for the idea that a yield below 3.0% for FixedResets is fair and reasonable &#8211; that allows 150bp for extension and credit risk on a pre-tax interest-equivalent basis &#8211; but I don&#8217;t think the market thinks like that and I think the market will receive a rude shock when the issuers start calling these things.<\/p>\n<p>I was interviewed today by a reporter for a major Canadian newspaper and talked about what I liked for 15 minutes &#8230; then told her &#8216;wait a minute, you have to put something about FixedResets in this article or you&#8217;ll get about 100 eMails following publication, because a lot of people love these things.&#8217; Not to worry &#8211; apparently the other experts she interviewed for the piece strongly recommended FixedResets. Hopefully, I&#8217;ll get a look at the article later this week.<\/p>\n<p>How about that PWF.PR.P, eh? It&#8217;s a <a href=\"http:\/\/www.prefblog.com\/?p=11363\">4.40%+160 FixedReset issued in June<\/a> &#8230;. now trading at 26.23-34, but given a 5-Year GOC yield of 2.11%, it&#8217;s not expected to be called 2016-1-31.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It seems like only yesterday that I was excited that the FixedReset Index YTW had hit an all-time low of 3.26% &#8230; but no, that happened on August 19. It only took another month to &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-12283","post","type-post","status-publish","format-standard","hentry","category-index-construction-and-reporting"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/12283","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=12283"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/12283\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}