{"id":12385,"date":"2010-09-29T22:16:43","date_gmt":"2010-09-30T02:16:43","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=12385"},"modified":"2010-09-29T22:16:43","modified_gmt":"2010-09-30T02:16:43","slug":"september-29-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=12385","title":{"rendered":"September 29, 2010"},"content":{"rendered":"

Germany will make its final Great War reparations payment on the weekend<\/a>:<\/p>\n

West Germany, formed after defeat in 1945, took on responsibility for most of the outstanding principle and interest, settling the bill in 1983.<\/p>\n

But there was a clause in the so-called London Debt Agreement of 1953 that interest on multi-million pound foreign loans taken out in the Weimar Republic era, to pay off the reparations bill, should themselves be repaid if Germany were ever reunited.<\/p>\n

Payments on this interest began again in 1996.<\/p>\n

‘On Sunday the last bill is due and the First World War finally, financially at least, terminates for Germany,’ said Bild, the country\u2019s biggest selling newspaper.<\/p>\n

Most of the money goes to private individuals, pension funds and corporations holding debenture bonds as agreed under the Treaty of Versailles.<\/p>\n

The German government did not reveal how the money will be disbursed but it is understood that it is transferred to a holding account before being sent to the relevant bond and debt holders.
\nMost of these are American and French.<\/p><\/blockquote>\n

The Ontario prostitution ruling is on-line<\/a>. The judge’s opinion of the experts (paras 352-358) is hiliarious.<\/p>\n

The Canadian preferred share market slid again today, with PerpetualDiscounts losing 10bp and FixedResets down 11bp. After the redemption of CM.PR.R and CM.PR.A was announced<\/a>, I wondered what would happen to TD.PR.M and TD.PR.N. Well … they’re both on the unpleasant side of the performance highlights table, but nothing too terrible has happened … yet.<\/p>\n

PerpetualDiscounts now yield 5.54%, equivalent to 7.76% interest at the standard equivalency factor of 1.4x. Long corporates<\/a> now yield about 5.1% (!) so the pre-tax interest-equivalent spread (also called the Seniority Spread) now stands at about 265bp, a sharp increase from the 245bp reported September 22<\/a>, as long corporate yields have plummetted about 20bp while PerpetualDiscount yields are unchanged.<\/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>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.3275 %<\/td>\n2,119.3<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.3275 %<\/td>\n3,210.5<\/td>\n<\/tr>\n
Floater<\/td>\n2.87 %<\/td>\n3.29 %<\/td>\n78,023<\/td>\n19.00<\/td>\n3<\/td>\n-0.3275 %<\/td>\n2,288.3<\/td>\n<\/tr>\n
OpRet<\/td>\n4.89 %<\/td>\n3.29 %<\/td>\n76,058<\/td>\n0.17<\/td>\n9<\/td>\n-0.1672 %<\/td>\n2,372.3<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.96 %<\/td>\n-27.35 %<\/td>\n64,383<\/td>\n0.09<\/td>\n2<\/td>\n-0.3688 %<\/td>\n2,360.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1672 %<\/td>\n2,169.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.68 %<\/td>\n5.08 %<\/td>\n140,758<\/td>\n5.33<\/td>\n14<\/td>\n-0.2869 %<\/td>\n1,998.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.52 %<\/td>\n5.54 %<\/td>\n205,447<\/td>\n14.53<\/td>\n63<\/td>\n-0.1031 %<\/td>\n1,978.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.26 %<\/td>\n3.16 %<\/td>\n324,180<\/td>\n3.27<\/td>\n47<\/td>\n-0.1061 %<\/td>\n2,264.1<\/td>\n<\/tr>\n<\/table>\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
HSB.PR.C<\/td>\nPerpetual-Discount<\/td>\n-1.63 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-09-29
\nMaturity Price : 23.26
\nEvaluated at bid price : 23.50
\nBid-YTW : 5.45 %<\/td>\n<\/tr>\n
TD.PR.N<\/td>\nOpRet<\/td>\n-1.49 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-05-30
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.86
\nBid-YTW : 3.50 %<\/td>\n<\/tr>\n
NA.PR.K<\/td>\nPerpetual-Premium<\/td>\n-1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-06-14
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.55
\nBid-YTW : 4.97 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset<\/td>\n-1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-07-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.45
\nBid-YTW : 4.25 %<\/td>\n<\/tr>\n
TD.PR.M<\/td>\nOpRet<\/td>\n-1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2010-10-29
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.15
\nBid-YTW : -5.09 %<\/td>\n<\/tr>\n
BMO.PR.P<\/td>\nFixedReset<\/td>\n-1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-03-27
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.51
\nBid-YTW : 3.08 %<\/td>\n<\/tr>\n
BMO.PR.L<\/td>\nPerpetual-Premium<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.20
\nBid-YTW : 5.08 %<\/td>\n<\/tr>\n
GWO.PR.J<\/td>\nFixedReset<\/td>\n1.23 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.14
\nBid-YTW : 3.29 %<\/td>\n<\/tr>\n
BAM.PR.O<\/td>\nOpRet<\/td>\n1.49 %<\/td>\nYTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2013-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.51
\nBid-YTW : 2.72 %<\/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
CM.PR.A<\/td>\nOpRet<\/td>\n413,500<\/td>\nCalled for redemption<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2010-11-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.97
\nBid-YTW : 3.29 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n353,300<\/td>\nNesbitt crossed blocks of 250,000 and 100,000, both at 26.75.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.71
\nBid-YTW : 2.59 %<\/td>\n<\/tr>\n
BNS.PR.R<\/td>\nFixedReset<\/td>\n63,880<\/td>\nNesbitt bought four blocks from anonymous: 10,000 at 26.85, two blocks of 11,000 each, both at 26.89, and 11,000 at 26.90.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.75
\nBid-YTW : 3.03 %<\/td>\n<\/tr>\n
TD.PR.P<\/td>\nPerpetual-Discount<\/td>\n60,528<\/td>\nNesbitt crossed 50,000 at 24.75.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-09-29
\nMaturity Price : 24.43
\nEvaluated at bid price : 24.66
\nBid-YTW : 5.40 %<\/td>\n<\/tr>\n
HSB.PR.E<\/td>\nFixedReset<\/td>\n52,185<\/td>\nRBC crossed 24,200 at 28.15.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 28.03
\nBid-YTW : 3.26 %<\/td>\n<\/tr>\n
IGM.PR.B<\/td>\nPerpetual-Discount<\/td>\n47,000<\/td>\nDesjardins crossed 38,400 at 25.10.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.05
\nBid-YTW : 5.83 %<\/td>\n<\/tr>\n
There were 59 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Germany will make its final Great War reparations payment on the weekend: West Germany, formed after defeat in 1945, took on responsibility for most of the outstanding principle and interest, settling the bill in 1983. …<\/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-12385","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/12385","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=12385"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/12385\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}