{"id":12533,"date":"2010-10-12T23:44:53","date_gmt":"2010-10-13T03:44:53","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=12533"},"modified":"2010-10-12T23:44:53","modified_gmt":"2010-10-13T03:44:53","slug":"october-12-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=12533","title":{"rendered":"October 12, 2010"},"content":{"rendered":"

In astonishing news, deficit financing is here to stay<\/a>:<\/p>\n

\nCanada will have endured seven years of budget deficits before it returns to a surplus position, the federal government said Tuesday in its fall fiscal update.
…<\/b>
The anticipated 2015-16 surplus would mean seven years of deficit financing, beginning in the 2008-09 fiscal year when the financial crisis erupted. Prior to that, the country posted 11 consecutive annual budget surpluses.<\/p><\/blockquote>\n

Maybe they should cut taxes again! That will increase revenues, absolutely for sure, unless it doesn’t.<\/p>\n

In more interesting news<\/a>:<\/p>\n

\nMcDonald\u2019s Corp.\u2019s yuan bond sale, the first by a foreign company in Hong Kong, may pave the way for a new global debt market as China seeks to capitalize on its status as the engine of the world\u2019s economic recovery.<\/p>\n

McDonald\u2019s, which opened its first 1,000 restaurants in China faster than any other country outside the U.S., sold 200-million yuan (US$29-million) of 3% notes due in September 2013.
…<\/b>
\n\u201cThere are a lot of companies expressing interest in issuing yuan bonds,\u201d said Per Nordstrom, head of EMTNs Asia at Standard Chartered Plc, who worked on the sale. \u201cI\u2019m expecting the renminbi offshore market to be very popular.\u201d<\/p><\/blockquote>\n

I’m not sure if these things have a cool name yet, like Maple, Yankee and Samurai. You can’t have cross-border bonds without a cool name! It just isn’t done!<\/p>\n

The Canadian preferred share market had another good day on strong volume, with PerpetualDiscounts up 14bp and FixedResets gaining 20bp.<\/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>\n0.7500 %<\/td>\n2,186.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.7500 %<\/td>\n3,312.4<\/td>\n<\/tr>\n
Floater<\/td>\n2.86 %<\/td>\n3.18 %<\/td>\n78,644<\/td>\n19.31<\/td>\n3<\/td>\n0.7500 %<\/td>\n2,360.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.90 %<\/td>\n3.15 %<\/td>\n81,228<\/td>\n0.13<\/td>\n9<\/td>\n0.1422 %<\/td>\n2,376.4<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.89 %<\/td>\n-29.82 %<\/td>\n64,607<\/td>\n0.09<\/td>\n2<\/td>\n0.0814 %<\/td>\n2,388.4<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1422 %<\/td>\n2,173.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.71 %<\/td>\n5.08 %<\/td>\n135,279<\/td>\n5.37<\/td>\n19<\/td>\n0.2340 %<\/td>\n2,007.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.45 %<\/td>\n5.45 %<\/td>\n225,965<\/td>\n14.69<\/td>\n58<\/td>\n0.1378 %<\/td>\n1,999.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.27 %<\/td>\n3.08 %<\/td>\n314,192<\/td>\n3.28<\/td>\n47<\/td>\n0.1992 %<\/td>\n2,271.0<\/td>\n<\/tr>\n<\/table>\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
PWF.PR.P<\/td>\nFixedReset<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-10-12
\nMaturity Price : 23.38
\nEvaluated at bid price : 25.81
\nBid-YTW : 3.38 %<\/td>\n<\/tr>\n
NA.PR.K<\/td>\nPerpetual-Premium<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2010-11-11
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.51
\nBid-YTW : -1.24 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n1.71 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-10-12
\nMaturity Price : 16.61
\nEvaluated at bid price : 16.61
\nBid-YTW : 3.18 %<\/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
BNS.PR.N<\/td>\nPerpetual-Discount<\/td>\n115,525<\/td>\nNesbitt crossed 100,000 at 24.50.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-10-12
\nMaturity Price : 24.36
\nEvaluated at bid price : 24.59
\nBid-YTW : 5.34 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nPerpetual-Discount<\/td>\n100,938<\/td>\nRBC crossed 85,000 at 19.65.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-10-12
\nMaturity Price : 19.60
\nEvaluated at bid price : 19.60
\nBid-YTW : 5.81 %<\/td>\n<\/tr>\n
BNS.PR.Q<\/td>\nFixedReset<\/td>\n76,762<\/td>\nRBC bought 10,000 from National at 26.26 and crossed 25,000 at 26.30. Desjardins crossed 14,200 at 26.30.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-11-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.29
\nBid-YTW : 3.08 %<\/td>\n<\/tr>\n
TD.PR.R<\/td>\nPerpetual-Premium<\/td>\n66,086<\/td>\nRBC crossed 50,000 at 25.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : 5.26 %<\/td>\n<\/tr>\n
RY.PR.B<\/td>\nPerpetual-Discount<\/td>\n65,038<\/td>\nNesbitt crossed 50,000 at 22.77.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-10-12
\nMaturity Price : 22.57
\nEvaluated at bid price : 22.74
\nBid-YTW : 5.24 %<\/td>\n<\/tr>\n
PWF.PR.D<\/td>\nOpRet<\/td>\n59,334<\/td>\nNesbitt crossed 54,300 at 25.36.
\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2012-10-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.35
\nBid-YTW : 4.36 %<\/td>\n<\/tr>\n
There were 39 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

In astonishing news,<\/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-12533","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/12533","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=12533"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/12533\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}