{"id":1254,"date":"2007-09-28T19:48:51","date_gmt":"2007-09-28T23:48:51","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1254"},"modified":"2007-09-28T19:48:51","modified_gmt":"2007-09-28T23:48:51","slug":"september-28-2007","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1254","title":{"rendered":"September 28, 2007"},"content":{"rendered":"

The credit markets have renormalized sufficiently that third-quarter issuance was normal<\/a>, as a lot of catch-up was done following the Fed easing on September 18. Of particular interest this week was a 10-year Bear Stearns issue: they paid up to get it done, 187.5bp over Treasuries, but USD 2.5-billion that won’t have to be refinanced for a while should do a lot to ease any fears their clients – they do a lot of prime brokerage for hedge funds – may have regarding liquidity.<\/p>\n

And it looks like the banks and the vultures are close to agreement on prices<\/a>:<\/p>\n

Investment groups such as Los Angeles-based Oaktree Capital, which oversees $47 billion, and BlackRock in New York see a chance to profit because banks are stuck with loans they made before demand for below-investment-grade debt dried up in the past three months.<\/p><\/blockquote>\n

The mortgage market is still in pretty rough shape<\/a> according to Mortgage Insurance underwriters:<\/p>\n

The number of PrivateMI applications received in August by MICA members was 206,445 or 14.3% more than the 180,561 received in July. The dollar volume of primary insurance written on newly originated 1-to-4 family conventional mortgage loans totaled $27,257.3 million in August, a 2.6% increase from the previous month\u2019s $26,573.1 million. Traditional primary insurance totaled $23,793.9 million and bulk primary insurance totaled $3,463.4 million in August. In that same month, primary insurance in-force totaled $757,333.3 million. MICA members reported 33,811 cures and 58,441 defaults during August.<\/p><\/blockquote>\n

And in late new … a US Thrift has failed<\/a>!<\/p>\n

NetBank Inc., an online bank with US$2.5 billion in assets, was shut down by the U.S. government on Friday because of an excessive level of mortgage defaults.
\n…<\/strong>
\nThe FDIC said Friday that $1.5 billion of NetBank’s insured deposits will be assumed by ING Bank, also a major online bank that is part of Dutch financial giant ING Groep NV. ING will pay $14 million for the deposits and receive 104,000 new customers.
\n…<\/strong>
\nThe FDIC insures bank deposits of up to $100,000.<\/p>\n

NetBank had $109 million in deposit accounts that exceeded the FDIC limit. Those customers will become creditors in NetBank’s receivership, the FDIC said.<\/p><\/blockquote>\n

According to their most recent financial statements<\/a> they had a Tier 1 ratio of 4.83% at Dec 31\/06 and a total capital ratio of 9.07%, although these are listed as “estimated”. Shareholders’ equity at that time was $4.32\/share\u00a0after a 2006 loss of $1.86\/share. They were attempting to jettison all activities except mortgage servicing<\/a> but didn’t make it.<\/p>\n

And that’s it for me! Sorry to leave you all in the lurch again … but such is life. I will post the daily market action … later. Let’s just say that today was not one of the market’s biggest up\u00a0days and leave it at that, shall we?<\/p>\n

Update, 2007-10-01<\/strong><\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n
Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version. In this version, index values are based at 1,000.0 on 2006-6-30<\/strong><\/td>\n<\/tr>\n
Index<\/td>\nMean Current Yield (at bid)<\/td>\nMean YTW<\/td>\nMean Average Trading Value<\/td>\nMean Mod Dur (YTW)<\/td>\nIssues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n4.59%<\/td>\n4.50%<\/td>\n980,120<\/td>\n16.18<\/td>\n1<\/td>\n+2.0408%<\/td>\n1,065.0<\/td>\n<\/tr>\n
Fixed-Floater<\/td>\n4.87%<\/td>\n4.77%<\/td>\n93,849<\/td>\n15.85<\/td>\n8<\/td>\n-0.2080%<\/td>\n1,033.3<\/td>\n<\/tr>\n
Floater<\/td>\n4.49%<\/td>\n4.38%<\/td>\n83,139<\/td>\n11.02<\/td>\n3<\/td>\n-0.1090%<\/td>\n1,044.9<\/td>\n<\/tr>\n
Op. Retract<\/td>\n4.85%<\/td>\n4.07%<\/td>\n77,054<\/td>\n3.23<\/td>\n15<\/td>\n-0.0932%<\/td>\n1,027.2<\/td>\n<\/tr>\n
Split-Share<\/td>\n5.15%<\/td>\n4.87%<\/td>\n96,828<\/td>\n3.83<\/td>\n13<\/td>\n+0.1836%<\/td>\n1,045.6<\/td>\n<\/tr>\n
Interest Bearing<\/td>\n6.30%<\/td>\n6.60%<\/td>\n66,193<\/td>\n4.26<\/td>\n3<\/td>\n+0.1735%<\/td>\n1,041.6<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.58%<\/td>\n5.37%<\/td>\n90,422<\/td>\n8.73<\/td>\n24<\/td>\n-0.2418%<\/td>\n1,019.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.25%<\/td>\n5.29%<\/td>\n240,129<\/td>\n15.02<\/td>\n38<\/td>\n-0.8794%<\/td>\n950.3<\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Major Price Changes<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
SLF.PR.B<\/td>\nPerpetualDiscount<\/td>\n-2.6518%<\/td>\nNow with a pre-tax bid-YTW of 5.30% based on a bid of 22.76 and a limitMaturity<\/a>.
\n\u00a0<\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nPerpetualDiscount<\/td>\n-2.5268%<\/td>\nNow with a pre-tax bid-YTW of 5.24% based on a bid of 22.76 and a limitMaturity.<\/td>\n<\/tr>\n
RY.PR.W<\/td>\nPerpetualDiscount<\/td>\n-2.2186%<\/td>\nNow with a pre-tax bid-YTW of 5.20% based on a bid of 23.80 and a limitMaturity.<\/td>\n<\/tr>\n
RY.PR.C<\/td>\nPerpetualDiscount<\/td>\n-2.1739%<\/td>\nNow with a pre-tax bid-YTW of 5.17% based on a bid of 22.50 and a limitMaturity.<\/td>\n<\/tr>\n
RY.PR.G<\/td>\nPerpetualDiscount<\/td>\n-2.0628%<\/td>\nNow with a pre-tax bid-YTW of 5.21% based on a bid of 21.84 and a limitMaturity.<\/td>\n<\/tr>\n
RY.PR.E<\/td>\nPerpetualDiscount<\/td>\n-2.0563%<\/td>\nNow with a pre-tax bid-YTW of 5.19% based on a bid of 21.91 and a limitMaturity.<\/td>\n<\/tr>\n
PWF.PR.K<\/td>\nPerpetualDiscount<\/td>\n-1.9873%<\/td>\nNow with a pre-tax bid-YTW of 5.42% based on a bid of 23.18 and a limitMaturity.<\/td>\n<\/tr>\n
PWF.PR.L<\/td>\nPerpetualDiscount<\/td>\n-1.9835%<\/td>\nNow with a pre-tax bid-YTW of 5.46% based on a bid of 23.72 and a limitMaturity.<\/td>\n<\/tr>\n
RY.PR.B<\/td>\nPerpetualDiscount<\/td>\n-1.8415%<\/td>\nNow with a pre-tax bid-YTW of 5.18% based on a bid of 22.92 and a limitMaturity.<\/td>\n<\/tr>\n
RY.PR.F<\/td>\nPerpetualDiscount<\/td>\n-1.5794%<\/td>\nNow with a pre-tax bid-YTW of 5.16% based on a bid of 21.81 and a\u00a0limitMaturity.<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetualDiscount<\/td>\n-1.5013%<\/td>\nNow with a pre-tax bid-YTW of 5.30% based on a bid of 23.62 and a limitMaturity.<\/td>\n<\/tr>\n
TCA.PR.X<\/td>\nPerpetualPremium (before rebalancing!)<\/td>\n-1.4527%<\/td>\nNow with a pre-tax bid-YTW of 5.56% based on a bid of\u00a049.52 and a limitMaturity.<\/td>\n<\/tr>\n
CM.PR.J<\/td>\nPerpetualDiscount<\/td>\n-1.4512%<\/td>\nNow with a pre-tax bid-YTW of 5.18% based on a bid of 21.73 and a limitMaturity.<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nPerpetualPremium (before rebalancing!)<\/td>\n-1.3072%<\/td>\nNow with a pre-tax bid-YTW of 5.19% based on a bid of 24.16 and a limitMaturity.<\/td>\n<\/tr>\n
CM.PR.H<\/td>\nPerpetualDiscount<\/td>\n-1.3043%<\/td>\nNow with a pre-tax bid-YTW of 5.28% based on a bid of 22.70 and a limitMaturity.<\/td>\n<\/tr>\n
BNS.PR.L<\/td>\nPerpetualDiscount<\/td>\n-1.2925%<\/td>\nNow with a pre-tax bid-YTW of 5.17% based on a bid of 21.77 and a limitMaturity.<\/td>\n<\/tr>\n
RY.PR.D<\/td>\nPerpetualDiscount<\/td>\n-1.2895%<\/td>\nNow with a pre-tax bid-YTW of 5.12% based on a bid of 22.20 and a limitMaturity.<\/td>\n<\/tr>\n
BNS.PR.K<\/td>\nPerpetualDiscount<\/td>\n-1.2600%<\/td>\nNow with a pre-tax bid-YTW of 5.16% based on a bid of 23.21 and a limitMaturity.<\/td>\n<\/tr>\n
BNS.PR.M<\/td>\nPerpetualDiscount<\/td>\n-1.1655%<\/td>\nNow with a pre-tax bid-YTW of 5.18% based on a bid of 21.66 and a limitMaturity.<\/td>\n<\/tr>\n
BAM.PR.J<\/td>\nOpRet<\/td>\n-1.1605%<\/td>\nNow with a pre-tax bid-YTW of 5.16% based on a bid of\u00a025.55 and a softMaturity<\/a> 2018-3-30 at 25.00.<\/td>\n<\/tr>\n
CM.PR.I<\/td>\nPerpetualDiscount<\/td>\n-1.1136%<\/td>\nNow with a pre-tax bid-YTW of 5.29% based on a bid of 22.20 and a\u00a0limitMaturity.<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nPerpetualDiscount<\/td>\n-1.0518%<\/td>\nNow with a pre-tax bid-YTW of 5.34% based on a bid of 24.46 and a limitMaturity.<\/td>\n<\/tr>\n
PWF.PR.E<\/td>\nPerpetualPremium<\/td>\n-1.0252%<\/td>\nNow with a pre-tax bid-YTW of 5.47% based on a bid of 25.10 and a limitMaturity.<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nPerpetualDiscount<\/td>\n+<\/strong>1.0144%<\/td>\nNow with a pre-tax bid-YTW of 5.15% based on a bid of 23.90 and a limitMaturity.<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n+<\/strong>1.2059%<\/td>\nNow with a pre-tax bid-YTW of 5.98% based on a bid of 21.82 and a hardMaturity<\/a> 2019-1-10 at 25.00.<\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nVolume<\/td>\nNotes<\/td>\n<\/tr>\n
ACO.PR.A<\/td>\nOpRet<\/td>\n51,332<\/td>\nNow with a pre-tax bid-YTW of 3.94% based on a bid of 26.55 and a call 2009-12-31 at 25.50.<\/td>\n<\/tr>\n
BNS.PR.M<\/td>\nPerpetualDiscount<\/td>\n29,335<\/td>\nNow with a pre-tax bid-YTW of 5.18% based on a bid of 21.66 and a limitMaturity.<\/td>\n<\/tr>\n
BNS.PR.L<\/td>\nPerpetualDiscount<\/td>\n26,605<\/td>\nNow with a pre-tax bid-YTW of 5.1671% based on a bid of 21.77 and a limitMaturity.<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nPerpetualDiscount<\/td>\n19,940<\/td>\nNow with a pre-tax bid-YTW of 5.16% based on a bid of 21.62 and a limitMaturity.<\/td>\n<\/tr>\n
SLF.PR.B<\/td>\nPerpetualDiscount<\/td>\n17,300<\/td>\nNow with a pre-tax bid-YTW of 5.30% based on a bid of 22.76 and a limitMaturity.<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

There were twelve other index-included $25.00-equivalent issues trading over 10,000 shares today.<\/p>\n","protected":false},"excerpt":{"rendered":"

The credit markets have renormalized sufficiently that third-quarter issuance was normal, as a lot of catch-up was done following the Fed easing on September 18. Of particular interest this week was a 10-year Bear Stearns …<\/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-1254","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1254","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=1254"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1254\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}