{"id":12960,"date":"2010-11-12T20:22:12","date_gmt":"2010-11-13T00:22:12","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=12960"},"modified":"2010-11-12T20:22:12","modified_gmt":"2010-11-13T00:22:12","slug":"november-12-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=12960","title":{"rendered":"November 12, 2010"},"content":{"rendered":"

The Europeans have been distracted from the G-20<\/a>:<\/p>\n

Finance ministers from Germany, France and the U.K. met in Seoul to discuss Ireland\u2019s debt crisis after bond yields soared on concern the European Union will need to step in with a bailout.<\/p>\n

Ministers are monitoring developments and will probably issue a joint statement later today, said Steffen Seibert, a spokesman for German Chancellor Angela Merkel.<\/p>\n

The premium investors charge to hold Irish debt over German bunds climbed to a record yesterday and the euro fell to the lowest level against the dollar since September. Yields on 10- year Irish bonds added 31 basis points to 9.07 percent. Bailing out Ireland\u2019s financial system could cost as much as 50 billion euros ($68 billion) under a \u201cstress case\u201d scenario compiled by the finance ministry and central bank.<\/p>\n

Germany is the biggest contributor to this year\u2019s 860 billion euros in loans and pledges to stem Europe\u2019s debt crisis. Bonds of the euro area\u2019s so-called peripheral nations have tumbled since EU leaders on Oct. 29 backed Merkel\u2019s demand to set up a permanent rescue system by 2013 that makes bondholders foot part of the cost of any future debt crisis.<\/p><\/blockquote>\n

Wow! Higher chance of default has brought with it higher yield demands! Who woulda thunk it? It must be those nasty hedge funds and short sellers at the bottom of this.<\/p>\n

Charges have been laid<\/a> in a tipping scandal. What I find most interesting is that the alpha-tipper (ground-zero tipper? primary tipper?), Mitchell Finkelstein, got his information in three of the four transactions by simply poking around in the Davies Ward Phillips Vineberg LLP document management system – I would have thought that material of this nature would be password protected with access logs maintained and reviewed. Who knows? It might have been; the OSC Statement of Allegations doesn’t go into much detail about it, but it’s an interesting question.<\/p>\n

The Canadian preferred share market took a loss today on average volume, with PerpetualDiscounts down 18bp and FixedResets losing 2bp.<\/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>\n0.1143 %<\/td>\n2,234.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.89 %<\/td>\n3.50 %<\/td>\n27,188<\/td>\n19.16<\/td>\n1<\/td>\n1.0904 %<\/td>\n3,441.5<\/td>\n<\/tr>\n
Floater<\/td>\n2.66 %<\/td>\n2.34 %<\/td>\n63,145<\/td>\n21.39<\/td>\n4<\/td>\n0.1143 %<\/td>\n2,412.2<\/td>\n<\/tr>\n
OpRet<\/td>\n4.78 %<\/td>\n2.84 %<\/td>\n82,077<\/td>\n1.86<\/td>\n9<\/td>\n0.1297 %<\/td>\n2,402.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.80 %<\/td>\n-26.83 %<\/td>\n66,640<\/td>\n0.09<\/td>\n2<\/td>\n0.1202 %<\/td>\n2,425.8<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1297 %<\/td>\n2,196.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.63 %<\/td>\n5.10 %<\/td>\n162,660<\/td>\n2.75<\/td>\n24<\/td>\n-0.1066 %<\/td>\n2,026.5<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.29 %<\/td>\n5.32 %<\/td>\n253,831<\/td>\n14.92<\/td>\n53<\/td>\n-0.1829 %<\/td>\n2,063.7<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.19 %<\/td>\n2.87 %<\/td>\n343,632<\/td>\n3.20<\/td>\n50<\/td>\n-0.0211 %<\/td>\n2,296.1<\/td>\n<\/tr>\n<\/table>\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
IAG.PR.A<\/td>\nPerpetual-Discount<\/td>\n-2.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-12
\nMaturity Price : 21.45
\nEvaluated at bid price : 21.45
\nBid-YTW : 5.44 %<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nPerpetual-Discount<\/td>\n-1.44 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-12
\nMaturity Price : 21.27
\nEvaluated at bid price : 21.27
\nBid-YTW : 5.37 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nPerpetual-Discount<\/td>\n-1.29 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-12
\nMaturity Price : 21.45
\nEvaluated at bid price : 21.45
\nBid-YTW : 5.32 %<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixedFloater<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-12
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.25
\nBid-YTW : 3.50 %<\/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
MFC.PR.A<\/td>\nOpRet<\/td>\n76,502<\/td>\nRBC bought 10,000 from Nesbitt at 25.65, then crossed 63,400 at the same price.
\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2015-12-18
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.59
\nBid-YTW : 3.52 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n34,060<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-12
\nMaturity Price : 23.12
\nEvaluated at bid price : 25.08
\nBid-YTW : 4.33 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nPerpetual-Discount<\/td>\n30,145<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-12
\nMaturity Price : 21.05
\nEvaluated at bid price : 21.05
\nBid-YTW : 5.34 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n28,316<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.57
\nBid-YTW : 2.92 %<\/td>\n<\/tr>\n
BNS.PR.M<\/td>\nPerpetual-Discount<\/td>\n26,269<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-12
\nMaturity Price : 22.50
\nEvaluated at bid price : 22.65
\nBid-YTW : 5.00 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n25,180<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-07-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.01
\nBid-YTW : 3.24 %<\/td>\n<\/tr>\n
There were 31 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The Europeans have been distracted from the G-20: Finance ministers from Germany, France and the U.K. met in Seoul to discuss Ireland\u2019s debt crisis after bond yields soared on concern the European Union will need …<\/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-12960","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/12960","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=12960"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/12960\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12960"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}