{"id":13046,"date":"2010-11-20T01:07:53","date_gmt":"2010-11-20T05:07:53","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=13046"},"modified":"2010-11-20T01:07:53","modified_gmt":"2010-11-20T05:07:53","slug":"november-19-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=13046","title":{"rendered":"November 19, 2010"},"content":{"rendered":"

Allied Irish is on central bank life-support<\/a>:<\/p>\n

Allied Irish Banks Plc, Ireland\u2019s second-biggest bank, has tripled its reliance on funding from central banks since the end of June as companies and customers pulled money amid the country\u2019s debt crisis.<\/p>\n

The bank\u2019s dependence on \u201cmonetary authorities\u201d rose to 27 billion euros ($37 billion) from a \u201chigh single-digit\u201d billion-euro amount on June 30, Alan Kelly, general manager of group corporate services at Allied Irish, said in a telephone interview today. Funding conditions were \u201cincreasingly challenging,\u201d the Dublin-based lender said in a statement.<\/p>\n

Irish lenders have become more reliant on European Central Bank funding after being frozen out of wholesale markets. The amount of ECB loans to the country\u2019s banks rose 7.3 percent to 130 billion euros in October from the previous month, Ireland\u2019s Central Bank said on Nov. 1. The data include both international and domestic banks operating in Ireland.
…<\/b>
Deposits dropped by about 13 billion euros since the start of the year, Allied Irish said in the statement. That equates to about a 17 percent decline, Kelly said. Allied Irish said it will increase the amount it\u2019s seeking to raise in a share sale by the end of the year to 6.6 billion euros from 5.4 billion euros. <\/p><\/blockquote>\n

More specifically, their interim management statement<\/a> says:<\/p>\n

Customer accounts have been affected by current adverse international sentiment towards the Irish sovereign and banking sector and are down by c.\u20ac13bn from the beginning of 2010 to the close of business on 16 November. This reduction was primarily due to lower institutional and corporate balances.
…<\/b>
General funding market conditions in recent months have become increasingly challenging. This has had a negative impact on AIB\u2019s funding position which has seen a reduction on maturity of debt securities in issue and customer accounts. This reduction has been offset by an increase in secured deposits by banks, in particular by monetary authorities. While AIB had issued term funding of \u20ac6.7bn during 2010 in anticipation of term funding maturing in September 2010, current market conditions are limiting funding access to shorter durations, mainly on a secured basis.<\/p><\/blockquote>\n

Geithner’s upset about the Fed’s politicization<\/a>:<\/p>\n

U.S. Treasury Secretary Timothy F. Geithner warned Republicans against politicizing the Federal Reserve and said the Obama administration would oppose any effort to strip the central bank of its mandate to pursue full employment.<\/p>\n

\u201cIt is very important to keep politics out of monetary policy,\u201d Geithner said in an interview airing on Bloomberg Television\u2019s \u201cPolitical Capital with Al Hunt\u201d this weekend. \u201cYou want to be very careful not to take steps that hurt our credibility.\u201d<\/p>\n

The Republican congressional leadership, including John Boehner, nominated as the next House speaker, has criticized the Fed\u2019s plan to buy $600 billion in assets, saying it would fuel inflation and asset bubbles. Senator Bob Corker, a Tennessee Republican who serves on the Banking Committee, said he favors confining the Fed\u2019s mandate to promoting price stability.
…<\/b>
\u201cIt is very important that we respect and honor what the Congress did when it set up our independent central bank with a mandate to keep prices low and stable over time and to make sure\u201d it promotes \u201csustainable economic growth,\u201d said Geithner, who was president of the Federal Reserve Bank of New York before taking over as Treasury secretary last year.<\/p><\/blockquote>\n

FortisBC has issued 40-year MTNs at 5%<\/a>.<\/p>\n

The Canadian preferred share market continued to recover from the damage done earlier in the week on continued heavy volume, with PerpetualDiscounts up 23bp, while FixedResets lost 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>\n0.0885 %<\/td>\n2,245.1<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.94 %<\/td>\n3.58 %<\/td>\n27,440<\/td>\n19.04<\/td>\n1<\/td>\n-1.3004 %<\/td>\n3,404.4<\/td>\n<\/tr>\n
Floater<\/td>\n2.65 %<\/td>\n2.34 %<\/td>\n61,559<\/td>\n21.39<\/td>\n4<\/td>\n0.0885 %<\/td>\n2,424.1<\/td>\n<\/tr>\n
OpRet<\/td>\n4.76 %<\/td>\n2.95 %<\/td>\n60,911<\/td>\n2.43<\/td>\n8<\/td>\n-0.1094 %<\/td>\n2,392.5<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.41 %<\/td>\n-0.32 %<\/td>\n121,081<\/td>\n1.05<\/td>\n3<\/td>\n-0.4281 %<\/td>\n2,489.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1094 %<\/td>\n2,187.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.65 %<\/td>\n5.23 %<\/td>\n166,167<\/td>\n5.27<\/td>\n24<\/td>\n0.0786 %<\/td>\n2,018.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.34 %<\/td>\n5.38 %<\/td>\n262,856<\/td>\n14.78<\/td>\n53<\/td>\n0.2339 %<\/td>\n2,044.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.22 %<\/td>\n3.01 %<\/td>\n344,910<\/td>\n3.18<\/td>\n50<\/td>\n-0.0207 %<\/td>\n2,283.1<\/td>\n<\/tr>\n<\/table>\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
BAM.PR.R<\/td>\nFixedReset<\/td>\n-1.42 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-07-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.46
\nBid-YTW : 4.37 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-19
\nMaturity Price : 23.13
\nEvaluated at bid price : 23.33
\nBid-YTW : 5.26 %<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixedFloater<\/td>\n-1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.01
\nBid-YTW : 3.58 %<\/td>\n<\/tr>\n
POW.PR.B<\/td>\nPerpetual-Discount<\/td>\n1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-19
\nMaturity Price : 23.81
\nEvaluated at bid price : 24.08
\nBid-YTW : 5.61 %<\/td>\n<\/tr>\n
PWF.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-19
\nMaturity Price : 23.63
\nEvaluated at bid price : 23.90
\nBid-YTW : 5.53 %<\/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
RY.PR.E<\/td>\nPerpetual-Discount<\/td>\n74,083<\/td>\nNational crossed 25,000 at 22.33.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-19
\nMaturity Price : 22.14
\nEvaluated at bid price : 22.27
\nBid-YTW : 5.07 %<\/td>\n<\/tr>\n
RY.PR.A<\/td>\nPerpetual-Discount<\/td>\n70,410<\/td>\nRBC crossed 50,000 at 22.45.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-19
\nMaturity Price : 22.22
\nEvaluated at bid price : 22.37
\nBid-YTW : 4.99 %<\/td>\n<\/tr>\n
BNS.PR.Q<\/td>\nFixedReset<\/td>\n69,155<\/td>\nTD crossed 50,000 at 26.45.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-11-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.38
\nBid-YTW : 3.10 %<\/td>\n<\/tr>\n
RY.PR.L<\/td>\nFixedReset<\/td>\n65,225<\/td>\nRBC crossed 61,900 at 27.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.01
\nBid-YTW : 2.99 %<\/td>\n<\/tr>\n
TD.PR.M<\/td>\nOpRet<\/td>\n60,345<\/td>\nRBC crossed 20,000 at 25.86; Scotia bought 20,000 from anonymous at the same price. Desjardins crossed 15,000 at the same price again.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-05-30
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.85
\nBid-YTW : 2.45 %<\/td>\n<\/tr>\n
RY.PR.T<\/td>\nFixedReset<\/td>\n50,300<\/td>\nTD crossed 40,000 at 27.90.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-23
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.84
\nBid-YTW : 3.09 %<\/td>\n<\/tr>\n
There were 51 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Allied Irish is on central bank life-support: Allied Irish Banks Plc, Ireland\u2019s second-biggest bank, has tripled its reliance on funding from central banks since the end of June as companies and customers pulled money amid …<\/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-13046","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/13046","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=13046"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/13046\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}