{"id":13179,"date":"2010-12-01T00:36:25","date_gmt":"2010-12-01T04:36:25","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=13179"},"modified":"2010-12-01T00:36:25","modified_gmt":"2010-12-01T04:36:25","slug":"november-30-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=13179","title":{"rendered":"November 30, 2010"},"content":{"rendered":"

Markets remain unimpressed by the Irish bail-out<\/a>:<\/p>\n

The difference in yield between Italian 10-year bonds and German bunds widened to 199 basis points after reaching 212 points earlier. The Spanish-German yield spread rose 17 basis points to 284 basis points and the yield premium for Belgian 10- year bonds reached 131 basis points, the most since January 2009.
…<\/b>
Credit-default swaps insuring Italian government bonds rose 24 basis points to 270, contracts on Spain increased 16 basis points to 368 and Portugal climbed 12 basis points to 552, all record highs, according to CMA, a data provider.<\/p><\/blockquote>\n

DBRS has assigned ratings to Loblaw’s shelf prospectus<\/a>:<\/p>\n

DBRS has today assigned a rating of BBB with a Stable trend to Loblaw Companies Limited\u2019s (Loblaw or the Company) new $1 billion Short Form Base Shelf Prospectus, dated November 25, 2010.<\/p>\n

This prospectus will enable Loblaw to offer and issue up to $1.0 billion of debentures and second preferred shares during the 25-month period the base shelf prospectus remains valid. Additionally, DBRS has assigned a new rating of Pfd-3 to the Company\u2019s preferred share portion of this prospectus.<\/p><\/blockquote>\n

Connor Clark & Lunn, best known for the default of their highly structured RPB.PR.A offering<\/a> (among others) are reinforcing their effort (kicked off with the issue of HBanc Capital Securities Trust, discussed on October 13<\/a>) to win the covetted PrefBlog “Most Ridiculous Family of Funds” award with the issue of Australian Banc Capital Securites Trust<\/a>. It should do quite well; the underwriting fee on the Class A units<\/a> is 5.25%, not that that will have anything to do with the success of the offering, of course.<\/p>\n

Coincidentally, a team of analysts has commented on the Aussie Dollar<\/a>:<\/p>\n

Cricket\u2019s oldest international rivalry resumed last week in Australia without a traditional taunt of traveling English fans: \u201cWe\u2019re fat, we\u2019re round, three dollars to the pound.\u201d
…<\/b>
The dollar chant \u201cwon\u2019t be coming out of the songbook this time,\u201d Barmy Army spokeswoman Becky Fairlie-Clarke said in a telephone interview. \u201cIt\u2019s more like 1 1\/2 now.\u201d<\/p><\/blockquote>\n

It was a poor day for the Canadian preferred share market, with PerpetualDiscounts down 24bp and FixedResets losing 10bp. Volume was heavy.<\/p>\n

PerpetualDiscounts now yield 5.41%, equivalent to 7.57% interest at the standard equivalency factor of 1.4x. Long Corporates<\/a> continue to yield about 5.4% (maybe a little under) , so the pre-tax interest-equivalent spread is now about 220bp, a significant widening from the 210bp reported on November 24<\/a>, although it must be noted that the spread has been bouncing between these two levels all month.<\/p>\n

It is instructive to review the performance of the BMO Long Corporate ETF<\/a> for the month:<\/p>\n

\"\"<\/a>
Click for big<\/i><\/div>\n

Long Corporates had a total return of about -1% on the month.<\/p>\n

And that’s a wrap for November, 2010!<\/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-0.3250 %<\/td>\n2,261.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.81 %<\/td>\n3.46 %<\/td>\n28,565<\/td>\n19.13<\/td>\n1<\/td>\n0.0442 %<\/td>\n3,497.2<\/td>\n<\/tr>\n
Floater<\/td>\n2.63 %<\/td>\n2.36 %<\/td>\n53,681<\/td>\n21.37<\/td>\n4<\/td>\n-0.3250 %<\/td>\n2,441.3<\/td>\n<\/tr>\n
OpRet<\/td>\n4.78 %<\/td>\n3.39 %<\/td>\n62,105<\/td>\n2.40<\/td>\n8<\/td>\n-0.6087 %<\/td>\n2,381.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.45 %<\/td>\n0.42 %<\/td>\n123,529<\/td>\n1.02<\/td>\n3<\/td>\n-0.2064 %<\/td>\n2,467.6<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.6087 %<\/td>\n2,177.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.69 %<\/td>\n5.47 %<\/td>\n159,226<\/td>\n5.39<\/td>\n24<\/td>\n-0.2281 %<\/td>\n2,009.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.36 %<\/td>\n5.41 %<\/td>\n273,381<\/td>\n14.81<\/td>\n53<\/td>\n-0.2378 %<\/td>\n2,038.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.23 %<\/td>\n3.29 %<\/td>\n341,256<\/td>\n3.15<\/td>\n51<\/td>\n-0.1020 %<\/td>\n2,270.8<\/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.I<\/td>\nOpRet<\/td>\n-4.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-07-30
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.75
\nBid-YTW : 3.84 %<\/td>\n<\/tr>\n
BAM.PR.O<\/td>\nOpRet<\/td>\n-1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2013-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.90
\nBid-YTW : 3.89 %<\/td>\n<\/tr>\n
RY.PR.C<\/td>\nPerpetual-Discount<\/td>\n-1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-30
\nMaturity Price : 22.35
\nEvaluated at bid price : 22.50
\nBid-YTW : 5.14 %<\/td>\n<\/tr>\n
TD.PR.R<\/td>\nPerpetual-Premium<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.20
\nBid-YTW : 5.58 %<\/td>\n<\/tr>\n
BNS.PR.Y<\/td>\nFixedReset<\/td>\n1.77 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-30
\nMaturity Price : 25.19
\nEvaluated at bid price : 25.24
\nBid-YTW : 3.40 %<\/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
GWO.PR.N<\/td>\nFixedReset<\/td>\n589,994<\/td>\nInventory Clearance Sale<\/a>
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-30
\nMaturity Price : 24.45
\nEvaluated at bid price : 24.50
\nBid-YTW : 3.70 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n194,600<\/td>\nNesbitt crossed 177,900 at 25.55.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2020-07-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 3.76 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nPerpetual-Discount<\/td>\n62,260<\/td>\nNesbitt crossed 50,000 at 21.45.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-30
\nMaturity Price : 21.40
\nEvaluated at bid price : 21.40
\nBid-YTW : 5.35 %<\/td>\n<\/tr>\n
BNS.PR.K<\/td>\nPerpetual-Discount<\/td>\n58,105<\/td>\nTD crossed 50,000 at 23.80.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-30
\nMaturity Price : 23.39
\nEvaluated at bid price : 23.65
\nBid-YTW : 5.12 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n56,650<\/td>\nRBC crossed 20,000 at 26.25 and bought 15,000 from anonymous at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.21
\nBid-YTW : 3.43 %<\/td>\n<\/tr>\n
RY.PR.A<\/td>\nPerpetual-Discount<\/td>\n51,980<\/td>\nNesbitt crossed blocks of 20,000 and 16,000, both at 22.43.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-11-30
\nMaturity Price : 22.25
\nEvaluated at bid price : 22.40
\nBid-YTW : 4.99 %<\/td>\n<\/tr>\n
There were 55 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Markets remain unimpressed by the Irish bail-out: The difference in yield between Italian 10-year bonds and German bunds widened to 199 basis points after reaching 212 points earlier. The Spanish-German yield spread rose 17 basis …<\/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-13179","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/13179","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=13179"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/13179\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}