{"id":13708,"date":"2011-01-12T23:10:05","date_gmt":"2011-01-13T03:10:05","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=13708"},"modified":"2011-01-12T23:10:05","modified_gmt":"2011-01-13T03:10:05","slug":"january-12-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=13708","title":{"rendered":"January 12, 2011"},"content":{"rendered":"

Mark White of OSFI gave a speech titled Basel III: Balancing of Risk and Regulation<\/a>, in which he said nothing at all.<\/p>\n

There’s one one big problem with simple stock screens<\/a>:<\/p>\n

Claymore\u2019s Canadian Dividend exchange-traded fund (CDZ-T …) is designed to track the S&P\/TSX Canadian Dividend Aristocrats Index, which is composed of companies that have paid higher dividends for at least five consecutive calendar years.<\/p>\n

It\u2019s a great concept. Trouble is, the financial crisis prompted a lot of companies to conserve cash by cutting dividends or holding them steady, and that\u2019s caused the index to shrink dramatically.
…<\/b>
However, unlike the iShares ETF, the Claymore fund no longer has any Canadian banks or insurers.<\/p><\/blockquote>\n

Some are cheering the results of Portugal’s 10-year auction<\/a>:<\/p>\n

The markets heaved a hefty sigh of release today as Portugal pulled off a widely-watched auction of 10-year bonds, \u20ac599-million worth at a lower-than-expected yield of 6.716 per cent, below the key level of 7 per cent. It also sold four-year bonds, bringing the todal to \u20ac1.25-billion.
…<\/b>
Together, Portugal, Ireland and Spain have needs this year of about \u20ac300-billion, a combination of maturing debt and additional funding needed to cover deficits, [Scotia economist] Mr. [Derek] Holt calculated.<\/p><\/blockquote>\n

It’s not apparent just how much yield the recent ECB purchases<\/a> are worth:<\/p>\n

The weekly amount compares with 164 million euros spent the previous week although the figures may not give the full picture as the ECB’s purchases take 2-3 days to be finalised.
…<\/b>
The ECB threw Portugal a temporary lifeline on Monday by buying up its bonds, traders said, as market and peer pressure mounted for Lisbon to seek an international bailout soon.<\/p><\/blockquote>\n

Official disrespect for due process is reaching epidemic proportions<\/a>:<\/p>\n

Ten municipalities in the Lower Mainland have safety inspection programs that send inspectors armed with B.C. Hydro statistics on abnormal energy consumption into homes.
…<\/b>
Critics say the safety inspections are a substitute for police raids of suspected grow-ops. Police cannot enter a home without reasonable grounds for believing that they will find illegal activity. However, safety inspectors can just go in and look around. If they find a grow-op, they call police, who are usually waiting at the curb.<\/p><\/blockquote>\n

And why? Here’s one potential answer<\/a>:<\/p>\n

Municipalities could end up reaping millions of dollars if given 50 per cent of assets seized under proceeds-of-crime legislation, Kevin Falcon said Tuesday.<\/p>\n

\u201cI think it\u2019s a great opportunity to involve municipalities in a partnership way going after illegal criminal activity,\u201d Mr. Falcon told reporters.<\/p>\n

Mr. Falcon\u2019s commitment is part of a 12-point crime platform released by the former health minister, who is seeking the leadership of the B.C. Liberals in a party vote Feb. 26 that will choose the province\u2019s next premier.<\/p><\/blockquote>\n

It was a mixed day on above average volume for the Canadian preferred share market, with PerpetualDiscounts gaining 16bp and FixedResets losing 2bp. There was quite a bit of block trading done and not much volatility, with again only one entry in the Performance Highlights Table.<\/p>\n

Block trading was dominated by Desjardins, which wrote some very nice-sized tickets. Note that this does not necessarily mean they earned good money on the crosses – some of them could have been internal crosses<\/a> (with a single manager shuffling issues around his portfolios; not something that should cost a lot of money).<\/p>\n

PerpetualDiscounts now yield 5.43%, equivalent to 7.60% interest at the standard equivalency factor of 1.4x. Long Corporates<\/a> now yield about 5.5% (maybe a bit less) so the pre-tax interest-equivalent spread (also called the Seniority Spread) is now about 210bp, with everything unchanged from the figures reported January 5<\/a>.<\/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-0.1102 %<\/td>\n2,322.1<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.79 %<\/td>\n3.46 %<\/td>\n28,438<\/td>\n19.21<\/td>\n1<\/td>\n0.3575 %<\/td>\n3,554.7<\/td>\n<\/tr>\n
Floater<\/td>\n2.58 %<\/td>\n2.36 %<\/td>\n45,159<\/td>\n21.32<\/td>\n4<\/td>\n-0.1102 %<\/td>\n2,507.2<\/td>\n<\/tr>\n
OpRet<\/td>\n4.81 %<\/td>\n3.36 %<\/td>\n67,445<\/td>\n2.31<\/td>\n8<\/td>\n-0.1492 %<\/td>\n2,388.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.33 %<\/td>\n1.76 %<\/td>\n589,078<\/td>\n0.90<\/td>\n4<\/td>\n-0.1104 %<\/td>\n2,452.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1492 %<\/td>\n2,184.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.66 %<\/td>\n5.26 %<\/td>\n132,211<\/td>\n5.19<\/td>\n20<\/td>\n0.1340 %<\/td>\n2,026.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.39 %<\/td>\n5.43 %<\/td>\n238,474<\/td>\n14.80<\/td>\n57<\/td>\n0.1550 %<\/td>\n2,051.6<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.24 %<\/td>\n3.43 %<\/td>\n288,432<\/td>\n3.07<\/td>\n52<\/td>\n-0.0245 %<\/td>\n2,271.6<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n-1.48 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-12
\nMaturity Price : 25.22
\nEvaluated at bid price : 25.27
\nBid-YTW : 3.96 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\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>\n705,931<\/td>\nDesjardins crossed 697,700 at 25.65. Nice ticket!
\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2015-12-18
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.72
\nBid-YTW : 3.54 %<\/td>\n<\/tr>\n
TD.PR.M<\/td>\nOpRet<\/td>\n700,021<\/td>\nDesjardins crossed 694,800 at 25.56.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-05-30
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.56
\nBid-YTW : 3.40 %<\/td>\n<\/tr>\n
TD.PR.N<\/td>\nOpRet<\/td>\n392,100<\/td>\nDesjardins crossed 389,700 at 25.56.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-05-30
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.56
\nBid-YTW : 3.32 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n362,156<\/td>\nRBC crossed 35,000 at 18.63; Desjardins crossed 308,400 at 18.40.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-12
\nMaturity Price : 18.45
\nEvaluated at bid price : 18.45
\nBid-YTW : 2.86 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nPerpetual-Discount<\/td>\n156,169<\/td>\nDesjardins crossed 149,600 at 20.68.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-12
\nMaturity Price : 20.66
\nEvaluated at bid price : 20.66
\nBid-YTW : 5.43 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nPerpetual-Discount<\/td>\n143,382<\/td>\nTD crossed 10,000 at 21.70; Desjardins crossed 123,800 at 21.69.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-12
\nMaturity Price : 21.46
\nEvaluated at bid price : 21.73
\nBid-YTW : 5.20 %<\/td>\n<\/tr>\n
CM.PR.D<\/td>\nPerpetual-Premium<\/td>\n121,745<\/td>\nNesbitt crossed blocks of 19,200 and 100,000, both at 25.25.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-05-30
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.33
\nBid-YTW : 4.13 %<\/td>\n<\/tr>\n
TD.PR.I<\/td>\nFixedReset<\/td>\n120,496<\/td>\nDesjardins crossed blocks of 50,000 and 49,800, both at 27.40.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.31
\nBid-YTW : 3.48 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n106,005<\/td>\nScotia crossed 50,000 at 27.65. RBC crossed blocks of 23,100 and 25,000, both at 27.66.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-23
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.66
\nBid-YTW : 3.47 %<\/td>\n<\/tr>\n
TD.PR.A<\/td>\nFixedReset<\/td>\n103,815<\/td>\nDesjardins crossed blocks of 50,000 and 49,400, both at 26.40.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-02
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.32
\nBid-YTW : 3.10 %<\/td>\n<\/tr>\n
There were 34 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Mark White of OSFI gave a speech titled Basel III: Balancing of Risk and Regulation, in which he said nothing at all. There’s one one big problem with simple stock screens: Claymore\u2019s Canadian Dividend exchange-traded …<\/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-13708","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/13708","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=13708"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/13708\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}