{"id":13882,"date":"2011-01-28T23:47:43","date_gmt":"2011-01-29T03:47:43","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=13882"},"modified":"2011-01-28T23:47:43","modified_gmt":"2011-01-29T03:47:43","slug":"january-28-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=13882","title":{"rendered":"January 28, 2011"},"content":{"rendered":"

Grecian-based multinationals being higher rated than the sovereign is old hat. Japan is another matter<\/a>:<\/p>\n

Toyota Motor Corp. and Canon Inc. are among 13 Japanese companies that will have higher ratings than their home country at Standard & Poor\u2019s after the nation was downgraded.<\/p>\n

Japan\u2019s credit rating was cut for the first time in nine years as the world\u2019s most indebted nation staggers under 943 trillion yen ($11 trillion) of borrowings, with the grade lowered one step to AA-. Toyota, the world\u2019s biggest carmaker, and Canon, the largest camera maker, along with companies including mobile phone operator NTT Docomo Inc. and Nippon Telegraph & Telephone Corp., are rated a grade higher.<\/p>\n

A nation\u2019s rating doesn\u2019t constitute a ceiling for a corporate rating, which instead depends on analysts\u2019 judgment of inherent creditworthiness, according to S&P\u2019s policy. Exporters that have significant overseas earnings and don\u2019t rely on public authorities may be graded higher than the sovereign, the ratings firm said in a 2002 report.<\/p><\/blockquote>\n

The Bank of Canada has released<\/a> a working paper by Garima Vasishtha and Philipp Maier titled The Impact of the Global Business Cycle on Small Open Economies: A FAVAR Approach for Canada<\/a>:<\/p>\n

Building on the growing evidence on the importance of large data sets for empirical macroeconomic modeling, we use a factor-augmented VAR (FAVAR) model with more than 260 series for 20 OECD countries to analyze how global developments affect the Canadian economy. We focus on several sources of shocks, including commodity prices, foreign economic activity, and foreign interest rates. We evaluate the impact of each shock on key Canadian macroeconomic variables to provide a comprehensive picture of the effect of international shocks on the Canadian economy. Our findings indicate that Canada is primarily exposed to shocks to foreign activity and to commodity prices. In contrast, the impact of shocks to global interest rates or global inflation is substantially lower. Our findings also expose the different channels through which higher commodity prices impact the Canadian economy: Canada benefits from higher commodity prices through a positive terms of trade shock, but at the same time, higher commodity prices tend to lower global economic activity, hurting demand for Canadian exports.<\/p><\/blockquote>\n

There were mixed results on the Canadian preferred share market today, as PerpetualDiscounts gained 25bp while FixedResets lost 4bp. Volume returned to average levels.<\/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-0.0360 %<\/td>\n2,376.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.79 %<\/td>\n3.49 %<\/td>\n26,070<\/td>\n19.13<\/td>\n1<\/td>\n0.0000 %<\/td>\n3,553.1<\/td>\n<\/tr>\n
Floater<\/td>\n2.52 %<\/td>\n2.29 %<\/td>\n41,709<\/td>\n21.54<\/td>\n4<\/td>\n-0.0360 %<\/td>\n2,566.0<\/td>\n<\/tr>\n
OpRet<\/td>\n4.81 %<\/td>\n3.42 %<\/td>\n66,992<\/td>\n2.27<\/td>\n8<\/td>\n0.3289 %<\/td>\n2,388.4<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.28 %<\/td>\n0.61 %<\/td>\n385,142<\/td>\n0.86<\/td>\n4<\/td>\n-0.0598 %<\/td>\n2,473.8<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3289 %<\/td>\n2,184.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.64 %<\/td>\n5.20 %<\/td>\n138,435<\/td>\n5.30<\/td>\n20<\/td>\n0.1304 %<\/td>\n2,034.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.31 %<\/td>\n5.27 %<\/td>\n259,148<\/td>\n14.99<\/td>\n57<\/td>\n0.2452 %<\/td>\n2,085.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.26 %<\/td>\n3.58 %<\/td>\n282,906<\/td>\n3.02<\/td>\n52<\/td>\n-0.0443 %<\/td>\n2,270.1<\/td>\n<\/tr>\n<\/table>\n\n\n\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
BMO.PR.P<\/td>\nFixedReset<\/td>\n-1.91 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-03-27
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.73
\nBid-YTW : 3.49 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset<\/td>\n-1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-28
\nMaturity Price : 23.34
\nEvaluated at bid price : 25.70
\nBid-YTW : 4.81 %<\/td>\n<\/tr>\n
RY.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-28
\nMaturity Price : 22.59
\nEvaluated at bid price : 22.75
\nBid-YTW : 4.89 %<\/td>\n<\/tr>\n
GWO.PR.M<\/td>\nPerpetual-Discount<\/td>\n1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.39
\nBid-YTW : 5.67 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nPerpetual-Discount<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-28
\nMaturity Price : 23.62
\nEvaluated at bid price : 23.87
\nBid-YTW : 5.28 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-28
\nMaturity Price : 21.01
\nEvaluated at bid price : 21.01
\nBid-YTW : 5.72 %<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-28
\nMaturity Price : 21.05
\nEvaluated at bid price : 21.05
\nBid-YTW : 5.71 %<\/td>\n<\/tr>\n
BAM.PR.J<\/td>\nOpRet<\/td>\n2.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2018-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.18
\nBid-YTW : 4.72 %<\/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
CM.PR.I<\/td>\nPerpetual-Discount<\/td>\n125,267<\/td>\nNesbitt crossed 100,000 at 23.40.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-28
\nMaturity Price : 23.19
\nEvaluated at bid price : 23.40
\nBid-YTW : 5.04 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n107,392<\/td>\nNesbitt crossed two blocks of 50,000 each, both at 26.23.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.15
\nBid-YTW : 3.47 %<\/td>\n<\/tr>\n
HSB.PR.E<\/td>\nFixedReset<\/td>\n62,360<\/td>\nRBC crossed 50,000 at 27.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.44
\nBid-YTW : 3.84 %<\/td>\n<\/tr>\n
BNS.PR.R<\/td>\nFixedReset<\/td>\n54,599<\/td>\nNesbitt crossed 50,000 at 26.08.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.09
\nBid-YTW : 3.47 %<\/td>\n<\/tr>\n
BNS.PR.X<\/td>\nFixedReset<\/td>\n53,122<\/td>\nRBC crossed two blocks of 25,000 each, both at 27.27.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.28
\nBid-YTW : 3.41 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset<\/td>\n53,001<\/td>\nNesbitt crossed 50,000 at 25.45.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-02-29
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.37
\nBid-YTW : 4.08 %<\/td>\n<\/tr>\n
There were 32 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data<\/td>\nNotes<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.86 – 24.38
\nSpot Rate : 0.5200
\nAverage : 0.3092\n<\/td>\n		YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-28
\nMaturity Price : 23.57
\nEvaluated at bid price : 23.86
\nBid-YTW : 5.50 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset<\/td>\nQuote: 25.70 – 26.18
\nSpot Rate : 0.4800
\nAverage : 0.3317\n<\/td>\n		YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-28
\nMaturity Price : 23.34
\nEvaluated at bid price : 25.70
\nBid-YTW : 4.81 %<\/td>\n<\/tr>\n
BAM.PR.H<\/td>\nOpRet<\/td>\nQuote: 25.33 – 25.78
\nSpot Rate : 0.4500
\nAverage : 0.3130\n<\/td>\n		YTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2012-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.33
\nBid-YTW : 4.99 %<\/td>\n<\/tr>\n
NA.PR.N<\/td>\nFixedReset<\/td>\nQuote: 26.60 – 26.95
\nSpot Rate : 0.3500
\nAverage : 0.2428\n<\/td>\n		YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-09-14
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.60
\nBid-YTW : 2.69 %<\/td>\n<\/tr>\n
IAG.PR.C<\/td>\nFixedReset<\/td>\nQuote: 26.81 – 27.24
\nSpot Rate : 0.4300
\nAverage : 0.3256\n<\/td>\n		YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.81
\nBid-YTW : 3.80 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.15 – 22.43
\nSpot Rate : 0.2800
\nAverage : 0.1868\n<\/td>\n		YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-01-28
\nMaturity Price : 22.01
\nEvaluated at bid price : 22.15
\nBid-YTW : 5.24 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Grecian-based multinationals being higher rated than the sovereign is old hat. Japan is another matter: Toyota Motor Corp. and Canon Inc. are among 13 Japanese companies that will have higher ratings than their home country …<\/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-13882","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/13882","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=13882"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/13882\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}