{"id":14031,"date":"2011-02-09T00:04:26","date_gmt":"2011-02-09T04:04:26","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=14031"},"modified":"2011-02-09T00:04:26","modified_gmt":"2011-02-09T04:04:26","slug":"february-8-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=14031","title":{"rendered":"February 8, 2011"},"content":{"rendered":"

There is talk of a merger between the TMX and the London Stock Exchange<\/a>:<\/p>\n

London Stock Exchange Group Plc is in advanced talks to purchase TMX Group Inc., owner of the Toronto Stock Exchange, to create the world\u2019s eighth-largest exchange operator by market value.<\/p>\n

LSE plans to issue stock according to a ratio that is similar to the companies\u2019 relative market values, according to e-mailed statements. LSE would control 56 percent of the combined entity given its market capitalization of 2.42 billion British pounds ($3.89 billion) and TMX\u2019s C$3 billion ($3.01 billion), according to data compiled by Bloomberg.
…<\/b>
The exchanges will have headquarters in London and Toronto and maintain their current regulators, according to their e- mailed statements. Management of the merged company will be drawn from \u201ca balance of leaders from both organizations,\u201d the statements said.<\/p>\n

Trading of TMX Group was halted, according to exchange data sent at 4:24 p.m. Toronto time today. The company is scheduled to report quarterly financial results tomorrow.<\/p><\/blockquote>\n

The guy who owns The Tea Emporium in First Canadian Place<\/a> must be ecstatic.<\/p>\n

DBRS has commented<\/a> on the SEC’s Credit Rating Standardization Study:<\/p>\n

This provision requires the Commission to study the feasibility and desirability of standardizing credit rating terminology and standardizing and streamlining certain quantitative measures under four broad topics.[Footnote] Within one year of enactment of the Dodd-Frank Act, the Commission must submit to Congress a report containing the findings of the study and the Commission\u2019s recommendations, if any, with respect to the study.<\/p>\n

DBRS suggests that credit rating standardization is neither desirable nor feasible. In short, DBRS endorses the views expressed by the American Securitization Forum on this matter.<\/p>\n

Footnote: The four broad areas are: (1) standardizing credit ratings terminology, so that all credit rating agencies issue credit ratings using identical terms; (2) standardizing the market stress conditions under which ratings are evaluated; (3) requiring a quantitative correspondence between credit ratings and a range of default probabilities and loss expectations under standardized conditions of economic stress; and (4) standardizing credit rating terminology across asset classes, so that named ratings correspond to a standard range of default probabilities and expected losses independent of asset class and issuing entity.<\/i><\/p><\/blockquote>\n

I haven’t been following this at all, but the whole project seems ill-advised to me at first glance. As an investor, I want a broad range of opinions, particularly in relation to market stress and economic stress. The whole point seems to be to quantify your guesses down to four decimal places; the type of project beloved of bureaucracy.<\/p>\n

Robert Shiller doubts the ‘better living through better regulation’ story<\/a>:<\/p>\n

\nRobert Shiller, the Yale professor who correctly predicted the 1987 stock market collapse and the recent U.S. housing market meltdown, said Canada\u2019s robust financial health compared to other nations is largely due to a random run-up in oil prices in the midst of the global financial crisis.<\/p>\n

\u201cIt\u2019s a major export for Canada and it went to US$140 a barrel in 2008, right when Canada needed it,\u201d Prof. Shiller said in an interview Tuesday.
…<\/b>
\u201cIt seems that if the country didn\u2019t have that boost from oil, it would have done worse than the United States,\u201d Prof. Shiller said.<\/p><\/blockquote>\n

The market came down a bit after yesterday’s euphoric response to the OSFI ruling, with PerpetualDiscounts flat, FixedResets down 29bp and DeemedRetractibles down 31bp. Volume was heavy.<\/p>\n\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-0.1070 %<\/td>\n2,396.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.79 %<\/td>\n3.50 %<\/td>\n22,073<\/td>\n19.08<\/td>\n1<\/td>\n0.0000 %<\/td>\n3,553.1<\/td>\n<\/tr>\n
Floater<\/td>\n2.50 %<\/td>\n2.29 %<\/td>\n43,689<\/td>\n21.53<\/td>\n4<\/td>\n-0.1070 %<\/td>\n2,587.6<\/td>\n<\/tr>\n
OpRet<\/td>\n4.82 %<\/td>\n3.79 %<\/td>\n64,667<\/td>\n2.24<\/td>\n8<\/td>\n-0.1447 %<\/td>\n2,383.5<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.30 %<\/td>\n1.69 %<\/td>\n314,722<\/td>\n0.83<\/td>\n4<\/td>\n0.0600 %<\/td>\n2,466.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1447 %<\/td>\n2,179.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.74 %<\/td>\n5.36 %<\/td>\n118,719<\/td>\n2.54<\/td>\n9<\/td>\n0.0088 %<\/td>\n2,033.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.55 %<\/td>\n5.62 %<\/td>\n128,750<\/td>\n14.43<\/td>\n15<\/td>\n0.0000 %<\/td>\n2,108.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.24 %<\/td>\n3.76 %<\/td>\n169,672<\/td>\n3.06<\/td>\n54<\/td>\n-0.2907 %<\/td>\n2,260.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.22 %<\/td>\n5.26 %<\/td>\n432,187<\/td>\n8.28<\/td>\n53<\/td>\n-0.3085 %<\/td>\n2,074.8<\/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
CM.PR.J<\/td>\nDeemed-Retractible<\/td>\n-1.63 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.56
\nBid-YTW : 5.24 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\n-1.52 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.65
\nBid-YTW : 5.99 %<\/td>\n<\/tr>\n
RY.PR.F<\/td>\nDeemed-Retractible<\/td>\n-1.46 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.66
\nBid-YTW : 5.10 %<\/td>\n<\/tr>\n
RY.PR.D<\/td>\nDeemed-Retractible<\/td>\n-1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.64
\nBid-YTW : 5.16 %<\/td>\n<\/tr>\n
GWO.PR.J<\/td>\nFixedReset<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.75
\nBid-YTW : 3.73 %<\/td>\n<\/tr>\n
RY.PR.G<\/td>\nDeemed-Retractible<\/td>\n-1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.68
\nBid-YTW : 5.14 %<\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nDeemed-Retractible<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.25
\nBid-YTW : 5.71 %<\/td>\n<\/tr>\n
HSB.PR.C<\/td>\nDeemed-Retractible<\/td>\n1.49 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.51
\nBid-YTW : 5.44 %<\/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
BAM.PR.X<\/td>\nFixedReset<\/td>\n206,559<\/td>\nNew issue settled today<\/a>
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-02-08
\nMaturity Price : 22.99
\nEvaluated at bid price : 24.70
\nBid-YTW : 4.55 %<\/td>\n<\/tr>\n
BMO.PR.O<\/td>\nFixedReset<\/td>\n199,060<\/td>\nNesbitt crossed 50,000 at 27.76; Desjardins crossed 135,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.62
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n
TCA.PR.Y<\/td>\nPerpetual-Premium<\/td>\n139,750<\/td>\nNesbitt crossed blocks of 110,000 and 26,500, both at 50.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-04
\nMaturity Price : 50.00
\nEvaluated at bid price : 50.45
\nBid-YTW : 5.36 %<\/td>\n<\/tr>\n
BNS.PR.M<\/td>\nDeemed-Retractible<\/td>\n131,195<\/td>\nNesbitt crossed 25,000 at 23.85 and 12,300 at 23.86, followed by another 50,000 at 23.85.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.84
\nBid-YTW : 5.10 %<\/td>\n<\/tr>\n
BMO.PR.N<\/td>\nFixedReset<\/td>\n91,668<\/td>\nDesjardins crossed three blocks, two of 20,000 and one of 50,000, all at 27.55.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-27
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.51
\nBid-YTW : 3.04 %<\/td>\n<\/tr>\n
NA.PR.N<\/td>\nFixedReset<\/td>\n49,500<\/td>\nDesjardins crossed blocks of 29,300 and 19,000, both at 26.40.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-09-14
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.33
\nBid-YTW : 3.16 %<\/td>\n<\/tr>\n
There were 59 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 and Yield Notes<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 22.65 – 23.12
\nSpot Rate : 0.4700
\nAverage : 0.3030<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.65
\nBid-YTW : 5.99 %<\/td>\n<\/tr>\n

TRP.PR.A<\/td>\nFixedReset<\/td>\nQuote: 26.10 – 26.45
\nSpot Rate : 0.3500
\nAverage : 0.2348<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.10
\nBid-YTW : 3.56 %<\/td>\n<\/tr>\n

IAG.PR.F<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.50 – 25.74
\nSpot Rate : 0.2400
\nAverage : 0.1351<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 5.73 %<\/td>\n<\/tr>\n

RY.PR.G<\/td>\nDeemed-Retractible<\/td>\nQuote: 23.68 – 23.90
\nSpot Rate : 0.2200
\nAverage : 0.1246<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.68
\nBid-YTW : 5.14 %<\/td>\n<\/tr>\n

CM.PR.J<\/td>\nDeemed-Retractible<\/td>\nQuote: 23.56 – 23.81
\nSpot Rate : 0.2500
\nAverage : 0.1546<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.56
\nBid-YTW : 5.24 %<\/td>\n<\/tr>\n

TD.PR.G<\/td>\nFixedReset<\/td>\nQuote: 26.78 – 27.07
\nSpot Rate : 0.2900
\nAverage : 0.1994<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.78
\nBid-YTW : 4.08 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

There is talk of a merger between the TMX and the London Stock Exchange: London Stock Exchange Group Plc is in advanced talks to purchase TMX Group Inc., owner of the Toronto Stock Exchange, to …<\/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-14031","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14031","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=14031"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14031\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}