{"id":14618,"date":"2011-03-30T21:49:34","date_gmt":"2011-03-31T01:49:34","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=14618"},"modified":"2011-03-30T21:49:34","modified_gmt":"2011-03-31T01:49:34","slug":"march-30-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=14618","title":{"rendered":"March 30, 2011"},"content":{"rendered":"

Europeans seem to want to blame commodity price inflation on speculators – Hoenig blames the Fed<\/a>:<\/p>\n

The Federal Reserve\u2019s \u201chighly accommodative\u201d monetary policy is partly to blame for rapidly increasing global commodity prices, said Kansas City Fed President Thomas Hoenig, who called on colleagues to raise the benchmark interest rate toward 1 percent soon.<\/p>\n

\u201cOnce again there are signs that the world is building new economic imbalances and inflationary impulses,\u201d Hoenig, the central bank\u2019s longest-serving policy maker and the lone dissenter at Fed meetings last year, said in the text of a speech today in London. \u201cThe longer policy remains as it is, the greater the likelihood these pressures will build and ultimately undermine world growth.\u201d<\/p><\/blockquote>\n

This was also discussed in the post QE2 and Inflation<\/a>.<\/p>\n

It was a mixed day on the Canadian preferred share market, with PerpetualDiscounts getting whacked for 23bp, FixedResets down 2bp and DeemedRetractibles gaining 10bp. Not a lot of volatility, with only three entries in the Performance Highlights table. Volume was above average.<\/p>\n

PerpetualDiscounts now yield 5.54%, equivalent to 7.20% interest at this year’s standard conversion factor of 1.3x. Long Corporates<\/a> now yied 5.5%, so the pre-tax interest-equivalent spread (also called the Seniority Spread) is now about 170bp, a significant tightening from the 180bp reported on March 23<\/a>.<\/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>\n0.2627 %<\/td>\n2,405.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2627 %<\/td>\n3,618.2<\/td>\n<\/tr>\n
Floater<\/td>\n2.50 %<\/td>\n2.29 %<\/td>\n40,043<\/td>\n21.52<\/td>\n4<\/td>\n0.2627 %<\/td>\n2,597.6<\/td>\n<\/tr>\n
OpRet<\/td>\n4.86 %<\/td>\n2.79 %<\/td>\n59,148<\/td>\n0.25<\/td>\n9<\/td>\n0.1630 %<\/td>\n2,413.5<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.09 %<\/td>\n2.63 %<\/td>\n124,706<\/td>\n0.97<\/td>\n5<\/td>\n-0.0468 %<\/td>\n2,486.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1630 %<\/td>\n2,206.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.74 %<\/td>\n5.70 %<\/td>\n144,723<\/td>\n2.44<\/td>\n10<\/td>\n0.0139 %<\/td>\n2,041.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.51 %<\/td>\n5.54 %<\/td>\n130,363<\/td>\n14.53<\/td>\n14<\/td>\n-0.2268 %<\/td>\n2,137.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.15 %<\/td>\n3.43 %<\/td>\n232,952<\/td>\n2.93<\/td>\n57<\/td>\n-0.0185 %<\/td>\n2,290.2<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.21 %<\/td>\n5.15 %<\/td>\n315,650<\/td>\n8.26<\/td>\n53<\/td>\n0.0989 %<\/td>\n2,093.0<\/td>\n<\/tr>\n<\/table>\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
PWF.PR.K<\/td>\nPerpetual-Discount<\/td>\n-1.58 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-03-30
\nMaturity Price : 23.47
\nEvaluated at bid price : 23.73
\nBid-YTW : 5.29 %<\/td>\n<\/tr>\n
BNS.PR.K<\/td>\nDeemed-Retractible<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.91
\nBid-YTW : 4.97 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\n1.29 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.36
\nBid-YTW : 5.34 %<\/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
NA.PR.N<\/td>\nFixedReset<\/td>\n211,075<\/td>\nIssuer bid<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-09-14
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.05
\nBid-YTW : 2.15 %<\/td>\n<\/tr>\n
BMO.PR.H<\/td>\nDeemed-Retractible<\/td>\n84,813<\/td>\nNesbitt crossed 75,000 at 25.45.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-03-27
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.43
\nBid-YTW : 4.67 %<\/td>\n<\/tr>\n
CM.PR.G<\/td>\nDeemed-Retractible<\/td>\n78,296<\/td>\nNesbitt crossed 75,000 at 25.55.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.44
\nBid-YTW : 4.67 %<\/td>\n<\/tr>\n
BNS.PR.X<\/td>\nFixedReset<\/td>\n66,669<\/td>\nNesbitt crossed 50,000 at 27.60.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.62
\nBid-YTW : 3.17 %<\/td>\n<\/tr>\n
BNS.PR.R<\/td>\nFixedReset<\/td>\n62,776<\/td>\nNesbitt crossed 50,000 at 26.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.48
\nBid-YTW : 3.13 %<\/td>\n<\/tr>\n
RY.PR.F<\/td>\nDeemed-Retractible<\/td>\n58,423<\/td>\nRBC crossed 12,000 at 23.65.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.72
\nBid-YTW : 5.15 %<\/td>\n<\/tr>\n
There were 39 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
FTS.PR.H<\/td>\nFixedReset<\/td>\nQuote: 25.23 – 25.74
\nSpot Rate : 0.5100
\nAverage : 0.3630<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2020-07-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.23
\nBid-YTW : 4.09 %<\/td>\n<\/tr>\n

IAG.PR.F<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.37 – 25.70
\nSpot Rate : 0.3300
\nAverage : 0.1969<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.37
\nBid-YTW : 5.71 %<\/td>\n<\/tr>\n

BAM.PR.R<\/td>\nFixedReset<\/td>\nQuote: 25.63 – 26.13
\nSpot Rate : 0.5000
\nAverage : 0.3935<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-07-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.63
\nBid-YTW : 4.86 %<\/td>\n<\/tr>\n

CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.62 – 23.00
\nSpot Rate : 0.3800
\nAverage : 0.2839<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-03-30
\nMaturity Price : 22.46
\nEvaluated at bid price : 22.62
\nBid-YTW : 5.13 %<\/td>\n<\/tr>\n

FTS.PR.E<\/td>\nOpRet<\/td>\nQuote: 26.45 – 27.03
\nSpot Rate : 0.5800
\nAverage : 0.4906<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-07-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.45
\nBid-YTW : 3.68 %<\/td>\n<\/tr>\n

BNS.PR.R<\/td>\nFixedReset<\/td>\nQuote: 26.48 – 26.69
\nSpot Rate : 0.2100
\nAverage : 0.1376<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.48
\nBid-YTW : 3.13 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Europeans seem to want to blame commodity price inflation on speculators – Hoenig blames the Fed: The Federal Reserve\u2019s \u201chighly accommodative\u201d monetary policy is partly to blame for rapidly increasing global commodity prices, said Kansas …<\/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-14618","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14618","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=14618"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14618\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}