{"id":14878,"date":"2011-04-27T23:45:35","date_gmt":"2011-04-28T03:45:35","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=14878"},"modified":"2011-04-27T23:45:35","modified_gmt":"2011-04-28T03:45:35","slug":"april-27-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=14878","title":{"rendered":"April 27, 2011"},"content":{"rendered":"

The FOMC Statement<\/a> did not contain any major surprises:<\/p>\n

Information received since the Federal Open Market Committee met in March indicates that the economic recovery is proceeding at a moderate pace and overall conditions in the labor market are improving gradually.
…<\/b>
Inflation has picked up in recent months, but longer-term inflation expectations have remained stable and measures of underlying inflation are still subdued.
…<\/b>
Increases in the prices of energy and other commodities have pushed up inflation in recent months. The Committee expects these effects to be transitory, but it will pay close attention to the evolution of inflation and inflation expectations.
…<\/b>
The Committee will maintain the target range for the federal funds rate at 0 to 1\/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.<\/p><\/blockquote>\n

It was a good day for the Canadian preferred share market, with PerpetualDiscounts up 11bp, FixedResets gaining 5bp and DeemedRetractibles winning 9bp. Volatility remained low, but volume was pretty good.<\/p>\n

PerpetualDiscounts now yield 5.58%, equivalent to 7.25% interest at the standard equivalency factor of 1.3x. Long Corporates<\/a> remain at about 5.5% (maybe a little less) so the pre-tax interest-equivalent spread (also called the Seniority Spread) is now about 175bp, with all numbers unchanged from the April 20<\/a> values.<\/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>\n0.2375 %<\/td>\n2,421.8<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2375 %<\/td>\n3,642.4<\/td>\n<\/tr>\n
Floater<\/td>\n2.49 %<\/td>\n2.26 %<\/td>\n35,055<\/td>\n21.63<\/td>\n4<\/td>\n0.2375 %<\/td>\n2,614.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.92 %<\/td>\n3.58 %<\/td>\n57,224<\/td>\n2.05<\/td>\n8<\/td>\n-0.0289 %<\/td>\n2,410.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.20 %<\/td>\n-2.04 %<\/td>\n84,665<\/td>\n0.63<\/td>\n6<\/td>\n0.0607 %<\/td>\n2,498.4<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0289 %<\/td>\n2,204.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.80 %<\/td>\n5.60 %<\/td>\n125,026<\/td>\n6.13<\/td>\n8<\/td>\n-0.0099 %<\/td>\n2,049.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.57 %<\/td>\n5.58 %<\/td>\n133,772<\/td>\n14.40<\/td>\n16<\/td>\n0.1132 %<\/td>\n2,123.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.18 %<\/td>\n3.45 %<\/td>\n210,159<\/td>\n2.90<\/td>\n57<\/td>\n0.0459 %<\/td>\n2,291.1<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.28 %<\/td>\n5.23 %<\/td>\n298,094<\/td>\n8.11<\/td>\n53<\/td>\n0.0852 %<\/td>\n2,076.9<\/td>\n<\/tr>\n<\/table>\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
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n-1.68 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.02
\nBid-YTW : 6.79 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-04-27
\nMaturity Price : 22.95
\nEvaluated at bid price : 24.55
\nBid-YTW : 4.81 %<\/td>\n<\/tr>\n
RY.PR.L<\/td>\nFixedReset<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.50
\nBid-YTW : 3.26 %<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nDeemed-Retractible<\/td>\n1.54 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.15
\nBid-YTW : 6.60 %<\/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
BNS.PR.R<\/td>\nFixedReset<\/td>\n88,816<\/td>\nNesbitt crossed 42,000 at 26.10; Desjardins crossed 30,000 at 26.10 and 10,200 at 26.15.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.10
\nBid-YTW : 3.32 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n68,757<\/td>\nNesbitt crossed two blocks of 25,000 each, both at 19.05.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-04-27
\nMaturity Price : 19.05
\nEvaluated at bid price : 19.05
\nBid-YTW : 2.77 %<\/td>\n<\/tr>\n
BMO.PR.Q<\/td>\nFixedReset<\/td>\n47,010<\/td>\nNesbitt bought 11,500 from anonymous at 24.93.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.97
\nBid-YTW : 3.91 %<\/td>\n<\/tr>\n
MFC.PR.D<\/td>\nFixedReset<\/td>\n37,634<\/td>\nRBC crossed 28,800 at 27.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.44
\nBid-YTW : 3.67 %<\/td>\n<\/tr>\n
SLF.PR.F<\/td>\nFixedReset<\/td>\n35,501<\/td>\nDesjardins crossed 10,000 at 27.05; Nesbitt crossed 18,300 at 27.07.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.01
\nBid-YTW : 3.56 %<\/td>\n<\/tr>\n
CM.PR.K<\/td>\nFixedReset<\/td>\n34,335<\/td>\nTD crossed 24,900 at 26.60.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.60
\nBid-YTW : 3.32 %<\/td>\n<\/tr>\n
There were 38 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
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 21.02 – 21.63
\nSpot Rate : 0.6100
\nAverage : 0.3830<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.02
\nBid-YTW : 6.79 %<\/td>\n<\/tr>\n

GWO.PR.H<\/td>\nDeemed-Retractible<\/td>\nQuote: 22.05 – 22.57
\nSpot Rate : 0.5200
\nAverage : 0.3678<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.05
\nBid-YTW : 6.47 %<\/td>\n<\/tr>\n

MFC.PR.C<\/td>\nDeemed-Retractible<\/td>\nQuote: 20.82 – 21.08
\nSpot Rate : 0.2600
\nAverage : 0.1841<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.82
\nBid-YTW : 6.82 %<\/td>\n<\/tr>\n

FTS.PR.G<\/td>\nFixedReset<\/td>\nQuote: 26.35 – 26.99
\nSpot Rate : 0.6400
\nAverage : 0.5668<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-10-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.35
\nBid-YTW : 3.23 %<\/td>\n<\/tr>\n

PWF.PR.P<\/td>\nFixedReset<\/td>\nQuote: 25.41 – 25.79
\nSpot Rate : 0.3800
\nAverage : 0.3076<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-03-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.41
\nBid-YTW : 4.04 %<\/td>\n<\/tr>\n

TD.PR.C<\/td>\nFixedReset<\/td>\nQuote: 26.46 – 26.75
\nSpot Rate : 0.2900
\nAverage : 0.2220<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-02
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.46
\nBid-YTW : 3.43 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The FOMC Statement did not contain any major surprises: Information received since the Federal Open Market Committee met in March indicates that the economic recovery is proceeding at a moderate pace and overall conditions in …<\/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-14878","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14878","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=14878"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14878\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}