{"id":15087,"date":"2011-05-18T20:48:28","date_gmt":"2011-05-19T00:48:28","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=15087"},"modified":"2011-05-18T20:48:28","modified_gmt":"2011-05-19T00:48:28","slug":"may-18-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=15087","title":{"rendered":"May 18, 2011"},"content":{"rendered":"

There’s a scuffle about a Greek default<\/a>:<\/p>\n

European Central Bank officials ruled out a Greek debt restructuring, clashing with political leaders over a solution to the sovereign financial crisis.<\/p>\n

\u201cA Greek debt restructuring is not the appropriate way forward — it would create a catastrophe\u201d because it would damage the banking system, ECB Executive Board member Juergen Stark said today in Lagonissi, Greece. Fellow board member Lorenzo Bini Smaghi said in Milan that \u201ca solution for reducing debt but not paying for it will not work.\u201d<\/p><\/blockquote>\n

Now, I will not claim that I’m the world’s greatest scholar on the debt crisis, but that seems to me to be the first official admission that the purpose of the various bail-outs is to save the banks. Anybody have anything both earlier and more explicit?<\/p>\n

More gloomy punditry on US housing<\/a>:<\/p>\n

More than half U.S. homeowners and renters say housing won\u2019t recover until at least 2014, reflecting a deepening pessimism about the real estate market, according to a survey by Trulia Inc. and RealtyTrac Inc.<\/p>\n

The survey, taken in April, found that 54 percent of respondents don\u2019t expect a recovery for at least three years, up from 34 percent in November, the two real estate data companies said today. Those who see a turnaround by the end of next year fell to 15 percent from 27 percent.<\/p>\n

The housing market is weakening as near record-low interest rates and falling prices fail to boost demand after the expiration of a federal tax credit for homebuyers last year. Values will come under more pressure as 1.8 million properties that are delinquent or in foreclosure are added to the inventory of unsold homes, according to a March estimate by CoreLogic Inc., a real estate information firm in Santa Ana, California.<\/p><\/blockquote>\n

The iPad has been extraordinarily disruptive<\/a>:<\/p>\n

The iPad is wreaking havoc on the personal-computer market.<\/p>\n

Hewlett-Packard Co. (HPQ)\u2019s consumer PC sales plunged 23 percent last quarter, and the company lopped $1 billion off its annual sales forecast. And while rival Dell Inc. (DELL) beat analysts\u2019 estimates because of corporate demand, its sales to consumers slumped 7.5 percent. More than 70 million tablets like the Apple Inc. (AAPL) iPad will be sold in 2011, a total that will balloon to 246 million in three years, Jefferies & Co. said yesterday.<\/p><\/blockquote>\n

You don’t need a full-blown computer to use eMail or look at dirty pictures on the internet!<\/p>\n

There’s sales parties, sure. And then there’s REALLY GOOD sales parties<\/a>!<\/p>\n

A Munich Re unit hosted about 20 prostitutes at a Budapest party to reward the insurer\u2019s high- performing agents, a spokesman said.
…<\/b>
Ergo hosted the party for about 100 guests at the historic Gellert spa, Handelsblatt reported in a preview of an article to be published today. Women wore color-coded armbands, the newspaper said, citing unidentified guests, with red for hostesses, yellow for those available for sexual favors and white for women reserved for executives and top agents. After each trip to beds set up near the thermal baths, a woman would receive a stamp on her forearm, the paper reported.<\/p><\/blockquote>\n

And, just to get even further off topic, The Periodic Table of Videos<\/a> is a great website!<\/p>\n

It was a sharply mixed day for the Canadian preferred share market, with PerpetualDiscounts winning 20bp, FixedResets losing 17bp, and DeemedRetractibles ahead 11bp. The Performance Highlights table is more interesting than usual, but still nothing like the glory days of late 4Q08 \/ 1Q09, which will be treasured in my memory for as long as I still have one.<\/p>\n

PerpetualDiscounts now yield 5.51%, equivalent to 7.16% interest at the standard equivalency factor of 1.3x. Long Corporates<\/a> now yield a little under 5.4% (maybe I should say, a little over 5.35%), so the pre-tax interest-equivalent spread is now about 180bp, about the same as reported on May 11<\/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>\n0.1638 %<\/td>\n2,456.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1638 %<\/td>\n3,694.6<\/td>\n<\/tr>\n
Floater<\/td>\n2.45 %<\/td>\n2.25 %<\/td>\n41,160<\/td>\n21.63<\/td>\n4<\/td>\n0.1638 %<\/td>\n2,652.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.88 %<\/td>\n3.60 %<\/td>\n61,442<\/td>\n1.15<\/td>\n9<\/td>\n-0.0301 %<\/td>\n2,418.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.23 %<\/td>\n-1.74 %<\/td>\n56,975<\/td>\n0.58<\/td>\n6<\/td>\n-0.0765 %<\/td>\n2,506.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0301 %<\/td>\n2,211.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.74 %<\/td>\n5.51 %<\/td>\n127,951<\/td>\n0.85<\/td>\n9<\/td>\n0.0110 %<\/td>\n2,064.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.50 %<\/td>\n5.51 %<\/td>\n120,382<\/td>\n14.56<\/td>\n15<\/td>\n0.1969 %<\/td>\n2,159.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.15 %<\/td>\n3.28 %<\/td>\n198,675<\/td>\n2.88<\/td>\n57<\/td>\n-0.1704 %<\/td>\n2,307.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.16 %<\/td>\n4.95 %<\/td>\n309,083<\/td>\n8.09<\/td>\n53<\/td>\n0.1104 %<\/td>\n2,126.4<\/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
FTS.PR.H<\/td>\nFixedReset<\/td>\n-1.55 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-07-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.40
\nBid-YTW : 3.78 %<\/td>\n<\/tr>\n
BMO.PR.J<\/td>\nDeemed-Retractible<\/td>\n-1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.30
\nBid-YTW : 4.85 %<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nDeemed-Retractible<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.78
\nBid-YTW : 5.43 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n1.89 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.69
\nBid-YTW : 5.89 %<\/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.H<\/td>\nDeemed-Retractible<\/td>\n71,328<\/td>\nTD crossed 45,200 at 24.99.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.99
\nBid-YTW : 4.86 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n64,427<\/td>\nTD crossed 58,900 at 24.75.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.62
\nBid-YTW : 3.95 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nDeemed-Retractible<\/td>\n49,067<\/td>\nTD crossed 20,200 at 21.75.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.93
\nBid-YTW : 6.14 %<\/td>\n<\/tr>\n
FTS.PR.E<\/td>\nOpRet<\/td>\n47,400<\/td>\nNesbitt crossed 45,600 at 26.75.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-07-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.75
\nBid-YTW : 2.78 %<\/td>\n<\/tr>\n
BNS.PR.M<\/td>\nDeemed-Retractible<\/td>\n44,623<\/td>\nTD crossed 24,800 at 24.40.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.37
\nBid-YTW : 4.86 %<\/td>\n<\/tr>\n
RY.PR.P<\/td>\nFixedReset<\/td>\n41,400<\/td>\nNesbitt crossed 40,000 at 27.10.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.05
\nBid-YTW : 3.23 %<\/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 and Yield Notes<\/td>\n<\/tr>\n
BNA.PR.E<\/td>\nSplitShare<\/td>\nQuote: 24.35 – 24.80
\nSpot Rate : 0.4500
\nAverage : 0.2828<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2017-12-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.35
\nBid-YTW : 5.31 %<\/td>\n<\/tr>\n

ALB.PR.B<\/td>\nSplitShare<\/td>\nQuote: 22.31 – 22.59
\nSpot Rate : 0.2800
\nAverage : 0.1782<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-03-29
\nMaturity Price : 21.80
\nEvaluated at bid price : 22.31
\nBid-YTW : 1.34 %<\/td>\n<\/tr>\n

GWO.PR.N<\/td>\nFixedReset<\/td>\nQuote: 24.62 – 24.85
\nSpot Rate : 0.2300
\nAverage : 0.1388<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.62
\nBid-YTW : 3.95 %<\/td>\n<\/tr>\n

PWF.PR.M<\/td>\nFixedReset<\/td>\nQuote: 26.70 – 27.00
\nSpot Rate : 0.3000
\nAverage : 0.2170<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-02
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.70
\nBid-YTW : 3.55 %<\/td>\n<\/tr>\n

BAM.PR.P<\/td>\nFixedReset<\/td>\nQuote: 27.52 – 27.81
\nSpot Rate : 0.2900
\nAverage : 0.2132<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.52
\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n

MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 22.26 – 22.52
\nSpot Rate : 0.2600
\nAverage : 0.1901<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.26
\nBid-YTW : 6.04 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

There’s a scuffle about a Greek default: European Central Bank officials ruled out a Greek debt restructuring, clashing with political leaders over a solution to the sovereign financial crisis. \u201cA Greek debt restructuring is not …<\/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-15087","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15087","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=15087"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15087\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}