{"id":15284,"date":"2011-06-07T22:17:48","date_gmt":"2011-06-08T02:17:48","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=15284"},"modified":"2011-06-07T22:17:48","modified_gmt":"2011-06-08T02:17:48","slug":"june-7-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=15284","title":{"rendered":"June 7, 2011"},"content":{"rendered":"

The Sino-Forest plot thickens<\/a>:<\/p>\n

Muddy Waters Research, the firm founded by short seller Carson Block, \u201cpre-marketed\u201d its June 2 report on Sino-Forest Corp. (TRE) to hedge funds for the past five weeks, said an analyst at Dundee Securities Ltd.
…<\/b>
\u201cMuddy Waters pre-marketed this smoking-gun report on Sino-Forest to hedge funds over the last five weeks,\u201d said Richard Kelertas, a Montreal-based analyst at Dundee, which helped sell shares in Sino-Forest as recently as December 2009.
…<\/b>
Kelertas said that the Muddy Waters report was inaccurate and there\u2019s nothing fraudulent about Sino-Forest \u201cto the best of our knowledge.\u201d He recommended buying Sino-Forest shares from September 2007 until June 3, when he put his rating on the company under review.<\/p>\n

Dundee was among institutions that helped Sino-Forest sell shares in December 2009 and also in May 2009.<\/p>\n

Short selling, or selling borrowed shares with the hope of profiting when they fall, more than doubled to a record 35 percent of Sino-Forest\u2019s outstanding stock as of June 3, up from 17 percent at the beginning of May and 13 percent at the end of 2010, according to Data Explorers, a New York-based research firm. Sino-Forest was the most-shorted stock in the Standard & Poor\u2019s TSX Composite Index, which has an average short interest of 4.8 percent.
…<\/b>
Offering a report to hedge funds before making it public is not illegal, said James Fanto, who teaches classes on international financial regulation and securities laws at Brooklyn Law School in New York.<\/p>\n

\u201cMuddy Waters can profit from this information itself, or allow others to profit from their insights as well,\u201d Fanto said in an e-mail message. \u201cThe only problems emerge when research is in fact based on insider tips. But that doesn\u2019t seem to be the case here.\u201d<\/p><\/blockquote>\n

I haven’t heard such an impassioned defense of company from a dealer since Bre-X! I hope everybody has popcorn at hand to watch the rest of this show.<\/p>\n

Speaking of companies getting trashed, there was another outbreak of yellow fever today:<\/p>\n

\n\n\n\n\n\n\n\n
YLO Issues, 2011-6-7<\/td>\n<\/tr>\n
Ticker<\/td>\nQuote
6\/6<\/td>\n		Quote
6\/7<\/td>\n		Bid YTW
6\/7<\/td>\n		YTW
Scenario
6\/7<\/td>\n		Performance
6\/7
(bid\/bid)<\/td>\n<\/tr>\n
YLO.PR.A<\/td>\n22.69-85<\/td>\n22.05-30<\/td>\n13.50%<\/td>\nSoft Maturity
2012-12-30<\/td>\n		-2.82%<\/td>\n<\/tr>\n
YLO.PR.B<\/td>\n16.38-52<\/td>\n15.77-86<\/td>\n14.75%<\/td>\nSoft Maturity
2017-06-29<\/td>\n		-3.72%<\/td>\n<\/tr>\n
YLO.PR.C<\/td>\n18.33-40<\/td>\n17.60-98<\/td>\n9.44%<\/td>\nLimit Maturity<\/td>\n-3.98%<\/td>\n<\/tr>\n
YLO.PR.D<\/td>\n18.73-95<\/td>\n18.00-20<\/td>\n9.41%<\/td>\nLimit Maturity<\/td>\n-3.90%<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

It was another muted day for the Canadian preferred share market, with PerpetualDiscounts gaining 6bp, FixedResets basically flat and DeemedRetractibles up 3bp. Volume was low.<\/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>\n0.3377 %<\/td>\n2,472.3<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3377 %<\/td>\n3,718.4<\/td>\n<\/tr>\n
Floater<\/td>\n2.44 %<\/td>\n2.22 %<\/td>\n44,769<\/td>\n21.68<\/td>\n4<\/td>\n0.3377 %<\/td>\n2,669.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.86 %<\/td>\n2.88 %<\/td>\n64,130<\/td>\n0.39<\/td>\n9<\/td>\n0.3650 %<\/td>\n2,428.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.23 %<\/td>\n-1.55 %<\/td>\n60,469<\/td>\n0.52<\/td>\n6<\/td>\n0.0636 %<\/td>\n2,506.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3650 %<\/td>\n2,220.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.64 %<\/td>\n5.02 %<\/td>\n154,009<\/td>\n1.41<\/td>\n12<\/td>\n0.0640 %<\/td>\n2,081.5<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.43 %<\/td>\n5.51 %<\/td>\n115,849<\/td>\n14.52<\/td>\n18<\/td>\n0.0582 %<\/td>\n2,185.6<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.14 %<\/td>\n3.18 %<\/td>\n192,969<\/td>\n2.83<\/td>\n57<\/td>\n0.0033 %<\/td>\n2,314.7<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.07 %<\/td>\n4.89 %<\/td>\n307,121<\/td>\n8.13<\/td>\n47<\/td>\n0.0326 %<\/td>\n2,156.4<\/td>\n<\/tr>\n<\/table>\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.E<\/td>\nDeemed-Retractible<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.42
\nBid-YTW : 5.71 %<\/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
HSE.PR.A<\/td>\nFixedReset<\/td>\n168,548<\/td>\nNational bought 25,000 from Nesbitt at 25.60, then crossed 65,000 at the same price. RBC crossed 50,000 at the same price again.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.57
\nBid-YTW : 3.89 %<\/td>\n<\/tr>\n
TD.PR.M<\/td>\nOpRet<\/td>\n121,650<\/td>\nRBC crosed blocks of 50,000 shares, 36,900 and 30,000, all at 25.71.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-07-07
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.76
\nBid-YTW : -1.94 %<\/td>\n<\/tr>\n
CM.PR.H<\/td>\nDeemed-Retractible<\/td>\n110,016<\/td>\nCalled for redemption<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-07-07
\nMaturity Price : 25.75
\nEvaluated at bid price : 25.93
\nBid-YTW : 2.05 %<\/td>\n<\/tr>\n
CM.PR.I<\/td>\nDeemed-Retractible<\/td>\n76,911<\/td>\nDesjardins crossed 33,700 at 25.11; Nesbitt crossed 25,000 at 25.20.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-03-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.20
\nBid-YTW : 4.65 %<\/td>\n<\/tr>\n
RY.PR.B<\/td>\nDeemed-Retractible<\/td>\n54,800<\/td>\nDesjardins crossed 50,000 at 25.05.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.03
\nBid-YTW : 4.73 %<\/td>\n<\/tr>\n
CU.PR.B<\/td>\nPerpetual-Premium<\/td>\n52,333<\/td>\nDesjardins crossed 50,000 at 25.41.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-07-07
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.41
\nBid-YTW : -0.58 %<\/td>\n<\/tr>\n
There were 25 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.E<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.42 – 26.00
\nSpot Rate : 0.5800
\nAverage : 0.3671<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.42
\nBid-YTW : 5.71 %<\/td>\n<\/tr>\n

GWO.PR.J<\/td>\nFixedReset<\/td>\nQuote: 26.35 – 26.72
\nSpot Rate : 0.3700
\nAverage : 0.2781<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.35
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n

ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.02 – 23.43
\nSpot Rate : 0.4100
\nAverage : 0.3186<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-06-07
\nMaturity Price : 22.77
\nEvaluated at bid price : 23.02
\nBid-YTW : 5.84 %<\/td>\n<\/tr>\n

BAM.PR.J<\/td>\nOpRet<\/td>\nQuote: 26.54 – 26.81
\nSpot Rate : 0.2700
\nAverage : 0.2009<\/p>\n

YTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2018-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.54
\nBid-YTW : 4.54 %<\/td>\n<\/tr>\n

PWF.PR.M<\/td>\nFixedReset<\/td>\nQuote: 26.70 – 27.00
\nSpot Rate : 0.3000
\nAverage : 0.2362<\/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 : 3.63 %<\/td>\n<\/tr>\n

CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.50 – 22.80
\nSpot Rate : 0.3000
\nAverage : 0.2433<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-06-07
\nMaturity Price : 22.35
\nEvaluated at bid price : 22.50
\nBid-YTW : 5.14 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The Sino-Forest plot thickens: Muddy Waters Research, the firm founded by short seller Carson Block, \u201cpre-marketed\u201d its June 2 report on Sino-Forest Corp. (TRE) to hedge funds for the past five weeks, said an analyst …<\/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-15284","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15284","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=15284"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15284\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}