{"id":15403,"date":"2011-06-20T20:14:09","date_gmt":"2011-06-21T00:14:09","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=15403"},"modified":"2011-06-20T20:14:09","modified_gmt":"2011-06-21T00:14:09","slug":"june-20-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=15403","title":{"rendered":"June 20, 2011"},"content":{"rendered":"

In the best news I’ve heard all month UBS is mandating civilized values<\/a>:<\/p>\n

The Swiss bank now has a dress code.<\/p>\n

Apparently a memo went out this morning to equity sales at UBS informing the team that \u201csuits are now mandatory\u201d at the office (\u201cswaps and the quant desk already went to suits and equity trading is switching over in two weeks\u201d). The reason for the rule (which \u201cis coming from Switzerland\u201d)? To \u201cre-establish credibility and a sense of professionalism.\u201d<\/p><\/blockquote>\n

Pressure on Greece is ramping up<\/a>:<\/p>\n

European governments failed to agree on releasing a loan payment to spare Greece from default, ramping up pressure on Prime Minister George Papandreou to first deliver budget cuts in the face of domestic opposition.<\/p>\n

On the eve of a confidence vote that may bring down Papandreou\u2019s government, euro-area finance ministers pushed Greece to pass laws to cut the deficit and sell state assets. They left open whether the country will get the full 12 billion euros ($17.1 billion) promised for July as part of last year\u2019s 110 billion-euro lifeline.<\/p>\n

\u201cWe forcefully reminded the Greek government that by the end of this month they have to see to it that we are all convinced that all the commitments they made are fulfilled,\u201d Luxembourg Prime Minister Jean-Claude Juncker told reporters early today after chairing a euro-crisis meeting in Luxembourg.<\/p><\/blockquote>\n

Of course, Juncker’s a liar anyway, so this could all simply be choreographed theatre.<\/p>\n

Remember Richard Kelertas? Analyst at Dundee Securities? On June 7<\/a> I reported:<\/p>\n

\n

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.
…<\/b><\/p><\/blockquote>\n

I haven\u2019t heard such an impassioned defense of company from a dealer since Bre-X!<\/p><\/blockquote>\n

He went further<\/a>:<\/p>\n

A couple of analysts did come to Sino’s defence, most notably Dundee’s Richard Kelertas. In a remarkable conference call on Tuesday, he jumped way outside his mandate and accused Mr. Block of committing his own fraud, calling his research “a pile of crap.”<\/p><\/blockquote>\n

But now he’s singing from a different hymnbook<\/a>:<\/p>\n

Richard Kelertas, an analyst at Dundee Securities, has had enough of Sino-Forest Corp. (TRE-T2.75-0.44-13.79%): He suspended coverage of the Chinese forestry company on Monday morning, after putting the stock \u201cunder review\u201d on June 3
…<\/b>
\u201cUntil such time as the company has made public the findings of the board-appointed independent committee together with the assistance of its external advisors, including legal council Osler Hoskin & Harcourt LLP and the accounting firm PricewaterhouseCoopers, and we have had time to review and analyze these findings, we are not in a position to comment on or otherwise speculate on matters as they relate to the business practice or valuation of Sino-Forest,\u201d Mr. Kelertas said in a note.<\/p><\/blockquote>\n

Gee … I wonder what changed?<\/p>\n

I continue to hold my view – held since I became sophisticated enough to read analyst reports closely – that sell side analysis should be viewed as being for entertainment purposes only. And I have to admit, Kelertas’ tergiversations are highly entertaining.<\/p>\n

Today’s factoid<\/a>:<\/p>\n

On Monday, Canadian 30-year yields started the day below 3.4 per cent. Other than a few weeks last fall, these rates are the lowest Ottawa has seen since the mid-1950s, noted Bank of Montreal deputy chief economist Doug Porter.<\/p><\/blockquote>\n

Richard Fisher of the Dallas Fed reprised a funny line in his speech titled Containing (or restraining) systemic risk \u2013 the need to
\nnot fail on \u201ctoo big to fail\u201d<\/a>:<\/p>\n

For example, some of you may recall the public letter written by 364 eminent economists predicting disastrous consequences that would result from Thatcher\u2019s policy initiatives. That letter was published in the Times of London on March 30, 1981.[Footnote<\/a>] The British economy began a recovery almost immediately afterward, in 1982; by 1983, inflation and mortgage rates were at their lowest levels in over a decade, while economic growth accelerated. The failure of the consensus view led Chancellor of the Exchequer Geoffrey Howe to define an economist as \u201ca man who knows 364 ways of making love, but doesn\u2019t know any women.\u201d[Footnote<\/a>]<\/p><\/blockquote>\n

YLO issues weren’t all that interesting today.<\/p>\n

It was a mixed day for the Canadian preferred share market, with PerpetualDiscounts up 3bp, FixedResets gaining 4bp and DeemedRetractibles down 10bp. Volatility picked up. Volume was a bit above average, with all highlighted issues being FixedResets. Nesbitt owned the board today.<\/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>\n0.0934 %<\/td>\n2,470.4<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0934 %<\/td>\n3,715.4<\/td>\n<\/tr>\n
Floater<\/td>\n2.45 %<\/td>\n2.22 %<\/td>\n39,290<\/td>\n21.74<\/td>\n4<\/td>\n0.0934 %<\/td>\n2,667.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.88 %<\/td>\n3.35 %<\/td>\n66,336<\/td>\n0.92<\/td>\n9<\/td>\n-0.0430 %<\/td>\n2,430.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.24 %<\/td>\n-2.46 %<\/td>\n62,172<\/td>\n0.49<\/td>\n6<\/td>\n0.1760 %<\/td>\n2,501.8<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0430 %<\/td>\n2,222.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.65 %<\/td>\n5.24 %<\/td>\n142,345<\/td>\n0.91<\/td>\n12<\/td>\n0.1052 %<\/td>\n2,077.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.47 %<\/td>\n5.57 %<\/td>\n117,741<\/td>\n14.45<\/td>\n18<\/td>\n0.0281 %<\/td>\n2,174.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.16 %<\/td>\n3.33 %<\/td>\n198,528<\/td>\n2.80<\/td>\n57<\/td>\n0.0391 %<\/td>\n2,309.2<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.09 %<\/td>\n4.91 %<\/td>\n293,183<\/td>\n8.18<\/td>\n47<\/td>\n-0.1041 %<\/td>\n2,149.3<\/td>\n<\/tr>\n<\/table>\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
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.95 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-06-20
\nMaturity Price : 22.23
\nEvaluated at bid price : 22.58
\nBid-YTW : 5.97 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.50
\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n
BNS.PR.Y<\/td>\nFixedReset<\/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 : 25.15
\nBid-YTW : 3.39 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-06-20
\nMaturity Price : 23.37
\nEvaluated at bid price : 23.60
\nBid-YTW : 5.23 %<\/td>\n<\/tr>\n
TDS.PR.C<\/td>\nSplitShare<\/td>\n1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-12-15
\nMaturity Price : 10.00
\nEvaluated at bid price : 10.40
\nBid-YTW : -2.46 %<\/td>\n<\/tr>\n
GWO.PR.J<\/td>\nFixedReset<\/td>\n6.69 %<\/td>\nMeaningless bounce-back from June 17<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.80
\nBid-YTW : 3.07 %<\/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
FTS.PR.H<\/td>\nFixedReset<\/td>\n127,043<\/td>\nNesbitt crossed two blocks of 60,000 each at 25.40.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-06-20
\nMaturity Price : 25.30
\nEvaluated at bid price : 25.35
\nBid-YTW : 3.65 %<\/td>\n<\/tr>\n
BMO.PR.M<\/td>\nFixedReset<\/td>\n112,563<\/td>\nNesbitt crossed 100,000 at 26.25.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-09-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.18
\nBid-YTW : 2.87 %<\/td>\n<\/tr>\n
BMO.PR.O<\/td>\nFixedReset<\/td>\n105,652<\/td>\nNesbitt crossed 100,000 at 27.74.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.74
\nBid-YTW : 2.87 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n63,738<\/td>\nNesbitt crossed 47,500 at 25.15.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.10
\nBid-YTW : 3.81 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n57,523<\/td>\nNesbitt crossed 50,000 at 26.15.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.08
\nBid-YTW : 2.98 %<\/td>\n<\/tr>\n
TD.PR.Y<\/td>\nFixedReset<\/td>\n52,298<\/td>\nNesbitt crossed 50,000 at 26.26.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-11-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.20
\nBid-YTW : 3.36 %<\/td>\n<\/tr>\n
There were 34 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
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.58 – 23.05
\nSpot Rate : 0.4700
\nAverage : 0.3388<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-06-20
\nMaturity Price : 22.23
\nEvaluated at bid price : 22.58
\nBid-YTW : 5.97 %<\/td>\n<\/tr>\n

TD.PR.O<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.11 – 25.45
\nSpot Rate : 0.3400
\nAverage : 0.2230<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.11
\nBid-YTW : 4.91 %<\/td>\n<\/tr>\n

SLF.PR.F<\/td>\nFixedReset<\/td>\nQuote: 27.05 – 27.35
\nSpot Rate : 0.3000
\nAverage : 0.2067<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.05
\nBid-YTW : 3.17 %<\/td>\n<\/tr>\n

TD.PR.Q<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.09 – 26.39
\nSpot Rate : 0.3000
\nAverage : 0.2267<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-03-02
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.09
\nBid-YTW : 4.90 %<\/td>\n<\/tr>\n

BMO.PR.L<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.59 – 26.86
\nSpot Rate : 0.2700
\nAverage : 0.1973<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-24
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.59
\nBid-YTW : 4.63 %<\/td>\n<\/tr>\n

TCA.PR.X<\/td>\nPerpetual-Premium<\/td>\nQuote: 50.49 – 50.72
\nSpot Rate : 0.2300
\nAverage : 0.1607<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-11-14
\nMaturity Price : 50.00
\nEvaluated at bid price : 50.49
\nBid-YTW : 5.54 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

In the best news I’ve heard all month UBS is mandating civilized values: The Swiss bank now has a dress code. Apparently a memo went out this morning to equity sales at UBS informing the …<\/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-15403","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15403","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=15403"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15403\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}