{"id":15655,"date":"2011-07-12T00:17:55","date_gmt":"2011-07-12T04:17:55","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=15655"},"modified":"2011-07-12T00:17:55","modified_gmt":"2011-07-12T04:17:55","slug":"july-11-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=15655","title":{"rendered":"July 11, 2011"},"content":{"rendered":"

Is your country falling apart? Blame the short sellers<\/a>!<\/p>\n

Italy\u2019s financial-market regulator moved to curb short selling after the country\u2019s benchmark stock index fell the most in almost five months and bonds tumbled on investor concern Italy would be the next victim of the region\u2019s debt crisis.<\/p>\n

The regulator known as Consob ordered last night that short sellers must reveal their positions when they reach 0.2 percent or more of a company\u2019s capital and then make additional filings for each additional 0.1 percent. The measure takes effect today and lasts until Sept. 9.<\/p><\/blockquote>\n

Another good technique is to bury the critics in paperwork<\/a>:<\/p>\n

Credit-ratings companies may be forced to disclose the internal analyses they use when they decide to cut a European Union government\u2019s rating, the region\u2019s financial services commissioner said.<\/p>\n

Nations may win the right to check the data used by the companies in advance of downgrades of their sovereign ratings, Michel Barnier said in the text of a speech in Paris speech today. The measures may be included in legislation to rein in the ratings firms, he said.<\/p><\/blockquote>\n

But life is tough when you’re squaring the circle<\/a>:<\/p>\n

European finance chiefs clashed over how to dig Greece out of its financial hole just as markets battered the bonds of Spain and Italy, opening a new front in the debt crisis.<\/p>\n

Finance ministers weighed how to get private bondholders to maintain their exposure to Greek debt in a way that doesn\u2019t prompt credit-rating companies to declare a formal default.<\/p>\n

Forcing bondholders to chip in would be \u201cfatal,\u201d Austrian Finance Minister Maria Fekter told reporters before a crisis meeting in Brussels today.<\/p><\/blockquote>\n

Late news is that maybe the taxpayers will foot the bill<\/a>:<\/p>\n

European finance ministers revived the prospect of bond buybacks to ease Greece\u2019s plight and declined to rule out a temporary default, struggling to contain the debt crisis as investors pounded Italy, the continent\u2019s third-largest economy.<\/p>\n

Prodded by investors and the European Central Bank, the euro\u2019s guardians said a bailout fund set up last year may be used to buy bonds in the secondary market or enable Greece to retire its debt at a discount. They offered another cut in rates on its emergency loans.<\/p><\/blockquote>\n

For all their recent problems, US brokerages have always been a far better and far more profitable place to work than those in Canada. Here’s why<\/a>:<\/p>\n

A headhunter put Muller in touch with Morgan Stanley, which was then looking for a quant strategist to drum up business. Muller had bigger aspirations and cut a deal with Derek Bandeen, a prop-trading executive. Muller had two years to get a profitable trading system running. If he failed, he would perform the strategist\u2019s job. PDT was born.<\/p><\/blockquote>\n

The CSA has released a staff notice titled MARKETING PRACTICES OF PORTFOLIO MANAGERS<\/a>:<\/p>\n

We identified a number of deficiencies in the preparation, review and use of marketing materials by the PMs we reviewed.
\nGenerally, the deficiencies were grouped into one of the following areas:
\n1. Preparation and use of hypothetical performance data
\n2. Exaggerated and unsubstantiated claims
\n3. Policies, procedures and internal controls
\n4. Use of benchmarks
\n5. Performance composites
\n6. Holding out and use of names
\n7. Other performance return issues
\n8. Disclosure related issues<\/p><\/blockquote>\n

Interesting piece on ETFs<\/a>:<\/p>\n

Using Deutsche Bank\u2019s numbers, and then comparing them to a recent McKinsey & Co. analysis of Europe\u2019s fund management industry, the Financial Times found that ETF\u2019s likely account for 13 per cent of the Europe\u2019s \u20ac9-billion in fund profits. More importantly, the profit margins on ETFs are sky high — 55.5 basis points of assets under management for ETFs versus 12.5 basis points for traditional funds.<\/p>\n

And within ETFs, there\u2019s a difference in profit margins between synthetic ETFs and physically replicated ETFs. The first type posts profit margins of 69 per cent, while the latter has profit margins of 64 per cent.
…<\/b>
Past studies have found that over 50 per cent of assets under management in European ETFs are now placed in synthetic ETFs.<\/p><\/blockquote>\n

Makes sense. All the MER on funds goes to the salesman.<\/p>\n

It was a mixed day on the Canadian preferred share market, with PerpetualDiscounts up 13bp, FixedResets ahead 1bp and DeemedRetractibles losing 9bp. Volatility was good. Volume was extremely light.<\/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>\n-1.4539 %<\/td>\n2,403.2<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-1.4539 %<\/td>\n3,614.4<\/td>\n<\/tr>\n
Floater<\/td>\n2.52 %<\/td>\n2.47 %<\/td>\n43,153<\/td>\n21.09<\/td>\n4<\/td>\n-1.4539 %<\/td>\n2,594.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.87 %<\/td>\n2.33 %<\/td>\n62,558<\/td>\n0.22<\/td>\n9<\/td>\n0.1116 %<\/td>\n2,443.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.24 %<\/td>\n1.35 %<\/td>\n55,283<\/td>\n0.63<\/td>\n6<\/td>\n-0.2567 %<\/td>\n2,508.8<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1116 %<\/td>\n2,234.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.69 %<\/td>\n5.21 %<\/td>\n135,384<\/td>\n0.86<\/td>\n13<\/td>\n0.0657 %<\/td>\n2,087.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.46 %<\/td>\n5.46 %<\/td>\n115,635<\/td>\n14.70<\/td>\n17<\/td>\n0.1274 %<\/td>\n2,191.0<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.17 %<\/td>\n3.16 %<\/td>\n211,446<\/td>\n2.68<\/td>\n57<\/td>\n0.0126 %<\/td>\n2,319.3<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.09 %<\/td>\n4.87 %<\/td>\n265,887<\/td>\n8.10<\/td>\n47<\/td>\n-0.0939 %<\/td>\n2,157.0<\/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
PWF.PR.A<\/td>\nFloater<\/td>\n-5.89 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-07-11
\nMaturity Price : 21.41
\nEvaluated at bid price : 21.41
\nBid-YTW : 2.47 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nDeemed-Retractible<\/td>\n-1.44 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.52
\nBid-YTW : 5.82 %<\/td>\n<\/tr>\n
GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.39
\nBid-YTW : 5.66 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-07-11
\nMaturity Price : 23.41
\nEvaluated at bid price : 25.47
\nBid-YTW : 3.50 %<\/td>\n<\/tr>\n
BMO.PR.P<\/td>\nFixedReset<\/td>\n1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.05
\nBid-YTW : 3.21 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\n1.71 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.92
\nBid-YTW : 5.09 %<\/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>\n60,576<\/td>\nCalled for redemption<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-04-30
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.71
\nBid-YTW : 3.32 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n53,400<\/td>\nNesbitt crossed 50,000 at 26.20.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.16
\nBid-YTW : 3.41 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n51,710<\/td>\nNesbitt crossed 50,000 at 27.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.46
\nBid-YTW : 3.21 %<\/td>\n<\/tr>\n
RY.PR.B<\/td>\nDeemed-Retractible<\/td>\n30,760<\/td>\nNesbitt crossed 12,000 at 24.94.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.81
\nBid-YTW : 4.89 %<\/td>\n<\/tr>\n
CM.PR.G<\/td>\nPerpetual-Premium<\/td>\n29,090<\/td>\nRBC crossed 25,000 at 25.09.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.96
\nBid-YTW : 5.37 %<\/td>\n<\/tr>\n
GWO.PR.F<\/td>\nDeemed-Retractible<\/td>\n25,228<\/td>\nNesbitt crossed 25,000 at 25.30.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.27
\nBid-YTW : 5.16 %<\/td>\n<\/tr>\n
There were 16 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
PWF.PR.A<\/td>\nFloater<\/td>\nQuote: 21.41 – 23.20
\nSpot Rate : 1.7900
\nAverage : 1.2050<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-07-11
\nMaturity Price : 21.41
\nEvaluated at bid price : 21.41
\nBid-YTW : 2.47 %<\/td>\n<\/tr>\n

IAG.PR.C<\/td>\nFixedReset<\/td>\nQuote: 26.55 – 27.24
\nSpot Rate : 0.6900
\nAverage : 0.4677<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.55
\nBid-YTW : 3.66 %<\/td>\n<\/tr>\n

GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.39 – 25.92
\nSpot Rate : 0.5300
\nAverage : 0.3299<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.39
\nBid-YTW : 5.66 %<\/td>\n<\/tr>\n

SLF.PR.G<\/td>\nFixedReset<\/td>\nQuote: 25.30 – 26.00
\nSpot Rate : 0.7000
\nAverage : 0.5742<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.30
\nBid-YTW : 3.74 %<\/td>\n<\/tr>\n

PWF.PR.K<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.31 – 23.75
\nSpot Rate : 0.4400
\nAverage : 0.3226<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-07-11
\nMaturity Price : 23.05
\nEvaluated at bid price : 23.31
\nBid-YTW : 5.31 %<\/td>\n<\/tr>\n

BAM.PR.O<\/td>\nOpRet<\/td>\nQuote: 25.85 – 26.29
\nSpot Rate : 0.4400
\nAverage : 0.3227<\/p>\n

YTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2013-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.85
\nBid-YTW : 3.30 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Is your country falling apart? Blame the short sellers! Italy\u2019s financial-market regulator moved to curb short selling after the country\u2019s benchmark stock index fell the most in almost five months and bonds tumbled on investor …<\/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-15655","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15655","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=15655"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15655\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}