{"id":1578,"date":"2007-12-11T22:14:06","date_gmt":"2007-12-12T02:14:06","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1578"},"modified":"2007-12-11T22:14:06","modified_gmt":"2007-12-12T02:14:06","slug":"december-11-2007","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1578","title":{"rendered":"December 11, 2007"},"content":{"rendered":"

The Fed cut rates by 25bp, to 4.25%<\/a>.<\/p>\n

Many were disappointed it wasn’t 50bp<\/a>.<\/p>\n

Stocks tanked<\/a>.<\/p>\n

But bonds benefitted from asset reallocation<\/a>, even in Canada<\/a>.<\/p>\n

‘Nuff said?<\/p>\n

A very active day in the preferred market, but with no major trends. The poor old BAM floaters finally caught a bid!<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n
Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version. In this version, index values are based at 1,000.0 on 2006-6-30<\/strong><\/td>\n<\/tr>\n
Index<\/td>\nMean Current Yield (at bid)<\/td>\nMean YTW<\/td>\nMean Average Trading Value<\/td>\nMean Mod Dur (YTW)<\/td>\nIssues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n4.99%<\/td>\n4.98%<\/td>\n94,740<\/td>\n15.49<\/td>\n2<\/td>\n-0.0817%<\/td>\n1,048.5<\/td>\n<\/tr>\n
Fixed-Floater<\/td>\n4.82%<\/td>\n4.92%<\/td>\n93,864<\/td>\n15.61<\/td>\n8<\/td>\n+0.2844%<\/td>\n1,033.6<\/td>\n<\/tr>\n
Floater<\/td>\n5.59%<\/td>\n5.69%<\/td>\n96,390<\/td>\n14.25<\/td>\n2<\/td>\n0.6526%<\/td>\n849.1<\/td>\n<\/tr>\n
Op. Retract<\/td>\n4.87%<\/td>\n4.00%<\/td>\n81,251<\/td>\n3.68<\/td>\n16<\/td>\n+0.0733%<\/td>\n1,033.2<\/td>\n<\/tr>\n
Split-Share<\/td>\n5.30%<\/td>\n6.25%<\/td>\n99,770<\/td>\n4.08<\/td>\n15<\/td>\n+0.0854%<\/td>\n1,027.3<\/td>\n<\/tr>\n
Interest Bearing<\/td>\n6.26%<\/td>\n6.59%<\/td>\n68,952<\/td>\n3.49<\/td>\n4<\/td>\n+0.1298%<\/td>\n1,062.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.80%<\/td>\n5.33%<\/td>\n83,032<\/td>\n5.84<\/td>\n11<\/td>\n+0.0240%<\/td>\n1,014.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.46%<\/td>\n5.51%<\/td>\n368,938<\/td>\n14.61<\/td>\n55<\/td>\n+0.0586%<\/td>\n930.2<\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n
Major Price Changes<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetualDiscount<\/td>\n-1.2452%<\/td>\nNow with a pre-tax bid-YTW of 5.52% based on a bid of 23.00 and a limitMaturity<\/a>.<\/td>\n<\/tr>\n
PIC.PR.A<\/td>\nSplitShare<\/td>\n-1.1170%<\/td>\nAsset coverage of just under 1.7:1 as of December 6, according to Mulvihill<\/a>. Now with a pre-tax bid-YTW of 5.91% based on a bid of 15.05 and a hardMaturity<\/a> 2010-11-01 at 15.00.<\/td>\n<\/tr>\n
PWF.PR.L<\/td>\nPerpetualDiscount<\/td>\n-1.0566%<\/td>\nNow with a pre-tax bid-YTW of 5.52% based on a bid of 23.41 and a limitMaturity.<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetualDiscount<\/td>\n+1.0177%<\/td>\nNow with a pre-tax bid-YTW of 6.44% based on a bid of 18.86 and a limitMaturity.<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixFloat<\/td>\n+1.2840%<\/td>\n\u00a0<\/td>\n<\/tr>\n
BCE.PR.R<\/td>\nFixFloat<\/td>\n+1.3704%<\/td>\n\u00a0<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n+1.2840%<\/td>\n\u00a0<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetualDiscount<\/td>\n+1.8993%<\/td>\nNow with a pre-tax bid-YTW of 6.29% based on a bid of 21.46 and a limitMaturity.<\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nVolume<\/td>\nNotes<\/td>\n<\/tr>\n
BCE.PR.R<\/td>\nFixFloat<\/td>\n144,480<\/td>\n\u00a0<\/td>\n<\/tr>\n
CM.PR.J<\/td>\nPerpetualDiscount<\/td>\n143,409<\/td>\nNow with a pre-tax bid-YTW of 5.58% based on a bid of 20.47 and a limitMaturity.<\/td>\n<\/tr>\n
BCE.PR.T<\/td>\nFixFloat<\/td>\n139,490<\/td>\n\u00a0<\/td>\n<\/tr>\n
WN.PR.A<\/td>\nScraps (would be PerpetualDiscount but there are credit concerns)<\/td>\n135,915<\/td>\nNow with a pre-tax bid-YTW of 7.88% based on a bid of 18.57 and a limitMaturity. Compare with Dec. 5 quotations<\/a> and current values for WN.PR.C (7.51%), WN.PR.D (7.33%) & WN.PR.E (7.43%).<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetualDiscount<\/td>\n128,005<\/td>\nNow with a pre-tax bid-YTW of 6.45% based on a bid of 18.83 and a limitMaturity.<\/td>\n<\/tr>\n
CM.PR.I<\/td>\nPerpetualDiscount<\/td>\n124,160<\/td>\nNow with a pre-tax bid-YTW of 5.59% based on a bid of 21.34 and a limitMaturity.<\/td>\n<\/tr>\n
IQW.PR.C<\/td>\nScraps (would be OpRet but there are credit concerns)<\/td>\n123,700<\/td>\nNow with a pre-tax bid-YTW of 136.24% (annualized!) based on a bid of 20.25 and a softMaturity<\/a> 2008-2-29 at 25.00. Somebody trying an arbitrage<\/a> despite the dividend suspension<\/a>? The common is at a mere $2.45 at the close today … the floor conversion price is $2.00 … but I still say an attractive package can be put together if you guard against soaring common prices with call options!<\/td>\n<\/tr>\n
MIC.PR.A<\/td>\nPerpetualPremium<\/td>\n101,100<\/td>\nWill be redeemed<\/a> December 31.<\/td>\n<\/tr>\n
GWO.PR.F<\/td>\nPerpetualPremium<\/td>\n100,651<\/td>\nNow with a pre-tax bid-YTW of 5.00% based on a bid of 25.92 and a call 2012-10-30 at 25.00.<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

There were fifty-three other index-included $25.00-equivalent issues trading over 10,000 shares today.\n<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Fed cut rates by 25bp, to 4.25%. Many were disappointed it wasn’t 50bp. Stocks tanked. But bonds benefitted from asset reallocation, even in Canada. ‘Nuff said? A very active day in the preferred market, …<\/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-1578","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1578","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=1578"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1578\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}