{"id":15865,"date":"2011-08-02T22:52:01","date_gmt":"2011-08-03T02:52:01","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=15865"},"modified":"2011-08-02T22:52:01","modified_gmt":"2011-08-03T02:52:01","slug":"august-2-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=15865","title":{"rendered":"August 2, 2011"},"content":{"rendered":"

Christophe Chamley, a professor of economics at Boston University, writes an interesting piece on Bloomberg about the Spanish default of 1575<\/a>:<\/p>\n

At that time of costly communications, periodic commercial fairs were essential events for the economic activity throughout Europe. Credit was rolled over from fair to fair by bankers, and lending agreements were renegotiated. With the Spanish commercial credit market frozen, the fairs couldn\u2019t be held. Indeed, the main fair that was held twice a year at Medina del Campo was canceled. In short, the default caused a banking collapse, which led to a severe recession.<\/p>\n

After two years, in November 1577, the cities caved, agreeing to a very large tax increase. The king resumed debt payments to the bankers. As the king explained in the settlement agreement, called Medio General, the bankers were joined in their demands \u201cby the petition of the delegates of the cities with particular urgency about the same business.\u201d In other words, the cities were begging the king to restore the business of trade. The fairs at Medina del Campo resumed late in the next year, but they had lost their preeminence forever.<\/p><\/blockquote>\n

It was a quiet day on the Canadian preferred share market, with PerpetualDiscounts up 1bp, FixedResets winning 3bp and DeemedRetractibles flat. Volatility was minimal. Volume was pathetic.<\/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-0.3697 %<\/td>\n2,411.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.3697 %<\/td>\n3,627.4<\/td>\n<\/tr>\n
Floater<\/td>\n2.51 %<\/td>\n2.34 %<\/td>\n34,103<\/td>\n21.41<\/td>\n4<\/td>\n-0.3697 %<\/td>\n2,604.2<\/td>\n<\/tr>\n
OpRet<\/td>\n4.85 %<\/td>\n2.29 %<\/td>\n55,107<\/td>\n0.16<\/td>\n9<\/td>\n-0.0726 %<\/td>\n2,452.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.26 %<\/td>\n4.16 %<\/td>\n72,058<\/td>\n0.56<\/td>\n4<\/td>\n0.0287 %<\/td>\n2,513.2<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0726 %<\/td>\n2,242.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.67 %<\/td>\n4.87 %<\/td>\n132,069<\/td>\n0.80<\/td>\n14<\/td>\n0.1653 %<\/td>\n2,099.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.38 %<\/td>\n5.42 %<\/td>\n110,486<\/td>\n14.76<\/td>\n16<\/td>\n0.0079 %<\/td>\n2,214.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.15 %<\/td>\n3.13 %<\/td>\n215,758<\/td>\n2.62<\/td>\n58<\/td>\n0.0307 %<\/td>\n2,326.2<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.06 %<\/td>\n4.71 %<\/td>\n274,049<\/td>\n7.86<\/td>\n46<\/td>\n0.0035 %<\/td>\n2,179.2<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
GWO.PR.J<\/td>\nFixedReset<\/td>\n-1.52 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.60
\nBid-YTW : 3.47 %<\/td>\n<\/tr>\n
RY.PR.F<\/td>\nDeemed-Retractible<\/td>\n1.03 %<\/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 : 4.69 %<\/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
MFC.PR.D<\/td>\nFixedReset<\/td>\n57,847<\/td>\nRBC crossed 50,000 at 27.39.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.36
\nBid-YTW : 3.45 %<\/td>\n<\/tr>\n
BNS.PR.Q<\/td>\nFixedReset<\/td>\n52,106<\/td>\nNesbitt crossed 24,000 at 26.06.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-10-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.05
\nBid-YTW : 3.09 %<\/td>\n<\/tr>\n
BNS.PR.L<\/td>\nDeemed-Retractible<\/td>\n44,727<\/td>\nRBC crossed 25,000 at 24.95.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.98
\nBid-YTW : 4.54 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n42,475<\/td>\nRBC bought 24,800 from anonymous and 12,300 from Nesbitt, all at 25.95.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.90
\nBid-YTW : 2.89 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n38,467<\/td>\nRBC crossed 37,800 at 24.80.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.78
\nBid-YTW : 3.49 %<\/td>\n<\/tr>\n
BNS.PR.T<\/td>\nFixedReset<\/td>\n38,278<\/td>\nDesjardins crossed 10,000 at 27.25; RBC crossed 25,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.20
\nBid-YTW : 2.92 %<\/td>\n<\/tr>\n
There were 15 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: 22.11 – 23.60
\nSpot Rate : 1.4900
\nAverage : 1.1218<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-02
\nMaturity Price : 21.87
\nEvaluated at bid price : 22.11
\nBid-YTW : 2.34 %<\/td>\n<\/tr>\n

FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.26 – 24.96
\nSpot Rate : 0.7000
\nAverage : 0.4801<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-02
\nMaturity Price : 23.98
\nEvaluated at bid price : 24.26
\nBid-YTW : 5.12 %<\/td>\n<\/tr>\n

GWO.PR.J<\/td>\nFixedReset<\/td>\nQuote: 26.60 – 27.21
\nSpot Rate : 0.6100
\nAverage : 0.3922<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.60
\nBid-YTW : 3.47 %<\/td>\n<\/tr>\n

FTS.PR.H<\/td>\nFixedReset<\/td>\nQuote: 25.35 – 26.00
\nSpot Rate : 0.6500
\nAverage : 0.5233<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-02
\nMaturity Price : 23.38
\nEvaluated at bid price : 25.35
\nBid-YTW : 3.24 %<\/td>\n<\/tr>\n

RY.PR.P<\/td>\nFixedReset<\/td>\nQuote: 26.98 – 27.33
\nSpot Rate : 0.3500
\nAverage : 0.2254<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.98
\nBid-YTW : 2.89 %<\/td>\n<\/tr>\n

CIU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 25.00 – 25.90
\nSpot Rate : 0.9000
\nAverage : 0.7784<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-02
\nMaturity Price : 23.17
\nEvaluated at bid price : 25.00
\nBid-YTW : 3.17 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Christophe Chamley, a professor of economics at Boston University, writes an interesting piece on Bloomberg about the Spanish default of 1575: At that time of costly communications, periodic commercial fairs were essential events for 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-15865","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15865","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=15865"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15865\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}