{"id":15880,"date":"2011-08-03T22:02:04","date_gmt":"2011-08-04T02:02:04","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=15880"},"modified":"2011-08-03T22:02:04","modified_gmt":"2011-08-04T02:02:04","slug":"august-3-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=15880","title":{"rendered":"August 3, 2011"},"content":{"rendered":"

Dealbreaker<\/i> has a surprisingly thoughtful piece on the US credit rating<\/a>:<\/p>\n

That\u2019s probably the best way to interpret market reactions. Rates on the $10 trillion of publicly held Treasuries couldn\u2019t be tighter, suggesting that there\u2019s no real market worry about the U.S.\u2019s ability to pay off its debts. But CDS notionals keep increasing (albeit in a still small and illiquid market) and CDS levels are wide of AA corporates because the U.S. is actually more likely to default than Colgate Palmolive is. Because it would not occur to anyone at Colgate Palmolive to just stop paying its debts. But we\u2019re going to have to keep rasing the debt ceiling, and every time we do, half of Congress is going to say that they prefer to default.<\/p><\/blockquote>\n

The idiotic Federal Aviation Administration crisis<\/a> is symptiomatic:<\/p>\n

The U.S. House of Representatives and Senate finished voting on legislation this week and recessed for the month of August without extending the FAA\u2019s funding authority, which expired at midnight July 22. That idled about 70,000 construction-related workers and furloughed 4,000 FAA employees. The FAA also is forgoing $28.6 million in aviation taxes each day the deadlock continues. That would add up to $1.3 billion by the time Congress resumes legislative business on Sept. 7.
…<\/b>
Transportation Secretary Ray LaHood said legislators should return to Washington and pass an extension without cutting subsidies for flights to 13 rural airports. The cuts were in a House-passed bill to extend the FAA\u2019s authority through Sept. 16 that was introduced by Representative John Mica, the Florida Republican who chairs the transportation committee in that body.<\/p>\n

Senate Majority Leader Harry Reid, a Nevada Democrat, said yesterday he was prepared to accept the House bill. Other Senate Democrats refused, said Adam Jentleson, a spokesman for Reid.<\/p>\n

The FAA\u2019s last multi-year funding bill expired in 2007. Congress has passed 20 limited extensions since then without adopting a new long-term authorization measure.<\/p><\/blockquote>\n

It was a good day for the Canadian preferred share market, with PerpetualDiscounts winning 21bp, FixedResets gaining 9bp and DeemedRetractibles up 14bp. Volatility was minimal. Volume was average.<\/p>\n

Yellow Media reports on 11Q2 tomorrow before the opening<\/a>, so YLO preferreds could have an interesting day!<\/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-0.0479 %<\/td>\n2,410.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0479 %<\/td>\n3,625.7<\/td>\n<\/tr>\n
Floater<\/td>\n2.51 %<\/td>\n2.33 %<\/td>\n33,951<\/td>\n21.45<\/td>\n4<\/td>\n-0.0479 %<\/td>\n2,602.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.84 %<\/td>\n2.05 %<\/td>\n54,382<\/td>\n0.16<\/td>\n9<\/td>\n0.1282 %<\/td>\n2,455.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.26 %<\/td>\n3.11 %<\/td>\n69,186<\/td>\n0.56<\/td>\n4<\/td>\n0.0804 %<\/td>\n2,515.2<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1282 %<\/td>\n2,245.6<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.67 %<\/td>\n4.95 %<\/td>\n130,491<\/td>\n0.80<\/td>\n14<\/td>\n0.0169 %<\/td>\n2,099.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.37 %<\/td>\n5.42 %<\/td>\n112,349<\/td>\n14.74<\/td>\n16<\/td>\n0.2132 %<\/td>\n2,219.6<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.15 %<\/td>\n3.14 %<\/td>\n214,005<\/td>\n2.65<\/td>\n58<\/td>\n0.0934 %<\/td>\n2,328.4<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.06 %<\/td>\n4.64 %<\/td>\n270,990<\/td>\n7.85<\/td>\n46<\/td>\n0.1383 %<\/td>\n2,182.2<\/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>\n1.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.00
\nBid-YTW : 2.80 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\n2.68 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-03
\nMaturity Price : 24.62
\nEvaluated at bid price : 24.91
\nBid-YTW : 4.99 %<\/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
BNS.PR.P<\/td>\nFixedReset<\/td>\n107,561<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.95
\nBid-YTW : 2.78 %<\/td>\n<\/tr>\n
BMO.PR.P<\/td>\nFixedReset<\/td>\n100,990<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.95
\nBid-YTW : 3.00 %<\/td>\n<\/tr>\n
RY.PR.D<\/td>\nDeemed-Retractible<\/td>\n71,606<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.64
\nBid-YTW : 4.67 %<\/td>\n<\/tr>\n
RY.PR.C<\/td>\nDeemed-Retractible<\/td>\n60,318<\/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 : 4.63 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset<\/td>\n36,712<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-03
\nMaturity Price : 23.46
\nEvaluated at bid price : 25.85
\nBid-YTW : 3.24 %<\/td>\n<\/tr>\n
RY.PR.R<\/td>\nFixedReset<\/td>\n35,606<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.81
\nBid-YTW : 3.16 %<\/td>\n<\/tr>\n
There were 28 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
NA.PR.P<\/td>\nFixedReset<\/td>\nQuote: 26.92 – 27.43
\nSpot Rate : 0.5100
\nAverage : 0.3699<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.92
\nBid-YTW : 3.35 %<\/td>\n<\/tr>\n

FTS.PR.G<\/td>\nFixedReset<\/td>\nQuote: 26.25 – 26.56
\nSpot Rate : 0.3100
\nAverage : 0.1859<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-09-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.25
\nBid-YTW : 3.22 %<\/td>\n<\/tr>\n

PWF.PR.A<\/td>\nFloater<\/td>\nQuote: 22.25 – 23.60
\nSpot Rate : 1.3500
\nAverage : 1.2412<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-03
\nMaturity Price : 22.01
\nEvaluated at bid price : 22.25
\nBid-YTW : 2.33 %<\/td>\n<\/tr>\n

FTS.PR.E<\/td>\nOpRet<\/td>\nQuote: 27.03 – 27.58
\nSpot Rate : 0.5500
\nAverage : 0.4502<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 27.03
\nBid-YTW : 2.44 %<\/td>\n<\/tr>\n

SLF.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 23.36 – 23.69
\nSpot Rate : 0.3300
\nAverage : 0.2418<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.36
\nBid-YTW : 5.68 %<\/td>\n<\/tr>\n

FTS.PR.H<\/td>\nFixedReset<\/td>\nQuote: 25.35 – 26.05
\nSpot Rate : 0.7000
\nAverage : 0.6157<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-03
\nMaturity Price : 23.38
\nEvaluated at bid price : 25.35
\nBid-YTW : 3.25 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Dealbreaker has a surprisingly thoughtful piece on the US credit rating: That\u2019s probably the best way to interpret market reactions. Rates on the $10 trillion of publicly held Treasuries couldn\u2019t be tighter, suggesting that there\u2019s …<\/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-15880","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15880","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=15880"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15880\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}