{"id":15999,"date":"2011-08-17T10:41:43","date_gmt":"2011-08-17T14:41:43","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=15999"},"modified":"2011-08-17T10:41:43","modified_gmt":"2011-08-17T14:41:43","slug":"august-16-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=15999","title":{"rendered":"August 16, 2011"},"content":{"rendered":"

Oh joy, oh bliss! US monetary policy is being politicized<\/a> – and in pretty polemical terms:<\/p>\n

Texas Governor Rick Perry, finishing his first full day of campaigning for the U.S. Republican presidential nomination in Iowa, said it would be \u201calmost treacherous — or treasonous\u201d for Federal Reserve Chairman Ben S. Bernanke to increase stimulus spending before the 2012 election.<\/p>\n

\u201cIf this guy prints more money between now and the election, I don\u2019t know what you would do with him,\u201d Perry said at a backyard appearance in Cedar Rapids, Iowa. \u201cWe would treat him pretty ugly down in Texas. Printing more money to play politics at this particular time in American history is almost treacherous — or treasonous in my opinion.\u201d<\/p><\/blockquote>\n

It’s pretty hard to walk away from language like that … even as the US slides slowly towards total dysfunction.<\/p>\n

On a cheerier note, France and Germany propose to eliminate the European financial sector<\/a>, allowing business opportunities for the rest of us:<\/p>\n

France and Germany will propose a financial transaction tax in September, President Nicolas Sarkozy said after talks with German Chancellor Angela Merkel.<\/p><\/blockquote>\n

There were further details<\/a>:<\/p>\n

German Chancellor Angela Merkel and French President Nicolas Sarkozy said they\u2019ll press for closer euro-area economic integration with tougher deficit rules and stricter supervision to stamp out the debt crisis.<\/p>\n

Merkel and Sarkozy rejected euro bonds and expanding the 440 billion-euro ($633 billion) rescue fund. A plan to resubmit a financial-transaction tax, which was rejected in 2010, extended declines in U.S. stocks. They proposed debt limits be written into national law and a \u201ceuro council\u201d to be headed by European Union President Herman van Rompuy established as part of a planned \u201ceconomic government\u201d for Europe.<\/p><\/blockquote>\n

It was a strong day for the Canadian preferred share market, with PerpetualDiscounts winning 40bp, FixedResets up 13bp and DeemedRetractibles gaining 25bp. Volatility was good. Volume was average.<\/p>\n

Sorry this is so late, folks! Either PrefLetter<\/a> weekend causes a lot of dislocation, or I’m getting pretty lazy, one or the other.<\/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-0.6740 %<\/td>\n2,169.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.6740 %<\/td>\n3,263.5<\/td>\n<\/tr>\n
Floater<\/td>\n2.79 %<\/td>\n2.63 %<\/td>\n30,798<\/td>\n20.72<\/td>\n4<\/td>\n-0.6740 %<\/td>\n2,342.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.88 %<\/td>\n3.60 %<\/td>\n57,670<\/td>\n0.84<\/td>\n9<\/td>\n0.0344 %<\/td>\n2,444.3<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.30 %<\/td>\n2.46 %<\/td>\n59,450<\/td>\n0.53<\/td>\n4<\/td>\n0.0984 %<\/td>\n2,500.4<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0344 %<\/td>\n2,235.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.68 %<\/td>\n5.15 %<\/td>\n135,053<\/td>\n2.02<\/td>\n14<\/td>\n0.0679 %<\/td>\n2,099.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.41 %<\/td>\n5.50 %<\/td>\n109,267<\/td>\n14.59<\/td>\n16<\/td>\n0.4036 %<\/td>\n2,207.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.17 %<\/td>\n3.14 %<\/td>\n214,695<\/td>\n2.71<\/td>\n59<\/td>\n0.1322 %<\/td>\n2,310.4<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.07 %<\/td>\n4.73 %<\/td>\n272,103<\/td>\n7.99<\/td>\n46<\/td>\n0.2505 %<\/td>\n2,176.0<\/td>\n<\/tr>\n<\/table>\n\n\n\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-2.44 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-16
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 2.63 %<\/td>\n<\/tr>\n
IAG.PR.E<\/td>\nDeemed-Retractible<\/td>\n-1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.85
\nBid-YTW : 5.60 %<\/td>\n<\/tr>\n
CIU.PR.C<\/td>\nFixedReset<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-16
\nMaturity Price : 20.30
\nEvaluated at bid price : 20.30
\nBid-YTW : 3.69 %<\/td>\n<\/tr>\n
RY.PR.L<\/td>\nFixedReset<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.62
\nBid-YTW : 2.89 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nDeemed-Retractible<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.95
\nBid-YTW : 6.23 %<\/td>\n<\/tr>\n
BAM.PR.O<\/td>\nOpRet<\/td>\n1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2013-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.80
\nBid-YTW : 3.60 %<\/td>\n<\/tr>\n
PWF.PR.M<\/td>\nFixedReset<\/td>\n1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.66
\nBid-YTW : 3.29 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.46 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-16
\nMaturity Price : 23.97
\nEvaluated at bid price : 24.25
\nBid-YTW : 5.05 %<\/td>\n<\/tr>\n
BMO.PR.H<\/td>\nDeemed-Retractible<\/td>\n2.61 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.30
\nBid-YTW : 1.75 %<\/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
SLF.PR.H<\/td>\nFixedReset<\/td>\n199,950<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.70
\nBid-YTW : 3.90 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n91,655<\/td>\nNesbitt crossed blocks of 50,000 and 25,000, both at 25.85.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.81
\nBid-YTW : 3.18 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n43,815<\/td>\nNesbitt crossed 40,000 at 16.10.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-16
\nMaturity Price : 16.11
\nEvaluated at bid price : 16.11
\nBid-YTW : 3.29 %<\/td>\n<\/tr>\n
RY.PR.F<\/td>\nDeemed-Retractible<\/td>\n40,343<\/td>\nDesjardins crossed 15,000 at 24.70.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.65
\nBid-YTW : 4.63 %<\/td>\n<\/tr>\n
BMO.PR.P<\/td>\nFixedReset<\/td>\n36,410<\/td>\nNesbitt crossed 24,700 at 27.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.93
\nBid-YTW : 3.05 %<\/td>\n<\/tr>\n
TD.PR.P<\/td>\nDeemed-Retractible<\/td>\n35,981<\/td>\nRBC crossed 25,000 at 25.95.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-11-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.94
\nBid-YTW : 4.51 %<\/td>\n<\/tr>\n
There were 33 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
CIU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 20.30 – 24.75
\nSpot Rate : 4.4500
\nAverage : 3.7123<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-16
\nMaturity Price : 20.30
\nEvaluated at bid price : 20.30
\nBid-YTW : 3.69 %<\/td>\n<\/tr>\n

PWF.PR.A<\/td>\nFloater<\/td>\nQuote: 20.00 – 21.20
\nSpot Rate : 1.2000
\nAverage : 1.0214<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-16
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 2.63 %<\/td>\n<\/tr>\n

IAG.PR.F<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.86 – 26.54
\nSpot Rate : 0.6800
\nAverage : 0.5054<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.86
\nBid-YTW : 5.60 %<\/td>\n<\/tr>\n

BAM.PR.J<\/td>\nOpRet<\/td>\nQuote: 26.29 – 26.96
\nSpot Rate : 0.6700
\nAverage : 0.5357<\/p>\n

YTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2018-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.29
\nBid-YTW : 4.64 %<\/td>\n<\/tr>\n

BAM.PR.X<\/td>\nFixedReset<\/td>\nQuote: 23.72 – 24.30
\nSpot Rate : 0.5800
\nAverage : 0.4661<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-16
\nMaturity Price : 22.61
\nEvaluated at bid price : 23.72
\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n

TRP.PR.B<\/td>\nFixedReset<\/td>\nQuote: 25.10 – 25.37
\nSpot Rate : 0.2700
\nAverage : 0.1763<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-16
\nMaturity Price : 23.30
\nEvaluated at bid price : 25.10
\nBid-YTW : 2.77 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Oh joy, oh bliss! US monetary policy is being politicized – and in pretty polemical terms: Texas Governor Rick Perry, finishing his first full day of campaigning for the U.S. Republican presidential nomination in Iowa, …<\/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-15999","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15999","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=15999"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15999\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}