{"id":16088,"date":"2011-08-22T23:27:12","date_gmt":"2011-08-23T03:27:12","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=16088"},"modified":"2011-08-22T23:27:12","modified_gmt":"2011-08-23T03:27:12","slug":"august-22-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=16088","title":{"rendered":"August 22, 2011"},"content":{"rendered":"

Richard W Fisher, President and Chief Executive Officer of the Federal Reserve Bank of Dallas, gave a speech titled Connecting the dots \u2013 Texas employment growth; a dissenting vote; and the ugly truth (with reference to P G Wodehouse)<\/a>:<\/p>\n

I voted against that commitment-cum-signal. In the press\u2019 reporting of my dissenting vote and those of the other two members of the FOMC who voted against that commitment \u2013 Mr. Kocherlakota, my counterpart from the Minneapolis Fed, and Mr. Plosser, my counterpart from Philadelphia \u2013 there was substantial speculation as to the reasons for our dissent. I will let my other two colleagues speak for themselves; I can only speak for myself.
…<\/b>
The trimmed mean analysis we do at the Dallas Fed focuses on the price movements of personal consumption expenditures. It is an analysis that tracks the price movements of 178 items that people actually buy, such as beer, haircuts, shoe repair, food and energy prices. In June, the trimmed mean came in at an annualized rate of 1.3 percent, versus 2.1 percent for the first five months of the year. The 12-month rate was 1.5 percent.<\/p>\n

My concern is not with immediate inflationary pressures.
…<\/b>
My concern is with the transmission mechanism for activating the use of the liquidity we have created, which remains on the sidelines of the economy. I posit that nonmonetary factors, not monetary policy, are retarding the willingness and ability of job creators to put to work the liquidity that we have provided.<\/p>\n

I have spoken to this many times in public. Those with the capacity to hire American workers \u2013 small businesses as well as large, publicly traded or private \u2013 are immobilized. Not because they lack entrepreneurial zeal or do not wish to grow; not because they can\u2019t access cheap and available credit. Rather, they simply cannot budget or manage for the uncertainty of fiscal and regulatory policy. In an environment where they are already uncertain of potential growth in demand for their goods and services and have yet to see a significant pickup in top-line revenue, there is palpable angst surrounding the cost of doing business. According to my business contacts, the opera buffa of the debt ceiling negotiations compounded this uncertainty, leaving business decisionmakers frozen in their tracks.
…<\/b>
Based on past behavior of fiscal policy makers, businesses understandably regard the debt ceiling agreement and the political outcome of negotiations between Congress and the president with the suspicion akin to how the British humorist P.G. Wodehouse regarded his aunts: \u201cIt is no use telling me there are bad aunts and good aunts,\u201d he wrote. \u201cAt the core they are all alike. Sooner or later, out pops the cloven hoof.”<\/p><\/blockquote>\n

Holy smokes, here’s a sign of the times<\/a>:<\/p>\n

Gold reached a new milestone in its role as an investment and haven, with the leading exchange- traded fund that tracks bullion surpassing its equities counterpart as the biggest ETF by market value.<\/p><\/blockquote>\n

You can call it what you like – me, I call it a contrarian indicator.<\/p>\n

It was a positive day for the Canadian preferred share market, with PerpetualDiscounts winning 14bp, FixedResets up 4bp and DeemedRetractibles gaining 3bp. Volatility was good. Volume was absolutely 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-0.0809 %<\/td>\n2,140.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0809 %<\/td>\n3,219.3<\/td>\n<\/tr>\n
Floater<\/td>\n2.83 %<\/td>\n2.57 %<\/td>\n28,528<\/td>\n20.88<\/td>\n4<\/td>\n-0.0809 %<\/td>\n2,311.1<\/td>\n<\/tr>\n
OpRet<\/td>\n4.89 %<\/td>\n1.78 %<\/td>\n56,431<\/td>\n0.59<\/td>\n9<\/td>\n-0.2022 %<\/td>\n2,439.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.42 %<\/td>\n1.38 %<\/td>\n58,045<\/td>\n0.52<\/td>\n4<\/td>\n0.6112 %<\/td>\n2,473.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2022 %<\/td>\n2,230.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.68 %<\/td>\n4.91 %<\/td>\n131,207<\/td>\n2.01<\/td>\n14<\/td>\n0.0749 %<\/td>\n2,101.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.37 %<\/td>\n5.46 %<\/td>\n103,725<\/td>\n14.64<\/td>\n16<\/td>\n0.1393 %<\/td>\n2,225.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.14 %<\/td>\n3.16 %<\/td>\n213,178<\/td>\n2.72<\/td>\n60<\/td>\n0.0398 %<\/td>\n2,318.2<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.07 %<\/td>\n4.70 %<\/td>\n263,194<\/td>\n7.95<\/td>\n46<\/td>\n0.0292 %<\/td>\n2,182.4<\/td>\n<\/tr>\n<\/table>\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
BAM.PR.T<\/td>\nFixedReset<\/td>\n-2.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-22
\nMaturity Price : 22.75
\nEvaluated at bid price : 24.02
\nBid-YTW : 4.12 %<\/td>\n<\/tr>\n
TRI.PR.B<\/td>\nFloater<\/td>\n-1.80 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-22
\nMaturity Price : 21.54
\nEvaluated at bid price : 21.80
\nBid-YTW : 2.40 %<\/td>\n<\/tr>\n
BAM.PR.X<\/td>\nFixedReset<\/td>\n-1.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-22
\nMaturity Price : 22.74
\nEvaluated at bid price : 24.02
\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n
PWF.PR.A<\/td>\nFloater<\/td>\n1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-22
\nMaturity Price : 20.50
\nEvaluated at bid price : 20.50
\nBid-YTW : 2.57 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-22
\nMaturity Price : 24.49
\nEvaluated at bid price : 24.78
\nBid-YTW : 4.95 %<\/td>\n<\/tr>\n
BNA.PR.E<\/td>\nSplitShare<\/td>\n2.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2017-12-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.62
\nBid-YTW : 6.73 %<\/td>\n<\/tr>\n
CIU.PR.C<\/td>\nFixedReset<\/td>\n4.75 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-22
\nMaturity Price : 23.23
\nEvaluated at bid price : 25.15
\nBid-YTW : 2.86 %<\/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
NA.PR.M<\/td>\nDeemed-Retractible<\/td>\n53,880<\/td>\nRBC crossed 50,000 at 26.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-05-15
\nMaturity Price : 25.25
\nEvaluated at bid price : 26.30
\nBid-YTW : 5.00 %<\/td>\n<\/tr>\n
RY.PR.E<\/td>\nDeemed-Retractible<\/td>\n53,710<\/td>\nTD crossed 40,000 at 24.71.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.70
\nBid-YTW : 4.67 %<\/td>\n<\/tr>\n
IFC.PR.C<\/td>\nFixedReset<\/td>\n41,520<\/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 : 24.91
\nBid-YTW : 4.23 %<\/td>\n<\/tr>\n
BNS.PR.X<\/td>\nFixedReset<\/td>\n27,125<\/td>\nTD crossed 25,000 at 27.15.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.10
\nBid-YTW : 3.13 %<\/td>\n<\/tr>\n
ENB.PR.A<\/td>\nPerpetual-Premium<\/td>\n26,185<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-09-21
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.39
\nBid-YTW : -14.62 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n24,575<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.82
\nBid-YTW : 3.19 %<\/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
IAG.PR.C<\/td>\nFixedReset<\/td>\nQuote: 26.76 – 27.30
\nSpot Rate : 0.5400
\nAverage : 0.3350<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.76
\nBid-YTW : 3.49 %<\/td>\n<\/tr>\n

IAG.PR.F<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.86 – 26.45
\nSpot Rate : 0.5900
\nAverage : 0.4276<\/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 : 5.61 %<\/td>\n<\/tr>\n

TRI.PR.B<\/td>\nFloater<\/td>\nQuote: 21.80 – 22.50
\nSpot Rate : 0.7000
\nAverage : 0.5615<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-22
\nMaturity Price : 21.54
\nEvaluated at bid price : 21.80
\nBid-YTW : 2.40 %<\/td>\n<\/tr>\n

BAM.PR.X<\/td>\nFixedReset<\/td>\nQuote: 24.02 – 24.39
\nSpot Rate : 0.3700
\nAverage : 0.2681<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-22
\nMaturity Price : 22.74
\nEvaluated at bid price : 24.02
\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n

ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.51 – 22.99
\nSpot Rate : 0.4800
\nAverage : 0.3785<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-22
\nMaturity Price : 22.22
\nEvaluated at bid price : 22.51
\nBid-YTW : 5.95 %<\/td>\n<\/tr>\n

NA.PR.P<\/td>\nFixedReset<\/td>\nQuote: 27.35 – 27.64
\nSpot Rate : 0.2900
\nAverage : 0.2034<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.35
\nBid-YTW : 2.73 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Richard W Fisher, President and Chief Executive Officer of the Federal Reserve Bank of Dallas, gave a speech titled Connecting the dots \u2013 Texas employment growth; a dissenting vote; and the ugly truth (with reference …<\/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-16088","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16088","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=16088"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16088\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}