{"id":16128,"date":"2011-08-25T22:05:12","date_gmt":"2011-08-26T02:05:12","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=16128"},"modified":"2011-08-25T22:05:12","modified_gmt":"2011-08-26T02:05:12","slug":"august-25-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=16128","title":{"rendered":"August 25, 2011"},"content":{"rendered":"

Only four months until Christmas!<\/p>\n

Oh, those naughty European speculators! No matter how often they’re told everything is fine, they keep panicking<\/a>!<\/p>\n

Stocks retreated as panic selling pushed Germany\u2019s DAX Index (DAX) down 4 percent in 15 minutes amid speculation that Germany\u2019s public finances are deteriorating and that regulators may impose restrictions on the market. The dollar and Treasuries advanced, while oil fell and Bank of America Corp. shares surged.
…<\/b>
There was concern Germany\u2019s debt rating would be reduced, said Walter Todd, the chief investment officer at Greenwood Capital Inc. in Greenwood, South Carolina. CNBC reported that S&P, Moody\u2019s Investors Service and Fitch Ratings all affirmed their ratings.<\/p>\n

Investors also speculated that Germany would impose a short-selling ban, said Ryan Larson, head of U.S. equity trading at RBC Global Asset Management Inc. in Chicago. German regulator BaFin has \u201call the regulation in place\u201d regarding short selling in equities, press officer Dominika Kula said, in response to a question on whether the agency may ban the practice.<\/p><\/blockquote>\n

I propose that anybody wishing to sell a stock should submit a form in triplicate to the regulators, who will ensure that the decision has been made in accordance with the required process. That’ll fix those pesky speculators!
\nOn cue<\/a>:<\/p>\n

French, Italian and Spanish stock- market regulators extended temporary bans on short selling introduced this month in a bid to stem market volatility.<\/p>\n

Spain and Italy extended their bans through Sept. 30, regulators in both countries said in a statement. France\u2019s Autorite des Marches Financiers said its ban could last as long as Nov. 11. The \u201cobjective\u201d is to lift the temporary ban on short-selling of financial stocks \u201cas soon as market conditions allow,\u201d Spain\u2019s CNMV market regulator said.<\/p><\/blockquote>\n

YLO took a break on its MTN buyback<\/a> today, with no filings. However, it appears that they continued buying YLO.PR.B, YLO.PR.C and YLO.PR.D on the exchange through their Normal Course Issuer Bid.<\/p>\n

DBRS confirmed Toronto at AA<\/a>:<\/p>\n

DBRS has today confirmed the ratings of the debentures issued by the City of Toronto (the City) at AA. The trends remain Stable, supported by the City\u2019s relatively wealthy tax base and strong resolve in restraining spending and finding permanent solutions to eliminate the budget gap. However, debt remains under considerable pressure as a result of heavy capital spending, which is eroding financial flexibility and could affect the City\u2019s rating if increases are not contained.
…<\/b>
DBRS commends management for the thorough review underway, which is probably the most extensive cost-containment effort undertaken by the City in recent memory. However, it remains unclear whether Council will approve the full range of measures necessary to protect fiscal sustainability. Significant concerns also remain with respect to the rising tax-supported debt burden, which stood at a moderate $964 per capita at December 31, 2010, but is set to grow by more than 50% to approximately $1,550 per capita by 2014 due to capital investments. While still manageable, the projected debt peak is up notably from the forecasts available at the time of last year\u2019s rating review and is expected to consume a significant portion of the remaining flexibility within the current rating category. Since the capital plan excludes more than $8 billion in transit needs, the risk of further sizeable revisions to debt projections and their potentially adverse effect on the rating remains material.<\/p><\/blockquote>\n

I received notice today that a neighbor is seeking a zoning variance. It would appear that supporting documents are not filed electronically and are not available on the Internet. I have get to the York Civic Centre and ask a bureaucrat if I can look at them. Hymas Bonehead Rating Service confirms Toronto at AAAA++.<\/p>\n

The Canadian preferred share market pulled back today, with PerpetualDiscounts down 13bp, FixedResets off 10bp and DeemedRetractibles losing 26bp. Good volatility – albeit highly skewed to the negatives! – and volume was merely average, although several issues traded more than 100,000 shares.<\/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-0.5241 %<\/td>\n2,137.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.5241 %<\/td>\n3,214.0<\/td>\n<\/tr>\n
Floater<\/td>\n2.84 %<\/td>\n2.54 %<\/td>\n27,520<\/td>\n20.96<\/td>\n4<\/td>\n-0.5241 %<\/td>\n2,307.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.89 %<\/td>\n2.09 %<\/td>\n58,766<\/td>\n0.58<\/td>\n9<\/td>\n0.1034 %<\/td>\n2,443.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.38 %<\/td>\n0.95 %<\/td>\n60,686<\/td>\n0.51<\/td>\n4<\/td>\n-0.2902 %<\/td>\n2,493.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1034 %<\/td>\n2,234.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.67 %<\/td>\n5.02 %<\/td>\n128,728<\/td>\n1.14<\/td>\n14<\/td>\n0.0565 %<\/td>\n2,103.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.35 %<\/td>\n5.46 %<\/td>\n99,653<\/td>\n14.63<\/td>\n16<\/td>\n-0.1280 %<\/td>\n2,232.1<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.14 %<\/td>\n3.17 %<\/td>\n208,063<\/td>\n2.68<\/td>\n60<\/td>\n-0.1009 %<\/td>\n2,319.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.07 %<\/td>\n4.70 %<\/td>\n261,784<\/td>\n7.96<\/td>\n46<\/td>\n-0.2614 %<\/td>\n2,182.1<\/td>\n<\/tr>\n<\/table>\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
IAG.PR.F<\/td>\nDeemed-Retractible<\/td>\n-2.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-03-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.26
\nBid-YTW : 5.68 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n-1.43 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-25
\nMaturity Price : 22.79
\nEvaluated at bid price : 24.10
\nBid-YTW : 4.10 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n-1.38 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-25
\nMaturity Price : 15.70
\nEvaluated at bid price : 15.70
\nBid-YTW : 3.37 %<\/td>\n<\/tr>\n
BNA.PR.E<\/td>\nSplitShare<\/td>\n-1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2017-12-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.70
\nBid-YTW : 6.67 %<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n-1.24 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-25
\nMaturity Price : 23.62
\nEvaluated at bid price : 23.90
\nBid-YTW : 5.29 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nDeemed-Retractible<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.68
\nBid-YTW : 6.17 %<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nDeemed-Retractible<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.75
\nBid-YTW : 6.19 %<\/td>\n<\/tr>\n
FTS.PR.G<\/td>\nFixedReset<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-09-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.10
\nBid-YTW : 2.96 %<\/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.C<\/td>\nDeemed-Retractible<\/td>\n225,954<\/td>\nNesbitt crossed 108,200 at 21.80; Desjardins crossed 101,500 at the same price.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.79
\nBid-YTW : 6.18 %<\/td>\n<\/tr>\n
PWF.PR.H<\/td>\nPerpetual-Premium<\/td>\n124,575<\/td>\nRBC crossed blocks of 70,000 and 21,800 at 25.05; then another block of 21,800 at 25.06.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-25
\nMaturity Price : 24.77
\nEvaluated at bid price : 25.05
\nBid-YTW : 5.79 %<\/td>\n<\/tr>\n
CM.PR.J<\/td>\nDeemed-Retractible<\/td>\n113,495<\/td>\nTD crossed blocks of 49,600 and 50,000, both at 25.04.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.96
\nBid-YTW : 4.58 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n112,951<\/td>\nNesbitt crossed 100,000 at 26.10.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.05
\nBid-YTW : 3.26 %<\/td>\n<\/tr>\n
BNS.PR.L<\/td>\nDeemed-Retractible<\/td>\n111,512<\/td>\nNesbitt crossed 50,000 at 25.00; Desjardins crossed 50,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.83
\nBid-YTW : 4.65 %<\/td>\n<\/tr>\n
FTS.PR.E<\/td>\nOpRet<\/td>\n75,300<\/td>\nNesbitt crossed blocks of 50,000 and 18,000, both at 26.90.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.92
\nBid-YTW : 2.09 %<\/td>\n<\/tr>\n
There were 29 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
FTS.PR.G<\/td>\nFixedReset<\/td>\nQuote: 26.10 – 27.18
\nSpot Rate : 1.0800
\nAverage : 0.6021<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-09-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.10
\nBid-YTW : 2.96 %<\/td>\n<\/tr>\n

IAG.PR.F<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.26 – 26.00
\nSpot Rate : 0.7400
\nAverage : 0.5124<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-03-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.26
\nBid-YTW : 5.68 %<\/td>\n<\/tr>\n

POW.PR.D<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.90 – 24.34
\nSpot Rate : 0.4400
\nAverage : 0.2816<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-25
\nMaturity Price : 23.62
\nEvaluated at bid price : 23.90
\nBid-YTW : 5.29 %<\/td>\n<\/tr>\n

BAM.PR.J<\/td>\nOpRet<\/td>\nQuote: 25.89 – 26.44
\nSpot Rate : 0.5500
\nAverage : 0.4013<\/p>\n

YTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2018-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.89
\nBid-YTW : 4.94 %<\/td>\n<\/tr>\n

RY.PR.Y<\/td>\nFixedReset<\/td>\nQuote: 27.15 – 27.48
\nSpot Rate : 0.3300
\nAverage : 0.2135<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-11-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.15
\nBid-YTW : 3.32 %<\/td>\n<\/tr>\n

CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.32 – 23.99
\nSpot Rate : 0.6700
\nAverage : 0.5587<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-08-25
\nMaturity Price : 22.90
\nEvaluated at bid price : 23.32
\nBid-YTW : 4.93 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Only four months until Christmas! Oh, those naughty European speculators! No matter how often they’re told everything is fine, they keep panicking! Stocks retreated as panic selling pushed Germany\u2019s DAX Index (DAX) down 4 percent …<\/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-16128","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16128","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=16128"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16128\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}