{"id":16530,"date":"2011-10-01T05:29:25","date_gmt":"2011-10-01T09:29:25","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=16530"},"modified":"2011-10-01T05:29:25","modified_gmt":"2011-10-01T09:29:25","slug":"september-30-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=16530","title":{"rendered":"September 30, 2011"},"content":{"rendered":"

Hurray for Solar Power<\/a>!<\/p>\n

The 15 mile-per-hour winds that buffeted northern Germany on July 24 caused the nation\u2019s 21,600 windmills to generate so much power that utilities such as EON AG and RWE AG (RWE) had to pay consumers to take it off the grid.<\/p>\n

Rather than an anomaly, the event marked the 31st hour this year when power companies lost money on their electricity in the intraday market because of a torrent of supply from wind and solar parks. The phenomenon was unheard of five years ago.<\/p>\n

With Europe\u2019s wind and solar farms set to triple by 2020, utilities investing in new coal and gas-fired power stations no longer face stable returns. As more renewables come on line, a gas plant owned by RWE or EON that may cost $1 billion to build will be stopped more often from running at full capacity. It may only pay for itself on days like Jan. 31, when clouds and still weather pushed an hour of power on the same-day market above 162 ($220) euros a megawatt-hour after dusk, in peak demand time.<\/p><\/blockquote>\n

Logically, increased volatility in the price of spot power will increase the price of spot power, as investors will seek a greater return on capital for their investment in power plants. Logically as well, volatile sources of power should be at the mercy of spot markets, while reliable sources of power get longer term assured contracts. Logic, however, is neither green nor precious, so this won’t happen.<\/p>\n

The Canadian preferred share market closed the month on a mixed note, with PerpetualDiscounts losing 10bp, FixedResets down 2bp and DeemedRetractibles gaining 11bp. Volatility was good. Volume was enlivened by the ENB.PR.B new issue<\/a> but was otherwise very light.<\/p>\n

PerpetualDiscounts now yield 5.35%, equivalent to 6.96% interest at the standard conversion factor of 1.3x. Long corporates<\/a> now yield about 4.8%, so the pre-tax interest equivalent spread is now about 215bp, basically unchanged from the September 21<\/a> figure.<\/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-0.2972 %<\/td>\n2,076.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2972 %<\/td>\n3,123.7<\/td>\n<\/tr>\n
Floater<\/td>\n3.13 %<\/td>\n3.45 %<\/td>\n53,684<\/td>\n18.62<\/td>\n3<\/td>\n-0.2972 %<\/td>\n2,242.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.85 %<\/td>\n2.74 %<\/td>\n58,655<\/td>\n1.60<\/td>\n8<\/td>\n0.0049 %<\/td>\n2,442.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.39 %<\/td>\n-0.47 %<\/td>\n52,795<\/td>\n0.41<\/td>\n4<\/td>\n0.1356 %<\/td>\n2,486.6<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0049 %<\/td>\n2,233.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.65 %<\/td>\n4.35 %<\/td>\n110,333<\/td>\n0.57<\/td>\n16<\/td>\n0.0642 %<\/td>\n2,120.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.34 %<\/td>\n5.35 %<\/td>\n116,028<\/td>\n14.81<\/td>\n14<\/td>\n-0.0966 %<\/td>\n2,238.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.15 %<\/td>\n3.32 %<\/td>\n210,865<\/td>\n2.65<\/td>\n61<\/td>\n-0.0191 %<\/td>\n2,320.3<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.07 %<\/td>\n4.58 %<\/td>\n233,319<\/td>\n5.88<\/td>\n46<\/td>\n0.1120 %<\/td>\n2,192.7<\/td>\n<\/tr>\n<\/table>\n\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
CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.82 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-30
\nMaturity Price : 22.76
\nEvaluated at bid price : 23.15
\nBid-YTW : 5.00 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n-1.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-30
\nMaturity Price : 23.28
\nEvaluated at bid price : 25.26
\nBid-YTW : 3.23 %<\/td>\n<\/tr>\n
BAM.PR.X<\/td>\nFixedReset<\/td>\n-1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-30
\nMaturity Price : 22.56
\nEvaluated at bid price : 23.61
\nBid-YTW : 3.72 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-30
\nMaturity Price : 22.11
\nEvaluated at bid price : 22.35
\nBid-YTW : 5.94 %<\/td>\n<\/tr>\n
HSB.PR.E<\/td>\nFixedReset<\/td>\n-1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.67
\nBid-YTW : 4.05 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/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 : 3.37 %<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nDeemed-Retractible<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.79
\nBid-YTW : 4.05 %<\/td>\n<\/tr>\n
SLF.PR.F<\/td>\nFixedReset<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.55
\nBid-YTW : 3.64 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.23 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-30
\nMaturity Price : 24.35
\nEvaluated at bid price : 24.65
\nBid-YTW : 5.01 %<\/td>\n<\/tr>\n
CIU.PR.B<\/td>\nFixedReset<\/td>\n3.40 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.40
\nBid-YTW : 3.16 %<\/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
ENB.PR.B<\/td>\nFixedReset<\/td>\n978,815<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-30
\nMaturity Price : 23.18
\nEvaluated at bid price : 25.19
\nBid-YTW : 3.68 %<\/td>\n<\/tr>\n
RY.PR.B<\/td>\nDeemed-Retractible<\/td>\n39,271<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.35
\nBid-YTW : 4.47 %<\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nDeemed-Retractible<\/td>\n39,257<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.50
\nBid-YTW : 6.10 %<\/td>\n<\/tr>\n
RY.PR.G<\/td>\nDeemed-Retractible<\/td>\n33,143<\/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 : 4.62 %<\/td>\n<\/tr>\n
TD.PR.N<\/td>\nOpRet<\/td>\n21,078<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-04-30
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.70
\nBid-YTW : 2.74 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n20,029<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-30
\nMaturity Price : 15.11
\nEvaluated at bid price : 15.11
\nBid-YTW : 3.47 %<\/td>\n<\/tr>\n
There were 17 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.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.15 – 24.15
\nSpot Rate : 1.0000
\nAverage : 0.7547<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-30
\nMaturity Price : 22.76
\nEvaluated at bid price : 23.15
\nBid-YTW : 5.00 %<\/td>\n<\/tr>\n

BAM.PR.X<\/td>\nFixedReset<\/td>\nQuote: 23.61 – 24.20
\nSpot Rate : 0.5900
\nAverage : 0.3783<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-30
\nMaturity Price : 22.56
\nEvaluated at bid price : 23.61
\nBid-YTW : 3.72 %<\/td>\n<\/tr>\n

ELF.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 20.95 – 21.75
\nSpot Rate : 0.8000
\nAverage : 0.6395<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-30
\nMaturity Price : 20.95
\nEvaluated at bid price : 20.95
\nBid-YTW : 5.69 %<\/td>\n<\/tr>\n

BNS.PR.O<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.40 – 26.82
\nSpot Rate : 0.4200
\nAverage : 0.2700<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-04-26
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.40
\nBid-YTW : 4.07 %<\/td>\n<\/tr>\n

TD.PR.P<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.16 – 26.56
\nSpot Rate : 0.4000
\nAverage : 0.2503<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-11-01
\nMaturity Price : 25.50
\nEvaluated at bid price : 26.16
\nBid-YTW : 4.56 %<\/td>\n<\/tr>\n

NA.PR.O<\/td>\nFixedReset<\/td>\nQuote: 27.31 – 27.80
\nSpot Rate : 0.4900
\nAverage : 0.3771<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.31
\nBid-YTW : 2.93 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Hurray for Solar Power! The 15 mile-per-hour winds that buffeted northern Germany on July 24 caused the nation\u2019s 21,600 windmills to generate so much power that utilities such as EON AG and RWE AG (RWE) …<\/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-16530","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16530","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=16530"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16530\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}