{"id":16784,"date":"2011-10-26T23:32:00","date_gmt":"2011-10-27T03:32:00","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=16784"},"modified":"2011-10-26T23:32:00","modified_gmt":"2011-10-27T03:32:00","slug":"october-26-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=16784","title":{"rendered":"October 26, 2011"},"content":{"rendered":"

Discussions about Greece are at a familiar stage – nobody wants to take the loss<\/a>:<\/p>\n

European Union talks with banks on bondholder losses as part of a second Greek bailout were deadlocked, an EU official said, dimming the chances for a comprehensive crisis-fighting strategy at tonight\u2019s summit.<\/p>\n

German Chancellor Angela Merkel doused expectations of a breakthrough, saying on the way into the meeting at EU headquarters in Brussels that \u201cwork\u2019s not been done yet, but everyone\u2019s coming here today with the goal to progress quite a bit.\u201d<\/p><\/blockquote>\n

Maybe the Chinese will take the loss<\/a>!<\/p>\n

French President Nicolas Sarkozy plans to call Chinese leader Hu Jintao tomorrow to discuss China contributing to a fund European leaders may set up to bolster its debt-crisis fight, said a person familiar with the matter.<\/p>\n

The investment vehicle was one of the options being considered by European leaders at a summit tonight to expand the reach of its 440 billion-euro ($612 billion) European Financial Stability Facility.<\/p>\n

Sarkozy\u2019s plea to his Chinese counterpart would come the day before a planned visit to Beijing by Klaus Regling, chief executive officer of the EFSF, to court investors.<\/p><\/blockquote>\n

Italy’s beginning to get serious<\/a>:<\/p>\n

Prime Minister Silvio Berlusconi vowed to raise 5 billion euros ($8 billion) annually from asset sales, increase the retirement age and relax labor laws to convince European leaders Italy can reach its budget goals.<\/p>\n

\u201cWe are aware of the need to present a comprehensive plan of reforms,\u201d Berlusconi said in the letter that he presented to European Union leaders at a summit in Brussels. \u201cWe are aware that our debt is too high and our growth too limited.\u201d The asset-sales plan will be completed by Nov. 30, he said.<\/p>\n

The letter of intent fell short of the comprehensive plan European leaders had sought. Bickering within his Cabinet this week over pensions and other issues prevented the premier from complying with EU requests to deliver a blueprint to boost growth and tackle the euro-region\u2019s second largest debt at the Brussels summit.<\/p><\/blockquote>\n

Just as this update goes to the server, there is some breaking news<\/a>:<\/p>\n

French President Nicolas Sarkozy estimates the euro region\u2019s bailout fund will be worth $1.4 trillion after European governments agreed on steps to leverage existing guarantees by as much as five times. He spoke to reporters after a summit of European leaders in Brussels.<\/p><\/blockquote>\n

There are also rumours of a 50% write-down on Greek debt. And, at last minute before I wrap this up<\/a>:<\/p>\n

European leaders persuaded bondholders to take 50 percent losses on Greek debt and boosted the firepower of the rescue fund to 1 trillion euros ($1.4 trillion), responding to global pressure to step up the fight against the financial crisis.<\/p>\n

Ten hours of brinkmanship at the second crisis summit in four days delivered measures that the euro area\u2019s stewards said point the way out of the debt quagmire, even if key details are lacking. Last-ditch talks with bank representatives led to the debt-relief accord, in an effort to quarantine Greece and prevent speculation against Italy and France from ravaging the euro zone and wreaking global economic havoc.<\/p><\/blockquote>\n

SJR.PR.A was confirmed at Pfd-3 by DBRS<\/a>:<\/p>\n

DBRS has today confirmed its ratings on Shaw Communications Inc. (Shaw or the Company) at BBB and Pfd-3.
…<\/b>
In terms of Shaw\u2019s financial risk profile, while the acquisition of a restructured Canwest in early F2011 weakened its credit metrics initially, they returned to reasonable levels by the end of F2011, with gross debt-to-EBITDA at 2.67 times, EBITDA interest coverage above 6.0 times and cash flow-to-debt at 0.25 times. This, along with growth in cash flow from operations (expected to cover higher capex and dividend levels in F2012 with free cash flow generation (including on a fully-taxed basis)), should give Shaw the flexibility to make small to medium-sized investments and\/or to reduce its leverage to strengthen its financial risk profile within its current rating category.<\/p>\n

DBRS believes that Shaw\u2019s business risk profile remains manageable, even though the Company is now battling telcos that are able to compete service-for-service in fixed-line, in addition to offering wireless services. It would likely take a material deterioration in Shaw\u2019s competitive position for DBRS to alter this view. Also, while Shaw retains a financial risk profile that is adequate for the ratings, the Company is currently weaker on this front than some of its peers. Any material changes in Shaw\u2019s business or financial risk profile could result in pressure on the ratings.<\/p><\/blockquote>\n

LB.PR.D and LB.PR.E were confirmed by DBRS at Pfd-3(low)<\/a>:<\/p>\n

DBRS has today confirmed all ratings of Laurentian Bank of Canada (Laurentian or the Bank), including the deposits and senior debt at BBB (high) and the short-term instruments at R-1 (low); all trends remain Stable.<\/p>\n

The ratings are supported by Laurentian\u2019s overall business risk profile, which is conservative relative to the larger banks in Canada, with a focus on retail lending funded by retail deposits and an absence of significant involvement in higher-risk wholesale or international strategies. Laurentian\u2019s underlying asset quality profile has strengthened over the past several years as the loan mix shifted to a greater proportion of secured lending. Limitations on the ratings include a modest return on equity and high cost structure. Regional concentration in Qu\u00e9bec, while still a potential rating challenge, was beneficial through the downturn as the economic performance of the province was resilient.<\/p><\/blockquote>\n

CZP issues got hammered again today, continuing their fall after DBRS warned of a possible 3-notch downgrade<\/a> and S&P was less explicit, but just as gloomy.<\/p>\n

\n\n\n\n\n\n
CZP Issues
2011-10-25 to 2011-10-26<\/td>\n<\/tr>\n
Ticker<\/td>\nQuote
10\/25<\/td>\n		Quote
10\/26<\/td>\n		Bid YTW
10\/26<\/td>\n		YTW
Scenario
10\/26<\/td>\n		Performance
10\/25 – 10\/26
(bid\/bid)<\/td>\n<\/tr>\n
CZP.PR.A<\/td>\n15.31-80<\/td>\n13.50-95<\/td>\n9.15%<\/td>\nLimit Maturity<\/td>\n-11.82%<\/td>\n<\/tr>\n
CZP.PR.B<\/td>\n20.10-74<\/td>\n19.00-40<\/td>\n8.16%<\/td>\nLimit Maturity<\/td>\n-5.47%<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

It was a modestly good day for the Canadian preferred share market, with PerpetualDiscounts up 5bp, FixedResets gaining 2bp and DeemedRetractibles winning 8bp. Volatility was good and all to the upside. Volume was heavy – Nesbitt wrote a very nice ticket for CM.PR.D!<\/p>\n

PerpetualDiscounts now yield 5.44%, equivalent to 7.07% interest at the standard equivalency factor of 1.3x. Long corporates<\/a> are now at 5.0% (OK, maybe a little over), so the pre-tax interest-equivalent spread is now about 205bp, unchanged from the figure reported October 19<\/a>.<\/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>\n0.4020 %<\/td>\n2,053.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.4020 %<\/td>\n3,088.6<\/td>\n<\/tr>\n
Floater<\/td>\n3.50 %<\/td>\n3.50 %<\/td>\n159,411<\/td>\n18.51<\/td>\n2<\/td>\n0.4020 %<\/td>\n2,217.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.84 %<\/td>\n2.70 %<\/td>\n65,494<\/td>\n1.53<\/td>\n8<\/td>\n-0.0291 %<\/td>\n2,455.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.36 %<\/td>\n1.95 %<\/td>\n58,492<\/td>\n0.34<\/td>\n4<\/td>\n0.3118 %<\/td>\n2,500.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0291 %<\/td>\n2,245.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.68 %<\/td>\n3.60 %<\/td>\n108,366<\/td>\n0.50<\/td>\n13<\/td>\n0.1759 %<\/td>\n2,130.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.34 %<\/td>\n5.44 %<\/td>\n108,880<\/td>\n14.74<\/td>\n17<\/td>\n0.0491 %<\/td>\n2,258.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.15 %<\/td>\n3.20 %<\/td>\n203,544<\/td>\n2.45<\/td>\n61<\/td>\n0.0239 %<\/td>\n2,331.3<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.06 %<\/td>\n4.40 %<\/td>\n214,740<\/td>\n4.13<\/td>\n46<\/td>\n0.0814 %<\/td>\n2,205.1<\/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>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-10-26
\nMaturity Price : 22.88
\nEvaluated at bid price : 24.31
\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n
BNA.PR.E<\/td>\nSplitShare<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2017-12-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.30
\nBid-YTW : 6.38 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.48
\nBid-YTW : 3.54 %<\/td>\n<\/tr>\n
GWO.PR.L<\/td>\nDeemed-Retractible<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.30
\nBid-YTW : 5.59 %<\/td>\n<\/tr>\n
IGM.PR.B<\/td>\nPerpetual-Premium<\/td>\n1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.74
\nBid-YTW : 5.42 %<\/td>\n<\/tr>\n
IAG.PR.F<\/td>\nDeemed-Retractible<\/td>\n1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.20
\nBid-YTW : 5.38 %<\/td>\n<\/tr>\n
TD.PR.P<\/td>\nDeemed-Retractible<\/td>\n1.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-11-01
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.56
\nBid-YTW : 2.82 %<\/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
CM.PR.D<\/td>\nPerpetual-Premium<\/td>\n943,623<\/td>\nNesbitt crossed blocks of 811,000 and 100,000, both at 25.00. Nice tickets!
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.99
\nBid-YTW : 5.66 %<\/td>\n<\/tr>\n
RY.PR.E<\/td>\nDeemed-Retractible<\/td>\n104,826<\/td>\nNesbitt crossed 97,300 at 25.10.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.95
\nBid-YTW : 4.49 %<\/td>\n<\/tr>\n
TD.PR.G<\/td>\nFixedReset<\/td>\n87,851<\/td>\nDesjardins crossed 21,100 at 27.05; RBC crossed blocks of 15,000 shares, 10,000 and 35,000, all at 27.07.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.03
\nBid-YTW : 2.85 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n83,303<\/td>\nScotia crossed blocks of 25,000 and 50,000, both at 27.10.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.92
\nBid-YTW : 3.23 %<\/td>\n<\/tr>\n
BNS.PR.O<\/td>\nDeemed-Retractible<\/td>\n60,301<\/td>\nNesbitt crossed 50,000 at 26.45.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-04-26
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.45
\nBid-YTW : 4.14 %<\/td>\n<\/tr>\n
MFC.PR.A<\/td>\nOpRet<\/td>\n54,011<\/td>\nScotia bought 22.20 from anonymous at 25.00, then crossed 20,000 at 25.25.
\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2015-12-18
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.20
\nBid-YTW : 4.02 %<\/td>\n<\/tr>\n
There were 44 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
GWO.PR.J<\/td>\nFixedReset<\/td>\nQuote: 26.23 – 26.76
\nSpot Rate : 0.5300
\nAverage : 0.3443<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.23
\nBid-YTW : 3.86 %<\/td>\n<\/tr>\n

TCA.PR.X<\/td>\nPerpetual-Premium<\/td>\nQuote: 52.12 – 52.58
\nSpot Rate : 0.4600
\nAverage : 0.3211<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-10-15
\nMaturity Price : 50.00
\nEvaluated at bid price : 52.12
\nBid-YTW : 3.34 %<\/td>\n<\/tr>\n

GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.45 – 25.75
\nSpot Rate : 0.3000
\nAverage : 0.2012<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-03-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : 5.61 %<\/td>\n<\/tr>\n

NA.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.62 – 26.95
\nSpot Rate : 0.3300
\nAverage : 0.2340<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-05-15
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.62
\nBid-YTW : 3.97 %<\/td>\n<\/tr>\n

BMO.PR.H<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.68 – 25.92
\nSpot Rate : 0.2400
\nAverage : 0.1510<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.68
\nBid-YTW : 3.90 %<\/td>\n<\/tr>\n

MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 22.11 – 22.34
\nSpot Rate : 0.2300
\nAverage : 0.1568<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.11
\nBid-YTW : 6.29 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Discussions about Greece are at a familiar stage – nobody wants to take the loss: European Union talks with banks on bondholder losses as part of a second Greek bailout were deadlocked, an EU official …<\/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-16784","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16784","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=16784"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16784\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}