{"id":16892,"date":"2011-11-03T23:05:36","date_gmt":"2011-11-04T03:05:36","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=16892"},"modified":"2011-11-03T23:05:36","modified_gmt":"2011-11-04T03:05:36","slug":"november-3-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=16892","title":{"rendered":"November 3, 2011"},"content":{"rendered":"

There was possible insider trading in MF Global bonds<\/a>:<\/p>\n

The U.S. Securities and Exchange Commission is reviewing trades in MF Global Holdings Ltd. (MF) convertible bonds to determine whether some investors sold the debt based on confidential information before the firm\u2019s demise, according to two people with direct knowledge of the matter.<\/p>\n

Investigators are in part focusing on trades that were made ahead of announcements that the firm\u2019s credit rating had been downgraded, the people said, speaking on condition of anonymity because the matter isn\u2019t public.<\/p><\/blockquote>\n

It’s not clear whether or not a Greek referendum is planned<\/a>:<\/p>\n

Just hours after saying Greeks need to decide on whether their future is in the euro, Papandreou said the country belongs in the currency bloc. He welcomed support shown by the main opposition New Democracy party for last week\u2019s rescue pact agreed with European Union leaders in Brussels. Finance Minister Evangelos Venizelos said Greece won\u2019t hold a referendum.<\/p>\n

\u201cWe had a dilemma: either real consensus or referendum,\u201d Papandreou told ministers, according to an e-mailed transcript of his statements. \u201cAs I said yesterday, coming out of the meeting, if there were consensus we wouldn\u2019t need a referendum. I said if the opposition comes to the table to agree on the loan, there\u2019s no need for a referendum.\u201d<\/p><\/blockquote>\n

Some say no<\/a>:<\/p>\n

Greek Finance Minister Evangelos Venizelos, speaking to party lawmakers in Parliament in Athens today, said the nation won\u2019t hold a referendum. Just hours after saying Greeks need to decide on whether their future is in the euro, Papandreou said the country belongs in the currency bloc.<\/p>\n

\u201cPapandreou absolutely blinked in this game of chicken,\u201d Michael Holland, chairman and founder of New York-based Holland & Co., said in a telephone interview. His firm oversees more than $4 billion. \u201cThe interesting thing is that it took him so long to blink. The world\u2019s markets told him he was wrong and he still persisted for an extended period of time. It was insane.\u201d<\/p><\/blockquote>\n

It’s not clear to me whether the world’s markets get any say in the matter. The question is: can he simultaneously meet the EU requirements and reduce the incidence of riots and national strikes to a dull roar? I suggest he’s between a rock and a hard place; and if the Greek government pledges to meet the demands, the Greek population will make it impossible. Remember, we’re not talking about some professional snivellers snivelling about shooting the hippo<\/a> – we’re talking about a dramatic and broadly based reduction in living standards.<\/p>\n

Speaking of snivelling, we may be in for a new round of the HFT debate<\/a>:<\/p>\n

Estimates vary, but some traders say that as much as 35 per cent of volume on Canadian stock markets is now generated by high frequency trading firms that are jumping in and out of markets with buy and sell orders in hopes of profiting from tiny inefficiencies. In the U.S., some estimates place the amount of volume generated by HFTs at 60 per cent of all trading.
…<\/b>
Canadian regulators are grappling with what to do about dark pools. Who should be allowed to trade on them, and on what terms? While dark pools do allow money managers to avoid high frequency traders, they can also sap volume from stock markets, eroding their value as a place for others to trade. Too many dark pools is most definitely not a good thing. In the U.S., so much trading takes place away from stock markets that what\u2019s left on the public markets like NYSE and Nasdaq is \u201cthe exhaust,\u201d as [LiquidNet CEO] Mr. [Seth] Merrin puts it.
…<\/b>
The implication is that dark pools shouldn\u2019t allow small orders, and shouldn\u2019t be just ways for brokerages to avoid fees on their order flow. They should be reserved truly for orders that can\u2019t be efficiently traded in light markets.<\/p><\/blockquote>\n

That’s right – make sure that retail doesn’t get any cut of the efficiencies! That’s what pays regulators’ salaries!<\/p>\n

S&P confirmed MFC<\/a>:<\/p>\n

\n
    \n
  • Manulife Financial Corp. reported third-quarter net losses driven by equity-market and interest rate declines and net charges from its annual review of actuarial methods and assumptions.\n
  • We are affirming our ‘A-‘ long-term counterparty credit rating on Manulife and our ratings on its subsidiaries.The company’s Canadian fair-value accounting framework is considerably more volatile, for comparable risks, than the relatively
    \nbook-value-focused U.S. accounting framework.<\/p>\n
  • We expect Manulife to sustain its extensive global competitive advantages and its favorable capitalization.<\/ul>\n<\/blockquote>\n

    TMX DataLinx seems to have resolved their networking problems – the quotes listed today are official.<\/p>\n

    It was a day of uneven strength for the Canadian preferred share market, with PerpetualDiscounts winning 40bp, FixedResets up 6bp and DeemedRetractibles gaining 18bp. There was a long list of Performance Highlights, heavily skewed towards winners. Volume was quite good.<\/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>\n1.5707 %<\/td>\n2,126.9<\/td>\n<\/tr>\n
    FixedFloater<\/td>\n4.86 %<\/td>\n4.57 %<\/td>\n24,128<\/td>\n17.22<\/td>\n1<\/td>\n0.5141 %<\/td>\n3,171.3<\/td>\n<\/tr>\n
    Floater<\/td>\n3.38 %<\/td>\n3.40 %<\/td>\n162,561<\/td>\n18.73<\/td>\n2<\/td>\n1.5707 %<\/td>\n2,296.5<\/td>\n<\/tr>\n
    OpRet<\/td>\n4.94 %<\/td>\n0.66 %<\/td>\n50,622<\/td>\n1.52<\/td>\n7<\/td>\n0.4236 %<\/td>\n2,478.1<\/td>\n<\/tr>\n
    SplitShare<\/td>\n5.75 %<\/td>\n6.24 %<\/td>\n60,720<\/td>\n5.16<\/td>\n3<\/td>\n0.4350 %<\/td>\n2,518.2<\/td>\n<\/tr>\n
    Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.4236 %<\/td>\n2,266.0<\/td>\n<\/tr>\n
    Perpetual-Premium<\/td>\n5.56 %<\/td>\n-0.21 %<\/td>\n106,268<\/td>\n0.10<\/td>\n13<\/td>\n0.2778 %<\/td>\n2,150.2<\/td>\n<\/tr>\n
    Perpetual-Discount<\/td>\n5.34 %<\/td>\n5.43 %<\/td>\n108,907<\/td>\n14.73<\/td>\n17<\/td>\n0.4003 %<\/td>\n2,280.3<\/td>\n<\/tr>\n
    FixedReset<\/td>\n5.12 %<\/td>\n2.95 %<\/td>\n209,051<\/td>\n2.45<\/td>\n62<\/td>\n0.0591 %<\/td>\n2,346.6<\/td>\n<\/tr>\n
    Deemed-Retractible<\/td>\n5.04 %<\/td>\n4.40 %<\/td>\n216,707<\/td>\n3.91<\/td>\n46<\/td>\n0.1763 %<\/td>\n2,217.2<\/td>\n<\/tr>\n<\/table>\n\n\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
    SLF.PR.H<\/td>\nFixedReset<\/td>\n-2.03 %<\/td>\nYTW SCENARIO
    \nMaturity Type : Hard Maturity
    \nMaturity Date\t: 2022-01-31
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 24.17
    \nBid-YTW : 4.39 %<\/td>\n<\/tr>\n
    CU.PR.C<\/td>\nFixedReset<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
    \nMaturity Type : Call
    \nMaturity Date\t: 2017-06-01
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 25.45
    \nBid-YTW : 3.75 %<\/td>\n<\/tr>\n
    ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.03 %<\/td>\nYTW SCENARIO
    \nMaturity Type : Limit Maturity
    \nMaturity Date\t: 2041-11-03
    \nMaturity Price : 22.30
    \nEvaluated at bid price : 22.58
    \nBid-YTW : 5.91 %<\/td>\n<\/tr>\n
    BAM.PR.B<\/td>\nFloater<\/td>\n1.04 %<\/td>\nYTW SCENARIO
    \nMaturity Type : Limit Maturity
    \nMaturity Date\t: 2041-11-03
    \nMaturity Price : 15.54
    \nEvaluated at bid price : 15.54
    \nBid-YTW : 3.40 %<\/td>\n<\/tr>\n
    CM.PR.P<\/td>\nDeemed-Retractible<\/td>\n1.09 %<\/td>\nYTW SCENARIO
    \nMaturity Type : Call
    \nMaturity Date\t: 2012-10-29
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 25.88
    \nBid-YTW : 1.93 %<\/td>\n<\/tr>\n
    BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n1.11 %<\/td>\nYTW SCENARIO
    \nMaturity Type : Limit Maturity
    \nMaturity Date\t: 2041-11-03
    \nMaturity Price : 22.46
    \nEvaluated at bid price : 22.81
    \nBid-YTW : 5.25 %<\/td>\n<\/tr>\n
    GWO.PR.L<\/td>\nDeemed-Retractible<\/td>\n1.19 %<\/td>\nYTW SCENARIO
    \nMaturity Type : Hard Maturity
    \nMaturity Date\t: 2022-01-31
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 25.50
    \nBid-YTW : 5.50 %<\/td>\n<\/tr>\n
    GWO.PR.F<\/td>\nDeemed-Retractible<\/td>\n1.19 %<\/td>\nYTW SCENARIO
    \nMaturity Type : Call
    \nMaturity Date\t: 2011-12-03
    \nMaturity Price : 25.25
    \nEvaluated at bid price : 25.46
    \nBid-YTW : 2.33 %<\/td>\n<\/tr>\n
    GWO.PR.G<\/td>\nDeemed-Retractible<\/td>\n1.21 %<\/td>\nYTW SCENARIO
    \nMaturity Type : Hard Maturity
    \nMaturity Date\t: 2022-01-31
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 25.00
    \nBid-YTW : 5.30 %<\/td>\n<\/tr>\n
    PWF.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.71 %<\/td>\nYTW SCENARIO
    \nMaturity Type : Limit Maturity
    \nMaturity Date\t: 2041-11-03
    \nMaturity Price : 24.65
    \nEvaluated at bid price : 24.91
    \nBid-YTW : 5.29 %<\/td>\n<\/tr>\n
    FTS.PR.E<\/td>\nOpRet<\/td>\n1.77 %<\/td>\nYTW SCENARIO
    \nMaturity Type : Call
    \nMaturity Date\t: 2013-06-01
    \nMaturity Price : 25.75
    \nEvaluated at bid price : 27.62
    \nBid-YTW : 0.66 %<\/td>\n<\/tr>\n
    BAM.PR.K<\/td>\nFloater<\/td>\n2.11 %<\/td>\nYTW SCENARIO
    \nMaturity Type : Limit Maturity
    \nMaturity Date\t: 2041-11-03
    \nMaturity Price : 15.50
    \nEvaluated at bid price : 15.50
    \nBid-YTW : 3.41 %<\/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
    BAM.PR.Z<\/td>\nFixedReset<\/td>\n221,540<\/td>\nRecent new issue<\/a>.
    \nYTW SCENARIO
    \nMaturity Type : Limit Maturity
    \nMaturity Date\t: 2041-11-03
    \nMaturity Price : 23.09
    \nEvaluated at bid price : 24.95
    \nBid-YTW : 4.58 %<\/td>\n<\/tr>\n
    IAG.PR.C<\/td>\nFixedReset<\/td>\n120,532<\/td>\nNesbit sold blocks of 24,000 and 15,000 to RBC, both at 26.50. Desjardins crossed 20,000 at the same price. RBC crossed blocks of 10,000 and 25,000 at the same price again.
    \nYTW SCENARIO
    \nMaturity Type : Call
    \nMaturity Date\t: 2013-12-31
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 26.50
    \nBid-YTW : 3.59 %<\/td>\n<\/tr>\n
    CM.PR.E<\/td>\nPerpetual-Discount<\/td>\n107,455<\/td>\nDesjardins crossed 62,600 at 25.00.
    \nYTW SCENARIO
    \nMaturity Type : Limit Maturity
    \nMaturity Date\t: 2041-11-03
    \nMaturity Price : 24.69
    \nEvaluated at bid price : 25.00
    \nBid-YTW : 5.63 %<\/td>\n<\/tr>\n
    MFC.PR.F<\/td>\nFixedReset<\/td>\n107,300<\/td>\nRBC crossed 80,300 at 24.50.
    \nYTW SCENARIO
    \nMaturity Type : Hard Maturity
    \nMaturity Date\t: 2022-01-31
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 24.36
    \nBid-YTW : 4.00 %<\/td>\n<\/tr>\n
    BMO.PR.Q<\/td>\nFixedReset<\/td>\n92,435<\/td>\nNesbitt crossed 75,000 at 25.60.
    \nYTW SCENARIO
    \nMaturity Type : Hard Maturity
    \nMaturity Date\t: 2022-01-31
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 25.52
    \nBid-YTW : 3.09 %<\/td>\n<\/tr>\n
    ENB.PR.B<\/td>\nFixedReset<\/td>\n62,250<\/td>\nYTW SCENARIO
    \nMaturity Type : Call
    \nMaturity Date\t: 2017-06-01
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 25.65
    \nBid-YTW : 3.57 %<\/td>\n<\/tr>\n
    There were 39 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
    HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.07 – 25.49
    \nSpot Rate : 0.4200
    \nAverage : 0.2497<\/p>\n

    YTW SCENARIO
    \nMaturity Type : Hard Maturity
    \nMaturity Date\t: 2022-01-31
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 25.07
    \nBid-YTW : 5.05 %<\/td>\n<\/tr>\n

    BAM.PR.H<\/td>\nOpRet<\/td>\nQuote: 25.40 – 25.82
    \nSpot Rate : 0.4200
    \nAverage : 0.2592<\/p>\n

    YTW SCENARIO
    \nMaturity Type : Call
    \nMaturity Date\t: 2011-12-03
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 25.40
    \nBid-YTW : -7.00 %<\/td>\n<\/tr>\n

    MFC.PR.F<\/td>\nFixedReset<\/td>\nQuote: 24.36 – 24.74
    \nSpot Rate : 0.3800
    \nAverage : 0.2466<\/p>\n

    YTW SCENARIO
    \nMaturity Type : Hard Maturity
    \nMaturity Date\t: 2022-01-31
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 24.36
    \nBid-YTW : 4.00 %<\/td>\n<\/tr>\n

    SLF.PR.H<\/td>\nFixedReset<\/td>\nQuote: 24.17 – 24.45
    \nSpot Rate : 0.2800
    \nAverage : 0.1702<\/p>\n

    YTW SCENARIO
    \nMaturity Type : Hard Maturity
    \nMaturity Date\t: 2022-01-31
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 24.17
    \nBid-YTW : 4.39 %<\/td>\n<\/tr>\n

    TD.PR.O<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.51 – 25.75
    \nSpot Rate : 0.2400
    \nAverage : 0.1650<\/p>\n

    YTW SCENARIO
    \nMaturity Type : Call
    \nMaturity Date\t: 2013-10-31
    \nMaturity Price : 25.25
    \nEvaluated at bid price : 25.51
    \nBid-YTW : 4.30 %<\/td>\n<\/tr>\n

    MFC.PR.D<\/td>\nFixedReset<\/td>\nQuote: 26.87 – 27.10
    \nSpot Rate : 0.2300
    \nAverage : 0.1624<\/p>\n

    YTW SCENARIO
    \nMaturity Type : Call
    \nMaturity Date\t: 2014-06-19
    \nMaturity Price : 25.00
    \nEvaluated at bid price : 26.87
    \nBid-YTW : 3.94 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

    There was possible insider trading in MF Global bonds: The U.S. Securities and Exchange Commission is reviewing trades in MF Global Holdings Ltd. (MF) convertible bonds to determine whether some investors sold the debt based …<\/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-16892","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16892","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=16892"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16892\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}