{"id":17105,"date":"2011-11-24T01:16:58","date_gmt":"2011-11-24T05:16:58","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=17105"},"modified":"2011-11-24T01:16:58","modified_gmt":"2011-11-24T05:16:58","slug":"november-23-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=17105","title":{"rendered":"November 23, 2011"},"content":{"rendered":"

Remember Iceland? The first domino? It’s through the worst of it, according to S&P<\/a>:<\/p>\n

Iceland had its credit rating outlook revised to stable from negative by Standard & Poor\u2019s Ratings Services, which cited economic growth in the country after two years of \u201csevere contraction.\u201d<\/p>\n

\u201cSignificant headway has been made in restructuring the private-sector balance sheet and we expect the process to be mostly completed by mid-2012,\u201d S&P said. The BBB-\/A-3 sovereign ratings were affirmed.<\/p><\/blockquote>\n

But other dominoes are toppling<\/a>:<\/p>\n

Germany failed to get bids for 35 percent of the 10-year bonds offered for sale today, propelling borrowing costs in Europe higher and the euro lower on concern the region\u2019s debt crisis is driving away investors.
…<\/b>
The yield on Germany\u2019s 2.25 percent securities maturing in September 2021 climbed 15 basis points to 2.06 percent at 4:46 p.m. London time.
…<\/b>
Belgian 10-year yields surged 41 basis points to 5.48 percent, after reaching 5.53 percent, the highest since November 2000. French 10-year bond yields climbed 16 basis points to 3.69 percent. The yield on Greek two-year notes jumped to more than 120 percent for the first time, before slipping back to 116.59 percent.<\/p>\n

Total bids at the auction of securities due in January 2022 amounted to 3.889 billion euros, out of a maximum target for the sale of 6 billion euros, according to Bundesbank data.<\/p>\n

Six of the last eight bond sales by Germany have been \u201ctechnically uncovered,\u201d with fewer bids than the maximum amount on offer, Norbert Aul, a rates strategist at RBC Capital Markets in London, said in an e-mailed note.<\/p>\n

Under the German auction system, the central bank retains securities at sales for the secondary market. In today\u2019s offering, the debt agency allotted 3.644 billion euros of the securities, leaving the Bundesbank to retain 2.356 billion euros, or 39 percent of the supply. That\u2019s the highest proportion of unsold debt at a 10-year sale since 1995, according to Bloomberg data. The securities were sold at an average yield of 1.98 percent. In the secondary market, the rate rose to 2.13 percent.<\/p><\/blockquote>\n

DBRS confirmed Westcoast at Pfd-2(low)<\/a>:<\/p>\n

DBRS has today confirmed the Unsecured Debentures, First Preferred Shares and Commercial Paper ratings of Westcoast Energy Inc. (Westcoast or the Company) at A (low), Pfd-2 (low) and R-1 (low), respectively, all with Stable trends.
…<\/b>
On a consolidated basis (excluding the intercompany transaction), the Company\u2019s external debt-to-capital ratio (52% at September 30, 2011; 54% at year-end 2008) and cash flow-to-external debt (19% for both the 12 months ending September 30, 2011, and in 2008) were relatively unchanged, while external fixed charges coverage (2.8 times, up from 2.5 times) improved marginally, partly due to contributions from expansions placed in service as noted above.<\/p>\n

On a non-consolidated basis, Westcoast\u2019s direct ownership of BCPFS fully supports its ability to meet its direct debt obligations. Its credit metrics are enhanced by cash dividends from several sources, the largest of which is Union Gas, which generate approximately 50% of the Company\u2019s non-consolidated cash flow. Excluding the intercompany transaction, Westcoast\u2019s non-consolidated external debt-to-capital ratio increased to 36% in 2010 from 32% in 2008, while cash flow-to-external debt (25%, up from 16%) and external fixed charges coverage (3.2 times, up from 2.2 times) improved significantly, mainly as a result of contributions from expansions noted above.<\/p><\/blockquote>\n

TMX DataLinx has collywobbles yet again, so this report is being prepared with Yahoo! data.<\/p>\n

It was a rough day for the Canadian preferred share market, with PerpetualDiscounts down 9bp, FixedResets off 12bp and DeemedRetractibles losing 14bp. All five entries in the Performance Highlights table were losers. Volume was average.<\/p>\n

PerpetualDiscounts now yield 5.15% (this figure is somewhat distorted by the fact that five of the seventeen issues are actually at a premium now and another two are bang-on par; the index is only rebalanced monthly), equivalent to 6.70% interest at the standard equivalency factor of 1.3x. Long Corporates<\/a> are now at about 4.75%, so the pre-tax interest-equivalent spread is now about 195bp, tightening a bit (perhaps spuriously) from the 205bp reported November 16<\/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>\n-0.4795 %<\/td>\n2,133.1<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.91 %<\/td>\n4.65 %<\/td>\n29,609<\/td>\n17.08<\/td>\n1<\/td>\n0.2592 %<\/td>\n3,137.2<\/td>\n<\/tr>\n
Floater<\/td>\n3.37 %<\/td>\n3.39 %<\/td>\n155,972<\/td>\n18.71<\/td>\n2<\/td>\n-0.4795 %<\/td>\n2,303.2<\/td>\n<\/tr>\n
OpRet<\/td>\n4.97 %<\/td>\n2.45 %<\/td>\n52,068<\/td>\n1.48<\/td>\n7<\/td>\n0.0220 %<\/td>\n2,476.5<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.80 %<\/td>\n6.42 %<\/td>\n57,570<\/td>\n5.17<\/td>\n3<\/td>\n0.0988 %<\/td>\n2,530.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0220 %<\/td>\n2,264.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.58 %<\/td>\n0.85 %<\/td>\n103,037<\/td>\n0.13<\/td>\n13<\/td>\n-0.2247 %<\/td>\n2,153.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.31 %<\/td>\n5.15 %<\/td>\n100,427<\/td>\n14.78<\/td>\n17<\/td>\n-0.0917 %<\/td>\n2,297.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.10 %<\/td>\n2.97 %<\/td>\n222,055<\/td>\n2.48<\/td>\n64<\/td>\n-0.1184 %<\/td>\n2,346.7<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.05 %<\/td>\n4.44 %<\/td>\n201,901<\/td>\n3.86<\/td>\n46<\/td>\n-0.1418 %<\/td>\n2,218.0<\/td>\n<\/tr>\n<\/table>\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-1.59 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.50
\nBid-YTW : 4.43 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-23
\nMaturity Price : 22.62
\nEvaluated at bid price : 22.90
\nBid-YTW : 5.85 %<\/td>\n<\/tr>\n
TCA.PR.X<\/td>\nPerpetual-Premium<\/td>\n-1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-10-15
\nMaturity Price : 50.00
\nEvaluated at bid price : 52.30
\nBid-YTW : 3.29 %<\/td>\n<\/tr>\n
CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-23
\nMaturity Price : 23.86
\nEvaluated at bid price : 24.35
\nBid-YTW : 4.71 %<\/td>\n<\/tr>\n
GWO.PR.L<\/td>\nDeemed-Retractible<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.55
\nBid-YTW : 5.51 %<\/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.D<\/td>\nFixedReset<\/td>\n1,353,175<\/td>\nNew issue settled today<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-23
\nMaturity Price : 23.13
\nEvaluated at bid price : 25.10
\nBid-YTW : 3.67 %<\/td>\n<\/tr>\n
CM.PR.G<\/td>\nPerpetual-Discount<\/td>\n117,120<\/td>\nRBC crossed 50,000 at 24.94; Scotia crossed 30,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-23
\nMaturity Price : 24.57
\nEvaluated at bid price : 24.90
\nBid-YTW : 5.46 %<\/td>\n<\/tr>\n
SLF.PR.F<\/td>\nFixedReset<\/td>\n101,400<\/td>\nRBC crossed 100,000 at 26.07.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.05
\nBid-YTW : 4.06 %<\/td>\n<\/tr>\n
ENB.PR.B<\/td>\nFixedReset<\/td>\n59,560<\/td>\nNesbitt crossed 25,000 at 25.45.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-23
\nMaturity Price : 23.26
\nEvaluated at bid price : 25.42
\nBid-YTW : 3.65 %<\/td>\n<\/tr>\n
CM.PR.D<\/td>\nPerpetual-Premium<\/td>\n42,067<\/td>\nScotia crossed 30,000 at 25.40.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.36
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n
RY.PR.L<\/td>\nFixedReset<\/td>\n41,588<\/td>\nNesbitt crossed 40,000 at 25.51.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.46
\nBid-YTW : 2.92 %<\/td>\n<\/tr>\n
There were 33 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.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.00 – 26.44
\nSpot Rate : 0.4400
\nAverage : 0.2887<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 5.43 %<\/td>\n<\/tr>\n

BAM.PR.G<\/td>\nFixedFloater<\/td>\nQuote: 19.34 – 20.12
\nSpot Rate : 0.7800
\nAverage : 0.6480<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-23
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.34
\nBid-YTW : 4.65 %<\/td>\n<\/tr>\n

CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.35 – 24.84
\nSpot Rate : 0.4900
\nAverage : 0.3595<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-23
\nMaturity Price : 23.86
\nEvaluated at bid price : 24.35
\nBid-YTW : 4.71 %<\/td>\n<\/tr>\n

HSB.PR.C<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.20 – 25.75
\nSpot Rate : 0.5500
\nAverage : 0.4263<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.20
\nBid-YTW : 5.12 %<\/td>\n<\/tr>\n

TCA.PR.X<\/td>\nPerpetual-Premium<\/td>\nQuote: 52.30 – 52.60
\nSpot Rate : 0.3000
\nAverage : 0.2185<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-10-15
\nMaturity Price : 50.00
\nEvaluated at bid price : 52.30
\nBid-YTW : 3.29 %<\/td>\n<\/tr>\n

PWF.PR.L<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.65 – 24.99
\nSpot Rate : 0.3400
\nAverage : 0.2609<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-23
\nMaturity Price : 24.19
\nEvaluated at bid price : 24.65
\nBid-YTW : 5.20 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Remember Iceland? The first domino? It’s through the worst of it, according to S&P: Iceland had its credit rating outlook revised to stable from negative by Standard & Poor\u2019s Ratings Services, which cited economic growth …<\/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-17105","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17105","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=17105"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17105\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}