{"id":17117,"date":"2011-11-24T23:38:45","date_gmt":"2011-11-25T03:38:45","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=17117"},"modified":"2011-11-24T23:38:45","modified_gmt":"2011-11-25T03:38:45","slug":"november-24-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=17117","title":{"rendered":"November 24, 2011"},"content":{"rendered":"

Today’s cheerful credit news is about Japan<\/a>:<\/p>\n

Standard & Poor\u2019s said Japanese Prime Minister Yoshihiko Noda\u2019s administration hasn\u2019t made progress in tackling the public debt burden, an indication it may be preparing to lower the nation\u2019s sovereign grade.<\/p>\n

\u201cJapan\u2019s finances are getting worse and worse every day, every second,\u201d Takahira Ogawa, director of sovereign ratings at S&P in Singapore, said in an interview. Asked if that means he\u2019s closer to cutting Japan, he said it \u201cmay be right in saying that we\u2019re closer to a downgrade. But the deterioration has been gradual so far, and it\u2019s not like we\u2019re going to move today.\u201d<\/p><\/blockquote>\n

Meanwhile, in Europe<\/a>:<\/p>\n

Stocks fell, Italian bonds declined and the cost of insuring European government debt against default rose to a record after German Chancellor Angela Merkel ruled out joint euro-area borrowing.
…<\/b>
The yield on Italy\u2019s 10-year bond climbed 14 basis points to 7.11 percent, while similar-maturity French debt yields rose three basis points to 3.72 percent.<\/p>\n

Portugal\u2019s bonds fell, with 10-year note yields climbing 90 basis points to 12.21 percent after Fitch Ratings cut the nation\u2019s credit grade one step to BB+, the highest junk status.<\/p>\n

Germany\u2019s 10-year bond yield rose as much as 12 basis points to 2.26 percent before trading five basis points higher at 2.20 percent. Two-year note yields increased three basis points to 0.47 percent.<\/p><\/blockquote>\n

The Royal Canadian Mint’s gold receipt IPO appears to be going very well<\/a>:<\/p>\n

The Royal Canadian Mint raised C$600 million ($573 million) in an initial public offering of securities tied to its gold reserves, more than double its IPO target, according to two people familiar with the sale.<\/p>\n

The mint initially sought to raise C$250 million from selling units in Canadian or U.S. dollars at C$20 or $19.29 each, the Ottawa-based firm said. Strong demand from institutional and individual investors drove up the size of the sale, said the people, who declined to be named because terms aren\u2019t public.
…<\/b>
Each exchange-traded receipt represents ownership in physical gold bullion held in custody of the Royal Canadian Mint. Proceeds from the sale will be used to buy gold, and the buyers of the receipts will own the metal rather than a stake in the mint, according to an Oct. 28 statement.<\/p><\/blockquote>\n

Huxley said “History is bunk<\/a>.” Moody’s says Hungary is junk<\/a>:<\/p>\n

Hungary lost its investment-grade rating at Moody\u2019s Investors Service after 15 years as the Cabinet seeks International Monetary Fund help to boost confidence in the European Union\u2019s most-indebted eastern member.<\/p>\n

The foreign- and local-currency bond ratings were cut one step to Ba1, the highest junk-level score, from Baa3, the company said today in a statement. Moody\u2019s, which awarded Hungary its investment grade in 1996, assigned a negative outlook. The country is rated the lowest investment grade at Standard & Poor\u2019s and Fitch Ratings.<\/p>\n

The government has scrapped two debt sales and reduced the size of another eight auctions in the last three months as the euro region\u2019s debt crisis deepened. Prime Minister Viktor Orban\u2019s Cabinet on Nov. 17 asked for IMF \u201cinsurance\u201d that doesn\u2019t entail a loan and doesn\u2019t impose conditions.<\/p><\/blockquote>\n

It was a rough day for the Canadian preferred share market, with PerpetualDiscounts losing 24bp, FixedResets down 13bp and DeemedRetractibles off 8bp. Not much volatility. Volume was very light – not unexpectedly, what with the US turkeys.<\/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-0.0964 %<\/td>\n2,131.1<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.80 %<\/td>\n4.51 %<\/td>\n28,451<\/td>\n17.25<\/td>\n1<\/td>\n2.3785 %<\/td>\n3,211.9<\/td>\n<\/tr>\n
Floater<\/td>\n3.38 %<\/td>\n3.41 %<\/td>\n66,017<\/td>\n18.68<\/td>\n2<\/td>\n-0.0964 %<\/td>\n2,301.0<\/td>\n<\/tr>\n
OpRet<\/td>\n4.97 %<\/td>\n1.66 %<\/td>\n51,439<\/td>\n1.47<\/td>\n7<\/td>\n-0.0275 %<\/td>\n2,475.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.81 %<\/td>\n6.58 %<\/td>\n59,294<\/td>\n5.16<\/td>\n3<\/td>\n-0.2115 %<\/td>\n2,525.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0275 %<\/td>\n2,263.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.59 %<\/td>\n2.84 %<\/td>\n102,058<\/td>\n0.43<\/td>\n13<\/td>\n-0.1562 %<\/td>\n2,149.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.32 %<\/td>\n5.19 %<\/td>\n101,069<\/td>\n14.68<\/td>\n17<\/td>\n-0.2366 %<\/td>\n2,291.7<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.10 %<\/td>\n3.04 %<\/td>\n218,480<\/td>\n2.48<\/td>\n64<\/td>\n-0.1273 %<\/td>\n2,343.7<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.05 %<\/td>\n4.39 %<\/td>\n202,643<\/td>\n3.86<\/td>\n46<\/td>\n-0.0777 %<\/td>\n2,216.3<\/td>\n<\/tr>\n<\/table>\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
PWF.PR.E<\/td>\nPerpetual-Discount<\/td>\n-1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-24
\nMaturity Price : 23.85
\nEvaluated at bid price : 25.01
\nBid-YTW : 5.50 %<\/td>\n<\/tr>\n
POW.PR.B<\/td>\nPerpetual-Discount<\/td>\n-1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-24
\nMaturity Price : 24.53
\nEvaluated at bid price : 24.78
\nBid-YTW : 5.46 %<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixedFloater<\/td>\n2.38 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.80
\nBid-YTW : 4.51 %<\/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>\n91,050<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-24
\nMaturity Price : 23.13
\nEvaluated at bid price : 25.10
\nBid-YTW : 3.67 %<\/td>\n<\/tr>\n
SLF.PR.H<\/td>\nFixedReset<\/td>\n66,200<\/td>\nTD crossed 46,400 at 23.30.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.30
\nBid-YTW : 4.54 %<\/td>\n<\/tr>\n
CIU.PR.B<\/td>\nFixedReset<\/td>\n51,600<\/td>\nNesbitt crossed 50,000 at 27.45.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.09
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n
RY.PR.E<\/td>\nDeemed-Retractible<\/td>\n46,681<\/td>\nTD crossed 34,100 at 25.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.01
\nBid-YTW : 4.51 %<\/td>\n<\/tr>\n
CM.PR.G<\/td>\nPerpetual-Discount<\/td>\n45,402<\/td>\nDesjardins crossed 25,000 at 24.91.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-24
\nMaturity Price : 24.57
\nEvaluated at bid price : 24.90
\nBid-YTW : 5.46 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset<\/td>\n36,021<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.96
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n
There were 16 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.E<\/td>\nFixedReset<\/td>\nQuote: 27.06 – 27.50
\nSpot Rate : 0.4400
\nAverage : 0.2850<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.06
\nBid-YTW : 3.69 %<\/td>\n<\/tr>\n

PWF.PR.E<\/td>\nPerpetual-Discount<\/td>\nQuote: 25.01 – 25.50
\nSpot Rate : 0.4900
\nAverage : 0.3533<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-24
\nMaturity Price : 23.85
\nEvaluated at bid price : 25.01
\nBid-YTW : 5.50 %<\/td>\n<\/tr>\n

GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.10 – 26.60
\nSpot Rate : 0.5000
\nAverage : 0.3992<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.10
\nBid-YTW : 5.38 %<\/td>\n<\/tr>\n

CIU.PR.B<\/td>\nFixedReset<\/td>\nQuote: 27.09 – 27.55
\nSpot Rate : 0.4600
\nAverage : 0.3620<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.09
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n

IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 22.65 – 23.00
\nSpot Rate : 0.3500
\nAverage : 0.2610<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.65
\nBid-YTW : 5.81 %<\/td>\n<\/tr>\n

BAM.PR.O<\/td>\nOpRet<\/td>\nQuote: 25.76 – 26.10
\nSpot Rate : 0.3400
\nAverage : 0.2513<\/p>\n

YTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2013-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.76
\nBid-YTW : 3.54 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Today’s cheerful credit news is about Japan: Standard & Poor\u2019s said Japanese Prime Minister Yoshihiko Noda\u2019s administration hasn\u2019t made progress in tackling the public debt burden, an indication it may be preparing to lower the …<\/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-17117","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17117","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=17117"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17117\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}