{"id":17160,"date":"2011-12-01T00:56:58","date_gmt":"2011-12-01T04:56:58","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=17160"},"modified":"2011-12-01T00:56:58","modified_gmt":"2011-12-01T04:56:58","slug":"november-30-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=17160","title":{"rendered":"November 30, 2011"},"content":{"rendered":"

The Competition Bureau is leaning against TMX \/ Maple<\/a>:<\/p>\n

Dealing a major blow to the proposed acquisition of TMX Group, Canada\u2019s Competition Bureau has informed the 13 financial institutions behind the takeover that it has \u201cserious concerns\u201d with their plan.<\/p>\n

On Tuesday competition commissioner Melanie Aitken privately informed the consortium, named Maple Group Acquisition Corp., that she has concerns \u201cabout the likely competitive effects of the proposed transactions in the current environment, primarily in connection with equities trading and clearing and settlement services in Canada,\u201d according to a statement from Maple Group.<\/p><\/blockquote>\n

The central banks are mitigating market discipline<\/a>:<\/p>\n

Six central banks led by the Federal Reserve made it cheaper for banks to borrow dollars in emergencies in a global effort to ease Europe\u2019s sovereign-debt crisis.<\/p>\n

Stocks rallied worldwide, commodities surged and yields on most European debt fell on the show of force from central banks aimed at easing strains in financial markets. The cost for European banks to borrow dollars dropped from the highest in three years, tempering concerns about the euro\u2019s worsening crisis after leaders said they\u2019d failed to boost the region\u2019s bailout fund as much as planned.
…<\/b>
The premium banks pay to borrow dollars overnight from central banks will fall by half a percentage point to 50 basis points, the Fed said today in a statement in Washington. The so- called dollar swap lines will be extended by six months to Feb. 1, 2013. The Fed coordinated the move with the European Central Bank and the central banks of Canada, Switzerland, Japan and the U.K.<\/p>\n

The six central banks also agreed to create temporary bilateral swap programs so funding can be provided in any of the currencies \u201cshould market conditions so warrant.\u201d Those swap lines were also authorized through Feb. 1, 2013.<\/p><\/blockquote>\n

I won’t go so far as to say I don’t like it, but I will say that I’m deeply suspicious. Central Bank financing should be available, certainly, for solvent but illiquid banks, but these loans should be at punitive, not concessionary rates.<\/p>\n

With overnight money so cheap, the cost of failing a trade is derisory, so the Fed’s Treasury Market Practice Group has suggested a surcharge<\/a> that effectively puts a floor of 3% on fail money. It is strictly voluntary, of course, BUT THE FED WOULD REALLY, REALLY LIKE YOU TO DO THIS!<\/p>\n

It was a modestly down day for the Canadian preferred share market, with PerpetualDiscounts losing 12bp, FixedResets off 3bp and DeemedRetractibles down 8bp. Volatility was good. Volume was above average.<\/p>\n

PerpetualDiscounts now yield 5.32%, equivalent to 6.92% interest at the standard equivalency factor of 1.3x. Long Corporates<\/a> now yield about 4.8% so the pre-tax interest-equivalent spread (also called the Seniority Spread) is now about 210bp, a significant widening from the 195bp reported November 23<\/a> as PerpetualDiscounts got smacked for 17bp dividend yield on the week, while long corporates edged up only 5bp.<\/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-0.3259 %<\/td>\n2,095.4<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.86 %<\/td>\n4.59 %<\/td>\n29,148<\/td>\n17.15<\/td>\n1<\/td>\n1.2422 %<\/td>\n3,172.9<\/td>\n<\/tr>\n
Floater<\/td>\n3.43 %<\/td>\n3.45 %<\/td>\n151,508<\/td>\n18.57<\/td>\n2<\/td>\n-0.3259 %<\/td>\n2,262.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.96 %<\/td>\n0.93 %<\/td>\n53,144<\/td>\n1.46<\/td>\n7<\/td>\n0.0165 %<\/td>\n2,479.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.84 %<\/td>\n6.75 %<\/td>\n59,497<\/td>\n5.14<\/td>\n3<\/td>\n-0.3253 %<\/td>\n2,515.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0165 %<\/td>\n2,267.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.58 %<\/td>\n3.32 %<\/td>\n98,470<\/td>\n0.41<\/td>\n13<\/td>\n-0.0135 %<\/td>\n2,154.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.31 %<\/td>\n5.32 %<\/td>\n103,649<\/td>\n14.66<\/td>\n17<\/td>\n-0.1159 %<\/td>\n2,293.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.12 %<\/td>\n3.08 %<\/td>\n214,440<\/td>\n2.46<\/td>\n64<\/td>\n-0.0315 %<\/td>\n2,338.0<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.06 %<\/td>\n4.44 %<\/td>\n195,756<\/td>\n3.85<\/td>\n46<\/td>\n0.0755 %<\/td>\n2,216.3<\/td>\n<\/tr>\n<\/table>\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
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n-1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-30
\nMaturity Price : 22.97
\nEvaluated at bid price : 23.41
\nBid-YTW : 5.13 %<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n-1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-30
\nMaturity Price : 23.92
\nEvaluated at bid price : 24.37
\nBid-YTW : 5.18 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n-1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.02
\nBid-YTW : 3.97 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n-1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.20
\nBid-YTW : 4.28 %<\/td>\n<\/tr>\n
IAG.PR.A<\/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 : 22.47
\nBid-YTW : 5.92 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-30
\nMaturity Price : 22.87
\nEvaluated at bid price : 23.15
\nBid-YTW : 5.80 %<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixedFloater<\/td>\n1.24 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.56
\nBid-YTW : 4.59 %<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nDeemed-Retractible<\/td>\n1.52 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.75
\nBid-YTW : 5.31 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset<\/td>\n1.92 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-30
\nMaturity Price : 23.61
\nEvaluated at bid price : 26.51
\nBid-YTW : 3.75 %<\/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.G<\/td>\nPerpetual-Discount<\/td>\n257,712<\/td>\nNesbitt crossed 132,800 at 24.90; Scotia crossed 30,000 at the same price.YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-30
\nMaturity Price : 24.57
\nEvaluated at bid price : 24.90
\nBid-YTW : 5.47 %<\/td>\n<\/tr>\n
ENB.PR.D<\/td>\nFixedReset<\/td>\n89,995<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-30
\nMaturity Price : 23.13
\nEvaluated at bid price : 25.10
\nBid-YTW : 3.74 %<\/td>\n<\/tr>\n
RY.PR.Y<\/td>\nFixedReset<\/td>\n52,274<\/td>\nTD crossed 48,800 at 27.25.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-11-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.25
\nBid-YTW : 2.99 %<\/td>\n<\/tr>\n
CM.PR.E<\/td>\nPerpetual-Discount<\/td>\n50,595<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-30
\nMaturity Price : 24.74
\nEvaluated at bid price : 25.05
\nBid-YTW : 5.64 %<\/td>\n<\/tr>\n
CM.PR.J<\/td>\nDeemed-Retractible<\/td>\n42,460<\/td>\nTD crossed 25,000 at 25.30.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.30
\nBid-YTW : 4.31 %<\/td>\n<\/tr>\n
CM.PR.D<\/td>\nPerpetual-Premium<\/td>\n38,926<\/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 : 25.41
\nBid-YTW : 2.86 %<\/td>\n<\/tr>\n
There were 37 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
IAG.PR.C<\/td>\nFixedReset<\/td>\nQuote: 26.11 – 26.70
\nSpot Rate : 0.5900
\nAverage : 0.4182<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.11
\nBid-YTW : 3.73 %<\/td>\n<\/tr>\n

BNA.PR.E<\/td>\nSplitShare<\/td>\nQuote: 22.71 – 23.17
\nSpot Rate : 0.4600
\nAverage : 0.3013<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2017-12-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.71
\nBid-YTW : 6.75 %<\/td>\n<\/tr>\n

PWF.PR.E<\/td>\nPerpetual-Discount<\/td>\nQuote: 25.00 – 25.49
\nSpot Rate : 0.4900
\nAverage : 0.3619<\/p>\n

YTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2041-11-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 5.57 %<\/td>\n<\/tr>\n

POW.PR.C<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.21 – 25.51
\nSpot Rate : 0.3000
\nAverage : 0.2046<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-01-05
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.21
\nBid-YTW : 4.69 %<\/td>\n<\/tr>\n

MFC.PR.A<\/td>\nOpRet<\/td>\nQuote: 25.06 – 25.32
\nSpot Rate : 0.2600
\nAverage : 0.1774<\/p>\n

YTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2015-12-18
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.06
\nBid-YTW : 4.00 %<\/td>\n<\/tr>\n

NA.PR.P<\/td>\nFixedReset<\/td>\nQuote: 26.91 – 27.15
\nSpot Rate : 0.2400
\nAverage : 0.1624<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.91
\nBid-YTW : 3.15 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The Competition Bureau is leaning against TMX \/ Maple: Dealing a major blow to the proposed acquisition of TMX Group, Canada\u2019s Competition Bureau has informed the 13 financial institutions behind the takeover that it has …<\/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-17160","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17160","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=17160"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17160\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}