{"id":17430,"date":"2011-12-23T00:54:12","date_gmt":"2011-12-23T04:54:12","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=17430"},"modified":"2011-12-23T00:54:12","modified_gmt":"2011-12-23T04:54:12","slug":"december-22-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=17430","title":{"rendered":"December 22, 2011"},"content":{"rendered":"

The national securities regulation pipe-dream is over<\/a>:<\/p>\n

The Supreme Court of Canada has stopped the federal government\u2019s initiative for a single national securities regulator in its tracks. While the court suggested that the door remained open to a single national regulator achieved through federal-provincial co-operation, the near-total victory achieved by the provinces gives the scheme\u2019s provincial opponents no incentive to participate.<\/p><\/blockquote>\n

A national securities regulator would be nice. It would also be nice if it rained soup and snowed marshmallows.<\/p>\n

Part of the problem – as far as I’m concerned – is that the idea was oversold. Various idiots claimed that things like the ABCP market freeze would never have happened if only we had a national regulator, which is egregious nonsense. A national regulator would make the system more efficient, by making it possible for issuers and other market participants (such as myself) to get national clearance with one filing and one fee. Full stop.<\/p>\n

Long ago, I suggested it would make far more sense for interested provinces to combine their regulatory activities – a modest goal, but one with the potential for actually happening. If the OSC were to merge with, say, the PEI Securities Commission then I would be better off. Marginally, yes, but measurably, also yes.<\/p>\n

Leaks from the talks on the voluntary-ha-ha Greek debt writedown are getting interesting<\/a>:<\/p>\n

Greece\u2019s creditors are resisting pressure from the International Monetary Fund to accept bigger losses on holdings of the indebted nation\u2019s government bonds, said three people with direct knowledge of the discussions.<\/p>\n

Lenders want the 70 billion euros ($91 billion) of new bonds the government will issue in return for existing securities to carry a coupon of about 5 percent, said the people, who declined to be identified because the negotiations are private.<\/p>\n

The IMF is pushing for creditors to accept a smaller coupon in order to reduce Greece\u2019s debt-to-gross domestic product ratio to 120 percent by 2020, a key element of the Oct. 27 agreement by European Union leaders, the people said.
…<\/b>
As part of Greece\u2019s 130 billion-euro second bailout, investors would take a 50 percent hit on the nominal value of 206 billion euros of privately owned debt. Exchanging bonds for securities with a 5 percent coupon would leave investors with a 65 percent loss in the net present value of their holdings of Greek government debt, the people said.
…<\/b>
The sides have also agreed that the deal should include collective action clauses that would ensure lenders participate in the swap, the people said.<\/p>\n

Vega Asset Management LLC resigned this month from a committee of Greek creditors negotiating the debt swap with European authorities, because the Madrid-based hedge fund refused to accept a net present value loss exceeding 50 percent, according to a Dec. 7 e-mail sent to other panel members, which was obtained by Bloomberg News.<\/p><\/blockquote>\n

It will be interesting to see how a collective action clause will be worded in order to preserve the fiction that the participants are volunteers!<\/p>\n

Someone at the Financial Times points out<\/a>:<\/p>\n

The European Central Bank\u2019s lending of \u20ac489-billion to more than 500 banks was nothing short of a feeding frenzy.
…<\/b>
The money — and there is another three-year loan offer in February — should ease the pressure on banks to dump assets at firesale prices to raise cash.

But the hoarding suggests the funds will instead flow to that traditional parking space for spare cash; euro zone government bonds.
…<\/b>
There is of course an irony in the fact that banks\u2019 ditching of their sovereign holdings in the last year is partly to blame for the rise in government borrowing costs. There is then further irony in that the market freeze which produced Thursday\u2019s feeding frenzy was in part the result of worries about banks\u2019 exposure to sovereign debt. Buying more government bonds does nothing to square this vicious circle, it just buys some breathing space to repair balance sheets and restore public finances. Investors and taxpayers can only hope politicians and bankers use the time wisely.<\/p><\/blockquote>\n

Fed action on mortgage bonds is showing some benefits<\/a>:<\/p>\n

Mortgage rates for 30-year U.S. loans dropped to the lowest level on record amid signs the housing market may be set for a turnaround.<\/p>\n

The average rate for a 30-year fixed loan fell to 3.91 percent in the week ended today, the lowest in data dating to 1971, from 3.94 percent, Freddie Mac said in a statement. The average 15-year rate matched last week\u2019s previous all-time low of 3.21 percent, according to the McLean, Virginia-based mortgage-finance company.<\/p>\n

The U.S. housing market, under pressure from tight lending standards and foreclosures that depress values, is showing signs of improvement. Purchases of previously owned homes rose to a 10-month high in November as the inventory of unsold properties shrank to the lowest level in six years, the National Association of Realtors reported yesterday.<\/p><\/blockquote>\n

Whether those benefits are worth the cost is, of course, a matter for debate, but at least there are some benefits!<\/p>\n

It was another strong day for the Canadian preferred share market, with PerpetualDiscounts up 6bp, FixedResets winning 29bp and DeemedRetractibles gaining 20bp. Good volatility – all winners, including a healthy contingent from the insurance sector, which has been badly beaten down lately. Volume was on the high side of average.<\/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-0.1252 %<\/td>\n2,023.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.89 %<\/td>\n4.64 %<\/td>\n38,926<\/td>\n17.04<\/td>\n1<\/td>\n0.6211 %<\/td>\n3,153.5<\/td>\n<\/tr>\n
Floater<\/td>\n3.29 %<\/td>\n3.67 %<\/td>\n72,395<\/td>\n18.14<\/td>\n3<\/td>\n-0.1252 %<\/td>\n2,184.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.95 %<\/td>\n1.68 %<\/td>\n62,636<\/td>\n1.39<\/td>\n6<\/td>\n-0.1422 %<\/td>\n2,464.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.46 %<\/td>\n2.16 %<\/td>\n80,911<\/td>\n0.96<\/td>\n4<\/td>\n0.4035 %<\/td>\n2,561.6<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1422 %<\/td>\n2,253.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.48 %<\/td>\n-2.27 %<\/td>\n90,757<\/td>\n0.09<\/td>\n18<\/td>\n0.1284 %<\/td>\n2,179.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.22 %<\/td>\n5.10 %<\/td>\n109,034<\/td>\n15.09<\/td>\n12<\/td>\n0.0610 %<\/td>\n2,328.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.09 %<\/td>\n2.91 %<\/td>\n218,482<\/td>\n2.45<\/td>\n64<\/td>\n0.2921 %<\/td>\n2,350.1<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.01 %<\/td>\n3.71 %<\/td>\n196,282<\/td>\n2.94<\/td>\n46<\/td>\n0.2012 %<\/td>\n2,240.6<\/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
SLF.PR.A<\/td>\nDeemed-Retractible<\/td>\n1.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.65
\nBid-YTW : 6.61 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.20
\nBid-YTW : 6.80 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.14
\nBid-YTW : 5.59 %<\/td>\n<\/tr>\n
RY.PR.E<\/td>\nDeemed-Retractible<\/td>\n1.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-02-24
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.85
\nBid-YTW : 3.79 %<\/td>\n<\/tr>\n
CM.PR.M<\/td>\nFixedReset<\/td>\n1.47 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.70
\nBid-YTW : 1.98 %<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n1.81 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.90
\nBid-YTW : 6.65 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset<\/td>\n3.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.00
\nBid-YTW : 4.64 %<\/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
BNS.PR.Z<\/td>\nFixedReset<\/td>\n45,186<\/td>\nRBC crossed 24,700 at 25.05.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.05
\nBid-YTW : 3.09 %<\/td>\n<\/tr>\n
MFC.PR.G<\/td>\nFixedReset<\/td>\n37,332<\/td>\nRecent clearance sale<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.86
\nBid-YTW : 4.88 %<\/td>\n<\/tr>\n
CM.PR.G<\/td>\nPerpetual-Discount<\/td>\n28,091<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.23
\nBid-YTW : 4.74 %<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset<\/td>\n25,975<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.98
\nBid-YTW : 3.73 %<\/td>\n<\/tr>\n
SLF.PR.H<\/td>\nFixedReset<\/td>\n25,615<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.02
\nBid-YTW : 5.18 %<\/td>\n<\/tr>\n
RY.PR.W<\/td>\nPerpetual-Premium<\/td>\n24,680<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-02-24
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.68
\nBid-YTW : 2.87 %<\/td>\n<\/tr>\n
There were 35 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
CM.PR.P<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.53 – 26.39
\nSpot Rate : 0.8600
\nAverage : 0.4891<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-10-29
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.53
\nBid-YTW : 2.28 %<\/td>\n<\/tr>\n

MFC.PR.C<\/td>\nDeemed-Retractible<\/td>\nQuote: 20.51 – 21.10
\nSpot Rate : 0.5900
\nAverage : 0.3280<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.51
\nBid-YTW : 7.06 %<\/td>\n<\/tr>\n

PWF.PR.O<\/td>\nPerpetual-Premium<\/td>\nQuote: 26.00 – 26.78
\nSpot Rate : 0.7800
\nAverage : 0.5263<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 5.28 %<\/td>\n<\/tr>\n

FTS.PR.G<\/td>\nFixedReset<\/td>\nQuote: 26.03 – 26.88
\nSpot Rate : 0.8500
\nAverage : 0.6347<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-09-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.03
\nBid-YTW : 2.94 %<\/td>\n<\/tr>\n

MFC.PR.F<\/td>\nFixedReset<\/td>\nQuote: 23.21 – 23.79
\nSpot Rate : 0.5800
\nAverage : 0.3716<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.21
\nBid-YTW : 4.27 %<\/td>\n<\/tr>\n

FTS.PR.F<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.37 – 25.90
\nSpot Rate : 0.5300
\nAverage : 0.3681<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-01
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.37
\nBid-YTW : 4.81 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The national securities regulation pipe-dream is over: The Supreme Court of Canada has stopped the federal government\u2019s initiative for a single national securities regulator in its tracks. While the court suggested that the door remained …<\/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-17430","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17430","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=17430"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17430\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}