{"id":17506,"date":"2012-01-05T00:28:50","date_gmt":"2012-01-05T04:28:50","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=17506"},"modified":"2012-01-05T00:28:50","modified_gmt":"2012-01-05T04:28:50","slug":"january-4-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=17506","title":{"rendered":"January 4, 2012"},"content":{"rendered":"

Have we seen this movie before? Esoteric assets are being securitized in volume<\/a>:<\/p>\n

Sales of bonds backed by everything from timeshare rentals to shipping containers to entertainment royalties are poised to rise this year as investors seek to boost returns with interest rates at about record lows.<\/p>\n

So-called esoteric asset-backed securities issuance may soar 12.9 percent to $35 billion, compared with debt linked to more traditional collateral such as auto and credit-card loans, which will grow 8.75 percent to $87 billion, according to a forecast from Credit Suisse Group AG.
…<\/b>
Investors willing to hold BBB rated bonds backed by franchise royalty fees of the Sonic Corp. (SONC) fast- food chain may receive as much as 2 percentage points more annually than similarly rated securities tied to auto loans, according to Barclays Capital\u2019s Cory Wishengrad in New York.
…<\/b>
Cronos Containers Ltd. boosted the size of its November offering of bonds tied to shipping container lease payments by $50 million to $200 million, according to data compiled by Bloomberg. An A rated $170 million portion maturing in five years priced to yield 5 percent.<\/p><\/blockquote>\n

It was quite a good day for the Canadian preferred share market, with PerpetualDiscounts – what are left of them! – winning 53bp, FixedResets up 9bp and DeemedRetractibles gaining 19bp. Floating Rate issues also appear to be celebrating the new year. Good volatility – all winners! Volume was quite low, but better than the comatose levels of the last week.<\/p>\n

PerpetualDiscounts now yield 5.08%, equivalent to 6.60% interest at the standard conversion factor of 1.4x.<\/s> 1.3x. Long corporates<\/a> now yield about 4.65%, so the pre-tax interest-equivalent spread (also called the Seniority Spread) is now about 195bp, significantly narrower than the 205bp reported December 30<\/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>\n1.1234 %<\/td>\n2,169.8<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.80 %<\/td>\n4.54 %<\/td>\n36,535<\/td>\n17.14<\/td>\n1<\/td>\n1.0204 %<\/td>\n3,211.9<\/td>\n<\/tr>\n
Floater<\/td>\n3.07 %<\/td>\n3.34 %<\/td>\n67,638<\/td>\n18.94<\/td>\n3<\/td>\n1.1234 %<\/td>\n2,342.9<\/td>\n<\/tr>\n
OpRet<\/td>\n5.00 %<\/td>\n1.34 %<\/td>\n65,635<\/td>\n1.36<\/td>\n7<\/td>\n0.4228 %<\/td>\n2,471.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.44 %<\/td>\n1.71 %<\/td>\n70,190<\/td>\n0.93<\/td>\n4<\/td>\n0.0924 %<\/td>\n2,573.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.4228 %<\/td>\n2,260.2<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.41 %<\/td>\n-6.07 %<\/td>\n85,510<\/td>\n0.09<\/td>\n23<\/td>\n0.2211 %<\/td>\n2,199.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.15 %<\/td>\n5.08 %<\/td>\n142,236<\/td>\n15.29<\/td>\n7<\/td>\n0.5343 %<\/td>\n2,348.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.08 %<\/td>\n2.87 %<\/td>\n201,174<\/td>\n2.39<\/td>\n64<\/td>\n0.0872 %<\/td>\n2,360.9<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.98 %<\/td>\n3.69 %<\/td>\n183,734<\/td>\n1.89<\/td>\n46<\/td>\n0.1922 %<\/td>\n2,260.7<\/td>\n<\/tr>\n<\/table>\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.G<\/td>\nFixedFloater<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-01-04
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.80
\nBid-YTW : 4.54 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\n1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.09
\nBid-YTW : 6.29 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-01-04
\nMaturity Price : 15.81
\nEvaluated at bid price : 15.81
\nBid-YTW : 3.34 %<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nDeemed-Retractible<\/td>\n1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.34
\nBid-YTW : 6.55 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nDeemed-Retractible<\/td>\n1.40 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.71
\nBid-YTW : 6.35 %<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n1.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-01-04
\nMaturity Price : 24.49
\nEvaluated at bid price : 24.97
\nBid-YTW : 5.00 %<\/td>\n<\/tr>\n
BAM.PR.I<\/td>\nOpRet<\/td>\n1.92 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-02-03
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.50
\nBid-YTW : -5.75 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n2.61 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-01-04
\nMaturity Price : 15.75
\nEvaluated at bid price : 15.75
\nBid-YTW : 3.35 %<\/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
GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\n233,800<\/td>\nNesbitt crossed blocks of 185,000 and 25,000, both at 25.60.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : 5.53 %<\/td>\n<\/tr>\n
CM.PR.I<\/td>\nDeemed-Retractible<\/td>\n90,330<\/td>\nRBC crossed 29,300 at 25.95.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-01-31
\nMaturity Price : 25.75
\nEvaluated at bid price : 25.95
\nBid-YTW : 3.51 %<\/td>\n<\/tr>\n
CM.PR.L<\/td>\nFixedReset<\/td>\n54,069<\/td>\nNesbitt crossed 50,000 at 27.35.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.35
\nBid-YTW : 2.13 %<\/td>\n<\/tr>\n
BNS.PR.T<\/td>\nFixedReset<\/td>\n52,980<\/td>\nNesbitt crossed 50,000 at 27.15.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.11
\nBid-YTW : 2.27 %<\/td>\n<\/tr>\n
BAM.PR.O<\/td>\nOpRet<\/td>\n35,400<\/td>\nRBC crossed blocks of 20,000 and 15,000 at 25.50.
\nYTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2013-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 3.66 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n33,837<\/td>\nRBC crossed 30,000 at 22.55.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.47
\nBid-YTW : 4.61 %<\/td>\n<\/tr>\n
There were 18 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
PWF.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.55 – 26.88
\nSpot Rate : 1.3300
\nAverage : 0.7773<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-02-03
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.55
\nBid-YTW : -8.57 %<\/td>\n<\/tr>\n

TCA.PR.Y<\/td>\nPerpetual-Premium<\/td>\nQuote: 52.65 – 53.94
\nSpot Rate : 1.2900
\nAverage : 0.8248<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-05
\nMaturity Price : 50.00
\nEvaluated at bid price : 52.65
\nBid-YTW : 2.87 %<\/td>\n<\/tr>\n

FTS.PR.C<\/td>\nOpRet<\/td>\nQuote: 25.90 – 26.47
\nSpot Rate : 0.5700
\nAverage : 0.3518<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-02-03
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.90
\nBid-YTW : -7.46 %<\/td>\n<\/tr>\n

GWO.PR.L<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.91 – 26.50
\nSpot Rate : 0.5900
\nAverage : 0.3948<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.91
\nBid-YTW : 5.07 %<\/td>\n<\/tr>\n

BMO.PR.K<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.47 – 26.98
\nSpot Rate : 0.5100
\nAverage : 0.3468<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-11-25
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.47
\nBid-YTW : 3.63 %<\/td>\n<\/tr>\n

CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.50 – 25.18
\nSpot Rate : 0.6800
\nAverage : 0.5168<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-01-04
\nMaturity Price : 24.22
\nEvaluated at bid price : 24.50
\nBid-YTW : 4.73 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Have we seen this movie before? Esoteric assets are being securitized in volume: Sales of bonds backed by everything from timeshare rentals to shipping containers to entertainment royalties are poised to rise this year as …<\/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-17506","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17506","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=17506"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17506\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}