{"id":17671,"date":"2012-01-26T00:17:23","date_gmt":"2012-01-26T04:17:23","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=17671"},"modified":"2012-01-26T00:17:23","modified_gmt":"2012-01-26T04:17:23","slug":"january-25-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=17671","title":{"rendered":"January 25, 2012"},"content":{"rendered":"

The FOMC release was fascinating<\/a>:<\/p>\n

To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1\/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.<\/p>\n

The Committee also decided to continue its program to extend the average maturity of its holdings of securities as announced in September. The Committee is maintaining its existing policies of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction.<\/p><\/blockquote>\n

Equities liked the news<\/a>:<\/p>\n

The Fed extended its previous pledge to keep rates low at least until the middle of 2013 as inflation remains tame and more than two years of economic growth have failed to push unemployment below 8.5 percent. Some Fed officials have said further easing might be needed to put more Americans back to work and revive the housing market.<\/p>\n

Stocks erased losses and Treasuries extended gains after the statement. The Standard & Poor\u2019s 500 Index rose 0.1 percent to 1,315.66 at 12:34 p.m. in New York. The yield on the 10-year Treasury note fell to 1.98 percent from 2.06 percent late yesterday.<\/p><\/blockquote>\n

It was a mixed day for the Canadian preferred share market, with PerpetualDiscounts gaining 11bp, FixedResets down 12bp and DeemedRetractibles losing 16bp. The longer than usual Performance Highlights table was nearly all losers, most notably recent big gainers. Volume was above 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-0.8189 %<\/td>\n2,361.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.65 %<\/td>\n4.01 %<\/td>\n41,675<\/td>\n17.36<\/td>\n1<\/td>\n0.7389 %<\/td>\n3,356.7<\/td>\n<\/tr>\n
Floater<\/td>\n2.83 %<\/td>\n3.01 %<\/td>\n66,508<\/td>\n19.69<\/td>\n3<\/td>\n-0.8189 %<\/td>\n2,549.7<\/td>\n<\/tr>\n
OpRet<\/td>\n4.94 %<\/td>\n1.66 %<\/td>\n64,185<\/td>\n1.30<\/td>\n7<\/td>\n-0.2077 %<\/td>\n2,500.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.30 %<\/td>\n-0.28 %<\/td>\n67,885<\/td>\n0.87<\/td>\n4<\/td>\n0.1752 %<\/td>\n2,641.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2077 %<\/td>\n2,286.2<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.41 %<\/td>\n-8.81 %<\/td>\n86,120<\/td>\n0.09<\/td>\n23<\/td>\n0.0110 %<\/td>\n2,212.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.01 %<\/td>\n4.99 %<\/td>\n168,894<\/td>\n15.49<\/td>\n7<\/td>\n0.1059 %<\/td>\n2,418.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.03 %<\/td>\n2.70 %<\/td>\n208,895<\/td>\n2.34<\/td>\n65<\/td>\n-0.1227 %<\/td>\n2,383.6<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.90 %<\/td>\n3.49 %<\/td>\n199,065<\/td>\n1.45<\/td>\n46<\/td>\n-0.1623 %<\/td>\n2,307.3<\/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
SLF.PR.H<\/td>\nFixedReset<\/td>\n-1.97 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.90
\nBid-YTW : 4.35 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n-1.59 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-01-25
\nMaturity Price : 17.37
\nEvaluated at bid price : 17.37
\nBid-YTW : 3.04 %<\/td>\n<\/tr>\n
IAG.PR.C<\/td>\nFixedReset<\/td>\n-1.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.59
\nBid-YTW : 3.03 %<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nDeemed-Retractible<\/td>\n-1.29 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.90
\nBid-YTW : 5.68 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n-1.24 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-01-25
\nMaturity Price : 17.53
\nEvaluated at bid price : 17.53
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nDeemed-Retractible<\/td>\n-1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.71
\nBid-YTW : 5.74 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n-1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-01-25
\nMaturity Price : 23.29
\nEvaluated at bid price : 25.43
\nBid-YTW : 3.74 %<\/td>\n<\/tr>\n
PWF.PR.E<\/td>\nPerpetual-Premium<\/td>\n1.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.97
\nBid-YTW : 1.55 %<\/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.M<\/td>\nFixedReset<\/td>\n527,118<\/td>\nBlock city! RBC crossed blocks of 10,000 and 75,000, both at 27.30. Nesbitt crossed 165,000 and 140,000 at the same price. Nesbitt sold four blocks to RBC, 23,200 shares, 51,800 shares, 25,000 and 30,000, all at the same price again.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.30
\nBid-YTW : 2.68 %<\/td>\n<\/tr>\n
CM.PR.I<\/td>\nDeemed-Retractible<\/td>\n219,448<\/td>\nCalled for redemption<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-01-31
\nMaturity Price : 25.75
\nEvaluated at bid price : 25.99
\nBid-YTW : 3.56 %<\/td>\n<\/tr>\n
ENB.PR.F<\/td>\nFixedReset<\/td>\n128,914<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-01-25
\nMaturity Price : 23.19
\nEvaluated at bid price : 25.30
\nBid-YTW : 3.78 %<\/td>\n<\/tr>\n
BAM.PR.P<\/td>\nFixedReset<\/td>\n80,032<\/td>\nNesbitt crossed 75,000 at 27.23.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.25
\nBid-YTW : 3.67 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset<\/td>\n74,640<\/td>\nScotia crossed 16,000 at 25.00.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.99
\nBid-YTW : 4.33 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\n52,900<\/td>\nDesjardins crossed 22,000 at 25.68 and bought 13,200 from TD at 25.64.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.60
\nBid-YTW : 4.40 %<\/td>\n<\/tr>\n
There were 45 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
ELF.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.72 – 23.60
\nSpot Rate : 0.8800
\nAverage : 0.6230<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-01-25
\nMaturity Price : 22.36
\nEvaluated at bid price : 22.72
\nBid-YTW : 5.25 %<\/td>\n<\/tr>\n

SLF.PR.H<\/td>\nFixedReset<\/td>\nQuote: 23.90 – 24.25
\nSpot Rate : 0.3500
\nAverage : 0.2383<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.90
\nBid-YTW : 4.35 %<\/td>\n<\/tr>\n

TD.PR.C<\/td>\nFixedReset<\/td>\nQuote: 26.34 – 26.60
\nSpot Rate : 0.2600
\nAverage : 0.1575<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.34
\nBid-YTW : 2.82 %<\/td>\n<\/tr>\n

CU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 25.80 – 26.15
\nSpot Rate : 0.3500
\nAverage : 0.2521<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.80
\nBid-YTW : 3.48 %<\/td>\n<\/tr>\n

FTS.PR.H<\/td>\nFixedReset<\/td>\nQuote: 25.72 – 26.00
\nSpot Rate : 0.2800
\nAverage : 0.1889<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-01-25
\nMaturity Price : 23.55
\nEvaluated at bid price : 25.72
\nBid-YTW : 2.85 %<\/td>\n<\/tr>\n

MFC.PR.C<\/td>\nDeemed-Retractible<\/td>\nQuote: 23.12 – 23.40
\nSpot Rate : 0.2800
\nAverage : 0.2012<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.12
\nBid-YTW : 5.58 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The FOMC release was fascinating: To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative …<\/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-17671","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17671","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=17671"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17671\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}