{"id":17965,"date":"2012-02-29T01:40:51","date_gmt":"2012-02-29T05:40:51","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=17965"},"modified":"2012-02-29T01:40:51","modified_gmt":"2012-02-29T05:40:51","slug":"february-28-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=17965","title":{"rendered":"February 28, 2012"},"content":{"rendered":"

I could not agree more with Stephen Gordon’s Ode to a High Exchange Rate<\/a>:<\/p>\n

Exports are costs. The goal of international trade is to import goods and services; exports are the price we pay in return. If a higher exchange rate allows Ontario to import more and export less, Ontarians are better off.<\/p><\/blockquote>\n

I’m perpetually astonished by political attitudes towards exchange rates and dumping. If some foreigner wants to sell me something cheap, I tell ’em “Fine! Back up the truck!”<\/p>\n

There’s some interesting colour regarding pain in pension land<\/a>:<\/p>\n

General Electric Co. (GE), Boeing Co. (BA) and 3M Co. (MMM) will join big U.S. employers in making a record $100 billion in 2012 pension contributions, 67 percent more than two years ago, as low interest rates boost companies\u2019 liabilities.<\/p>\n

Payments may total $400 billion from 2011 through 2015 to ease underfunding at the 100 largest defined-benefit programs, according to consultant Milliman Inc., which estimated that assets in January were enough to cover less than three-fourths of projected payouts.<\/p><\/blockquote>\n

There was an excellent result in the latest Vikings vs. Pirates match<\/a>:<\/p>\n

The navy said its ship, the Absalon, had been tracking the pirate vessel for several days near the Somali coast. As the pirate ship tried to leave the coast, the warship called on it to stop, firing warning shots. When the pirate ship didn\u2019t respond, the Danish warship opened fire, according to the statement. The vessel had been used as a base by the pirates for attacks in the region, the navy said.<\/p><\/blockquote>\n

The only thing I don’t understand is: why did they bother tracking it for several days? I hope this was for intelligence-gathering purposes, because ideally it would have been blown out of the water on sight.<\/p>\n

It was another good day for the Canadian preferred share market, with PerpetualPremiums winning 17bp, FixedResets flat and DeemedRetractibles gaining 15bp. The good sized Performance Highlights table is highly skewed to the upside. Volume was below 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>\n0.2134 %<\/td>\n2,388.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.52 %<\/td>\n3.90 %<\/td>\n38,303<\/td>\n17.47<\/td>\n1<\/td>\n-0.4739 %<\/td>\n3,447.0<\/td>\n<\/tr>\n
Floater<\/td>\n2.80 %<\/td>\n3.06 %<\/td>\n55,420<\/td>\n19.51<\/td>\n3<\/td>\n0.2134 %<\/td>\n2,579.0<\/td>\n<\/tr>\n
OpRet<\/td>\n4.89 %<\/td>\n2.84 %<\/td>\n56,779<\/td>\n1.28<\/td>\n6<\/td>\n0.1665 %<\/td>\n2,503.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.31 %<\/td>\n0.18 %<\/td>\n85,942<\/td>\n0.78<\/td>\n4<\/td>\n-0.4688 %<\/td>\n2,661.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1665 %<\/td>\n2,288.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.38 %<\/td>\n2.11 %<\/td>\n115,902<\/td>\n0.17<\/td>\n28<\/td>\n0.1713 %<\/td>\n2,209.5<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.08 %<\/td>\n4.96 %<\/td>\n197,117<\/td>\n15.45<\/td>\n4<\/td>\n0.3441 %<\/td>\n2,433.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.05 %<\/td>\n2.85 %<\/td>\n205,586<\/td>\n2.27<\/td>\n66<\/td>\n-0.0017 %<\/td>\n2,381.1<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.94 %<\/td>\n3.83 %<\/td>\n239,222<\/td>\n2.94<\/td>\n46<\/td>\n0.1465 %<\/td>\n2,303.0<\/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
FBS.PR.C<\/td>\nSplitShare<\/td>\n-1.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-15
\nMaturity Price : 10.00
\nEvaluated at bid price : 10.46
\nBid-YTW : 0.18 %<\/td>\n<\/tr>\n
SLF.PR.H<\/td>\nFixedReset<\/td>\n1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.05
\nBid-YTW : 4.29 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-02-28
\nMaturity Price : 17.30
\nEvaluated at bid price : 17.30
\nBid-YTW : 3.06 %<\/td>\n<\/tr>\n
IAG.PR.E<\/td>\nDeemed-Retractible<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.55
\nBid-YTW : 4.80 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-02-28
\nMaturity Price : 24.52
\nEvaluated at bid price : 24.76
\nBid-YTW : 5.42 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n1.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.76
\nBid-YTW : 4.06 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n1.59 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.67
\nBid-YTW : 5.27 %<\/td>\n<\/tr>\n
FTS.PR.E<\/td>\nOpRet<\/td>\n2.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.75
\nBid-YTW : 1.61 %<\/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
POW.PR.G<\/td>\nPerpetual-Premium<\/td>\n594,733<\/td>\nNew issue settled today<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.47
\nBid-YTW : 5.37 %<\/td>\n<\/tr>\n
RY.PR.E<\/td>\nDeemed-Retractible<\/td>\n90,883<\/td>\nTD crossed 50,000 at 25.70; Desjardins crossed 30,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.70
\nBid-YTW : 3.77 %<\/td>\n<\/tr>\n
PWF.PR.I<\/td>\nPerpetual-Premium<\/td>\n80,252<\/td>\nDesjardins crossed blocks of 40,000 shares, 10,000 and 15,000, all at 25.55.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-03-29
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.60
\nBid-YTW : -5.45 %<\/td>\n<\/tr>\n
PWF.PR.R<\/td>\nPerpetual-Premium<\/td>\n65,525<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : 5.30 %<\/td>\n<\/tr>\n
TD.PR.S<\/td>\nFixedReset<\/td>\n58,729<\/td>\nRBC crossed 56,800 at 25.85.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.83
\nBid-YTW : 2.90 %<\/td>\n<\/tr>\n
TD.PR.G<\/td>\nFixedReset<\/td>\n55,690<\/td>\nRBC crossed 49,000 at 27.05.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.04
\nBid-YTW : 2.59 %<\/td>\n<\/tr>\n
There were 26 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.F<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.10 – 26.58
\nSpot Rate : 0.4800
\nAverage : 0.3670<\/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 : 5.29 %<\/td>\n<\/tr>\n

BAM.PR.J<\/td>\nOpRet<\/td>\nQuote: 26.99 – 27.53
\nSpot Rate : 0.5400
\nAverage : 0.4277<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.99
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n

GWO.PR.G<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.62 – 25.95
\nSpot Rate : 0.3300
\nAverage : 0.2555<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.62
\nBid-YTW : 4.28 %<\/td>\n<\/tr>\n

RY.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.82 – 25.98
\nSpot Rate : 0.1600
\nAverage : 0.0926<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.82
\nBid-YTW : 3.73 %<\/td>\n<\/tr>\n

BNS.PR.Q<\/td>\nFixedReset<\/td>\nQuote: 25.91 – 26.09
\nSpot Rate : 0.1800
\nAverage : 0.1249<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-10-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.91
\nBid-YTW : 2.99 %<\/td>\n<\/tr>\n

BAM.PR.R<\/td>\nFixedReset<\/td>\nQuote: 26.40 – 26.65
\nSpot Rate : 0.2500
\nAverage : 0.1954<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-02-28
\nMaturity Price : 23.61
\nEvaluated at bid price : 26.40
\nBid-YTW : 3.69 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

I could not agree more with Stephen Gordon’s Ode to a High Exchange Rate: Exports are costs. The goal of international trade is to import goods and services; exports are the price we pay in …<\/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-17965","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17965","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=17965"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17965\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}