{"id":18315,"date":"2012-04-05T22:02:36","date_gmt":"2012-04-06T02:02:36","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=18315"},"modified":"2012-04-05T22:02:36","modified_gmt":"2012-04-06T02:02:36","slug":"april-5-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=18315","title":{"rendered":"April 5, 2012"},"content":{"rendered":"

Julie Dickson’s speech<\/a> was not very interesting – just a shopping list of aspirations for a board. Of passing interest was:<\/p>\n

This leads me to explain why OSFI\u2019s draft guideline (B-20) on Sound Residential Mortgage Underwriting Practices and Procedures, which we made public on March 19th, begins with the statement that boards must establish real estate underwriting policies. In fact, most boards have already established such policies. This makes sense; housing is the largest asset class exposure of banks \u2013 almost 42 per cent of total bank assets.<\/p>\n

While these policies will have to be updated to reflect the new guidance, going forward senior management will have to provide a declaration to the board that the financial institution is in compliance with the OSFI guideline. This was added because we had noticed cases where board approved polices were not being followed.<\/p><\/blockquote>\n

Seems to me that if I was on a board that set a policy and that policy was not followed, I’d simply ensure that somebody senior got fired at every board meeting until it did get followed. But perhaps that’s just another reason why I’m not on a big-shot board.<\/p>\n

Another, related, reason is my antiquated idea that boards are in place to set policies and hire staff to carry them out. The modern view is that boards exist to provide jobs to unqualified women<\/a> – despite that fact that it does not work<\/a>:<\/p>\n

A recent study released by the German central bank found that risk taking within the banking industry increases with more women on an executive board. The same goes for younger executives. In contrast, men who are graying at the temples and executives with Ph.D. degrees reduce the level of risk.<\/p><\/blockquote>\n

Tomorrow’s US jobs number is expected to be encouraging<\/a>:<\/p>\n

Employers probably added more than 200,000 workers to payrolls in March for a fourth straight month as U.S. companies gained confidence sales will keep improving, economists said before a government report today.<\/p>\n

Hiring increased by 205,000 after rising by 227,000 in February, according to the median projection of 80 economists surveyed by Bloomberg News. The last time employment advanced at a similar pace for as many months was late 1999 into 2000. The jobless rate probably held at a three-year low of 8.3 percent.<\/p><\/blockquote>\n

Cowboys will have 45 minutes to settle their bets<\/a>:<\/p>\n

While stock markets around the world are shut for Good Friday, the Labor Department will publish its monthly employment report at 8:30 a.m. New York time. Equity traders will have 45 minutes to react, as trading of futures linked to the Standard & Poor\u2019s 500 Index and Dow Jones Industrial Average will continue until 9:15 a.m. on CME Group Inc. (CME)\u2019s Chicago Mercantile Exchange.<\/p><\/blockquote>\n

The Canadian jobs number was good<\/a>:<\/p>\n

Canada\u2019s labour market has finally perked up after half a year in the doldrums as a commodities boom and a firmer U.S. economy give employers the confidence to hire.<\/p>\n

The economy churned out 82,300 jobs last month, the most since 2008, with many of the positions created in full-time work. The hiring spree sent the country\u2019s jobless rate down two notches to 7.2 per cent in March, matching the lowest rate seen in the recovery.<\/p><\/blockquote>\n

First National, proud issuer of FN.PR.A, was confirmed at Pfd-3 by DBRS<\/a>:<\/p>\n

DBRS has today confirmed the Senior Secured \u2013 Guaranteed Debt and Class A Preference Shares ratings of First National Financial Corporation (FNFC) at BBB and Pfd-3, respectively, and the Issuer Rating of First National Financial LP (FNFLP) at BBB; all trends remain Stable.<\/p>\n

The ratings and trends reflect FNFC\u2019s status as Canada\u2019s largest non-bank mortgage originator, with just under $60 billion in mortgages under administration (MUA) as of December 31, 2011; its strong asset quality profile, with all assets secured by real estate and a substantial portion insured; and its high-quality, low-cost servicing capabilities.<\/p>\n

The rating on FNFC\u2019s Senior Secured \u2013 Guaranteed Debt is based on a senior guarantee from FNFLP and an Intercreditor Agreement between Computershare Trust Company of Canada as the debenture trustee and the lenders under a credit facility. The Intercreditor Agreement ranks the indebtedness created under the debentures equally and ratably with the indebtedness created under FNFLP\u2019s credit facility.<\/p><\/blockquote>\n

It was another mixed day for the Canadian preferred share market, with PerpetualPremiums winning 13bp, FixedResets off 2bp and DeemedRetractibles gaining 11bp. Only one issue made it to the Performance Highlights table. Volume was pathetic.<\/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>\n0.1329 %<\/td>\n2,417.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.52 %<\/td>\n3.92 %<\/td>\n37,353<\/td>\n17.38<\/td>\n1<\/td>\n-0.0951 %<\/td>\n3,448.6<\/td>\n<\/tr>\n
Floater<\/td>\n2.99 %<\/td>\n3.01 %<\/td>\n46,771<\/td>\n19.73<\/td>\n3<\/td>\n0.1329 %<\/td>\n2,610.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.93 %<\/td>\n3.42 %<\/td>\n68,027<\/td>\n1.17<\/td>\n6<\/td>\n0.0451 %<\/td>\n2,499.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.25 %<\/td>\n-4.84 %<\/td>\n85,019<\/td>\n0.70<\/td>\n4<\/td>\n-0.0890 %<\/td>\n2,693.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0451 %<\/td>\n2,285.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.48 %<\/td>\n-3.53 %<\/td>\n89,888<\/td>\n0.16<\/td>\n23<\/td>\n0.1273 %<\/td>\n2,217.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.20 %<\/td>\n5.17 %<\/td>\n135,476<\/td>\n15.18<\/td>\n10<\/td>\n0.0946 %<\/td>\n2,401.6<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.02 %<\/td>\n2.99 %<\/td>\n186,121<\/td>\n2.21<\/td>\n67<\/td>\n-0.0155 %<\/td>\n2,392.0<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.96 %<\/td>\n3.88 %<\/td>\n201,950<\/td>\n2.02<\/td>\n46<\/td>\n0.1088 %<\/td>\n2,305.3<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
PWF.PR.F<\/td>\nPerpetual-Premium<\/td>\n1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-05-05
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.26
\nBid-YTW : -11.38 %<\/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
RY.PR.W<\/td>\nPerpetual-Premium<\/td>\n86,210<\/td>\nScotia crossed 45,000 at 25.40; TD crossed 25,000 at the same price. TD bought 11,000 from Nesbitt at 25.39.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.36
\nBid-YTW : 4.43 %<\/td>\n<\/tr>\n
ENB.PR.H<\/td>\nFixedReset<\/td>\n68,981<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-04-05
\nMaturity Price : 23.16
\nEvaluated at bid price : 25.20
\nBid-YTW : 3.59 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Premium<\/td>\n20,965<\/td>\nRBC crossed 10,000 at 25.12.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-04-05
\nMaturity Price : 24.57
\nEvaluated at bid price : 25.10
\nBid-YTW : 4.91 %<\/td>\n<\/tr>\n
NA.PR.K<\/td>\nDeemed-Retractible<\/td>\n20,945<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-05-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : -8.41 %<\/td>\n<\/tr>\n
RY.PR.A<\/td>\nDeemed-Retractible<\/td>\n20,430<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-24
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.48
\nBid-YTW : 4.22 %<\/td>\n<\/tr>\n
CM.PR.M<\/td>\nFixedReset<\/td>\n20,300<\/td>\nRBC crossed 12,000 at 27.05.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.01
\nBid-YTW : 2.73 %<\/td>\n<\/tr>\n
There were 12 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
BAM.PR.B<\/td>\nFloater<\/td>\nQuote: 17.71 – 19.00
\nSpot Rate : 1.2900
\nAverage : 0.7519<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-04-05
\nMaturity Price : 17.71
\nEvaluated at bid price : 17.71
\nBid-YTW : 2.98 %<\/td>\n<\/tr>\n

BAM.PR.J<\/td>\nOpRet<\/td>\nQuote: 26.85 – 27.35
\nSpot Rate : 0.5000
\nAverage : 0.3062<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.85
\nBid-YTW : 3.52 %<\/td>\n<\/tr>\n

TCA.PR.Y<\/td>\nPerpetual-Premium<\/td>\nQuote: 52.01 – 52.48
\nSpot Rate : 0.4700
\nAverage : 0.3115<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-05
\nMaturity Price : 50.00
\nEvaluated at bid price : 52.01
\nBid-YTW : 3.21 %<\/td>\n<\/tr>\n

SLF.PR.I<\/td>\nFixedReset<\/td>\nQuote: 25.25 – 25.60
\nSpot Rate : 0.3500
\nAverage : 0.2686<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.25
\nBid-YTW : 4.05 %<\/td>\n<\/tr>\n

BAM.PR.G<\/td>\nFixedFloater<\/td>\nQuote: 21.01 – 21.59
\nSpot Rate : 0.5800
\nAverage : 0.5029<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-04-05
\nMaturity Price : 21.80
\nEvaluated at bid price : 21.01
\nBid-YTW : 3.92 %<\/td>\n<\/tr>\n

SLF.PR.H<\/td>\nFixedReset<\/td>\nQuote: 24.15 – 24.40
\nSpot Rate : 0.2500
\nAverage : 0.1810<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.15
\nBid-YTW : 4.25 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Julie Dickson’s speech was not very interesting – just a shopping list of aspirations for a board. Of passing interest was: This leads me to explain why OSFI\u2019s draft guideline (B-20) on Sound Residential Mortgage …<\/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-18315","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18315","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=18315"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18315\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}