{"id":18391,"date":"2012-04-16T20:23:14","date_gmt":"2012-04-17T00:23:14","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=18391"},"modified":"2012-04-16T20:23:14","modified_gmt":"2012-04-17T00:23:14","slug":"april-16-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=18391","title":{"rendered":"April 16, 2012"},"content":{"rendered":"

Spain looks as if it’s sliding down the greasy path<\/a>:<\/p>\n

A Spanish minister called on the European Central Bank to do more to stem the sovereign debt crisis as the cost of insuring the country\u2019s bonds against default surged to a record.<\/p>\n

\u201cThey should step up purchases of bonds,\u201d Jaime Garcia- Legaz, a deputy minister in Luis de Guindos\u2019s Economy Ministry, said yesterday in an interview.<\/p>\n

His comments came as ECB officials split over the steps to tame the crisis amid growing expectations that Spain will be the next euro member to seek a European bailout. Spanish banks\u2019 borrowings from the ECB surged almost 50 percent in March, data showed yesterday, as they took almost a third of the longer-term lending offered to euro-region institutions.<\/p><\/blockquote>\n

But China is inching towards convertibility<\/a>:<\/p>\n

China\u2019s decision to widen the yuan\u2019s trading band against the dollar for the first time since 2007 signals a drive toward a convertible currency that also saw overseas investors get bigger investment quotas this month.<\/p>\n

The increase to 1 percent from 0.5 percent takes effect tomorrow, the People\u2019s Bank of China said on its website yesterday. This month, regulators raised quotas for foreigners buying onshore stocks and bonds to $80 billion from $30 billion and increased the amount of yuan held offshore that can be invested locally.<\/p><\/blockquote>\n

Spanish troubles have led the Europeans to admit that the Euro is only a reserve currency in good times – in bad times, not so much<\/a>:<\/p>\n

European officials travel to Washington this week seeking a larger global war chest to combat the two-year debt crisis as the Spanish government battles to quell renewed market turmoil over its finances.<\/p>\n

Three weeks after European leaders unveiled emergency euro- area funding exceeding the symbolic $1 trillion mark, concerns about Spain\u2019s position have ratcheted the nation\u2019s borrowing costs to the highest levels this year. Crisis-fighting resources will dominate talks at the International Monetary Fund\u2019s spring meeting in Washington from April 20-22. <\/p><\/blockquote>\n

Sarkozy wants the ECB to inflate Europe out of its difficulties<\/a>, although he’s very careful to cast this in a more politically correct manner:<\/p>\n

French President Nicolas Sarkozy, speaking to the biggest rally of his re-election bid, said the European Central Bank should do more to promote economic growth, reviving an issue he raised in his 2007 campaign.<\/p>\n

\u201cOn the question of the ECB\u2019s role in boosting growth, we French are going to open the debate,\u201d Sarkozy told a crowd today in central Paris that his aides estimated at more than 100,000. \u201cIf Europe is not going to sink in the international economy, it must renew with growth.\u201d
…<\/b>
\u201cEurope must cut its debts, it has no choice,\u201d Sarkozy said. \u201cBut between deflation and growth, it has no choice either. If it chooses deflation, it will disappear.\u201d <\/p><\/blockquote>\n

Krugman is on board with the idea<\/a>:<\/p>\n

The way economist Paul Krugman sees it, Europe has two options.<\/p>\n

It can continue with its current path, imposing austerity on governments in an attempt to rein in ever-worsening fiscal situations. Or, it can opt for the reverse, wherein the European Central Bank and eurozone leaders move to implement expansionary monetary and fiscal policies to spur growth.<\/p>\n

Right now Europe has chosen austerity and according to Mr. Krugman, that choice is clearly showing that Europe is carrying out economic suicide.<\/p>\n

\u201cEurope has had several years of experience with harsh austerity programs, and the results are exactly what students of history told you would happen: such programs push depressed economies even deeper into depression,\u201d he said in a column in the New York Times.<\/p><\/blockquote>\n

It was a modest day for the Canadian preferred share market, with PerpetualPremiums up 1bp, FixedResets gaining 4bp and DeemedRetractibles winning 5bp. Volatility was muted. Volume was below average, despite a fair amount of good-sized blocks.<\/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>\n1.2106 %<\/td>\n2,337.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.44 %<\/td>\n3.79 %<\/td>\n34,550<\/td>\n17.79<\/td>\n1<\/td>\n0.6585 %<\/td>\n3,551.2<\/td>\n<\/tr>\n
Floater<\/td>\n3.09 %<\/td>\n3.10 %<\/td>\n43,814<\/td>\n19.48<\/td>\n3<\/td>\n1.2106 %<\/td>\n2,524.3<\/td>\n<\/tr>\n
OpRet<\/td>\n4.76 %<\/td>\n2.97 %<\/td>\n45,992<\/td>\n1.17<\/td>\n5<\/td>\n-0.0077 %<\/td>\n2,507.3<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.26 %<\/td>\n-1.04 %<\/td>\n81,851<\/td>\n0.67<\/td>\n4<\/td>\n-0.2576 %<\/td>\n2,684.4<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0077 %<\/td>\n2,292.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.47 %<\/td>\n-3.01 %<\/td>\n83,825<\/td>\n0.12<\/td>\n23<\/td>\n0.0136 %<\/td>\n2,222.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.17 %<\/td>\n5.09 %<\/td>\n130,960<\/td>\n15.19<\/td>\n10<\/td>\n-0.0949 %<\/td>\n2,414.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.01 %<\/td>\n2.99 %<\/td>\n186,841<\/td>\n2.18<\/td>\n67<\/td>\n0.0429 %<\/td>\n2,396.8<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.96 %<\/td>\n3.89 %<\/td>\n199,883<\/td>\n2.87<\/td>\n46<\/td>\n0.0531 %<\/td>\n2,307.9<\/td>\n<\/tr>\n<\/table>\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.N<\/td>\nPerpetual-Discount<\/td>\n-1.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-04-16
\nMaturity Price : 22.59
\nEvaluated at bid price : 22.96
\nBid-YTW : 5.20 %<\/td>\n<\/tr>\n
BMO.PR.P<\/td>\nFixedReset<\/td>\n-1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.66
\nBid-YTW : 3.25 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-04-16
\nMaturity Price : 17.00
\nEvaluated at bid price : 17.00
\nBid-YTW : 3.10 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n1.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-04-16
\nMaturity Price : 17.05
\nEvaluated at bid price : 17.05
\nBid-YTW : 3.10 %<\/td>\n<\/tr>\n<\/table>\n\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
TRP.PR.B<\/td>\nFixedReset<\/td>\n168,970<\/td>\nNesbitt bought 10,000 from anonymous at 25.69 and 49,900 from RBC at 25.65. Nesbitt crossed two blocks of 50,000 each, both at 25.65.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-04-16
\nMaturity Price : 23.51
\nEvaluated at bid price : 25.50
\nBid-YTW : 2.73 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n164,386<\/td>\nTD crossed blocks of 99,700 shares, 20,000 and 30,000, all at 27.15.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.18
\nBid-YTW : 2.82 %<\/td>\n<\/tr>\n
ENB.PR.H<\/td>\nFixedReset<\/td>\n163,805<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-04-16
\nMaturity Price : 23.19
\nEvaluated at bid price : 25.30
\nBid-YTW : 3.55 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n160,896<\/td>\nScotia crossed 25,000 at 25.25. RBC crossed blocks of 99,800 and 18,000, both at 25.30.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-04-16
\nMaturity Price : 23.25
\nEvaluated at bid price : 25.25
\nBid-YTW : 3.81 %<\/td>\n<\/tr>\n
BMO.PR.O<\/td>\nFixedReset<\/td>\n122,580<\/td>\nDesjardins crossed 121,400 at 27.15.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.17
\nBid-YTW : 2.70 %<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nDeemed-Retractible<\/td>\n108,604<\/td>\nNesbitt crossed blocks of 50,000 and 40,000, both at 26.10.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-05-16
\nMaturity Price : 25.75
\nEvaluated at bid price : 25.87
\nBid-YTW : -3.13 %<\/td>\n<\/tr>\n
CM.PR.E<\/td>\nPerpetual-Premium<\/td>\n101,711<\/td>\nNesbitt crossed two blocks of 50,000 each, both at 25.95.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-05-16
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.85
\nBid-YTW : -24.07 %<\/td>\n<\/tr>\n
There were 23 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
POW.PR.G<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.78 – 26.49
\nSpot Rate : 0.7100
\nAverage : 0.4115<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.78
\nBid-YTW : 5.20 %<\/td>\n<\/tr>\n

BAM.PR.K<\/td>\nFloater<\/td>\nQuote: 16.95 – 17.43
\nSpot Rate : 0.4800
\nAverage : 0.3475<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-04-16
\nMaturity Price : 16.95
\nEvaluated at bid price : 16.95
\nBid-YTW : 3.11 %<\/td>\n<\/tr>\n

IGM.PR.B<\/td>\nPerpetual-Premium<\/td>\nQuote: 26.40 – 26.85
\nSpot Rate : 0.4500
\nAverage : 0.3218<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.40
\nBid-YTW : 4.90 %<\/td>\n<\/tr>\n

BMO.PR.P<\/td>\nFixedReset<\/td>\nQuote: 26.66 – 26.96
\nSpot Rate : 0.3000
\nAverage : 0.1802<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.66
\nBid-YTW : 3.25 %<\/td>\n<\/tr>\n

PWF.PR.F<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.12 – 25.49
\nSpot Rate : 0.3700
\nAverage : 0.2695<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-05-16
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.12
\nBid-YTW : -3.01 %<\/td>\n<\/tr>\n

GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.17 – 26.47
\nSpot Rate : 0.3000
\nAverage : 0.2038<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.17
\nBid-YTW : 5.25 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Spain looks as if it’s sliding down the greasy path: A Spanish minister called on the European Central Bank to do more to stem the sovereign debt crisis as the cost of insuring the country\u2019s …<\/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-18391","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18391","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=18391"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18391\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}