{"id":18616,"date":"2012-05-11T20:06:41","date_gmt":"2012-05-12T00:06:41","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=18616"},"modified":"2012-05-11T20:06:41","modified_gmt":"2012-05-12T00:06:41","slug":"may-11-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=18616","title":{"rendered":"May 11, 2012"},"content":{"rendered":"

It looks like there are lots of jobs in Canada<\/a>!<\/p>\n

Canadian employment rose almost six times faster than economists forecast in April, led by private- sector and full-time positions, creating the largest two-month increase in more than 30 years and leading investors to raise bets on higher interest rates.<\/p>\n

Employment rose by 58,200 following a March jump of 82,300 that was the biggest since September 2008, Statistics Canada said today in Ottawa. The labor force grew by 72,500, lifting the jobless rate to 7.3 percent from 7.2 percent. Economists surveyed by Bloomberg News projected a 10,000 gain in jobs and 7.3 percent unemployment, according to the median forecasts.
…<\/b>
The construction industry posted the largest increase with 24,600 new jobs. Manufacturing added 23,800 positions and education rose by 16,800.<\/p><\/blockquote>\n

In an opinion piece published by the Financial Times (not in a Canadian paper, or on the bank’s website, where any two-bit Canadian scumbag could access it conveniently) Lapdog Carney says his boss makes wonderful decisions<\/a>:<\/p>\n

This provides a goal \u2013 an inflation target \u2013 that is both immutable and credible, while allowing for changes in the time horizon over which it is achieved. In short, flexible inflation targeting allows central banks to deliver what is expected while dealing with the unexpected.<\/p>\n

An inflation target makes it easier, not harder, to take aggressive and pre-emptive policy action. The clarity and credibility of the Bank of Canada\u2019s flexible framework guided our rapid easing during the crisis. By providing forward policy guidance conditional on the outlook for inflation, we were able to reinforce the stimulative effect of our policy and to normalise policy smoothly when conditions improved.<\/p>\n

Central banks at the centre of the crisis have responded even more radically. Inflation targeting is allowing the Bank of England to look through short-term deviations in inflation. The adoption by the US Federal Reserve and the Bank of Japan of more explicit inflation objectives improves the effectiveness of their unconventional policies, and will be essential to manage their exit from those policies.
…<\/b>
Flexible inflation targeting is that framework, a policy for all seasons.<\/p><\/blockquote>\n

Kevin Carmichael of the Globe comments<\/a>:<\/p>\n

Yet when the time came to renew the Bank of Canada\u2019s mandate last fall, the Harper government opted against trying something new in the immediate aftermath of a recession. Mr. Carney\u2019s comments in the Financial Times give reason to doubt that price-level targeting ever will be tried. Canada\u2019s economic leaders appear to believe they have found the monetary policy equivalent of nirvana. <\/p><\/blockquote>\n

It’s too bad. Price Level Targetting would reduce (somewhat!) the risk of long-term fixed-income investing and assist (somewhat!) in retirement planning.<\/p>\n

Greek politics continues to fascinate<\/a>:<\/p>\n

Alexis Tsipras, the leader of Greece\u2019s biggest anti-bailout party Syriza, turned down an appeal by political leaders to join a unity government that would avert a new election amid mounting concern of a euro exit.<\/p>\n

\u201cI want to underline that the refusal of this proposal isn\u2019t coming from Syriza, but from the Greek people themselves,\u201d Tsipras said in Athens today, in comments televised live on state-run NET TV. \u201cThe people have already rejected the bailout so no government has the right to implement it.\u201d<\/p>\n

Tsipras\u2019s refusal to participate in a government that would group two pro-bailout parties with his own and the smaller Democratic Left party dims hopes of avoiding another round at the ballot-box, which polls show may catapault Syriza into first place. The onus is now on President Karolos Papoulias to try and broker a government of national unity.
…<\/b>
The unity government proposal by Democratic Left leader Fotis Kouvelis had received backing from Venizelos and New Democracy leader Antonis Samaras, underpinned by the two main principles of keeping the country in the euro region and renegotiating bailout conditions to boost growth.
…<\/b>
Kouvelis, whose party holds 19 seats in the 300-seat parliament, said the unity government would last until 2014 and would have a specific agenda to negotiate a gradual \u201cdisengagement\u201d from bailout austerity measures. He said that a condition for Democratic Left joining the government was the participation of Syriza.<\/p><\/blockquote>\n

There is the usual amount of fear and bravado<\/a>:<\/p>\n

[German Finance Minister Wolfgang] Schaeuble told today\u2019s Rheinische Post newspaper that the euro area could handle a Greek departure as \u201cthe risks of contagion for other countries of the euro zone have been reduced.\u201d
…<\/b>
The risk is if Greece leaves and the save-the-euro response flops the world economy could face a sovereign-version of Lehman Brothers Holdings Inc.\u2019s collapse. That makes Schaeuble\u2019s confidence sound all too similar to former U.S. Treasury Secretary Henry M. Paulson\u2019s optimism that the U.S. financial system could withstand the 2008 loss of Lehman Brothers, only to witness the deepest global recession since World War II and a 40 percent slide in the Standard & Poor\u2019s 500 Index in six months.<\/p><\/blockquote>\n

I don’t know if comparisons to Lehman hold up. Is there anybody in the world who hasn’t realized a Greek default and exit hasn’t been possible, if not likely, for the past year? Lehman collapsed in the course of a week. Of course, it’s always possible that we’re in the middle of an extended train wreck that everybody can see happening and nobody can do anything about.<\/p>\n

Groupe Aeroplan Inc., proud issuer of AIM.PR.A, has changed its name to Aimia Inc.<\/a>.<\/p>\n

It was a mildly positive day for the Canadian preferred share market, with PerpetualPremiums up 4bp, FixedResets winning 10bp and DeemedRetractibles gaining 7bp. Volatility was almost non-existent. Volume was also almost non-existent.<\/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-0.8272 %<\/td>\n2,473.1<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.41 %<\/td>\n3.77 %<\/td>\n27,973<\/td>\n17.78<\/td>\n1<\/td>\n0.1860 %<\/td>\n3,574.5<\/td>\n<\/tr>\n
Floater<\/td>\n2.92 %<\/td>\n2.94 %<\/td>\n53,336<\/td>\n19.86<\/td>\n3<\/td>\n-0.8272 %<\/td>\n2,670.3<\/td>\n<\/tr>\n
OpRet<\/td>\n4.77 %<\/td>\n2.74 %<\/td>\n49,841<\/td>\n1.10<\/td>\n5<\/td>\n-0.1329 %<\/td>\n2,505.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.24 %<\/td>\n5.05 %<\/td>\n62,727<\/td>\n0.60<\/td>\n4<\/td>\n-0.0148 %<\/td>\n2,699.2<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1329 %<\/td>\n2,291.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.44 %<\/td>\n-0.13 %<\/td>\n74,888<\/td>\n0.09<\/td>\n25<\/td>\n0.0388 %<\/td>\n2,232.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.05 %<\/td>\n4.98 %<\/td>\n160,104<\/td>\n15.44<\/td>\n8<\/td>\n-0.0205 %<\/td>\n2,456.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.03 %<\/td>\n2.94 %<\/td>\n176,172<\/td>\n2.09<\/td>\n68<\/td>\n0.1020 %<\/td>\n2,405.2<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.94 %<\/td>\n3.53 %<\/td>\n166,329<\/td>\n1.56<\/td>\n45<\/td>\n0.0706 %<\/td>\n2,331.7<\/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
BAM.PR.B<\/td>\nFloater<\/td>\n-1.76 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-11
\nMaturity Price : 17.91
\nEvaluated at bid price : 17.91
\nBid-YTW : 2.95 %<\/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
FTS.PR.E<\/td>\nOpRet<\/td>\n249,500<\/td>\nNational crossed 245,200 at 26.53.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.53
\nBid-YTW : 2.74 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset<\/td>\n59,797<\/td>\nTD crossed 40,000 at 25.10.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.06
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n
TD.PR.S<\/td>\nFixedReset<\/td>\n52,700<\/td>\nTD crossed 45,000 at 25.72.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.74
\nBid-YTW : 2.67 %<\/td>\n<\/tr>\n
TD.PR.Y<\/td>\nFixedReset<\/td>\n52,508<\/td>\nTD crossed 45,000 at 25.85.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.86
\nBid-YTW : 2.82 %<\/td>\n<\/tr>\n
TD.PR.K<\/td>\nFixedReset<\/td>\n29,230<\/td>\nDesjardins crossed 13,300 at 26.90.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.91
\nBid-YTW : 2.79 %<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nDeemed-Retractible<\/td>\n23,927<\/td>\nTD crossed 19,400 at 25.92.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-06-10
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.00
\nBid-YTW : -5.28 %<\/td>\n<\/tr>\n
There were 13 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.C<\/td>\nFixedReset<\/td>\nQuote: 26.25 – 26.68
\nSpot Rate : 0.4300
\nAverage : 0.2941<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.25
\nBid-YTW : 3.49 %<\/td>\n<\/tr>\n

W.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.53 – 25.90
\nSpot Rate : 0.3700
\nAverage : 0.2791<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-01-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.53
\nBid-YTW : 2.93 %<\/td>\n<\/tr>\n

FTS.PR.E<\/td>\nOpRet<\/td>\nQuote: 26.53 – 26.88
\nSpot Rate : 0.3500
\nAverage : 0.2781<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.53
\nBid-YTW : 2.74 %<\/td>\n<\/tr>\n

BAM.PR.J<\/td>\nOpRet<\/td>\nQuote: 26.75 – 27.03
\nSpot Rate : 0.2800
\nAverage : 0.2101<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.75
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n

BAM.PR.B<\/td>\nFloater<\/td>\nQuote: 17.91 – 18.22
\nSpot Rate : 0.3100
\nAverage : 0.2416<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-11
\nMaturity Price : 17.91
\nEvaluated at bid price : 17.91
\nBid-YTW : 2.95 %<\/td>\n<\/tr>\n

CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.70 – 25.00
\nSpot Rate : 0.3000
\nAverage : 0.2384<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-11
\nMaturity Price : 24.40
\nEvaluated at bid price : 24.70
\nBid-YTW : 4.65 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

It looks like there are lots of jobs in Canada! Canadian employment rose almost six times faster than economists forecast in April, led by private- sector and full-time positions, creating the largest two-month increase 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-18616","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18616","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=18616"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18616\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}