{"id":18726,"date":"2012-05-25T21:40:42","date_gmt":"2012-05-26T01:40:42","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=18726"},"modified":"2012-05-25T21:40:42","modified_gmt":"2012-05-26T01:40:42","slug":"may-25-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=18726","title":{"rendered":"May 25, 2012"},"content":{"rendered":"

Cheerful Greek thoughts<\/a> from the Institute of International Finance (aka the Bankers’ Club):<\/p>\n

The cost of Greece exiting the euro would be unmanageable and probably exceed the 1 trillion euros ($1.25 trillion) previously estimated by the Institute of International Finance, the group\u2019s managing director said.<\/p>\n

The Washington-based IIF\u2019s projection from earlier this year is \u201ca bit dated now\u201d and \u201cprobably on the low side,\u201d Charles Dallara said in an interview in Rome today. \u201cThose who think that Europe, and more broadly the global economy, are really prepared for a Greek exit should think again.\u201d<\/p>\n

The European Central Bank\u2019s exposure to Greek liabilities is more than twice as big as the ECB\u2019s capital, said Dallara, who represented banks in their negotiations with the Greek government on its debt restructuring. As a result, he predicted the bank would be unable to provide liquidity and stabilize the euro-area financial sector.
…<\/b>
For Greece, in its fifth year of recession, it may be more effective to offer extra money to help its battered economy recover, Dallara said. Because Greece\u2019s economy has shrunk so much faster than expected, it may need more time to meet its budget targets and repay its international loans, he said.<\/p>\n

Greece\u2019s shrinking economy could be aided \u201cat a cost\u201d of an additional 10 billion euros. \u201cWe\u2019re talking about very modest sums compared to what\u2019s already on the table,\u201d he said.<\/p><\/blockquote>\n

It was a mildly positive day for the Canadian preferred share market, with PerpetualPremiums gaining 1bp, FixedResets up 12bp and DeemedRetractibles winning 14bp. Volatility was muted. Volume was well 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>\n-0.0372 %<\/td>\n2,465.3<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.44 %<\/td>\n3.81 %<\/td>\n29,689<\/td>\n17.69<\/td>\n1<\/td>\n0.0000 %<\/td>\n3,551.2<\/td>\n<\/tr>\n
Floater<\/td>\n2.93 %<\/td>\n2.95 %<\/td>\n68,910<\/td>\n19.80<\/td>\n3<\/td>\n-0.0372 %<\/td>\n2,661.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.80 %<\/td>\n2.88 %<\/td>\n44,534<\/td>\n1.06<\/td>\n5<\/td>\n0.0000 %<\/td>\n2,501.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.27 %<\/td>\n-5.77 %<\/td>\n51,696<\/td>\n0.56<\/td>\n4<\/td>\n0.3742 %<\/td>\n2,709.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0000 %<\/td>\n2,287.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.46 %<\/td>\n2.36 %<\/td>\n72,175<\/td>\n0.63<\/td>\n25<\/td>\n0.0110 %<\/td>\n2,227.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.12 %<\/td>\n5.25 %<\/td>\n82,858<\/td>\n14.98<\/td>\n8<\/td>\n-0.4084 %<\/td>\n2,422.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.05 %<\/td>\n3.17 %<\/td>\n189,041<\/td>\n2.33<\/td>\n69<\/td>\n0.1248 %<\/td>\n2,393.3<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.98 %<\/td>\n3.52 %<\/td>\n170,986<\/td>\n1.90<\/td>\n45<\/td>\n0.1367 %<\/td>\n2,316.3<\/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.M<\/td>\nPerpetual-Discount<\/td>\n-1.59 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-25
\nMaturity Price : 22.51
\nEvaluated at bid price : 22.90
\nBid-YTW : 5.25 %<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\n-1.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-25
\nMaturity Price : 22.54
\nEvaluated at bid price : 22.91
\nBid-YTW : 5.25 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-25
\nMaturity Price : 23.50
\nEvaluated at bid price : 25.75
\nBid-YTW : 3.17 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n3.42 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.01
\nBid-YTW : 5.65 %<\/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
MFC.PR.I<\/td>\nFixedReset<\/td>\n128,885<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.80
\nBid-YTW : 4.49 %<\/td>\n<\/tr>\n
NA.PR.K<\/td>\nDeemed-Retractible<\/td>\n97,138<\/td>\nTD crossed 48,000 at 25.50; Desjardins crossed 25,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-06-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.46
\nBid-YTW : -13.92 %<\/td>\n<\/tr>\n
RY.PR.D<\/td>\nDeemed-Retractible<\/td>\n77,685<\/td>\nTD crossed blocks of 40,000 and 25,000, both at 25.67.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.66
\nBid-YTW : 3.76 %<\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nDeemed-Retractible<\/td>\n66,976<\/td>\nNesbitt crossed 56,400 at 23.76.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.74
\nBid-YTW : 5.56 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nDeemed-Retractible<\/td>\n63,403<\/td>\nNesbitt crossed 56,400 at 22.76. Gee, I wonder if that’s related to the cross in SLF.PR.A, above!
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.80
\nBid-YTW : 5.77 %<\/td>\n<\/tr>\n
TD.PR.G<\/td>\nFixedReset<\/td>\n59,665<\/td>\nNational crossed 48,400 at 26.62.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.63
\nBid-YTW : 2.99 %<\/td>\n<\/tr>\n
There were 19 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
IGM.PR.B<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.78 – 26.30
\nSpot Rate : 0.5200
\nAverage : 0.4548<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.78
\nBid-YTW : 5.44 %<\/td>\n<\/tr>\n

BAM.PR.T<\/td>\nFixedReset<\/td>\nQuote: 25.06 – 25.24
\nSpot Rate : 0.1800
\nAverage : 0.1173<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-25
\nMaturity Price : 23.19
\nEvaluated at bid price : 25.06
\nBid-YTW : 3.84 %<\/td>\n<\/tr>\n

IAG.PR.E<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.87 – 26.30
\nSpot Rate : 0.4300
\nAverage : 0.3678<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.87
\nBid-YTW : 5.30 %<\/td>\n<\/tr>\n

BNA.PR.C<\/td>\nSplitShare<\/td>\nQuote: 22.81 – 23.00
\nSpot Rate : 0.1900
\nAverage : 0.1326<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.81
\nBid-YTW : 5.97 %<\/td>\n<\/tr>\n

RY.PR.I<\/td>\nFixedReset<\/td>\nQuote: 25.64 – 25.87
\nSpot Rate : 0.2300
\nAverage : 0.1786<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.64
\nBid-YTW : 3.39 %<\/td>\n<\/tr>\n

GWO.PR.P<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.95 – 26.09
\nSpot Rate : 0.1400
\nAverage : 0.0986<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.95
\nBid-YTW : 5.11 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Cheerful Greek thoughts from the Institute of International Finance (aka the Bankers’ Club): The cost of Greece exiting the euro would be unmanageable and probably exceed the 1 trillion euros ($1.25 trillion) previously estimated by …<\/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-18726","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18726","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=18726"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18726\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}