{"id":18738,"date":"2012-05-29T22:30:48","date_gmt":"2012-05-30T02:30:48","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=18738"},"modified":"2012-05-29T22:30:48","modified_gmt":"2012-05-30T02:30:48","slug":"may-29-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=18738","title":{"rendered":"May 29, 2012"},"content":{"rendered":"

Too soon to call it a trend … but there are interesting goings-on in the credit rating agency world<\/a>:<\/p>\n

The response to the Moody\u2019s Investors Service downgrade of the biggest Nordic banks was rising bond and share prices.<\/p>\n

The reaction is the latest sign that investors are paying less attention to the views of rating companies and relying more on their own analysis to determine whether to buy or sell.
…<\/b>
Denmark, which is bringing its proposals to the European Parliament, says ratings often don\u2019t reflect credit risks. Measures to improve the industry include a plan to cut reliance on ratings for both investors and within financial regulation, the Business Ministry in Copenhagen said May 21. The intention is also to make it easier for investors and issuers to demand compensation from ratings companies that fail to do their job properly, the ministry said.<\/p>\n

In Denmark, banks have started firing Moody\u2019s after winning assurances from some of the country\u2019s biggest investors that the opinions of ratings companies hold limited value. Nykredit A\/S, Denmark\u2019s biggest mortgage lender and Europe\u2019s largest issuer of covered bonds backed by home loans, terminated its contract with Moody\u2019s in April, citing its \u201cvolatile\u201d views.<\/p><\/blockquote>\n

There’s nothing in the article about the potential for investors and issuers to demand compensation from investment managers that fail to do their job properly – what a surprise! Assurances from large investors that opinions of ratings companies hold limited value hold limited value – what else are they going to say?<\/p>\n

In Greek news<\/a>:<\/p>\n

The New Democracy party in Greece, which supports the austerity measures imposed by the European Union, came first in all six opinion polls published on May 26 as campaigning continued for the country\u2019s general election on June 17.<\/p>\n

Party leader Antonis Samaras sought to illustrate the consequences of a euro exit, saying Greek incomes, bank deposits and property values would lose at least half their value within days, while food prices would rise by a quarter.<\/p><\/blockquote>\n

Hmmm … maybe it will help him win. Maybe. And maybe it will also accellerate the bank run. Maybe.<\/p>\n

It was a mixed day for the Canadian preferred share market, with PerpetualPremiums gaining 4bp, FixedResets off 2bp and DeemedRetractibles down 6bp. Volatility was average. Volume remained light.<\/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>\n0.0000 %<\/td>\n2,473.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.50 %<\/td>\n3.86 %<\/td>\n30,406<\/td>\n17.55<\/td>\n1<\/td>\n-0.0474 %<\/td>\n3,501.5<\/td>\n<\/tr>\n
Floater<\/td>\n2.92 %<\/td>\n2.94 %<\/td>\n67,033<\/td>\n19.82<\/td>\n3<\/td>\n0.0000 %<\/td>\n2,670.8<\/td>\n<\/tr>\n
OpRet<\/td>\n4.80 %<\/td>\n2.83 %<\/td>\n41,115<\/td>\n1.05<\/td>\n5<\/td>\n-0.0155 %<\/td>\n2,500.4<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.25 %<\/td>\n-2.59 %<\/td>\n50,770<\/td>\n0.55<\/td>\n4<\/td>\n0.2582 %<\/td>\n2,719.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0155 %<\/td>\n2,286.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.45 %<\/td>\n1.77 %<\/td>\n73,681<\/td>\n0.62<\/td>\n25<\/td>\n0.0352 %<\/td>\n2,228.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.09 %<\/td>\n5.09 %<\/td>\n80,884<\/td>\n15.15<\/td>\n8<\/td>\n0.1395 %<\/td>\n2,437.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.06 %<\/td>\n3.18 %<\/td>\n197,610<\/td>\n4.54<\/td>\n69<\/td>\n-0.0152 %<\/td>\n2,391.9<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.99 %<\/td>\n3.75 %<\/td>\n158,876<\/td>\n1.89<\/td>\n45<\/td>\n-0.0649 %<\/td>\n2,310.7<\/td>\n<\/tr>\n<\/table>\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
MFC.PR.H<\/td>\nFixedReset<\/td>\n-1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.26
\nBid-YTW : 4.57 %<\/td>\n<\/tr>\n
BNS.PR.N<\/td>\nDeemed-Retractible<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-01-29
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.48
\nBid-YTW : 2.89 %<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-29
\nMaturity Price : 22.97
\nEvaluated at bid price : 23.40
\nBid-YTW : 5.13 %<\/td>\n<\/tr>\n
IGM.PR.B<\/td>\nPerpetual-Premium<\/td>\n1.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.15
\nBid-YTW : 5.18 %<\/td>\n<\/tr>\n
NA.PR.P<\/td>\nFixedReset<\/td>\n1.49 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.60
\nBid-YTW : 2.91 %<\/td>\n<\/tr>\n
FBS.PR.C<\/td>\nSplitShare<\/td>\n1.86 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-15
\nMaturity Price : 10.00
\nEvaluated at bid price : 10.95
\nBid-YTW : -10.09 %<\/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
TRP.PR.C<\/td>\nFixedReset<\/td>\n58,255<\/td>\nNational crossed 50,000 at 25.90.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-29
\nMaturity Price : 23.53
\nEvaluated at bid price : 25.80
\nBid-YTW : 2.85 %<\/td>\n<\/tr>\n
MFC.PR.I<\/td>\nFixedReset<\/td>\n44,400<\/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 : 24.88
\nBid-YTW : 4.40 %<\/td>\n<\/tr>\n
ENB.PR.H<\/td>\nFixedReset<\/td>\n39,515<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-29
\nMaturity Price : 23.19
\nEvaluated at bid price : 25.30
\nBid-YTW : 3.45 %<\/td>\n<\/tr>\n
BNS.PR.N<\/td>\nDeemed-Retractible<\/td>\n36,425<\/td>\nRBC crossed 25,000 at 26.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-01-29
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.48
\nBid-YTW : 2.89 %<\/td>\n<\/tr>\n
TRP.PR.B<\/td>\nFixedReset<\/td>\n33,135<\/td>\nNational crossed 25,000 at 25.34.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-29
\nMaturity Price : 23.46
\nEvaluated at bid price : 25.27
\nBid-YTW : 2.58 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nDeemed-Retractible<\/td>\n27,623<\/td>\nRBC bought 16,900 from anonymous at 16,900.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.35
\nBid-YTW : 6.04 %<\/td>\n<\/tr>\n
There were 18 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
FBS.PR.C<\/td>\nSplitShare<\/td>\nQuote: 10.95 – 11.44
\nSpot Rate : 0.4900
\nAverage : 0.3570<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-15
\nMaturity Price : 10.00
\nEvaluated at bid price : 10.95
\nBid-YTW : -10.09 %<\/td>\n<\/tr>\n

BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.36 – 23.70
\nSpot Rate : 0.3400
\nAverage : 0.2343<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-29
\nMaturity Price : 23.11
\nEvaluated at bid price : 23.36
\nBid-YTW : 5.15 %<\/td>\n<\/tr>\n

IAG.PR.F<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.90 – 26.30
\nSpot Rate : 0.4000
\nAverage : 0.2982<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.90
\nBid-YTW : 5.39 %<\/td>\n<\/tr>\n

BAM.PR.G<\/td>\nFixedFloater<\/td>\nQuote: 21.10 – 21.48
\nSpot Rate : 0.3800
\nAverage : 0.2967<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-29
\nMaturity Price : 21.82
\nEvaluated at bid price : 21.10
\nBid-YTW : 3.86 %<\/td>\n<\/tr>\n

TRP.PR.A<\/td>\nFixedReset<\/td>\nQuote: 25.55 – 25.76
\nSpot Rate : 0.2100
\nAverage : 0.1398<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-05-29
\nMaturity Price : 23.64
\nEvaluated at bid price : 25.55
\nBid-YTW : 3.18 %<\/td>\n<\/tr>\n

MFC.PR.F<\/td>\nFixedReset<\/td>\nQuote: 24.30 – 24.49
\nSpot Rate : 0.1900
\nAverage : 0.1272<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.30
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Too soon to call it a trend … but there are interesting goings-on in the credit rating agency world: The response to the Moody\u2019s Investors Service downgrade of the biggest Nordic banks was rising bond …<\/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-18738","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18738","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=18738"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18738\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}