{"id":18854,"date":"2012-06-08T01:23:54","date_gmt":"2012-06-08T05:23:54","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=18854"},"modified":"2012-06-08T01:23:54","modified_gmt":"2012-06-08T05:23:54","slug":"june-7-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=18854","title":{"rendered":"June 7, 2012"},"content":{"rendered":"

Bernanke had some cheerful commentary<\/a>:<\/p>\n

Federal Reserve Chairman Ben S. Bernanke said the economy is at risk from Europe\u2019s debt crisis and the prospect of fiscal tightening in the U.S., while refraining from discussing steps the central bank might take to protect the expansion.
…<\/b>
Bernanke also warned lawmakers that \u201ca severe tightening of fiscal policy at the beginning of next year that is built into current law — the so-called fiscal cliff — would, if allowed to occur, pose a significant threat to the recovery.\u201d<\/p><\/blockquote>\n

Spain gets more interesting daily<\/a>:<\/p>\n

Spanish Prime Minister Mariano Rajoy said he\u2019s talking to his European peers about how to shore up the country\u2019s banks as Fitch Ratings cut Spain\u2019s credit grade to within two steps of junk.
…<\/b>
Rajoy spoke minutes before Fitch downgraded Spain by three levels to BBB, within two steps of non-investment grade. Fitch said the cost to the state of shoring up banks may amount to as much as 100 billion euros ($126 billion) in the worst case, compared with its previous estimate of 30 billion euros, as Spain will remain in recession next year.
…<\/b>
Spain\u2019s 10-year bond yield fell to 6.088 percent yesterday from 6.282 percent on June 6, retreating from the 7 percent threshold that triggered bailouts in Greece, Ireland and Portugal. The Treasury met its issuance goal at a bond auction, selling 2.07 billion euros of Spanish securities, surpassing the maximum target of 2 billion euros. <\/p><\/blockquote>\n

It was a day of solid recovery for the Canadian preferred share market, with PerpetualPremiums gaining 6bp, FixedResets up 10bp and DeemedRetractibles winning 23bp. Of great interest is the observation that the Bozo Spread (Current Yield PerpetualDiscounts less Current Yield FixedResets) has returned to negative territory. Volatility was minor.<\/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-0.4347 %<\/td>\n2,309.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.49 %<\/td>\n3.87 %<\/td>\n27,095<\/td>\n17.57<\/td>\n1<\/td>\n-0.8899 %<\/td>\n3,511.4<\/td>\n<\/tr>\n
Floater<\/td>\n3.13 %<\/td>\n3.16 %<\/td>\n73,632<\/td>\n19.25<\/td>\n3<\/td>\n-0.4347 %<\/td>\n2,494.1<\/td>\n<\/tr>\n
OpRet<\/td>\n4.81 %<\/td>\n2.61 %<\/td>\n36,708<\/td>\n1.03<\/td>\n5<\/td>\n0.0077 %<\/td>\n2,497.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.27 %<\/td>\n-5.10 %<\/td>\n49,313<\/td>\n0.53<\/td>\n4<\/td>\n0.9686 %<\/td>\n2,717.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0077 %<\/td>\n2,284.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.45 %<\/td>\n3.18 %<\/td>\n78,887<\/td>\n0.63<\/td>\n26<\/td>\n0.0595 %<\/td>\n2,227.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.03 %<\/td>\n5.05 %<\/td>\n127,535<\/td>\n15.28<\/td>\n7<\/td>\n0.5221 %<\/td>\n2,447.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.05 %<\/td>\n3.14 %<\/td>\n194,111<\/td>\n7.83<\/td>\n71<\/td>\n0.0994 %<\/td>\n2,388.1<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.03 %<\/td>\n3.88 %<\/td>\n147,931<\/td>\n3.16<\/td>\n45<\/td>\n0.2376 %<\/td>\n2,296.6<\/td>\n<\/tr>\n<\/table>\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
BAM.PR.C<\/td>\nFloater<\/td>\n-1.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-07
\nMaturity Price : 16.75
\nEvaluated at bid price : 16.75
\nBid-YTW : 3.17 %<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-07
\nMaturity Price : 23.72
\nEvaluated at bid price : 24.00
\nBid-YTW : 5.02 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.27
\nBid-YTW : 3.90 %<\/td>\n<\/tr>\n
FBS.PR.C<\/td>\nSplitShare<\/td>\n3.61 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-15
\nMaturity Price : 10.00
\nEvaluated at bid price : 10.63
\nBid-YTW : -7.11 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n6.28 %<\/td>\nSimply a recovery from the ridiculous behaviour yesterday<\/a>, but not without odd goings-on today<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.86
\nBid-YTW : 5.76 %<\/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
HSE.PR.A<\/td>\nFixedReset<\/td>\n156,601<\/td>\nDesjardins crossed 75,000 at 25.40; Nesbitt crossed 80,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-07
\nMaturity Price : 23.41
\nEvaluated at bid price : 25.44
\nBid-YTW : 2.90 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset<\/td>\n88,099<\/td>\nGMP bought 25,900 from RBC at 25.00; TD crossed 39,800 at the same price.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.02
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n78,134<\/td>\nTD crossed 75,000 at 25.60.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : 2.86 %<\/td>\n<\/tr>\n
BNS.PR.Q<\/td>\nFixedReset<\/td>\n52,716<\/td>\nRBC crossed 50,000 at 25.50.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.56
\nBid-YTW : 2.90 %<\/td>\n<\/tr>\n
VNR.PR.A<\/td>\nFixedReset<\/td>\n52,607<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-07
\nMaturity Price : 23.19
\nEvaluated at bid price : 25.15
\nBid-YTW : 3.88 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nDeemed-Retractible<\/td>\n33,751<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.63
\nBid-YTW : 6.33 %<\/td>\n<\/tr>\n
There were 21 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
ELF.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.16 – 25.38
\nSpot Rate : 0.2200
\nAverage : 0.1349<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-07
\nMaturity Price : 24.76
\nEvaluated at bid price : 25.16
\nBid-YTW : 5.55 %<\/td>\n<\/tr>\n

IGM.PR.B<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.90 – 26.18
\nSpot Rate : 0.2800
\nAverage : 0.2077<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.90
\nBid-YTW : 5.39 %<\/td>\n<\/tr>\n

FTS.PR.F<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.15 – 25.40
\nSpot Rate : 0.2500
\nAverage : 0.1888<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-07
\nMaturity Price : 24.83
\nEvaluated at bid price : 25.15
\nBid-YTW : 4.89 %<\/td>\n<\/tr>\n

RY.PR.H<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.62 – 26.85
\nSpot Rate : 0.2300
\nAverage : 0.1739<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-05-24
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.62
\nBid-YTW : 3.10 %<\/td>\n<\/tr>\n

GWO.PR.P<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.50 – 25.69
\nSpot Rate : 0.1900
\nAverage : 0.1345<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 5.12 %<\/td>\n<\/tr>\n

SLF.PR.H<\/td>\nFixedReset<\/td>\nQuote: 24.45 – 24.66
\nSpot Rate : 0.2100
\nAverage : 0.1611<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.45
\nBid-YTW : 3.83 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Bernanke had some cheerful commentary: Federal Reserve Chairman Ben S. Bernanke said the economy is at risk from Europe\u2019s debt crisis and the prospect of fiscal tightening in the U.S., while refraining from discussing steps …<\/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-18854","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18854","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=18854"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18854\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}