{"id":18876,"date":"2012-06-08T22:07:53","date_gmt":"2012-06-09T02:07:53","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=18876"},"modified":"2012-06-08T22:07:53","modified_gmt":"2012-06-09T02:07:53","slug":"june-8-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=18876","title":{"rendered":"June 8, 2012"},"content":{"rendered":"

Strains in Greek banking are becoming more obvious<\/a>:<\/p>\n

Credit Agricole SA, the foreign bank with the biggest risks in Greece, reached an accord with Greek authorities that will let its unit in the country access emergency funding should the need arise, two people with knowledge of the matter said.<\/p>\n

Emporiki Bank, the Greek unit of Credit Agricole, will be able to tap so-called Emergency Liquidity Assistance from Greece\u2019s central bank under certain conditions, the people said, declining to be identified because the matter is private. Access will probably be restricted to situations where deposits are declining, the people said. Greek banks without a foreign parent already use the facility.
…<\/b>
Jean-Paul Chifflet, Credit Agricole\u2019s chief executive officer, said on May 22 that his bank renewed a request for access to ELA funding with Bank of Greece\u2019s governor. France\u2019s third-largest bank \u201ccan\u2019t increase significantly\u201d exposures to Greece, Chifflet told investors last month at the company\u2019s annual general meeting. Emporiki\u2019s loans exceed deposits, requiring Credit Agricole to provide cross-border funding to help fill the gap.<\/p>\n

Credit Agricole reduced that funding to Athens-based Emporiki to 4.6 billion euros at the end of March from 5.5 billion euros in December, partly as deposits rose, the bank said May 11. Credit Agricole also tapped 1.6 billion euros of ECB funding for Emporiki at the end of March.<\/p><\/blockquote>\n

The problem in Europe is that highly indebted countries owe money in currency they can’t print, right? It’s a good thing we’re smarter than that in Canada<\/a>:<\/p>\n

\n
    \n
  • New Brunswick’s tax-supported debt as a percent of consolidated operating
    \nrevenues has risen rapidly in the past five years.<\/p>\n
  • We are lowering our issuer credit and senior unsecured debt ratings on
    \nthe Province of New Brunswick to ‘A+’ from ‘AA-‘.<\/p>\n
  • The stable outlook reflects our expectation that New Brunswick’s program
    \nreview initiative will be successful at achieving cost efficiencies and that the province will achieve fiscal balance in the next two fiscal
    \nyears as per its budget plan.<\/ul>\n

    …<\/b>
    The ratings on New Brunswick reflect Standard & Poor’s opinion of the
    \nfollowing credit strengths:<\/p>\n

      \n
    • The province’s relatively resilient economic performance since the global economic and financial crisis began in 2008 compared with peers’.\n
    • The province’s sound liquidity support of more than C$700 million in cash and marketable securities available to address potential fiscal pressures. As well, the province has a pool of sinking funds, which
      \ntotaled over C$4.0 billion as at the end of fiscal 2012 that can be used for debt repayment if needed.<\/ul>\n

      Credit concerns include our view of the following:<\/p>\n

        \n
      • New Brunswick’s very high tax-supported debt burden (net of sinking funds), which rose further in fiscal 2012 to 149% of consolidated operating revenues or about 38% of GDP. We expect its tax-supported debt
        \nburden to peak at 155% of operating revenues in 2014.<\/p>\n
      • Challenges stemming from long-term demographic trends that are likely to
        \naffect health care demand and revenue growth.<\/ul>\n<\/blockquote>\n

        Fortunately, 38% of GDP is still a lot smaller than 120% of GDP.<\/p>\n

        There was a modest upward move in the Canadian preferred share market today, with PerpetualPremiums up 9bp, FixedResets gaining 2bp and DeemedRetractibles winning 10bp. Volatility was minimal. Volume was quite low.<\/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-0.2183 %<\/td>\n2,304.9<\/td>\n<\/tr>\n
        FixedFloater<\/td>\n4.49 %<\/td>\n3.86 %<\/td>\n26,187<\/td>\n17.54<\/td>\n1<\/td>\n-0.0945 %<\/td>\n3,508.1<\/td>\n<\/tr>\n
        Floater<\/td>\n3.13 %<\/td>\n3.17 %<\/td>\n72,730<\/td>\n19.24<\/td>\n3<\/td>\n-0.2183 %<\/td>\n2,488.6<\/td>\n<\/tr>\n
        OpRet<\/td>\n4.79 %<\/td>\n2.48 %<\/td>\n36,066<\/td>\n1.02<\/td>\n5<\/td>\n0.3714 %<\/td>\n2,507.2<\/td>\n<\/tr>\n
        SplitShare<\/td>\n5.28 %<\/td>\n-4.87 %<\/td>\n47,517<\/td>\n0.52<\/td>\n4<\/td>\n-0.2833 %<\/td>\n2,710.2<\/td>\n<\/tr>\n
        Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3714 %<\/td>\n2,292.6<\/td>\n<\/tr>\n
        Perpetual-Premium<\/td>\n5.45 %<\/td>\n3.19 %<\/td>\n76,004<\/td>\n0.63<\/td>\n26<\/td>\n0.0874 %<\/td>\n2,229.2<\/td>\n<\/tr>\n
        Perpetual-Discount<\/td>\n5.03 %<\/td>\n5.05 %<\/td>\n123,185<\/td>\n15.28<\/td>\n7<\/td>\n0.0177 %<\/td>\n2,447.9<\/td>\n<\/tr>\n
        FixedReset<\/td>\n5.05 %<\/td>\n3.23 %<\/td>\n190,551<\/td>\n7.82<\/td>\n71<\/td>\n0.0202 %<\/td>\n2,388.6<\/td>\n<\/tr>\n
        Deemed-Retractible<\/td>\n5.03 %<\/td>\n3.86 %<\/td>\n146,980<\/td>\n2.90<\/td>\n45<\/td>\n0.0973 %<\/td>\n2,298.9<\/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
        FTS.PR.E<\/td>\nOpRet<\/td>\n1.63 %<\/td>\nYTW SCENARIO
        \nMaturity Type : Call
        \nMaturity Date\t: 2013-06-01
        \nMaturity Price : 25.75
        \nEvaluated at bid price : 26.74
        \nBid-YTW : 0.92 %<\/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
        CM.PR.L<\/td>\nFixedReset<\/td>\n246,838<\/td>\nScotia crossed 75,000 at 26.80; Nesbitt crossed blocks of 109,700 and 60,000 at 26.85.
        \nYTW SCENARIO
        \nMaturity Type : Call
        \nMaturity Date\t: 2014-04-30
        \nMaturity Price : 25.00
        \nEvaluated at bid price : 26.85
        \nBid-YTW : 2.85 %<\/td>\n<\/tr>\n
        BMO.PR.O<\/td>\nFixedReset<\/td>\n156,081<\/td>\nScotia crossed 149,300 at 26.75.
        \nYTW SCENARIO
        \nMaturity Type : Call
        \nMaturity Date\t: 2014-05-25
        \nMaturity Price : 25.00
        \nEvaluated at bid price : 26.73
        \nBid-YTW : 2.98 %<\/td>\n<\/tr>\n
        TD.PR.C<\/td>\nFixedReset<\/td>\n122,600<\/td>\nDesjardins crossed 119,800 at 26.05.
        \nYTW SCENARIO
        \nMaturity Type : Call
        \nMaturity Date\t: 2014-01-31
        \nMaturity Price : 25.00
        \nEvaluated at bid price : 26.01
        \nBid-YTW : 3.45 %<\/td>\n<\/tr>\n
        RY.PR.I<\/td>\nFixedReset<\/td>\n88,450<\/td>\nDesjardins crossed 70,000 at 25.55.
        \nYTW SCENARIO
        \nMaturity Type : Hard Maturity
        \nMaturity Date\t: 2022-01-31
        \nMaturity Price : 25.00
        \nEvaluated at bid price : 25.55
        \nBid-YTW : 3.29 %<\/td>\n<\/tr>\n
        TD.PR.K<\/td>\nFixedReset<\/td>\n61,580<\/td>\nNesbitt crossed 60,000 at 26.95.
        \nYTW SCENARIO
        \nMaturity Type : Call
        \nMaturity Date\t: 2014-07-31
        \nMaturity Price : 25.00
        \nEvaluated at bid price : 26.92
        \nBid-YTW : 2.88 %<\/td>\n<\/tr>\n
        BNS.PR.X<\/td>\nFixedReset<\/td>\n51,978<\/td>\nRBC crossed 50,000 at 26.70.
        \nYTW SCENARIO
        \nMaturity Type : Call
        \nMaturity Date\t: 2014-04-25
        \nMaturity Price : 25.00
        \nEvaluated at bid price : 26.66
        \nBid-YTW : 2.99 %<\/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
        BAM.PR.C<\/td>\nFloater<\/td>\nQuote: 16.75 – 18.00
        \nSpot Rate : 1.2500
        \nAverage : 0.7115<\/p>\n

        YTW SCENARIO
        \nMaturity Type : Limit Maturity
        \nMaturity Date\t: 2042-06-08
        \nMaturity Price : 16.75
        \nEvaluated at bid price : 16.75
        \nBid-YTW : 3.17 %<\/td>\n<\/tr>\n

        TCA.PR.Y<\/td>\nPerpetual-Premium<\/td>\nQuote: 52.00 – 52.49
        \nSpot Rate : 0.4900
        \nAverage : 0.2933<\/p>\n

        YTW SCENARIO
        \nMaturity Type : Call
        \nMaturity Date\t: 2014-03-05
        \nMaturity Price : 50.00
        \nEvaluated at bid price : 52.00
        \nBid-YTW : 3.56 %<\/td>\n<\/tr>\n

        TCA.PR.X<\/td>\nPerpetual-Premium<\/td>\nQuote: 51.90 – 52.44
        \nSpot Rate : 0.5400
        \nAverage : 0.4137<\/p>\n

        YTW SCENARIO
        \nMaturity Type : Call
        \nMaturity Date\t: 2013-10-15
        \nMaturity Price : 50.00
        \nEvaluated at bid price : 51.90
        \nBid-YTW : 3.19 %<\/td>\n<\/tr>\n

        NA.PR.O<\/td>\nFixedReset<\/td>\nQuote: 26.90 – 27.25
        \nSpot Rate : 0.3500
        \nAverage : 0.2455<\/p>\n

        YTW SCENARIO
        \nMaturity Type : Call
        \nMaturity Date\t: 2014-02-15
        \nMaturity Price : 25.00
        \nEvaluated at bid price : 26.90
        \nBid-YTW : 2.26 %<\/td>\n<\/tr>\n

        BAM.PR.R<\/td>\nFixedReset<\/td>\nQuote: 26.22 – 26.60
        \nSpot Rate : 0.3800
        \nAverage : 0.3065<\/p>\n

        YTW SCENARIO
        \nMaturity Type : Limit Maturity
        \nMaturity Date\t: 2042-06-08
        \nMaturity Price : 23.60
        \nEvaluated at bid price : 26.22
        \nBid-YTW : 3.62 %<\/td>\n<\/tr>\n

        GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.24 – 26.47
        \nSpot Rate : 0.2300
        \nAverage : 0.1591<\/p>\n

        YTW SCENARIO
        \nMaturity Type : Hard Maturity
        \nMaturity Date\t: 2022-01-31
        \nMaturity Price : 25.00
        \nEvaluated at bid price : 26.24
        \nBid-YTW : 5.13 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

        Strains in Greek banking are becoming more obvious: Credit Agricole SA, the foreign bank with the biggest risks in Greece, reached an accord with Greek authorities that will let its unit in the country access …<\/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-18876","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18876","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=18876"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18876\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}