{"id":18951,"date":"2012-06-18T23:54:00","date_gmt":"2012-06-19T03:54:00","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=18951"},"modified":"2012-06-18T23:54:00","modified_gmt":"2012-06-19T03:54:00","slug":"june-18-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=18951","title":{"rendered":"June 18, 2012"},"content":{"rendered":"

The Europeans have a grave problem: they’re being criticized by parties they don’t regulate<\/a>:<\/p>\n

Tensions between Europe and the rest of the G20 broke wide open in Los Cabos as the president of the European Commission laid bare his frustration with the constant lecturing from outsiders, including Canada.
…<\/b>
The president of the European Commission, Jos\u00e9 Manuel Barroso, reacted tersely when asked to respond to recent comments from Prime Minister Stephen Harper that Europe does not need outside help to stabilize its economy.<\/p>\n

\u201cFrankly, we are not coming here to receive lessons in terms of democracy and in terms of how to run an economy because the European Union has a model that we may be very proud of,\u201d Mr. Barroso said.<\/p><\/blockquote>\n

Maybe … maybe the EU should regulate Canadian politicians, as well as the Credit Rating Agencies! Yeah! Yeah, that would be good!<\/p>\n

The Greek election has only shifted the focus in Europe<\/a>:<\/p>\n

Spanish bonds slid, propelling 10- year yields to more than 7 percent, after yesterday\u2019s Greek election failed to convince investors that politicians will be able to tame Europe\u2019s financial woes.<\/p>\n

Italian debt also fell and German bunds rose, reversing earlier declines. Spain\u2019s yields climbed to euro-era records as a report today showed the nation\u2019s bad loans increased in April. The securities tumbled last week after the bloc\u2019s fourth-largest economy requested as much as 100 billion euros ($126 billion) of aid on June 9 to support its banks. Greek bonds rose after pro- bailout parties won enough seats to control parliament.<\/p><\/blockquote>\n

The greenback is cementing its status as a reserve currency<\/a>:<\/p>\n

Central banks rebuilding foreign- exchange reserves at the fastest pace since 2004 are crowding out private investors seeking U.S. dollars, boosting demand even as the Federal Reserve considers printing more currency.<\/p>\n

After falling to an all-time low of 60.5 percent in the second quarter of last year, the dollar\u2019s share of global reserves rose 1.6 percentage points to 62.1 percent in December, the latest International Monetary Fund figures show. The buying has left the private sector with $2 trillion less than it needs, according to investment-flow data by Morgan Stanley, which sees the dollar gaining 8.2 percent in 2012, the most in seven years.<\/p>\n

While the Fed has created more than $2 trillion under its stimulus programs since 2008, the flows signal that there may actually be a shortage of dollars to meet demand as Europe\u2019s debt crisis deepens and the global economy slows.<\/p><\/blockquote>\n

ING Canada got downgraded<\/a>:<\/p>\n

The cauldron of financial turmoil bubbling over in Europe is now seeing its hot water trickle into Canada. Late Friday, rating agency Moody\u2019s Investors Service announced the downgrade of ING Bank of Canada\u2019s senior deposit ratings from Baa1 from A2.<\/p>\n

This comes on the heels of the rating agency\u2019s downgrade of ING\u2019s parent, ING Bank NV, to C- for financial strength.<\/p><\/blockquote>\n

Small investors prone to panic are reminded that ING Bank Canada is a CDIC member<\/a> and that<\/a>:<\/p>\n

Up to $100,000 of your savings are eligible for deposit insurance offered by CDIC. Your savings must be:
\nHeld in\u2026
\nA Eligible deposits\u2014for example, savings, chequing and GICs of 5 years or less
\n+ Held at\u2026
\nB Banks and other financial institutions\u2014eligible deposits must be held at a CDIC member.
\n+ And held in\u2026
\nC Canadian dollars\u2014U.S. dollar and other foreign currency deposits are not eligible.\n<\/p><\/blockquote>\n

Meanwhile, in the True North Strong and Free Google reports<\/a>:<\/p>\n

We received a request from the Passport Canada office to remove a YouTube video of a Canadian citizen urinating on his passport and flushing it down the toilet. We did not comply with this request.<\/p><\/blockquote>\n

And we have problems even talking about trade<\/a>:<\/p>\n

Canada\u2019s bid to join was hampered by the slow progress it made at enacting stronger prohibitions against the theft of digital intellectual property as well as its staunch protectionism for dairy and poultry producers who are shielded from foreign competition.<\/p><\/blockquote>\n

Another one of What-Debt’s favourite companies is going to do again what it does best<\/a>:<\/p>\n

Pension woes are back at the top of Air Canada\u2019s concerns as the carrier seeks a new reprieve from retirement funding to avert a looming financial crisis.<\/p>\n

Faced with a cash crunch in 2014, the country\u2019s largest airline is preparing to ask Ottawa for another moratorium on company contributions to pensions, and to request other measures to ease the pressure.
…<\/b>
The Montreal-based carrier\u2019s pension solvency deficit stood at $2.1-billion on Jan. 1, 2011, and analysts expect the airline to report a sharply higher deficit for Jan. 1, 2012.<\/p><\/blockquote>\n

BBD.PR.D got whacked again today, down 1.42 to close at 14.93. Strangely, BBD.PR.B, the RatchetRate issue with which it interconverts effective August 1, was also hammered, down 0.65 to close at 14.30. The interconversion has been discussed on PrefBlog; BBD.PR.D will reset to 255% of GoC5<\/a> – which at current levels will be only a hair above 3%.<\/p>\n

It was a mildly positive day for the Canadian preferred share market, with PerpetualPremiums winning 9bp, FixedResets up 1bp and DeemedRetractibles gaining 3bp. Volatility was muted. Volume was very 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-0.2201 %<\/td>\n2,304.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.46 %<\/td>\n3.85 %<\/td>\n22,195<\/td>\n17.59<\/td>\n1<\/td>\n0.0000 %<\/td>\n3,534.7<\/td>\n<\/tr>\n
Floater<\/td>\n3.16 %<\/td>\n3.15 %<\/td>\n72,314<\/td>\n19.37<\/td>\n3<\/td>\n-0.2201 %<\/td>\n2,487.7<\/td>\n<\/tr>\n
OpRet<\/td>\n4.81 %<\/td>\n2.46 %<\/td>\n37,911<\/td>\n1.01<\/td>\n5<\/td>\n0.0465 %<\/td>\n2,507.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.29 %<\/td>\n-5.86 %<\/td>\n44,176<\/td>\n0.50<\/td>\n4<\/td>\n-0.5314 %<\/td>\n2,705.6<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0465 %<\/td>\n2,292.6<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.42 %<\/td>\n2.83 %<\/td>\n89,677<\/td>\n0.57<\/td>\n27<\/td>\n0.0858 %<\/td>\n2,232.5<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.06 %<\/td>\n5.06 %<\/td>\n116,856<\/td>\n15.29<\/td>\n7<\/td>\n-0.3256 %<\/td>\n2,440.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.05 %<\/td>\n3.21 %<\/td>\n205,686<\/td>\n7.86<\/td>\n71<\/td>\n0.0104 %<\/td>\n2,390.6<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.02 %<\/td>\n3.94 %<\/td>\n149,832<\/td>\n2.94<\/td>\n45<\/td>\n0.0318 %<\/td>\n2,304.6<\/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
FBS.PR.C<\/td>\nSplitShare<\/td>\n-2.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-15
\nMaturity Price : 10.00
\nEvaluated at bid price : 10.54
\nBid-YTW : -5.86 %<\/td>\n<\/tr>\n
SLF.PR.F<\/td>\nFixedReset<\/td>\n-1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.06
\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n
POW.PR.A<\/td>\nPerpetual-Premium<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-07-18
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.68
\nBid-YTW : -14.66 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n1.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-18
\nMaturity Price : 23.52
\nEvaluated at bid price : 25.38
\nBid-YTW : 2.63 %<\/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
CU.PR.D<\/td>\nPerpetual-Premium<\/td>\n518,880<\/td>\nNew issue settled today<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-18
\nMaturity Price : 24.64
\nEvaluated at bid price : 25.03
\nBid-YTW : 4.90 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n84,381<\/td>\nNational crossed 82,600 at 25.57.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.51
\nBid-YTW : 3.19 %<\/td>\n<\/tr>\n
BMO.PR.Q<\/td>\nFixedReset<\/td>\n44,417<\/td>\nTD crossed 33,000 at 25.30.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.33
\nBid-YTW : 2.92 %<\/td>\n<\/tr>\n
FTS.PR.E<\/td>\nOpRet<\/td>\n33,500<\/td>\nTD crossed 33,000 at 26.64.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.45
\nBid-YTW : 2.12 %<\/td>\n<\/tr>\n
RY.PR.T<\/td>\nFixedReset<\/td>\n33,010<\/td>\nRBC crossed 25,000 at 26.75.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.73
\nBid-YTW : 3.17 %<\/td>\n<\/tr>\n
MFC.PR.I<\/td>\nFixedReset<\/td>\n22,470<\/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 : 24.79
\nBid-YTW : 4.41 %<\/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
FBS.PR.C<\/td>\nSplitShare<\/td>\nQuote: 10.54 – 10.88
\nSpot Rate : 0.3400
\nAverage : 0.2084<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-15
\nMaturity Price : 10.00
\nEvaluated at bid price : 10.54
\nBid-YTW : -5.86 %<\/td>\n<\/tr>\n

BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.11 – 23.60
\nSpot Rate : 0.4900
\nAverage : 0.3610<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-18
\nMaturity Price : 22.68
\nEvaluated at bid price : 23.11
\nBid-YTW : 5.13 %<\/td>\n<\/tr>\n

CM.PR.D<\/td>\nPerpetual-Premium<\/td>\nQuote: 26.07 – 26.39
\nSpot Rate : 0.3200
\nAverage : 0.2109<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-07-18
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.07
\nBid-YTW : -32.93 %<\/td>\n<\/tr>\n

GWO.PR.J<\/td>\nFixedReset<\/td>\nQuote: 26.00 – 26.29
\nSpot Rate : 0.2900
\nAverage : 0.2011<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n

BAM.PR.G<\/td>\nFixedFloater<\/td>\nQuote: 21.30 – 21.67
\nSpot Rate : 0.3700
\nAverage : 0.2855<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-18
\nMaturity Price : 22.16
\nEvaluated at bid price : 21.30
\nBid-YTW : 3.85 %<\/td>\n<\/tr>\n

SLF.PR.I<\/td>\nFixedReset<\/td>\nQuote: 25.10 – 25.30
\nSpot Rate : 0.2000
\nAverage : 0.1258<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.10
\nBid-YTW : 4.02 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The Europeans have a grave problem: they’re being criticized by parties they don’t regulate: Tensions between Europe and the rest of the G20 broke wide open in Los Cabos as the president of the European …<\/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-18951","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18951","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=18951"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18951\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}