{"id":19013,"date":"2012-06-24T12:36:55","date_gmt":"2012-06-24T16:36:55","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=19013"},"modified":"2012-06-24T12:36:55","modified_gmt":"2012-06-24T16:36:55","slug":"june-22-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=19013","title":{"rendered":"June 22, 2012"},"content":{"rendered":"

How about those inflation numbers, eh<\/a>?:<\/p>\n

Canada\u2019s inflation rate tumbled to its lowest level in almost two years last month, falling to 1.2 per cent as Canadians paid less for gasoline, video equipment and some types of clothing, while price gains in many other consumer goods moderated.
…<\/b>
May also saw prices fall outright on a month-to-month basis, meaning the basket of about 175 goods and services that Statistics Canada surveys cost 0.1 per cent less overall in May than it had in April.<\/p>\n

Bank of Canada governor Mark Carney said this week he expected prices to dip below his two per cent target in the short term, given the recent drop in world oil prices, but that the underlying core rate \u2013 which excludes volatile items such as energy \u2013 would hover near the target. He was right on both counts, as core slipped to 1.8 per cent from 2.1 per cent in April.<\/p><\/blockquote>\n

Spain may join the rest of Europe in discarding 500 years of bankruptcy law<\/a>:<\/p>\n

Spanish policy makers are considering forcing investors who hold equity and junior debt in banks to absorb losses in a restructuring, according to a person with knowledge of the plan.<\/p>\n

Such burden sharing is among conditions being negotiated with the European Union in a 100 billion-euro ($126 billion) rescue for Spain\u2019s financial industry, said the person, who asked not to be named as the conversations are private. Depositors who bought subordinated instruments such as preferred stock may be partially shielded from losses through a compensation plan being considered, the person said.<\/p><\/blockquote>\n

I think Credit Rating Agency bashing may become an Olympic sport<\/a>!:<\/p>\n

Moody\u2019s Investors Service suffered a downgrade of its own as markets responded to the company\u2019s rating cuts of 15 of the world\u2019s largest banks by bidding up the value of their stocks and bonds.
…<\/b>
\u201cThe ratings agencies themselves are looking for a raison d\u2019etre\u201d as regulations in the U.S. and Europe try to reduce investors\u2019 dependence on the credit assessments, David Zervos, chief market strategist at Jefferies & Co., said in an interview on Bloomberg Television\u2019s \u201cMarket Makers.\u201d \u201cThey like to be noisy, and this is a way to be noisy. I don\u2019t think the effects are big in the end.\u201d
…<\/b>
\u201cWe view the Moody\u2019s downgrade as another overhyped story of 2012,\u201d David Trone, analyst at JMP Securities LLC, wrote to his clients. \u201cThe corporate market thinks for itself and credit rating agencies are often lagging indicators.\u201d<\/p><\/blockquote>\n

I saw a hummingbird moth<\/a> in my back yard this evening, nectaring on my milkweed. I hadn’t even known there was such a thing!<\/p>\n

\"\"<\/a>
Click for Big<\/i><\/div>\n

<\/p>\n

\"\"<\/a>
Click for same thing<\/i><\/div>\n

It was a mildly positive day for the Canadian preferred share market, with PerpetualPremiums up 3bp and both FixedResets and DeemedRetractibles gaining 9bp. There was a surprising amount of volatility for such a quiet day, with no clear trend readily identifiable. Volume was extremely 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-0.1796 %<\/td>\n2,310.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.57 %<\/td>\n3.95 %<\/td>\n21,009<\/td>\n17.37<\/td>\n1<\/td>\n-1.5632 %<\/td>\n3,448.4<\/td>\n<\/tr>\n
Floater<\/td>\n3.15 %<\/td>\n3.15 %<\/td>\n70,929<\/td>\n19.35<\/td>\n3<\/td>\n-0.1796 %<\/td>\n2,494.7<\/td>\n<\/tr>\n
OpRet<\/td>\n4.79 %<\/td>\n2.48 %<\/td>\n36,247<\/td>\n1.00<\/td>\n5<\/td>\n0.3950 %<\/td>\n2,517.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.27 %<\/td>\n-6.68 %<\/td>\n44,100<\/td>\n0.49<\/td>\n4<\/td>\n-0.2973 %<\/td>\n2,718.6<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3950 %<\/td>\n2,302.2<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.41 %<\/td>\n3.65 %<\/td>\n89,088<\/td>\n0.56<\/td>\n27<\/td>\n0.0253 %<\/td>\n2,239.5<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.04 %<\/td>\n5.02 %<\/td>\n117,030<\/td>\n15.42<\/td>\n7<\/td>\n0.0947 %<\/td>\n2,455.7<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.04 %<\/td>\n3.12 %<\/td>\n197,735<\/td>\n7.79<\/td>\n71<\/td>\n0.0948 %<\/td>\n2,397.8<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.01 %<\/td>\n3.93 %<\/td>\n148,711<\/td>\n2.87<\/td>\n45<\/td>\n0.0881 %<\/td>\n2,308.8<\/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
BAM.PR.G<\/td>\nFixedFloater<\/td>\n-1.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-22
\nMaturity Price : 21.67
\nEvaluated at bid price : 20.78
\nBid-YTW : 3.95 %<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.50
\nBid-YTW : 6.30 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n-1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-22
\nMaturity Price : 23.55
\nEvaluated at bid price : 25.47
\nBid-YTW : 2.62 %<\/td>\n<\/tr>\n
GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.05
\nBid-YTW : 5.26 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset<\/td>\n1.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-22
\nMaturity Price : 23.55
\nEvaluated at bid price : 26.02
\nBid-YTW : 3.52 %<\/td>\n<\/tr>\n
FTS.PR.E<\/td>\nOpRet<\/td>\n1.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.66
\nBid-YTW : 1.28 %<\/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
BNA.PR.C<\/td>\nSplitShare<\/td>\n166,045<\/td>\nNesbitt crossed 150,000 at 22.50.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.50
\nBid-YTW : 6.30 %<\/td>\n<\/tr>\n
TD.PR.K<\/td>\nFixedReset<\/td>\n106,985<\/td>\nNesbitt crossed 100,000 at 26.90.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.92
\nBid-YTW : 2.94 %<\/td>\n<\/tr>\n
BMO.PR.H<\/td>\nDeemed-Retractible<\/td>\n87,542<\/td>\nRBC crossed blocks of 51,500 and 25,000, both at 25.60.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : 2.31 %<\/td>\n<\/tr>\n
TRP.PR.B<\/td>\nFixedReset<\/td>\n63,107<\/td>\nDesjardins crossed 48,600 at 25.15.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-06-22
\nMaturity Price : 23.41
\nEvaluated at bid price : 25.10
\nBid-YTW : 2.49 %<\/td>\n<\/tr>\n
PWF.PR.I<\/td>\nPerpetual-Premium<\/td>\n56,004<\/td>\nNesbitt crossed 25,000 at 25.50; RBC crossed the same amount at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-07-22
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : -7.48 %<\/td>\n<\/tr>\n
RY.PR.B<\/td>\nDeemed-Retractible<\/td>\n52,846<\/td>\nDesjardins crossed 50,000 at 25.70.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.68
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
There were 14 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
W.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 26.05 – 27.50
\nSpot Rate : 1.4500
\nAverage : 0.9282<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-01-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.05
\nBid-YTW : -0.11 %<\/td>\n<\/tr>\n

FBS.PR.C<\/td>\nSplitShare<\/td>\nQuote: 10.80 – 11.48
\nSpot Rate : 0.6800
\nAverage : 0.5527<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-15
\nMaturity Price : 10.00
\nEvaluated at bid price : 10.80
\nBid-YTW : -10.87 %<\/td>\n<\/tr>\n

BNA.PR.C<\/td>\nSplitShare<\/td>\nQuote: 22.50 – 22.83
\nSpot Rate : 0.3300
\nAverage : 0.2200<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.50
\nBid-YTW : 6.30 %<\/td>\n<\/tr>\n

SLF.PR.F<\/td>\nFixedReset<\/td>\nQuote: 26.15 – 26.44
\nSpot Rate : 0.2900
\nAverage : 0.1835<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.15
\nBid-YTW : 3.59 %<\/td>\n<\/tr>\n

TCA.PR.X<\/td>\nPerpetual-Premium<\/td>\nQuote: 51.56 – 52.13
\nSpot Rate : 0.5700
\nAverage : 0.4731<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-10-15
\nMaturity Price : 50.00
\nEvaluated at bid price : 51.56
\nBid-YTW : 3.79 %<\/td>\n<\/tr>\n

GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.05 – 26.39
\nSpot Rate : 0.3400
\nAverage : 0.2470<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.05
\nBid-YTW : 5.26 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

How about those inflation numbers, eh?: Canada\u2019s inflation rate tumbled to its lowest level in almost two years last month, falling to 1.2 per cent as Canadians paid less for gasoline, video equipment and some …<\/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-19013","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19013","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=19013"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19013\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}