{"id":19076,"date":"2012-06-28T23:43:30","date_gmt":"2012-06-29T03:43:30","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=19076"},"modified":"2012-06-28T23:43:30","modified_gmt":"2012-06-29T03:43:30","slug":"june-28-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=19076","title":{"rendered":"June 28, 2012"},"content":{"rendered":"<p>Europe&#8217;s going to solve the crisis by <a href=\"http:\/\/www.bloomberg.com\/news\/2012-06-28\/european-chiefs-put-bond-buying-on-table-as-crisis-summit-opens.html\">subordinating privately held debt<\/a>:<\/p>\n<blockquote><p>Italy today paid the most to sell 10-year debt since December, selling the notes to yield 6.19 percent. Spanish 10- year yields rose to 6.94 percent today. The focus should be on helping Spain\u2019s banks and reducing Italian yields to around or slightly under 4 percent, Irish Finance Minister Michael Noonan said to reporters in Dublin today.<br \/><b>&#8230;<\/b><br \/>\u201cThe EFSF or ESM could stand ready to intervene in the primary market to facilitate successful issuance of the covered bonds,\u201d [Finnish Prime Minister Jyrki] Katainen said. \u201cItaly and Spain have lots of state properties they could use in raising money. Selling covered bonds would send a strong message they stand behind their debt.\u201d<\/p>\n<p>Katainen said the proposal is based on Finland\u2019s experience with the sale of covered bonds during its economic troubles in the early 1990s.<\/p><\/blockquote>\n<p>It&#8217;s odd &#8230; when the bank regulators want to boost bank capital requirements, they say it won&#8217;t matter since they&#8217;ll be able to borrow cheaper and sell equity at a higher multiple, since Modigliani-Miller says enterprise value is constant. This doesn&#8217;t seem to apply to sovereigns. Gee, I wonder why that is.<\/p>\n<p>Greece may get <a href=\"http:\/\/www.bloomberg.com\/news\/2012-06-28\/imf-may-consider-greek-loan-changes-after-team-visit-next-week.html\">bailed out of its bail-out<\/a>:<\/p>\n<blockquote><p>An International Monetary Fund team will start negotiating possible changes to the conditions attached to a loan to Greece after a fact-finding mission travels to Athens early next week, a fund spokesman said. <\/p><\/blockquote>\n<p>The regulators have released <a href=\"http:\/\/www.securities-administrators.ca\/aboutcsa.aspx?id=1081\">an electronic trading press release<\/a><\/p>\n<p>IIROC released a plethora of proposed new rules regarding electronic trading &#8211; a <a href=\"http:\/\/docs.iiroc.ca\/DisplayDocument.aspx?DocumentID=C56FD1B3C8264B93AC065D4F6027A14D&#038;Language=en\">request for comments on rules<\/a>:<\/p>\n<blockquote><p>The most significant impacts of the Proposed Amendments would be to:<\/p>\n<ul>\n<li>ensure that Participants and Access Persons adopt, document and maintain a system of risk management and supervisory controls, policies and procedures reasonably designed to manage the risks associated with electronic trading and access to marketplaces;\n<li>ensure that Participants and Access Persons are effectively supervising trading activity and are accounting for the risks associated with electronic access to marketplaces in their supervisory and compliance monitoring procedures; and\n<li>require an appropriate level of understanding, ongoing testing and appropriate monitoring of any automated order systems in use by a Participant, Access Person, or any client of the Participant.<\/ul>\n<\/blockquote>\n<p>Lots and lots of paperwork! Lots and lots of jobs for regulatory and compliance types! Lots and lots of opportunity to nail people with 20-20 hindsight when things go wrong! Yay!<\/p>\n<p>&#8230; and a <a href=\"http:\/\/docs.iiroc.ca\/DisplayDocument.aspx?DocumentID=0BB006151C594E3981493EA34AECF8B5&#038;Language=en\">request for comments on guidance<\/a>:<\/p>\n<blockquote><p>At a minimum, the post-order entry compliance procedures for clients who have been provided access to a marketplace should address the procedures for testing:<br \/><b>&#8230;.<\/b><br \/>orders that have been entered which may constitute \u201cspoofing\u201d contrary to Rule 2.2 of UMIR (the entry of an order or orders which are not intended to be executed for the purpose of determining the depth of the market, checking for the presence of an iceberg order, affecting an opening price or other similar purpose);<\/p><\/blockquote>\n<p>Strikes me that this will be very difficult to enforce.<\/p>\n<p>It was another quiet mixed day for the Canadian preferred share market, with PerpetualPremiums off 5bp, FixedResets down 4bp and DeemedRetractibles gaining 3bp. Volatility was good. Volume was below average.<\/p>\n<table border='1'>\n<tr>\n<td colspan='8'><strong>HIMIPref&trade; Preferred Indices<br \/>These values reflect the December 2008 revision of the HIMIPref&trade; Indices<\/strong><br \/>Values are provisional and are finalized monthly<\/td>\n<\/tr>\n<tr>\n<td>Index<\/td>\n<td>Mean<br \/>Current<br \/>Yield<br \/>(at bid)<\/td>\n<td>Median<br \/>YTW<\/td>\n<td>Median<br \/>Average<br \/>Trading<br \/>Value<\/td>\n<td>Median<br \/>Mod Dur<br \/>(YTW)<\/td>\n<td>Issues<\/td>\n<td>Day&#8217;s Perf.<\/td>\n<td>Index Value<\/td>\n<\/tr>\n<tr>\n<td>Ratchet<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>-0.2415 %<\/td>\n<td>2,290.1<\/td>\n<\/tr>\n<tr>\n<td>FixedFloater<\/td>\n<td>4.57 %<\/td>\n<td>3.95 %<\/td>\n<td>21,350<\/td>\n<td>17.36<\/td>\n<td>1<\/td>\n<td>0.0481 %<\/td>\n<td>3,450.0<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>3.18 %<\/td>\n<td>3.17 %<\/td>\n<td>74,840<\/td>\n<td>19.28<\/td>\n<td>3<\/td>\n<td>-0.2415 %<\/td>\n<td>2,472.7<\/td>\n<\/tr>\n<tr>\n<td>OpRet<\/td>\n<td>4.79 %<\/td>\n<td>2.05 %<\/td>\n<td>36,889<\/td>\n<td>0.98<\/td>\n<td>5<\/td>\n<td>0.1777 %<\/td>\n<td>2,518.2<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>5.25 %<\/td>\n<td>-7.13 %<\/td>\n<td>41,217<\/td>\n<td>0.48<\/td>\n<td>4<\/td>\n<td>0.0000 %<\/td>\n<td>2,725.6<\/td>\n<\/tr>\n<tr>\n<td>Interest-Bearing<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>0.1777 %<\/td>\n<td>2,302.7<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/td>\n<td>5.44 %<\/td>\n<td>3.72 %<\/td>\n<td>84,230<\/td>\n<td>0.54<\/td>\n<td>27<\/td>\n<td>-0.0473 %<\/td>\n<td>2,239.7<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>5.03 %<\/td>\n<td>5.01 %<\/td>\n<td>117,009<\/td>\n<td>15.38<\/td>\n<td>7<\/td>\n<td>0.3645 %<\/td>\n<td>2,471.5<\/td>\n<\/tr>\n<tr>\n<td>FixedReset<\/td>\n<td>5.04 %<\/td>\n<td>3.19 %<\/td>\n<td>193,321<\/td>\n<td>7.77<\/td>\n<td>71<\/td>\n<td>-0.0430 %<\/td>\n<td>2,398.1<\/td>\n<\/tr>\n<tr>\n<td>Deemed-Retractible<\/td>\n<td>5.02 %<\/td>\n<td>3.88 %<\/td>\n<td>139,582<\/td>\n<td>2.88<\/td>\n<td>45<\/td>\n<td>0.0289 %<\/td>\n<td>2,309.8<\/td>\n<\/tr>\n<\/table>\n<table border='1'>\n<tr>\n<td colspan='4'><strong>Performance Highlights<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Index<\/td>\n<td>Change<\/td>\n<td>Notes<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.C<\/td>\n<td>Deemed-Retractible<\/td>\n<td>-1.37 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2022-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 22.29<br \/>\nBid-YTW : 6.05 %<\/td>\n<\/tr>\n<tr>\n<td>IAG.PR.C<\/td>\n<td>FixedReset<\/td>\n<td>-1.19 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2013-12-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.70<br \/>\nBid-YTW : 4.27 %<\/td>\n<\/tr>\n<tr>\n<td>CM.PR.M<\/td>\n<td>FixedReset<\/td>\n<td>-1.01 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2014-07-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.50<br \/>\nBid-YTW : 3.25 %<\/td>\n<\/tr>\n<tr>\n<td>FTS.PR.E<\/td>\n<td>OpRet<\/td>\n<td>1.14 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2013-06-01<br \/>\nMaturity Price  : 25.75<br \/>\nEvaluated at bid price : 26.67<br \/>\nBid-YTW : 1.27 %<\/td>\n<\/tr>\n<tr>\n<td>ELF.PR.F<\/td>\n<td>Perpetual-Discount<\/td>\n<td>1.18 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2042-06-28<br \/>\nMaturity Price  : 24.15<br \/>\nEvaluated at bid price : 24.65<br \/>\nBid-YTW : 5.36 %<\/td>\n<\/tr>\n<tr>\n<td>CIU.PR.A<\/td>\n<td>Perpetual-Discount<\/td>\n<td>1.35 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2042-06-28<br \/>\nMaturity Price  : 24.29<br \/>\nEvaluated at bid price : 24.75<br \/>\nBid-YTW : 4.67 %<\/td>\n<\/tr>\n<\/table>\n<table border='1'>\n<tr>\n<td colspan='4'><strong>Volume Highlights<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Index<\/td>\n<td>Shares<br \/>Traded<\/td>\n<td>Notes<\/td>\n<\/tr>\n<tr>\n<td>BMO.PR.M<\/td>\n<td>FixedReset<\/td>\n<td>154,350<\/td>\n<td>TD crossed 149,900 at 25.59.<br \/>\nYTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2022-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.52<br \/>\nBid-YTW : 2.95 %<\/td>\n<\/tr>\n<tr>\n<td>ELF.PR.H<\/td>\n<td>Perpetual-Premium<\/td>\n<td>127,780<\/td>\n<td>Scotia crossed blocks of 50,000 and 69,300, both at 25.18.<br \/>\nYTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-04-17<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.15<br \/>\nBid-YTW : 5.41 %<\/td>\n<\/tr>\n<tr>\n<td>IAG.PR.G<\/td>\n<td>FixedReset<\/td>\n<td>116,092<\/td>\n<td><a href=\"http:\/\/www.prefblog.com\/?p=18781\">Recent new issue<\/a>.<br \/>\nYTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2022-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.02<br \/>\nBid-YTW : 4.25 %<\/td>\n<\/tr>\n<tr>\n<td>HSB.PR.D<\/td>\n<td>Deemed-Retractible<\/td>\n<td>101,960<\/td>\n<td>Desjardins crossed 97,800 at 25.80.<br \/>\nYTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2013-12-31<br \/>\nMaturity Price  : 25.25<br \/>\nEvaluated at bid price : 25.42<br \/>\nBid-YTW : 4.49 %<\/td>\n<\/tr>\n<tr>\n<td>GWO.PR.P<\/td>\n<td>Deemed-Retractible<\/td>\n<td>97,960<\/td>\n<td>Nesbitt crossed 83,000 at 25.64.<br \/>\nYTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2022-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.60<br \/>\nBid-YTW : 5.11 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.C<\/td>\n<td>FixedReset<\/td>\n<td>94,455<\/td>\n<td>RBC crossed blocks of 49,500 and 39,900, both at 25.70.<br \/>\nYTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2017-06-01<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.75<br \/>\nBid-YTW : 3.42 %<\/td>\n<\/tr>\n<tr>\n<td colspan='4'>There were 25 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n<table border='1'>\n<tr>\n<td colspan='3'><strong>Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Index<\/td>\n<td>Quote Data and Yield Notes<\/td>\n<\/tr>\n<tr>\n<td>IGM.PR.B<\/td>\n<td>Perpetual-Premium<\/td>\n<td>Quote: 26.11 &#8211; 26.98<br \/>\nSpot Rate  :  0.8700<br \/>\nAverage  :  0.5510<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2018-12-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.11<br \/>\nBid-YTW : 5.03 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.A<\/td>\n<td>OpRet<\/td>\n<td>Quote: 25.33 &#8211; 25.97<br \/>\nSpot Rate  :  0.6400<br \/>\nAverage  :  0.3928<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Soft Maturity<br \/>\nMaturity Date\t: 2015-12-18<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.33<br \/>\nBid-YTW : 3.74 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.C<\/td>\n<td>Deemed-Retractible<\/td>\n<td>Quote: 22.29 &#8211; 22.80<br \/>\nSpot Rate  :  0.5100<br \/>\nAverage  :  0.3285<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2022-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 22.29<br \/>\nBid-YTW : 6.05 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.H<\/td>\n<td>Deemed-Retractible<\/td>\n<td>Quote: 26.66 &#8211; 27.04<br \/>\nSpot Rate  :  0.3800<br \/>\nAverage  :  0.2345<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2013-05-24<br \/>\nMaturity Price  : 26.00<br \/>\nEvaluated at bid price : 26.66<br \/>\nBid-YTW : 3.14 %<\/td>\n<\/tr>\n<tr>\n<td>CM.PR.M<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 26.50 &#8211; 26.97<br \/>\nSpot Rate  :  0.4700<br \/>\nAverage  :  0.3437<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2014-07-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.50<br \/>\nBid-YTW : 3.25 %<\/td>\n<\/tr>\n<tr>\n<td>FTS.PR.C<\/td>\n<td>OpRet<\/td>\n<td>Quote: 25.50 &#8211; 25.85<br \/>\nSpot Rate  :  0.3500<br \/>\nAverage  :  0.2268<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2012-07-28<br \/>\nMaturity Price  : 25.25<br \/>\nEvaluated at bid price : 25.50<br \/>\nBid-YTW : -1.78 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Europe&#8217;s going to solve the crisis by subordinating privately held debt: Italy today paid the most to sell 10-year debt since December, selling the notes to yield 6.19 percent. Spanish 10- year yields rose to &hellip;<\/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-19076","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19076","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=19076"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19076\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}