{"id":19086,"date":"2012-06-29T22:50:53","date_gmt":"2012-06-30T02:50:53","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=19086"},"modified":"2012-06-29T22:50:53","modified_gmt":"2012-06-30T02:50:53","slug":"june-29-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=19086","title":{"rendered":"June 29, 2012"},"content":{"rendered":"

The European crisis has come to a satisfactory conclusion: central bureaucrats will gain power<\/a>:<\/p>\n

The European Union\u2019s push to unify bank oversight moved to the euro area after two days of talks in Brussels, putting the European Central Bank at the center of Spain\u2019s efforts to extract its government from its financial- industry rescue.<\/p>\n

Euro-area leaders asked for proposals this year to unify banking supervision and soup up the ECB\u2019s powers. They referred to a clause in the EU treaty that allows them to give the ECB prudential oversight of banks and other non-insurance financial companies.<\/p>\n

The move paves the way for the European Commission, the EU\u2019s regulatory arm, to augment its proposals on deposit insurance, capital requirements and how to handle failing banks.<\/p><\/blockquote>\n

Speaking of regulatory mission-creep<\/a>:<\/p>\n

Last week, the Canadian Securities Administrators published for public comment a consultation paper on the potential regulation of proxy advisory firms. The move follows a similar path taken by the U.S. Securities and Exchange Commission, which has spent two years considering ways to regulate proxy advisers.
…<\/b>
But as shareholder activism has grown, and as mutual funds have been required to step up disclosure of how they vote on corporate matters, the institutional community has increasingly leaned on proxy advisers to help them make their thousands of voting decisions.<\/p><\/blockquote>\n

That’s not quite right. It is the regulatory requirement to have a solid basis for the vote and to maintain records of that basis that has caused the growth of proxy advisory companies. Very nice and proper in theory, but a PM with – say – 50 stocks can’t do it and won’t do it. There’s only maybe one or two votes a year (tops) that have any meaning anyway. It’s a lot cheaper to hire a proxy advisory company and – presto! – box ticked.<\/p>\n

It was a good day for the Canadian preferred share market, with PerpetualPremiums and DeemedRetractibles both up 16bp, while FixedResets gained 8bp. Lots of volatility heavily skewed towards SLF on the upside. Volume was below average.<\/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>\n0.4035 %<\/td>\n2,299.4<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.58 %<\/td>\n3.97 %<\/td>\n21,427<\/td>\n17.33<\/td>\n1<\/td>\n-0.3367 %<\/td>\n3,438.4<\/td>\n<\/tr>\n
Floater<\/td>\n3.16 %<\/td>\n3.16 %<\/td>\n74,548<\/td>\n19.32<\/td>\n3<\/td>\n0.4035 %<\/td>\n2,482.7<\/td>\n<\/tr>\n
OpRet<\/td>\n4.79 %<\/td>\n2.57 %<\/td>\n35,425<\/td>\n0.98<\/td>\n5<\/td>\n0.0771 %<\/td>\n2,520.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.25 %<\/td>\n-9.11 %<\/td>\n42,109<\/td>\n0.47<\/td>\n4<\/td>\n0.1289 %<\/td>\n2,729.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0771 %<\/td>\n2,304.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.43 %<\/td>\n3.92 %<\/td>\n83,196<\/td>\n0.58<\/td>\n27<\/td>\n0.1555 %<\/td>\n2,243.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.02 %<\/td>\n5.01 %<\/td>\n116,967<\/td>\n15.36<\/td>\n7<\/td>\n0.1062 %<\/td>\n2,474.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.04 %<\/td>\n3.15 %<\/td>\n192,552<\/td>\n7.74<\/td>\n71<\/td>\n0.0839 %<\/td>\n2,400.1<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.01 %<\/td>\n3.90 %<\/td>\n139,551<\/td>\n2.91<\/td>\n45<\/td>\n0.1613 %<\/td>\n2,313.6<\/td>\n<\/tr>\n<\/table>\n\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
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n-1.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.10
\nBid-YTW : 5.67 %<\/td>\n<\/tr>\n
CM.PR.D<\/td>\nPerpetual-Premium<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-07-29
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.96
\nBid-YTW : -41.15 %<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nDeemed-Retractible<\/td>\n1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.16
\nBid-YTW : 6.12 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nDeemed-Retractible<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.99
\nBid-YTW : 6.16 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nDeemed-Retractible<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.07
\nBid-YTW : 6.11 %<\/td>\n<\/tr>\n
SLF.PR.H<\/td>\nFixedReset<\/td>\n1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.77
\nBid-YTW : 3.76 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nDeemed-Retractible<\/td>\n2.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.74
\nBid-YTW : 5.79 %<\/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
BMO.PR.H<\/td>\nDeemed-Retractible<\/td>\n155,729<\/td>\nRBC crossed blocks of 73,000 and 75,000, both at 25.75.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.71
\nBid-YTW : 1.71 %<\/td>\n<\/tr>\n
IAG.PR.F<\/td>\nDeemed-Retractible<\/td>\n112,736<\/td>\nRBC crossed blocks of 74,400 shares, 20,000 and 14,600, all at 25.70.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-03-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.70
\nBid-YTW : 5.44 %<\/td>\n<\/tr>\n
IAG.PR.G<\/td>\nFixedReset<\/td>\n63,625<\/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 : 25.06
\nBid-YTW : 4.23 %<\/td>\n<\/tr>\n
TD.PR.G<\/td>\nFixedReset<\/td>\n59,303<\/td>\nTD crossed 51,000 shares at 26.85.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.81
\nBid-YTW : 2.75 %<\/td>\n<\/tr>\n
PWF.PR.G<\/td>\nPerpetual-Premium<\/td>\n55,175<\/td>\nTD crossed 49,000 at 25.46.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-07-29
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : -4.30 %<\/td>\n<\/tr>\n
BNS.PR.Q<\/td>\nFixedReset<\/td>\n51,065<\/td>\nNesbitt crossed 35,000 at 25.25.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.32
\nBid-YTW : 3.04 %<\/td>\n<\/tr>\n
There were 24 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
MFC.PR.F<\/td>\nFixedReset<\/td>\nQuote: 23.52 – 23.99
\nSpot Rate : 0.4700
\nAverage : 0.2657<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.52
\nBid-YTW : 4.11 %<\/td>\n<\/tr>\n

MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 22.93 – 23.38
\nSpot Rate : 0.4500
\nAverage : 0.2876<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.93
\nBid-YTW : 5.84 %<\/td>\n<\/tr>\n

IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 23.10 – 23.60
\nSpot Rate : 0.5000
\nAverage : 0.3416<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.10
\nBid-YTW : 5.67 %<\/td>\n<\/tr>\n

MFC.PR.D<\/td>\nFixedReset<\/td>\nQuote: 26.51 – 26.87
\nSpot Rate : 0.3600
\nAverage : 0.2255<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.51
\nBid-YTW : 3.54 %<\/td>\n<\/tr>\n

CM.PR.K<\/td>\nFixedReset<\/td>\nQuote: 26.15 – 26.45
\nSpot Rate : 0.3000
\nAverage : 0.2002<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.15
\nBid-YTW : 2.86 %<\/td>\n<\/tr>\n

TD.PR.Y<\/td>\nFixedReset<\/td>\nQuote: 25.61 – 25.86
\nSpot Rate : 0.2500
\nAverage : 0.1550<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.61
\nBid-YTW : 3.05 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The European crisis has come to a satisfactory conclusion: central bureaucrats will gain power: The European Union\u2019s push to unify bank oversight moved to the euro area after two days of talks in Brussels, putting …<\/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-19086","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19086","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=19086"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19086\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}