{"id":19515,"date":"2012-08-17T01:22:24","date_gmt":"2012-08-17T05:22:24","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=19515"},"modified":"2012-08-17T01:22:24","modified_gmt":"2012-08-17T05:22:24","slug":"august-16-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=19515","title":{"rendered":"August 16, 2012"},"content":{"rendered":"

Do I detect a little reaching for yield<\/a>?:<\/p>\n

Sales of junk bonds in the U.S. have already set a record for August, even as yields at about record lows combined with a slowdown in earnings growth spark concern the market for the riskiest corporate debt has peaked.<\/p>\n

Charter Communications Inc. (CHTR), the cable-TV provider that emerged from bankruptcy in 2009, and Energy Future Holdings Corp., the Texas power producer struggling with $36.6 billion of long-term debt, are among companies that have sold $29.6 billion of speculative-grade securities this month. That compares with an average $8.4 billion in August sales for the past five years, according to data compiled by Bloomberg.<\/p>\n

Companies are tapping into an unprecedented $44.9 billion of cash that has poured into funds that buy junk bonds in 2012 as the fourth year of near-zero short-term interest rates prompts investors to put their money into higher-yielding assets. Issuance accelerated even as the pace of earnings at speculative-grade companies slowed in the second quarter and as U.S. unemployment held above 8 percent for the 42nd month.<\/p><\/blockquote>\n

It was a languidly positive day for the Canadian preferred share market, with PerpetualPremiums up 7bp, FixedResets gaining 1bp and DeemedRetractibles flat. Volatility was minimal. Volume was a little strange. There were a fair number of issues trading over 100,000 shares, but overall the number of issues trading over 10,000 shares was … well, a little better than some of the recent days, but still pretty quiet. My guess is that a few big boys are shuffling their holdings, but Joe Average has gone fishing.<\/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-0.3172 %<\/td>\n2,322.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.3172 %<\/td>\n3,474.9<\/td>\n<\/tr>\n
Floater<\/td>\n3.13 %<\/td>\n3.17 %<\/td>\n61,951<\/td>\n19.26<\/td>\n3<\/td>\n-0.3172 %<\/td>\n2,508.2<\/td>\n<\/tr>\n
OpRet<\/td>\n4.77 %<\/td>\n2.51 %<\/td>\n35,042<\/td>\n0.85<\/td>\n5<\/td>\n-0.0230 %<\/td>\n2,541.5<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.45 %<\/td>\n5.07 %<\/td>\n66,630<\/td>\n4.61<\/td>\n3<\/td>\n-0.0530 %<\/td>\n2,777.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0230 %<\/td>\n2,324.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.29 %<\/td>\n2.45 %<\/td>\n97,868<\/td>\n0.42<\/td>\n28<\/td>\n0.0737 %<\/td>\n2,278.0<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.96 %<\/td>\n4.96 %<\/td>\n94,362<\/td>\n15.49<\/td>\n3<\/td>\n-0.1113 %<\/td>\n2,520.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.99 %<\/td>\n3.09 %<\/td>\n174,785<\/td>\n3.96<\/td>\n71<\/td>\n0.0076 %<\/td>\n2,425.2<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.95 %<\/td>\n3.12 %<\/td>\n135,066<\/td>\n1.17<\/td>\n46<\/td>\n0.0034 %<\/td>\n2,356.2<\/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
CU.PR.C<\/td>\nFixedReset<\/td>\n-1.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.11
\nBid-YTW : 2.98 %<\/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
BNS.PR.M<\/td>\nDeemed-Retractible<\/td>\n525,882<\/td>\nNesbitt crossed 517,300 at 25.95.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-07-27
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.95
\nBid-YTW : 3.56 %<\/td>\n<\/tr>\n
BNS.PR.L<\/td>\nDeemed-Retractible<\/td>\n436,987<\/td>\nDesjardins crossed blocks of 200,000 shares, 50,000 and 16,000, all at 25.95. National crossed 50,000 at the same price; Nesbitt crossed 112,100 at the same price again.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-26
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.95
\nBid-YTW : 3.45 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Premium<\/td>\n297,401<\/td>\nDesjardins crossed four blocks: 225,000 shares, 25,000 and two of 20,000 each, all at 25.90.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 25.87
\nBid-YTW : 2.45 %<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nDeemed-Retractible<\/td>\n110,766<\/td>\nDesjardins crossed 50,000 at 25.98; National crossed 49,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-10-31
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.95
\nBid-YTW : -2.67 %<\/td>\n<\/tr>\n
TD.PR.R<\/td>\nDeemed-Retractible<\/td>\n101,769<\/td>\nTD crossed 100,000 at 26.95.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-04-30
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.88
\nBid-YTW : 0.84 %<\/td>\n<\/tr>\n
BNS.PR.N<\/td>\nDeemed-Retractible<\/td>\n54,617<\/td>\nTD crossed 49,100 at 26.55.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-01-29
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.49
\nBid-YTW : 1.35 %<\/td>\n<\/tr>\n
There were 21 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
BNA.PR.C<\/td>\nSplitShare<\/td>\nQuote: 23.91 – 24.27
\nSpot Rate : 0.3600
\nAverage : 0.2535<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.91
\nBid-YTW : 5.35 %<\/td>\n<\/tr>\n

PWF.PR.F<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.21 – 25.60
\nSpot Rate : 0.3900
\nAverage : 0.2859<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-09-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.21
\nBid-YTW : -2.15 %<\/td>\n<\/tr>\n

GWO.PR.N<\/td>\nFixedReset<\/td>\nQuote: 24.20 – 24.45
\nSpot Rate : 0.2500
\nAverage : 0.1553<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.20
\nBid-YTW : 3.53 %<\/td>\n<\/tr>\n

TCA.PR.Y<\/td>\nPerpetual-Premium<\/td>\nQuote: 51.37 – 51.77
\nSpot Rate : 0.4000
\nAverage : 0.3211<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-05
\nMaturity Price : 50.00
\nEvaluated at bid price : 51.37
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n

RY.PR.I<\/td>\nFixedReset<\/td>\nQuote: 25.55 – 25.78
\nSpot Rate : 0.2300
\nAverage : 0.1537<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.55
\nBid-YTW : 3.30 %<\/td>\n<\/tr>\n

FTS.PR.H<\/td>\nFixedReset<\/td>\nQuote: 25.40 – 25.65
\nSpot Rate : 0.2500
\nAverage : 0.1737<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-08-16
\nMaturity Price : 23.55
\nEvaluated at bid price : 25.40
\nBid-YTW : 2.78 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Do I detect a little reaching for yield?: Sales of junk bonds in the U.S. have already set a record for August, even as yields at about record lows combined with a slowdown in earnings …<\/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-19515","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19515","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=19515"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19515\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}