{"id":19538,"date":"2012-08-22T01:50:17","date_gmt":"2012-08-22T05:50:17","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=19538"},"modified":"2012-08-22T01:50:17","modified_gmt":"2012-08-22T05:50:17","slug":"august-21-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=19538","title":{"rendered":"August 21, 2012"},"content":{"rendered":"

Time for another politically inspired shake-down of a bank? Oh, why not<\/a>?<\/p>\n

Public pension funds from Arkansas, Ohio, Oregon and Sweden will be lead plaintiffs in a group lawsuit against JPMorgan Chase & Co. (JPM) over trades made by Bruno Iksil, known as the \u201cLondon Whale.\u201d<\/p>\n

U.S. District Judge George Daniels in Manhattan ruled today that lawsuits against the New York-based bank should be consolidated into a class action. The pension funds allege they lost as much as $52 million because of fraudulent activities by JPMorgan\u2019s London chief investment office.<\/p>\n

The lead plaintiffs named by Daniels are the Arkansas Teacher Retirement System, Ohio Public Employee Retirement System, School Employees Retirement System of Ohio, State Teachers Retirement System of Ohio, Oregon Public Employee Retirement Fund and the Swedish pension fund Sjunde AP-Fonden.<\/p><\/blockquote>\n

The best thing about public pension funds, you understand, is that they allow you to keep the wage increases out of the headline number. But the second best thing is that they give you another avenue for grandstanding shakedown attempts.<\/p>\n

The Muddy Waters business model is gaining popularity<\/a>:<\/p>\n

A series of scathing reports by a small Toronto investment research house targeting some of India\u2019s corporate heavyweights is riveting the country’s business community, and sparking intense scrutiny of the state of corporate governance in one of the world\u2019s hottest economies.<\/p>\n

Veritas Investment Research Corp. has alleged \u201cmanipulative accounting,\u201d poor disclosure practices and other gaping flaws in transparency at major Indian real estate, communications, and infrastructure firms. In the process, the company has shone a rare light on the fragility of oversight in the Asian giant \u2013 and made some powerful enemies.
…<\/b>
Arun Jain, an expert on corporate governance who teaches at the elite Indian Institute of Management in Lucknow, said the hard-hitting Veritas reports raise the question of why no Indian firm is doing similar work. \u201cSometime the gap between who is being analyzed and who is doing the analysis is not big,\u201d he said.<\/p>\n

India\u2019s business world can be a cozy one. \u201cYou know that someone you write about this week could be a potential client next week, so if you don\u2019t have something nice to say, you just don\u2019t do a report,\u201d said an analyst who has worked for the Indian branches of several international firms, and who did not want to be quoted by name.<\/p><\/blockquote>\n

Right? Wrong? I don’t know. Indian equities are not exactly my area of specialization. But I do like to see a little mudslinging in the analytical community (provided, of course, that it’s relevant and informed mudslinging) and it’s easier when it’s a foreigner carrying the bucket.<\/p>\n

Which is why, of course, the abortive LSE \/ TMX merger would have been so much better for Canadians than the Maple \/ TMX deal. But not for every Canadian.<\/p>\n

It was a mildly positive day for the Canadian preferred share index, with PerpetualPremiums and DeemedRetractibles both gaining 2bp and FixedResets winning 7bp. Volume continued its recent pattern of ‘Very low, with high spots’.<\/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>\n0.6196 %<\/td>\n2,325.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.6196 %<\/td>\n3,479.0<\/td>\n<\/tr>\n
Floater<\/td>\n3.13 %<\/td>\n3.17 %<\/td>\n60,601<\/td>\n19.26<\/td>\n3<\/td>\n0.6196 %<\/td>\n2,511.2<\/td>\n<\/tr>\n
OpRet<\/td>\n4.77 %<\/td>\n2.93 %<\/td>\n31,322<\/td>\n0.83<\/td>\n5<\/td>\n0.1307 %<\/td>\n2,547.3<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.48 %<\/td>\n4.92 %<\/td>\n73,005<\/td>\n4.66<\/td>\n3<\/td>\n0.3476 %<\/td>\n2,800.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1307 %<\/td>\n2,329.2<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.30 %<\/td>\n2.85 %<\/td>\n96,114<\/td>\n0.40<\/td>\n28<\/td>\n0.0160 %<\/td>\n2,275.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.93 %<\/td>\n4.92 %<\/td>\n100,393<\/td>\n15.53<\/td>\n3<\/td>\n-0.2070 %<\/td>\n2,538.1<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.99 %<\/td>\n3.09 %<\/td>\n176,330<\/td>\n3.95<\/td>\n71<\/td>\n0.0663 %<\/td>\n2,427.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.94 %<\/td>\n3.13 %<\/td>\n129,568<\/td>\n1.15<\/td>\n46<\/td>\n0.0187 %<\/td>\n2,360.1<\/td>\n<\/tr>\n<\/table>\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.B<\/td>\nFloater<\/td>\n1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-08-21
\nMaturity Price : 16.95
\nEvaluated at bid price : 16.95
\nBid-YTW : 3.12 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n1.55 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.28
\nBid-YTW : 3.77 %<\/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
SLF.PR.B<\/td>\nDeemed-Retractible<\/td>\n304,768<\/td>\nNesbitt crossed 200,000 at 24.45; TD and RBC both crossed 50,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.40
\nBid-YTW : 5.25 %<\/td>\n<\/tr>\n
MFC.PR.A<\/td>\nOpRet<\/td>\n106,951<\/td>\nDesjardins crossed 100,000 at 25.36.
\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2015-12-18
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.30
\nBid-YTW : 3.63 %<\/td>\n<\/tr>\n
BNS.PR.M<\/td>\nDeemed-Retractible<\/td>\n104,876<\/td>\nNesbitt crossed 100,000 at 25.95.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-07-27
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.92
\nBid-YTW : 3.62 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n87,966<\/td>\nDesjardins crossed 74,900 at 25.70.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.70
\nBid-YTW : 3.08 %<\/td>\n<\/tr>\n
BMO.PR.Q<\/td>\nFixedReset<\/td>\n82,645<\/td>\nNesbitt crossed blocks of 50,000 and 27,400, both at 25.65.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.65
\nBid-YTW : 2.87 %<\/td>\n<\/tr>\n
TD.PR.G<\/td>\nFixedReset<\/td>\n55,292<\/td>\nNesbitt crossed 50,000 at 26.65.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.69
\nBid-YTW : 2.36 %<\/td>\n<\/tr>\n
There were 19 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
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.19 – 24.60
\nSpot Rate : 0.4100
\nAverage : 0.2706<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.19
\nBid-YTW : 5.15 %<\/td>\n<\/tr>\n

PWF.PR.F<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.21 – 25.59
\nSpot Rate : 0.3800
\nAverage : 0.2625<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-09-20
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.21
\nBid-YTW : -1.29 %<\/td>\n<\/tr>\n

PWF.PR.O<\/td>\nPerpetual-Premium<\/td>\nQuote: 26.41 – 26.85
\nSpot Rate : 0.4400
\nAverage : 0.3578<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.41
\nBid-YTW : 4.83 %<\/td>\n<\/tr>\n

GWO.PR.H<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.90 – 25.10
\nSpot Rate : 0.2000
\nAverage : 0.1303<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.90
\nBid-YTW : 5.03 %<\/td>\n<\/tr>\n

ENB.PR.A<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.55 – 25.87
\nSpot Rate : 0.3200
\nAverage : 0.2575<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-09-20
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.55
\nBid-YTW : -21.74 %<\/td>\n<\/tr>\n

TD.PR.C<\/td>\nFixedReset<\/td>\nQuote: 25.99 – 26.16
\nSpot Rate : 0.1700
\nAverage : 0.1112<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.99
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Time for another politically inspired shake-down of a bank? Oh, why not? Public pension funds from Arkansas, Ohio, Oregon and Sweden will be lead plaintiffs in a group lawsuit against JPMorgan Chase & Co. (JPM) …<\/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-19538","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19538","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=19538"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19538\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}