{"id":19718,"date":"2012-09-13T01:17:07","date_gmt":"2012-09-13T05:17:07","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=19718"},"modified":"2012-09-13T01:17:07","modified_gmt":"2012-09-13T05:17:07","slug":"september-12-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=19718","title":{"rendered":"September 12, 2012"},"content":{"rendered":"

The Great Regulatory Job Creation Scheme is gathering steam<\/a>:<\/p>\n

U.S. regulators are set to choose the first non-bank companies likely to be branded potential risks to the financial system, according to two people with knowledge of the plans.<\/p>\n

The Financial Stability Oversight Council intends to request confidential data from as many as five U.S. firms at a meeting this month, said the people, who declined to be identified because the plans aren\u2019t public. The request is a step toward deciding whether the companies should be subject to Federal Reserve supervision, including stress tests, higher capital levels and tougher liquidity requirements.<\/p><\/blockquote>\n

So the Fed will have to hire more regulators to administer the expanded mandate and then more regulators to replace the old regulators who have been hired by the affected companies at fat salaries. It’s win-win!<\/p>\n

Wow! The US Mortgage almost-agencies have a radical new business model<\/a>!<\/p>\n

Edward J. DeMarco, the overseer of taxpayer-supported Fannie Mae (FNMA) and Freddie Mac, said the firms need to increase the fees they charge to guarantee mortgages in states where it\u2019s costlier for them to deal with bad debt.<\/p><\/blockquote>\n

Can you imagine? Charging for services based on expected costs? I think Mr. DeMarco should get the Nobel Prize in Economics.<\/p>\n

It was another day of little movement for the Canadian preferred share market, with PerpetualPremiums down 3bp, FixedResets gaining 4bp and DeemedRetractibles off 2bp. Volatility was minimal. Volume was average – which is a huge improvement from recent levels, probably helped along by the BAM.PF.B new issue<\/a>.<\/p>\n

PerpetualDiscounts (all three of them!) now yield 4.92%, equivalent to 6.40% interest at the standard equivalency factor of 1.3x. Update<\/b> Long Corporates<\/a> now yield about 4.4%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 200bp, sharply tighter than the 215bp reported September 5<\/a>.<\/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>\n0.1992 %<\/td>\n2,411.4<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.52 %<\/td>\n3.87 %<\/td>\n35,092<\/td>\n17.52<\/td>\n1<\/td>\n0.0000 %<\/td>\n3,522.5<\/td>\n<\/tr>\n
Floater<\/td>\n3.04 %<\/td>\n3.05 %<\/td>\n56,384<\/td>\n19.61<\/td>\n3<\/td>\n0.1992 %<\/td>\n2,603.6<\/td>\n<\/tr>\n
OpRet<\/td>\n4.68 %<\/td>\n3.35 %<\/td>\n62,268<\/td>\n1.49<\/td>\n4<\/td>\n-0.2771 %<\/td>\n2,541.3<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.48 %<\/td>\n4.98 %<\/td>\n72,650<\/td>\n4.60<\/td>\n3<\/td>\n0.0400 %<\/td>\n2,800.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2771 %<\/td>\n2,323.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.29 %<\/td>\n3.10 %<\/td>\n85,844<\/td>\n0.34<\/td>\n28<\/td>\n-0.0340 %<\/td>\n2,278.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.95 %<\/td>\n4.92 %<\/td>\n95,267<\/td>\n15.65<\/td>\n3<\/td>\n0.0879 %<\/td>\n2,549.1<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.99 %<\/td>\n3.07 %<\/td>\n175,756<\/td>\n4.07<\/td>\n71<\/td>\n0.0411 %<\/td>\n2,422.9<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.95 %<\/td>\n3.54 %<\/td>\n120,696<\/td>\n1.85<\/td>\n46<\/td>\n-0.0152 %<\/td>\n2,365.3<\/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
FTS.PR.E<\/td>\nOpRet<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.36
\nBid-YTW : 1.66 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\n1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-31
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.63
\nBid-YTW : 2.42 %<\/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
BAM.PF.B<\/td>\nFixedReset<\/td>\n332,922<\/td>\nNew issue settled today<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-09-12
\nMaturity Price : 23.08
\nEvaluated at bid price : 24.96
\nBid-YTW : 3.95 %<\/td>\n<\/tr>\n
BNS.PR.Y<\/td>\nFixedReset<\/td>\n158,162<\/td>\nNesbitt crossed 136,600 at 25.20.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.19
\nBid-YTW : 2.78 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\n74,298<\/td>\nNesbitt crossed 50,000 at 23.90.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.82
\nBid-YTW : 5.31 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\n66,701<\/td>\nRBC crossed 59,700 at 25.65.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-31
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.63
\nBid-YTW : 2.42 %<\/td>\n<\/tr>\n
GWO.PR.J<\/td>\nFixedReset<\/td>\n60,719<\/td>\nRBC crossed 59,700 at 26.12.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.10
\nBid-YTW : 2.34 %<\/td>\n<\/tr>\n
BNS.PR.K<\/td>\nDeemed-Retractible<\/td>\n51,853<\/td>\nRBC crossed 50,000 at 25.70.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-04-28
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.67
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n
There were 34 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
FTS.PR.E<\/td>\nOpRet<\/td>\nQuote: 26.36 – 26.80
\nSpot Rate : 0.4400
\nAverage : 0.3055<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.36
\nBid-YTW : 1.66 %<\/td>\n<\/tr>\n

PWF.PR.O<\/td>\nPerpetual-Premium<\/td>\nQuote: 26.52 – 26.84
\nSpot Rate : 0.3200
\nAverage : 0.1912<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.52
\nBid-YTW : 4.81 %<\/td>\n<\/tr>\n

GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.26 – 26.60
\nSpot Rate : 0.3400
\nAverage : 0.2216<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-03-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.26
\nBid-YTW : 5.09 %<\/td>\n<\/tr>\n

PWF.PR.K<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.25 – 25.62
\nSpot Rate : 0.3700
\nAverage : 0.2587<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.25
\nBid-YTW : 4.77 %<\/td>\n<\/tr>\n

MFC.PR.D<\/td>\nFixedReset<\/td>\nQuote: 26.41 – 26.63
\nSpot Rate : 0.2200
\nAverage : 0.1324<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.41
\nBid-YTW : 3.26 %<\/td>\n<\/tr>\n

SLF.PR.E<\/td>\nDeemed-Retractible<\/td>\nQuote: 23.26 – 23.45
\nSpot Rate : 0.1900
\nAverage : 0.1137<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.26
\nBid-YTW : 5.46 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The Great Regulatory Job Creation Scheme is gathering steam: U.S. regulators are set to choose the first non-bank companies likely to be branded potential risks to the financial system, according to two people with knowledge …<\/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-19718","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19718","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=19718"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19718\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}