{"id":19778,"date":"2012-09-19T02:07:07","date_gmt":"2012-09-19T06:07:07","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=19778"},"modified":"2012-09-19T02:07:07","modified_gmt":"2012-09-19T06:07:07","slug":"september-18-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=19778","title":{"rendered":"September 18, 2012"},"content":{"rendered":"

TD says the housing bubble is yesterday’s news<\/a>:<\/p>\n

TD Economics has gradually reduced its estimate of the overvaluation in Canada\u2019s house prices, as the growth in people\u2019s disposable income picks up while the market stagnates.<\/p>\n

The quarterly economic forecast that the bank released Tuesday pegs the current overvaluation in the market at 10 per cent. It had previously estimated that prices were 15 per cent too high, and then suggested a range of 10 to 15 per cent.<\/p><\/blockquote>\n

Rick Waugh says the same thing<\/a>:<\/p>\n

Canada\u2019s housing market is \u201cat worst\u201d destined for a soft landing, the head of one of the country\u2019s largest banks predicted Tuesday.<\/p>\n

Speaking in Toronto, Bank of Nova Scotia chief executive officer Rick Waugh said even though there is a housing bubble in Canada, he doesn\u2019t expect the residential real estate market to crash.<\/p><\/blockquote>\n

I don’t have figures on how good either party is at predicting house prices.<\/p>\n

The slow-motion bank run<\/a> (is that a jog?) in Europe continues:<\/p>\n

An accelerating flight of deposits from banks in four European countries is jeopardizing the renewal of economic growth and undermining a main tenet of the common currency: an integrated financial system.<\/p>\n

A total of 326 billion euros ($425 billion) was pulled from banks in Spain, Portugal, Ireland and Greece in the 12 months ended July 31, according to data compiled by Bloomberg. The plight of Irish and Greek lenders, which were bleeding cash in 2010, spread to Spain and Portugal last year.<\/p>\n

The flight of deposits from the four countries coincides with an increase of about 300 billion euros at lenders in seven nations considered the core of the euro zone, including Germany and France, almost matching the outflow. That\u2019s leading to a fragmentation of credit and a two-tiered banking system blocking economic recovery and blunting European Central Bank policy in the third year of a sovereign-debt crisis.<\/p><\/blockquote>\n

It was a quiet day for the Canadian preferred share market, with PerpetualPremiums off 1bp, FixedResets up 4bp and DeemedRetractibles gaining 2bp. Volatility was muted. 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>\n0.3655 %<\/td>\n2,429.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.57 %<\/td>\n3.93 %<\/td>\n34,750<\/td>\n17.43<\/td>\n1<\/td>\n-0.0481 %<\/td>\n3,485.6<\/td>\n<\/tr>\n
Floater<\/td>\n3.02 %<\/td>\n3.03 %<\/td>\n58,819<\/td>\n19.66<\/td>\n3<\/td>\n0.3655 %<\/td>\n2,622.7<\/td>\n<\/tr>\n
OpRet<\/td>\n4.67 %<\/td>\n3.33 %<\/td>\n57,067<\/td>\n1.47<\/td>\n4<\/td>\n-0.0577 %<\/td>\n2,545.0<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.46 %<\/td>\n4.97 %<\/td>\n73,673<\/td>\n4.58<\/td>\n3<\/td>\n0.2660 %<\/td>\n2,812.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0577 %<\/td>\n2,327.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.28 %<\/td>\n3.08 %<\/td>\n88,014<\/td>\n1.03<\/td>\n28<\/td>\n-0.0118 %<\/td>\n2,281.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.96 %<\/td>\n4.96 %<\/td>\n97,182<\/td>\n15.60<\/td>\n3<\/td>\n-0.1528 %<\/td>\n2,544.1<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.96 %<\/td>\n3.13 %<\/td>\n175,327<\/td>\n4.27<\/td>\n72<\/td>\n0.0420 %<\/td>\n2,427.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.95 %<\/td>\n3.60 %<\/td>\n119,266<\/td>\n1.24<\/td>\n46<\/td>\n0.0213 %<\/td>\n2,366.9<\/td>\n<\/tr>\n<\/table>\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
SLF.PR.C<\/td>\nDeemed-Retractible<\/td>\n-1.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.00
\nBid-YTW : 5.57 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-09-18
\nMaturity Price : 23.66
\nEvaluated at bid price : 25.43
\nBid-YTW : 3.32 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-09-18
\nMaturity Price : 23.64
\nEvaluated at bid price : 26.12
\nBid-YTW : 3.06 %<\/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
ENB.PR.P<\/td>\nFixedReset<\/td>\n158,891<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-09-18
\nMaturity Price : 23.07
\nEvaluated at bid price : 24.93
\nBid-YTW : 3.86 %<\/td>\n<\/tr>\n
RY.PR.Y<\/td>\nFixedReset<\/td>\n104,465<\/td>\nNational crossed blocks of 48,600 and 48,000, both at 26.90.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-11-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.85
\nBid-YTW : 2.80 %<\/td>\n<\/tr>\n
RY.PR.C<\/td>\nDeemed-Retractible<\/td>\n102,516<\/td>\nRBC crossed 49,100 at 25.80; National crossed 50,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-11-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.71
\nBid-YTW : 3.77 %<\/td>\n<\/tr>\n
TD.PR.A<\/td>\nFixedReset<\/td>\n101,756<\/td>\nNesbitt crossed 95,000 at 25.94.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.94
\nBid-YTW : 2.69 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n91,428<\/td>\nNesbitt crossed 79,000 at 25.75.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.73
\nBid-YTW : 3.16 %<\/td>\n<\/tr>\n
BAM.PF.B<\/td>\nFixedReset<\/td>\n70,060<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-09-18
\nMaturity Price : 23.12
\nEvaluated at bid price : 25.08
\nBid-YTW : 3.99 %<\/td>\n<\/tr>\n
There were 22 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.D<\/td>\nSplitShare<\/td>\nQuote: 26.45 – 28.07
\nSpot Rate : 1.6200
\nAverage : 0.9245<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-10-18
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.45
\nBid-YTW : -11.08 %<\/td>\n<\/tr>\n

SLF.PR.C<\/td>\nDeemed-Retractible<\/td>\nQuote: 23.00 – 23.35
\nSpot Rate : 0.3500
\nAverage : 0.2167<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.00
\nBid-YTW : 5.57 %<\/td>\n<\/tr>\n

TD.PR.I<\/td>\nFixedReset<\/td>\nQuote: 26.95 – 27.25
\nSpot Rate : 0.3000
\nAverage : 0.1796<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.95
\nBid-YTW : 2.43 %<\/td>\n<\/tr>\n

TCA.PR.Y<\/td>\nPerpetual-Premium<\/td>\nQuote: 51.61 – 52.13
\nSpot Rate : 0.5200
\nAverage : 0.4256<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-05
\nMaturity Price : 50.00
\nEvaluated at bid price : 51.61
\nBid-YTW : 3.85 %<\/td>\n<\/tr>\n

CU.PR.E<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.91 – 26.15
\nSpot Rate : 0.2400
\nAverage : 0.1779<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-09-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.91
\nBid-YTW : 4.46 %<\/td>\n<\/tr>\n

FTS.PR.E<\/td>\nOpRet<\/td>\nQuote: 26.48 – 26.80
\nSpot Rate : 0.3200
\nAverage : 0.2597<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.48
\nBid-YTW : 1.04 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

TD says the housing bubble is yesterday’s news: TD Economics has gradually reduced its estimate of the overvaluation in Canada\u2019s house prices, as the growth in people\u2019s disposable income picks up while the market stagnates. …<\/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-19778","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19778","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=19778"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19778\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}