{"id":19895,"date":"2012-10-03T22:32:48","date_gmt":"2012-10-04T02:32:48","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=19895"},"modified":"2012-10-03T22:32:48","modified_gmt":"2012-10-04T02:32:48","slug":"october-3-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=19895","title":{"rendered":"October 3, 2012"},"content":{"rendered":"

These are great times for American mortgage borrowers<\/a>, as long as they have jobs and aren’t underwater:<\/p>\n

Mortgage prepayment rates have soared to the highest in seven years as homeowners take advantage of the lowest borrowing costs on record to refinance.<\/p>\n

Home loans were repaid in August at a pace that would erase 25 percent of the debt in a year, according to Lender Processing Services Inc. (LPS), a Jacksonville, Florida-based data provider that tracks 40 million mortgages.<\/p>\n

The cost of 30-year loans dropped to 3.4 percent last week, helping push refinancing applications to a three-year high, after the Federal Reserve said it will buy $40 billion of mortgage securities per month to stimulate the economy. That followed government efforts to increase refinancing with new rules designed to expand eligibility and reduce costs.<\/p><\/blockquote>\n

If the feds insist on coddling an expensive flag-carrier, Canadians know what to do<\/a>:<\/p>\n

The Conference Board of Canada report says about five million Canadians now cross the U.S. border by land every year to fly out of American airports.<\/p>\n

It says higher airfares and fees and taxes in Canada, as well as differences in wages, aircraft prices and industry productivity makes it 30 per cent cheaper to fly out of the U.S.<\/p><\/blockquote>\n

We want unilateral open-skies, now!<\/p>\n

It was a dull day for the Canadian preferred share market, with PerpetualPremiums up 2bp, FixedResets gaining 1bp and DeemedRetractibles down 4bp. Volatility was average. Volume was average.<\/p>\n

PerpetualDiscounts (all four of them! from both issuers!) now yield 4.87%, equivalent to 6.33% interest at the standard conversion factor of 1.3x. Long Corporates<\/a> now yield 4.2% (!) so the pre-tax interest equivalent spread is now about 215bp, unchanged from the September 26<\/a> report.<\/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>\n0.0948 %<\/td>\n2,457.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.31 %<\/td>\n3.69 %<\/td>\n35,838<\/td>\n17.86<\/td>\n1<\/td>\n0.0454 %<\/td>\n3,690.1<\/td>\n<\/tr>\n
Floater<\/td>\n2.98 %<\/td>\n3.01 %<\/td>\n55,160<\/td>\n19.74<\/td>\n3<\/td>\n0.0948 %<\/td>\n2,652.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.62 %<\/td>\n0.16 %<\/td>\n60,159<\/td>\n0.65<\/td>\n4<\/td>\n0.4399 %<\/td>\n2,572.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.44 %<\/td>\n5.00 %<\/td>\n73,465<\/td>\n4.54<\/td>\n3<\/td>\n0.1589 %<\/td>\n2,822.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.4399 %<\/td>\n2,352.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.28 %<\/td>\n2.20 %<\/td>\n94,872<\/td>\n0.39<\/td>\n27<\/td>\n0.0194 %<\/td>\n2,299.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.00 %<\/td>\n4.87 %<\/td>\n103,831<\/td>\n15.72<\/td>\n4<\/td>\n0.0409 %<\/td>\n2,588.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.97 %<\/td>\n2.97 %<\/td>\n183,535<\/td>\n4.24<\/td>\n73<\/td>\n0.0064 %<\/td>\n2,435.4<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.94 %<\/td>\n3.42 %<\/td>\n121,611<\/td>\n1.20<\/td>\n46<\/td>\n-0.0390 %<\/td>\n2,377.9<\/td>\n<\/tr>\n<\/table>\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
SLF.PR.H<\/td>\nFixedReset<\/td>\n-1.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.44
\nBid-YTW : 3.96 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nDeemed-Retractible<\/td>\n-1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.01
\nBid-YTW : 5.07 %<\/td>\n<\/tr>\n
PWF.PR.K<\/td>\nPerpetual-Premium<\/td>\n-1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.25
\nBid-YTW : 4.91 %<\/td>\n<\/tr>\n
IGM.PR.B<\/td>\nPerpetual-Premium<\/td>\n1.75 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.76
\nBid-YTW : 4.12 %<\/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
IFC.PR.A<\/td>\nFixedReset<\/td>\n334,187<\/td>\nRBC crossed 50,000 at 25.45. National crossed five blocks: 49,400 shares, 50,000 shares, 25,000 and two of 75,000 each, all at the same price.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.40
\nBid-YTW : 3.54 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n176,213<\/td>\nNesbitt crossed two blocks of 50,000 each at 26.10. National crossed 50,000 and TD crossed 16,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.05
\nBid-YTW : 3.12 %<\/td>\n<\/tr>\n
ENB.PR.P<\/td>\nFixedReset<\/td>\n110,960<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-10-03
\nMaturity Price : 23.14
\nEvaluated at bid price : 25.14
\nBid-YTW : 3.69 %<\/td>\n<\/tr>\n
BMO.PR.N<\/td>\nFixedReset<\/td>\n78,131<\/td>\nScotia crossed blocks of 25,000 and 50,000, both at 26.80.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.75
\nBid-YTW : 1.91 %<\/td>\n<\/tr>\n
TD.PR.E<\/td>\nFixedReset<\/td>\n73,979<\/td>\nTD crossed 50,000 at 26.95; Desjardins crossed 10,000 at 26.97.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.97
\nBid-YTW : 1.84 %<\/td>\n<\/tr>\n
TD.PR.A<\/td>\nFixedReset<\/td>\n61,703<\/td>\nNesbitt crossed 50,000 at 25.95.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.98
\nBid-YTW : 2.65 %<\/td>\n<\/tr>\n
There were 32 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
IGM.PR.B<\/td>\nPerpetual-Premium<\/td>\nQuote: 26.76 – 28.70
\nSpot Rate : 1.9400
\nAverage : 1.2662<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.76
\nBid-YTW : 4.12 %<\/td>\n<\/tr>\n

PWF.PR.K<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.25 – 25.56
\nSpot Rate : 0.3100
\nAverage : 0.1993<\/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 : 4.91 %<\/td>\n<\/tr>\n

PWF.PR.P<\/td>\nFixedReset<\/td>\nQuote: 25.18 – 25.34
\nSpot Rate : 0.1600
\nAverage : 0.0986<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-10-03
\nMaturity Price : 23.39
\nEvaluated at bid price : 25.18
\nBid-YTW : 2.97 %<\/td>\n<\/tr>\n

RY.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.77 – 25.95
\nSpot Rate : 0.1800
\nAverage : 0.1210<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-24
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.77
\nBid-YTW : 3.42 %<\/td>\n<\/tr>\n

W.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.75 – 25.97
\nSpot Rate : 0.2200
\nAverage : 0.1646<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-01-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.75
\nBid-YTW : -5.47 %<\/td>\n<\/tr>\n

RY.PR.T<\/td>\nFixedReset<\/td>\nQuote: 26.99 – 27.20
\nSpot Rate : 0.2100
\nAverage : 0.1582<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.99
\nBid-YTW : 2.32 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

These are great times for American mortgage borrowers, as long as they have jobs and aren’t underwater: Mortgage prepayment rates have soared to the highest in seven years as homeowners take advantage of the lowest …<\/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-19895","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19895","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=19895"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19895\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}