{"id":19991,"date":"2012-10-12T19:16:14","date_gmt":"2012-10-12T23:16:14","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=19991"},"modified":"2012-10-12T19:16:14","modified_gmt":"2012-10-12T23:16:14","slug":"october-12-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=19991","title":{"rendered":"October 12, 2012"},"content":{"rendered":"

Surprisingly, a business-hostile government isn’t getting much help from business<\/a>:<\/p>\n

French companies aren\u2019t investing much at home these days.<\/p>\n

A no-growth economy had already damped spending when President Francois Hollande\u2019s government late last month unveiled a budget that slaps companies with 10 billion euros ($13.1 billion) of tax increases for next year. Executives are returning the favor by suspending investments. <\/p><\/blockquote>\n

Perhaps Lapdog Carney could go over and give them some pointers<\/a>.<\/p>\n

Assiduous Reader AA sent me a link to a NYT article titled A Hard Landing for University Endowments<\/a>:<\/p>\n

Today, it\u2019s hard to find a college or university that stuck with the older and far simpler allocation between stocks and bonds. Hedge funds alone currently have what is estimated at over $2 trillion in assets, much of it from large institutions.
…<\/b>
Even more startling, data compiled by the National Association of College and University Business Officers for the 2011 fiscal year (the most recent available) show that large, medium and small endowments all underperformed a simple mix of 60 percent stocks and 40 percent bonds over one-, three-and five–year periods. The 91 percent of endowments with less than $1 billion in assets underperformed in every time period since records have been maintained. Given the weak results being reported this year, that underperformance is likely to be even more pronounced when the fiscal year 2012 results are included.<\/p><\/blockquote>\n

I don’t think it’s necessary to resort to fancy arguments like “first-mover advantage” and “changing market” to explain this. I suggest that some smart guys who knew what they were doing had the idea and did very well. Then the salesmen moved in …<\/p>\n

DBRS confirmed NA at Pfd-2<\/a>:<\/p>\n

National\u2019s asset quality metrics, with respect to its lending operation, outperformed most of its peers through the recession and continue to do so. National\u2019s capital metrics have declined slightly over the first nine months of 2012 largely as a result of the application of IFRS, increased risk-weighted assets driven by organic loan growth and the acquisition of a 35% interest in Fiera Capital Corporation. However, the Bank\u2019s tangible common equity and Tier 1 ratios still remain within the middle of the Canadian bank peer group and compare favourably relative to international peers, at 9.5% and 12.7%, respectively.<\/p>\n

National\u2019s long-term deposits and senior debt rating at AA (low) is composed of an Intrinsic Assessment of A (high) and a Support Assessment of SA2 (reflecting the expectation of systemic and timely external support by the Government of Canada), which results in a one notch increase from the Intrinsic Assessment to the Issuer Rating, Deposits and Senior Debt and Subordinated Debt ratings.<\/p><\/blockquote>\n

It was another mildly positive day for the Canadian preferred share market, with PerpetualPremiums up 6bp, FixedResets flat and DeemedRetractibles gaining 5bp. Volatility was minor. Volume was very low.<\/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>\n0.0000 %<\/td>\n2,434.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.32 %<\/td>\n3.64 %<\/td>\n35,207<\/td>\n18.11<\/td>\n1<\/td>\n-0.4973 %<\/td>\n3,728.0<\/td>\n<\/tr>\n
Floater<\/td>\n3.01 %<\/td>\n3.03 %<\/td>\n62,576<\/td>\n19.66<\/td>\n3<\/td>\n0.0000 %<\/td>\n2,628.8<\/td>\n<\/tr>\n
OpRet<\/td>\n4.63 %<\/td>\n2.31 %<\/td>\n62,866<\/td>\n0.63<\/td>\n4<\/td>\n-0.0286 %<\/td>\n2,564.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.44 %<\/td>\n4.98 %<\/td>\n72,753<\/td>\n4.52<\/td>\n3<\/td>\n-0.0792 %<\/td>\n2,822.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0286 %<\/td>\n2,345.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.29 %<\/td>\n1.75 %<\/td>\n87,299<\/td>\n0.37<\/td>\n27<\/td>\n0.0568 %<\/td>\n2,303.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.02 %<\/td>\n5.01 %<\/td>\n48,651<\/td>\n15.49<\/td>\n4<\/td>\n0.0822 %<\/td>\n2,577.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.98 %<\/td>\n3.00 %<\/td>\n183,814<\/td>\n3.80<\/td>\n73<\/td>\n0.0016 %<\/td>\n2,437.8<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.94 %<\/td>\n3.03 %<\/td>\n119,776<\/td>\n0.77<\/td>\n47<\/td>\n0.0499 %<\/td>\n2,381.3<\/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
BAM.PR.R<\/td>\nFixedReset<\/td>\n-1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-10-12
\nMaturity Price : 23.51
\nEvaluated at bid price : 25.75
\nBid-YTW : 3.70 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.50
\nBid-YTW : 4.92 %<\/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
GWO.PR.R<\/td>\nDeemed-Retractible<\/td>\n147,988<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 4.83 %<\/td>\n<\/tr>\n
BMO.PR.Q<\/td>\nFixedReset<\/td>\n109,224<\/td>\nTD crossed 100,000 at 25.45.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.46
\nBid-YTW : 2.95 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n99,418<\/td>\nScotia crossed blocks of 20,000 and 64,300, both at 24.40.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.37
\nBid-YTW : 3.59 %<\/td>\n<\/tr>\n
PWF.PR.P<\/td>\nFixedReset<\/td>\n37,634<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-10-12
\nMaturity Price : 23.34
\nEvaluated at bid price : 25.01
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\n33,332<\/td>\nDesjardins crossed 30,000 at 25.72.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-31
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.67
\nBid-YTW : 2.61 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset<\/td>\n29,503<\/td>\nNational crossed 27,100 at 25.50.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-10-12
\nMaturity Price : 23.48
\nEvaluated at bid price : 25.45
\nBid-YTW : 2.88 %<\/td>\n<\/tr>\n
There were 14 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
BNS.PR.T<\/td>\nFixedReset<\/td>\nQuote: 26.41 – 26.69
\nSpot Rate : 0.2800
\nAverage : 0.1910<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.41
\nBid-YTW : 2.27 %<\/td>\n<\/tr>\n

BAM.PR.B<\/td>\nFloater<\/td>\nQuote: 17.50 – 17.75
\nSpot Rate : 0.2500
\nAverage : 0.1677<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-10-12
\nMaturity Price : 17.50
\nEvaluated at bid price : 17.50
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n

BAM.PR.G<\/td>\nFixedFloater<\/td>\nQuote: 22.01 – 22.44
\nSpot Rate : 0.4300
\nAverage : 0.3655<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-10-12
\nMaturity Price : 22.58
\nEvaluated at bid price : 22.01
\nBid-YTW : 3.64 %<\/td>\n<\/tr>\n

MFC.PR.E<\/td>\nFixedReset<\/td>\nQuote: 26.22 – 26.42
\nSpot Rate : 0.2000
\nAverage : 0.1535<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.22
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n

CM.PR.K<\/td>\nFixedReset<\/td>\nQuote: 26.22 – 26.45
\nSpot Rate : 0.2300
\nAverage : 0.1854<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.22
\nBid-YTW : 2.44 %<\/td>\n<\/tr>\n

TCA.PR.X<\/td>\nPerpetual-Premium<\/td>\nQuote: 51.31 – 51.70
\nSpot Rate : 0.3900
\nAverage : 0.3459<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-10-15
\nMaturity Price : 50.00
\nEvaluated at bid price : 51.31
\nBid-YTW : 2.67 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Surprisingly, a business-hostile government isn’t getting much help from business: French companies aren\u2019t investing much at home these days. A no-growth economy had already damped spending when President Francois Hollande\u2019s government late last month unveiled …<\/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-19991","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19991","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=19991"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19991\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}