{"id":20006,"date":"2012-10-16T02:35:25","date_gmt":"2012-10-16T06:35:25","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=20006"},"modified":"2012-10-16T02:35:25","modified_gmt":"2012-10-16T06:35:25","slug":"october-15-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=20006","title":{"rendered":"October 15, 2012"},"content":{"rendered":"

Statistics Canada has revised estimated productivity growth substantially downwards<\/a>:<\/p>\n

The latest revisions mean the Canada-U.S. gap is now wider \u2013 0.8 percentage points per year from 1981 to 2012, up from 0.7 per cent.<\/p><\/blockquote>\n

Fortunately, this is not expected to affect milkfare, subsidies of pulp mills, Ontario’s solar energy programme or regulation.<\/p>\n

In a startling development, common shareholders are still allowed to vote on corporate business<\/a>:<\/p>\n

In Telus\u2019s case, the company is up against Mason Capital, which owns almost one-fifth of the company\u2019s voting stock. Mason has also sold short millions of [non-voting] shares, leaving it a very slim net long interest. Mason is using the votes on the shares it owns to fight Telus\u2019s plan to consolidate the two classes of stock into a single class on a one-for-one basis. Mason wants a ratio that favours the voting stock.<\/p>\n

Telus argues that Mason has no real interest in the overall health of the company, making Mason an empty voter. Mason, of course, disagrees. It has on its side one of the people who coined the term, who points to the fact that Mason has an economic interest in the share collapse\u2019s success or failure.<\/p>\n

The Court of Appeal for British Columbia ruled Friday that \u201cthere is no indication that it [Mason] is violating any laws, nor is there any statutory provision that would allow the court to intervene on broad equitable grounds. To the extent that cases of \u2018empty voting\u2019 are subverting the goals of shareholder democracy, the remedy must lie in legislative and regulatory change.\u201d<\/p><\/blockquote>\n

I can’t understand why any common shareholder would vote in favour of this, diluting their vote with no compensation and I quite agree that Mason cannot logically be described as an empty voter in this instance.<\/p>\n

To my mind, a much more serious problem is owners of common who also have a long position in the non-voting shares. In the bond world, this is known as debt decoupling<\/a>, where as bondholder you vote for a bad deal so that your Credit Default Swaps will pay more.<\/p>\n

It was a negative day for the Canadian preferred share market, with PerpetualPremiums losing 8bp, FixedResets off 2bp and DeemedRetractibles down 7bp. Volatility picked up, with Floaters jumping up and insurance-related issues getting hit …. but it was not the world’s biggest deal. Volume was 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>\n0.8795 %<\/td>\n2,456.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.31 %<\/td>\n3.64 %<\/td>\n35,092<\/td>\n18.10<\/td>\n1<\/td>\n0.0454 %<\/td>\n3,729.7<\/td>\n<\/tr>\n
Floater<\/td>\n2.99 %<\/td>\n3.00 %<\/td>\n65,581<\/td>\n19.74<\/td>\n3<\/td>\n0.8795 %<\/td>\n2,651.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.65 %<\/td>\n2.96 %<\/td>\n63,732<\/td>\n0.66<\/td>\n4<\/td>\n-0.3916 %<\/td>\n2,554.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.44 %<\/td>\n4.99 %<\/td>\n72,800<\/td>\n4.51<\/td>\n3<\/td>\n-0.1190 %<\/td>\n2,819.4<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.3916 %<\/td>\n2,335.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.30 %<\/td>\n1.90 %<\/td>\n88,194<\/td>\n0.36<\/td>\n27<\/td>\n-0.0849 %<\/td>\n2,301.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.03 %<\/td>\n4.93 %<\/td>\n46,740<\/td>\n15.48<\/td>\n4<\/td>\n-0.1335 %<\/td>\n2,574.0<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.98 %<\/td>\n3.02 %<\/td>\n182,365<\/td>\n3.79<\/td>\n73<\/td>\n-0.0191 %<\/td>\n2,437.3<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.94 %<\/td>\n3.54 %<\/td>\n119,415<\/td>\n0.83<\/td>\n47<\/td>\n-0.0740 %<\/td>\n2,379.5<\/td>\n<\/tr>\n<\/table>\n\n\n\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
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n-1.88 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.04
\nBid-YTW : 5.18 %<\/td>\n<\/tr>\n
PWF.PR.M<\/td>\nFixedReset<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.82
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n
MFC.PR.G<\/td>\nFixedReset<\/td>\n-1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.30
\nBid-YTW : 4.19 %<\/td>\n<\/tr>\n
POW.PR.D<\/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 : 25.13
\nBid-YTW : 4.76 %<\/td>\n<\/tr>\n
FTS.PR.E<\/td>\nOpRet<\/td>\n-1.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.60
\nBid-YTW : 0.43 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-10-15
\nMaturity Price : 17.59
\nEvaluated at bid price : 17.59
\nBid-YTW : 3.00 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-10-15
\nMaturity Price : 17.59
\nEvaluated at bid price : 17.59
\nBid-YTW : 3.00 %<\/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
CM.PR.M<\/td>\nFixedReset<\/td>\n148,840<\/td>\nScotia crossed 51,000 at 26.70; RBC crossed blocks of 63,700 and 20,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.70
\nBid-YTW : 2.47 %<\/td>\n<\/tr>\n
ENB.PR.P<\/td>\nFixedReset<\/td>\n77,340<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-10-15
\nMaturity Price : 23.19
\nEvaluated at bid price : 25.31
\nBid-YTW : 3.72 %<\/td>\n<\/tr>\n
GWO.PR.R<\/td>\nDeemed-Retractible<\/td>\n64,860<\/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 : 24.99
\nBid-YTW : 4.84 %<\/td>\n<\/tr>\n
CM.PR.K<\/td>\nFixedReset<\/td>\n53,100<\/td>\nRBC crossed 51,200 at 26.22.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.22
\nBid-YTW : 2.45 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n43,977<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-10-15
\nMaturity Price : 17.58
\nEvaluated at bid price : 17.58
\nBid-YTW : 3.00 %<\/td>\n<\/tr>\n
CM.PR.G<\/td>\nPerpetual-Premium<\/td>\n43,378<\/td>\nTD crossed two blocks of 20,000 each, both at 25.70.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-11-14
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.70
\nBid-YTW : -6.75 %<\/td>\n<\/tr>\n
There were 20 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: 26.47 – 26.99
\nSpot Rate : 0.5200
\nAverage : 0.3319<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-11-14
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.47
\nBid-YTW : -6.02 %<\/td>\n<\/tr>\n

IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.04 – 24.44
\nSpot Rate : 0.4000
\nAverage : 0.2251<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.04
\nBid-YTW : 5.18 %<\/td>\n<\/tr>\n

FTS.PR.E<\/td>\nOpRet<\/td>\nQuote: 26.60 – 26.95
\nSpot Rate : 0.3500
\nAverage : 0.2238<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.60
\nBid-YTW : 0.43 %<\/td>\n<\/tr>\n

BAM.PR.J<\/td>\nOpRet<\/td>\nQuote: 26.67 – 26.99
\nSpot Rate : 0.3200
\nAverage : 0.2289<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.67
\nBid-YTW : 3.55 %<\/td>\n<\/tr>\n

GWO.PR.Q<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.76 – 25.94
\nSpot Rate : 0.1800
\nAverage : 0.1117<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.76
\nBid-YTW : 4.80 %<\/td>\n<\/tr>\n

IGM.PR.B<\/td>\nPerpetual-Premium<\/td>\nQuote: 27.00 – 27.49
\nSpot Rate : 0.4900
\nAverage : 0.4269<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 27.00
\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Statistics Canada has revised estimated productivity growth substantially downwards: The latest revisions mean the Canada-U.S. gap is now wider \u2013 0.8 percentage points per year from 1981 to 2012, up from 0.7 per cent. Fortunately, …<\/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-20006","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20006","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=20006"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20006\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}