{"id":20130,"date":"2012-10-30T00:21:32","date_gmt":"2012-10-30T04:21:32","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=20130"},"modified":"2012-10-30T00:21:32","modified_gmt":"2012-10-30T04:21:32","slug":"october-29-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=20130","title":{"rendered":"October 29, 2012"},"content":{"rendered":"

UBS is cutting way back on investment banking<\/a>:<\/p>\n

UBS AG (UBSN), Switzerland\u2019s largest bank, will cut as many as 10,000 jobs companywide as the trading business shrinks, a person with knowledge of the plan said.<\/p>\n

The bank had about 63,250 employees as of June 30, according to its most recent financial report, which means the staff cut could equal 16 percent. UBS already announced it is reducing risk-weighted assets at the investment bank by more than half from September 2011 levels, mostly in fixed income.<\/p>\n

The plan will lead to a further reduction of as much as 100 billion Swiss francs ($107 billion) of risk-weighted assets, the person said. Much of the fixed-income operations will be put in a new unit that will hold non-core assets, and [investment-bank co-head Carsten] Kengeter will probably give up his current role to head the new unit, the person said.<\/p><\/blockquote>\n

There are threats of turmoil in Italy<\/a>:<\/p>\n

Former Italian prime minister Silvio Berlusconi said his party, the biggest in parliament, may end support for Premier Mario Monti\u2019s government because its policies are deepening the country\u2019s recession.<\/p>\n

The People of Liberty party needs to consider that \u201cwith a no-confidence vote by us, we would determine a situation that would be interpreted in a certain way by the financial markets and would cause early elections,\u201d Berlusconi, 76, told reporters yesterday near Milan. \u201cWe will consider these facts and decide whether to immediately withdraw our support of the government.\u201d
…<\/b>
\u201cIt\u2019s impossible to say what is in Berlusconi\u2019s head now, but if he decides to end his support to Monti, early elections become almost inevitable,\u201d said Roberto D\u2019Alimonte, a professor of politics at Rome\u2019s LUISS University. \u201cBerlusconi would lose the elections anyway, but would likely get more votes thanks to an anti-austerity platform and that would increase his party\u2019s bargaining power in the next parliament.\u201d
…<\/b>
Monti is still implementing some of the steps aimed at containing debt and keeping the deficit under 3 percent of gross domestic product this year. Industrial output unexpectedly rose in August, signalling the recession may be easing and consumer confidence gained this month as the government announced tax cuts for the lowest earners to offset the effect of an increase on the value-added levy in 2012.<\/p><\/blockquote>\n

Government micro-management of the mortgage market is getting popular<\/a>:<\/p>\n

The monetary policy committee, led by Governor Stanley Fischer, cut the rate by a quarter-point to 2 percent, the Jerusalem-based bank said on its website today. None of the 24 economists surveyed by Bloomberg predicted the decision.
…<\/b>
The Bank of Israel also released, together with the rate decision, new draft directives aimed at cooling the mortgage market, which are expected to go into effect on Nov. 1. The directives limit mortgages to 70 percent of the value of the home, with the exception of new home buyers, who will be permitted to borrow up to 75 percent.<\/p><\/blockquote>\n

I will admit that I was inclined to be rather contemptuous of today’s shut-down of the NYSE<\/a> – until I saw this picture from Manhattan<\/a>:<\/p>\n

\"\"<\/a>
Click for Big<\/i><\/div>\n

This has had an effect on power supply<\/a>:<\/p>\n

Con Edison shut down power to parts of downtown Manhattan, including Wall Street and the nation\u2019s financial nerve center, as the storm surge, boosted by high tide, sent saltwater pouring into its underground power network.
…<\/b>
About 250,000 customers in Manhattan were without power as of 9 p.m. on Oct. 29 local time after flooding in substations caused outages from the lower tip of the island to East 39th Street, the utility said in a statement. It may need to cut power in additional areas of downtown, as well as in parts of Brooklyn, Queens and the Bronx due to record tides and surge from Sandy,the utility said in a separate statement last night.<\/p><\/blockquote>\n

It was a day of very little price movement for the Canadian preferred share market, with PerpetualPremiums gaining 1bp, FixedResets down 3bp and DeemedRetractibles off 1bp. There was no volatility of note. 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>\n-0.0400 %<\/td>\n2,467.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.19 %<\/td>\n3.52 %<\/td>\n36,308<\/td>\n18.31<\/td>\n1<\/td>\n-0.2198 %<\/td>\n3,844.9<\/td>\n<\/tr>\n
Floater<\/td>\n2.80 %<\/td>\n3.00 %<\/td>\n57,035<\/td>\n19.72<\/td>\n4<\/td>\n-0.0400 %<\/td>\n2,664.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.61 %<\/td>\n0.53 %<\/td>\n42,088<\/td>\n0.63<\/td>\n4<\/td>\n0.5252 %<\/td>\n2,578.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.39 %<\/td>\n4.81 %<\/td>\n67,019<\/td>\n4.48<\/td>\n3<\/td>\n0.1050 %<\/td>\n2,844.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.5252 %<\/td>\n2,357.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.28 %<\/td>\n1.32 %<\/td>\n80,536<\/td>\n0.22<\/td>\n27<\/td>\n0.0086 %<\/td>\n2,310.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.02 %<\/td>\n4.93 %<\/td>\n42,252<\/td>\n15.45<\/td>\n4<\/td>\n-0.1128 %<\/td>\n2,579.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.97 %<\/td>\n3.04 %<\/td>\n210,548<\/td>\n3.95<\/td>\n73<\/td>\n-0.0265 %<\/td>\n2,445.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.95 %<\/td>\n3.58 %<\/td>\n131,392<\/td>\n2.02<\/td>\n47<\/td>\n-0.0067 %<\/td>\n2,381.8<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
No individual gains or losses exceeding 1%!<\/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
TD.PR.O<\/td>\nDeemed-Retractible<\/td>\n63,190<\/td>\nTD bought 19,400 from CIBC at 25.41. Nesbitt crossed 25,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.46
\nBid-YTW : 3.90 %<\/td>\n<\/tr>\n
TD.PR.G<\/td>\nFixedReset<\/td>\n61,641<\/td>\nNational crossed 50,000 at 26.59.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.60
\nBid-YTW : 1.88 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n60,163<\/td>\nRBC crossed 46,300 at 24.00.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.91
\nBid-YTW : 4.00 %<\/td>\n<\/tr>\n
BNS.PR.R<\/td>\nFixedReset<\/td>\n54,042<\/td>\nRBC crossed 50,000 at 25.54.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.53
\nBid-YTW : 3.22 %<\/td>\n<\/tr>\n
MFC.PR.H<\/td>\nFixedReset<\/td>\n52,508<\/td>\nRBC crossed 49,900 at 26.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n50,350<\/td>\nRBC crossed 50,000 at 25.60.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-10-29
\nMaturity Price : 23.64
\nEvaluated at bid price : 25.55
\nBid-YTW : 2.77 %<\/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
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.25 – 25.00
\nSpot Rate : 0.7500
\nAverage : 0.4319<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.25
\nBid-YTW : 5.09 %<\/td>\n<\/tr>\n

IAG.PR.E<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.37 – 26.86
\nSpot Rate : 0.4900
\nAverage : 0.2716<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.37
\nBid-YTW : 5.34 %<\/td>\n<\/tr>\n

CM.PR.E<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.44 – 25.72
\nSpot Rate : 0.2800
\nAverage : 0.1706<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-11-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.44
\nBid-YTW : -13.99 %<\/td>\n<\/tr>\n

MFC.PR.A<\/td>\nOpRet<\/td>\nQuote: 25.76 – 26.13
\nSpot Rate : 0.3700
\nAverage : 0.2616<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-19
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.76
\nBid-YTW : 3.14 %<\/td>\n<\/tr>\n

POW.PR.C<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.41 – 25.68
\nSpot Rate : 0.2700
\nAverage : 0.1784<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-11-28
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.41
\nBid-YTW : -11.01 %<\/td>\n<\/tr>\n

HSB.PR.E<\/td>\nFixedReset<\/td>\nQuote: 26.74 – 26.95
\nSpot Rate : 0.2100
\nAverage : 0.1405<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.74
\nBid-YTW : 2.67 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

UBS is cutting way back on investment banking: UBS AG (UBSN), Switzerland\u2019s largest bank, will cut as many as 10,000 jobs companywide as the trading business shrinks, a person with knowledge of the plan said. …<\/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-20130","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20130","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=20130"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20130\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}