{"id":20198,"date":"2012-11-07T01:30:22","date_gmt":"2012-11-07T05:30:22","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=20198"},"modified":"2012-11-07T01:30:22","modified_gmt":"2012-11-07T05:30:22","slug":"november-6-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=20198","title":{"rendered":"November 6, 2012"},"content":{"rendered":"

It’s not a preferred share issuer – but it’s a sign of the times<\/a>:<\/p>\n

DBRS has today downgraded the Issuer Rating of Torstar Corporation (Torstar or the Company) to BBB (low) from BBB. The trend is Stable and the rating is no longer Under Review with Negative Implications. The downgrade reflects DBRS\u2019s view that Torstar\u2019s earnings profile has been structurally affected by a consumer shift to digital forms of media as the Company has struggled to sustain organic revenues and profitability. The new rating also reflects DBRS\u2019s view that weakening demand will continue to place pressure on the Company\u2019s revenues, margins and cash flow generation going forward. DBRS\u2019s concern is not based primarily on the Company\u2019s debt level, as Torstar has remained prudent in terms of financial management, but rather the Company\u2019s income and cash-generating prospects.<\/p><\/blockquote>\n

There’s an interesting conflict of trends in consumer borrowing<\/a>:<\/p>\n

Overall non-mortgage debt loads continued to increase during the third quarter, up 1.8 per cent from the same quarter of last year, the credit-monitoring firm [Equifax Canada] said in its latest Quarterly Credit Trends Report released Tuesday. However, only 1.22 per cent of debts were unpaid after 90 days or more in the July-September quarter.<\/p>\n

That\u2019s down sharply from 1.37 per cent in the previous quarter and the lowest delinquency rate on record going back to early 2007, before the recession began.<\/p><\/blockquote>\n

It was a mixed day for the Canadian preferred share market, with PerpetualPremiums gaining 13bp, FixedResets off 1bp and DeemedRetractibles winning 15bp. Volatility was average. Volume was 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>\n0.4277 %<\/td>\n2,471.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.13 %<\/td>\n3.46 %<\/td>\n34,929<\/td>\n18.39<\/td>\n1<\/td>\n0.0000 %<\/td>\n3,895.7<\/td>\n<\/tr>\n
Floater<\/td>\n2.79 %<\/td>\n3.00 %<\/td>\n57,603<\/td>\n19.71<\/td>\n4<\/td>\n0.4277 %<\/td>\n2,668.8<\/td>\n<\/tr>\n
OpRet<\/td>\n4.64 %<\/td>\n3.26 %<\/td>\n72,244<\/td>\n1.34<\/td>\n4<\/td>\n-0.5703 %<\/td>\n2,562.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.35 %<\/td>\n4.43 %<\/td>\n62,302<\/td>\n4.46<\/td>\n3<\/td>\n0.3261 %<\/td>\n2,869.4<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.5703 %<\/td>\n2,342.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.27 %<\/td>\n1.29 %<\/td>\n72,743<\/td>\n0.30<\/td>\n29<\/td>\n0.1262 %<\/td>\n2,316.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.90 %<\/td>\n4.91 %<\/td>\n100,969<\/td>\n15.56<\/td>\n3<\/td>\n0.0964 %<\/td>\n2,595.6<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.99 %<\/td>\n3.00 %<\/td>\n208,507<\/td>\n3.93<\/td>\n74<\/td>\n-0.0055 %<\/td>\n2,446.0<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.91 %<\/td>\n3.50 %<\/td>\n132,208<\/td>\n1.11<\/td>\n46<\/td>\n0.1500 %<\/td>\n2,396.4<\/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
BAM.PR.O<\/td>\nOpRet<\/td>\n-2.58 %<\/td>\nYTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2013-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.31
\nBid-YTW : 3.90 %<\/td>\n<\/tr>\n
GWO.PR.F<\/td>\nDeemed-Retractible<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-06
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.79
\nBid-YTW : -23.30 %<\/td>\n<\/tr>\n
TRI.PR.B<\/td>\nFloater<\/td>\n1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-11-06
\nMaturity Price : 22.05
\nEvaluated at bid price : 22.28
\nBid-YTW : 2.34 %<\/td>\n<\/tr>\n
ENB.PR.N<\/td>\nFixedReset<\/td>\n1.47 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-12-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.53
\nBid-YTW : 3.58 %<\/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
CU.PR.C<\/td>\nFixedReset<\/td>\n44,035<\/td>\nScotia crossed 29,900 at 26.10.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.10
\nBid-YTW : 3.15 %<\/td>\n<\/tr>\n
BAM.PR.J<\/td>\nOpRet<\/td>\n42,907<\/td>\nRBC crossed 38,900 at 26.80.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.83
\nBid-YTW : 3.26 %<\/td>\n<\/tr>\n
BNS.PR.Y<\/td>\nFixedReset<\/td>\n42,188<\/td>\nTD bought 15,400 from Nesbitt at 24.94.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.85
\nBid-YTW : 2.83 %<\/td>\n<\/tr>\n
TD.PR.A<\/td>\nFixedReset<\/td>\n41,389<\/td>\nNational crossed 25,000 at 25.72.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.65
\nBid-YTW : 2.92 %<\/td>\n<\/tr>\n
PWF.PR.E<\/td>\nPerpetual-Premium<\/td>\n38,040<\/td>\nNesbitt crossed 31,200 at 25.38.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.36
\nBid-YTW : -0.23 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n34,800<\/td>\nNational crossed 24,300 at 25.15.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.10
\nBid-YTW : 3.39 %<\/td>\n<\/tr>\n
There were 29 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
BAM.PR.O<\/td>\nOpRet<\/td>\nQuote: 25.31 – 26.04
\nSpot Rate : 0.7300
\nAverage : 0.4413<\/p>\n

YTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2013-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.31
\nBid-YTW : 3.90 %<\/td>\n<\/tr>\n

CIU.PR.B<\/td>\nFixedReset<\/td>\nQuote: 27.20 – 27.50
\nSpot Rate : 0.3000
\nAverage : 0.1838<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.20
\nBid-YTW : 1.80 %<\/td>\n<\/tr>\n

IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.65 – 24.95
\nSpot Rate : 0.3000
\nAverage : 0.2026<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.65
\nBid-YTW : 4.88 %<\/td>\n<\/tr>\n

GWO.PR.J<\/td>\nFixedReset<\/td>\nQuote: 26.00 – 26.30
\nSpot Rate : 0.3000
\nAverage : 0.2140<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n

FTS.PR.E<\/td>\nOpRet<\/td>\nQuote: 26.87 – 27.15
\nSpot Rate : 0.2800
\nAverage : 0.1969<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.87
\nBid-YTW : -1.33 %<\/td>\n<\/tr>\n

PWF.PR.R<\/td>\nPerpetual-Premium<\/td>\nQuote: 26.61 – 26.89
\nSpot Rate : 0.2800
\nAverage : 0.2011<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.61
\nBid-YTW : 4.62 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

It’s not a preferred share issuer – but it’s a sign of the times: DBRS has today downgraded the Issuer Rating of Torstar Corporation (Torstar or the Company) to BBB (low) from BBB. The trend …<\/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-20198","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20198","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=20198"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20198\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}