{"id":20219,"date":"2012-11-09T02:15:13","date_gmt":"2012-11-09T06:15:13","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=20219"},"modified":"2012-11-09T02:15:13","modified_gmt":"2012-11-09T06:15:13","slug":"november-8-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=20219","title":{"rendered":"November 8, 2012"},"content":{"rendered":"

There’s a bit more gossip on the Rochdale Securities fiasco<\/a>:<\/p>\n

The president of Rochdale Securities said the firm was nearing a rescue deal Wednesday, and its star analyst told potential investors he planned to stay on board if the life line panned out, according to a person familiar with the talks.<\/p>\n

When reached by phone Wednesday, firm President Daniel Crowley said he was close to finalizing a deal to bolster Rochdale’s balance sheet. He declined to comment further. The Stamford, Conn. brokerage, a relatively small stock-trading and research firm that serves only institutional clients and doesn’t trade its own money, is best known for employing prominent bank analyst Dick Bove.
…<\/b>
The stock purchase allegedly took place Oct. 25, just ahead of Apple’s quarterly earnings release. Mr. Miller bought 1,000 times the number of Apple shares a client requested, the person familiar with the rescue talks said, making the trade worth roughly $1 billion. Rochdale had about $3.4 million in capital at the end of 2011, according to a filing with the Securities and Exchange Commission. After the purchase, the person familiar with the talks said, Mr. Miller shut down his computer and left the office. He hasn’t returned calls from firm executives since, according to this person.<\/p>\n

Mr. Miller has said the trade was an accident, according to two people familiar with the transaction.<\/p><\/blockquote>\n

Recent softness in the equity market may well be related to capital gain realization<\/a>:<\/p>\n

President Barack Obama\u2019s re-election means his administration will push to let tax cuts enacted during the George W. Bush era expire for high earners, as scheduled, at year-end. Obama wants to increase the top federal income tax rate to 39.6 percent from 35 percent, boost rates on long-term capital gains to as much as 23.8 percent, and shrink exemptions from estate-and-gift taxes.
…<\/b>
An investor who sells $100 of stock with a cost basis of $20 in 2012 would see proceeds — after capital gains taxes — of $88, according to an analysis by J.P. Morgan Private Bank. Next year, if Congress doesn\u2019t act, earnings from the sale would drop to $80.96 if rates rise to 23.8 percent. That means the stock price would need to rise by at least 9 percent for an investor to be better off selling in 2013.<\/p><\/blockquote>\n

It was another mixed day for the Canadian preferred share market, with PerpetualPremiums up 11bp, FixedResets off 5bp and DeemedRetractibles gaining 1bp. Volatility was muted. 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>\n-0.7454 %<\/td>\n2,452.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.16 %<\/td>\n3.50 %<\/td>\n33,472<\/td>\n18.32<\/td>\n1<\/td>\n-0.8261 %<\/td>\n3,863.5<\/td>\n<\/tr>\n
Floater<\/td>\n2.82 %<\/td>\n3.00 %<\/td>\n59,882<\/td>\n19.70<\/td>\n4<\/td>\n-0.7454 %<\/td>\n2,648.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.61 %<\/td>\n0.12 %<\/td>\n41,880<\/td>\n0.63<\/td>\n4<\/td>\n0.0000 %<\/td>\n2,578.1<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.36 %<\/td>\n4.59 %<\/td>\n59,352<\/td>\n4.45<\/td>\n3<\/td>\n-0.1952 %<\/td>\n2,861.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0000 %<\/td>\n2,357.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.27 %<\/td>\n1.45 %<\/td>\n75,883<\/td>\n0.29<\/td>\n29<\/td>\n0.1103 %<\/td>\n2,316.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.89 %<\/td>\n4.92 %<\/td>\n100,713<\/td>\n15.57<\/td>\n3<\/td>\n0.0962 %<\/td>\n2,600.3<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.98 %<\/td>\n3.01 %<\/td>\n205,677<\/td>\n3.92<\/td>\n75<\/td>\n-0.0459 %<\/td>\n2,445.8<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.91 %<\/td>\n3.49 %<\/td>\n127,442<\/td>\n0.95<\/td>\n46<\/td>\n0.0093 %<\/td>\n2,395.3<\/td>\n<\/tr>\n<\/table>\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
TD.PR.E<\/td>\nFixedReset<\/td>\n-3.76 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.61
\nBid-YTW : 4.63 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n-2.84 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-11-08
\nMaturity Price : 17.10
\nEvaluated at bid price : 17.10
\nBid-YTW : 3.09 %<\/td>\n<\/tr>\n
ELF.PR.H<\/td>\nPerpetual-Premium<\/td>\n1.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-17
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.86
\nBid-YTW : 5.08 %<\/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.E<\/td>\nPerpetual-Premium<\/td>\n103,250<\/td>\nDesjardins crossed two blocks of 50,000 each, both at 25.75.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-08
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.84
\nBid-YTW : -30.40 %<\/td>\n<\/tr>\n
NA.PR.O<\/td>\nFixedReset<\/td>\n91,262<\/td>\nNational crossed 87,100 at 26.30.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.25
\nBid-YTW : 2.50 %<\/td>\n<\/tr>\n
TRI.PR.B<\/td>\nFloater<\/td>\n84,850<\/td>\nDesjardins crossed 83,700 at 22.35.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-11-08
\nMaturity Price : 22.07
\nEvaluated at bid price : 22.30
\nBid-YTW : 2.34 %<\/td>\n<\/tr>\n
NA.PR.Q<\/td>\nFixedReset<\/td>\n79,605<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-11-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.42
\nBid-YTW : 3.45 %<\/td>\n<\/tr>\n
ENB.PR.B<\/td>\nFixedReset<\/td>\n66,193<\/td>\nScotia crossed blocks of 13,600 and 50,000, both at 25.56.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-11-08
\nMaturity Price : 23.37
\nEvaluated at bid price : 25.56
\nBid-YTW : 3.56 %<\/td>\n<\/tr>\n
TD.PR.S<\/td>\nFixedReset<\/td>\n55,524<\/td>\nRBC crossed 23,500 at 25.05.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 3.08 %<\/td>\n<\/tr>\n
There were 30 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
TD.PR.E<\/td>\nFixedReset<\/td>\nQuote: 25.61 – 26.65
\nSpot Rate : 1.0400
\nAverage : 0.5570<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.61
\nBid-YTW : 4.63 %<\/td>\n<\/tr>\n

BAM.PR.C<\/td>\nFloater<\/td>\nQuote: 17.10 – 17.60
\nSpot Rate : 0.5000
\nAverage : 0.2806<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-11-08
\nMaturity Price : 17.10
\nEvaluated at bid price : 17.10
\nBid-YTW : 3.09 %<\/td>\n<\/tr>\n

GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.57 – 27.04
\nSpot Rate : 0.4700
\nAverage : 0.2856<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-03-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.57
\nBid-YTW : 4.91 %<\/td>\n<\/tr>\n

GWO.PR.P<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.45 – 26.89
\nSpot Rate : 0.4400
\nAverage : 0.3401<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.45
\nBid-YTW : 4.73 %<\/td>\n<\/tr>\n

MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.16 – 24.44
\nSpot Rate : 0.2800
\nAverage : 0.1854<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.16
\nBid-YTW : 5.23 %<\/td>\n<\/tr>\n

VNR.PR.A<\/td>\nFixedReset<\/td>\nQuote: 25.80 – 26.09
\nSpot Rate : 0.2900
\nAverage : 0.2050<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-10-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.80
\nBid-YTW : 3.72 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

There’s a bit more gossip on the Rochdale Securities fiasco: The president of Rochdale Securities said the firm was nearing a rescue deal Wednesday, and its star analyst told potential investors he planned to stay …<\/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-20219","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20219","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=20219"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20219\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}