{"id":20337,"date":"2012-11-21T02:58:33","date_gmt":"2012-11-21T06:58:33","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=20337"},"modified":"2012-11-21T02:58:33","modified_gmt":"2012-11-21T06:58:33","slug":"november-20-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=20337","title":{"rendered":"November 20, 2012"},"content":{"rendered":"

Bernanke upped the stakes<\/a> in the fiscal cliff negotiations:<\/p>\n

Federal Reserve Chairman Ben S. Bernanke said that an agreement on ways to reduce long-term federal budget deficits could remove an impediment to growth, while failure to avoid the so-called fiscal cliff would pose a \u201csubstantial threat\u201d to the recovery.<\/p>\n

\u201cCooperation and creativity to deliver fiscal clarity — in particular, a plan for resolving the nation\u2019s longer-term budgetary issues without harming the recovery — could help make the new year a very good one for the American economy,\u201d Bernanke said today in a speech in New York. \u201cThe realization of all of the automatic tax increases and spending cuts that make up the fiscal cliff, absent offsetting changes, would pose a substantial threat to the recovery.\u201d<\/p><\/blockquote>\n

One of the guys caught up in the SEC’s war against capital markets has come out OK<\/a>:<\/p>\n

Brian Stoker, who fended off regulators\u2019 claims that he helped Citigroup Inc. (C) mislead investors in a $1 billion deal, has joined StormHarbour Securities LP in a sales position.<\/p>\n

Stoker, 41, will focus on the sale of structured products such as collateralized debt obligations, or CDOs, and mortgage- backed securities, according to Sohail Khan, a StormHarbour managing principal and former Citigroup executive. Stoker started yesterday as a managing director and will have more responsibilities \u201cover time,\u201d Khan said.<\/p>\n

The hire comes three months after a jury cleared Stoker of any wrongdoing in a $1 billion CDO offering Citigroup sold in 2007. The U.S. Securities and Exchanges Commission alleged that the New York-based bank failed to tell investors that it had picked about half of the CDO\u2019s underlying assets and was betting they\u2019d decline. Stoker, who helped to structure the deal, argued that he wasn\u2019t responsible for the way the deal was pitched to investors.<\/p><\/blockquote>\n

As I have noted several times before, perhaps it would help if all future prospectuses contained twenty pages of legalese to the effect that all of a fund’s assets have been sold to it by somebody else.<\/p>\n

Fabulous Fab is still awaiting vindication<\/a>:<\/p>\n

U.S. District Judge Katherine Forrest in Manhattan, who took over the case from her colleague Barbara Jones last month, rejected the SEC’s argument that a recent court decision made a $150 million note sale to Germany’s IKB Deutsche Industriebank AG sufficiently “domestic” to give her jurisdiction.<\/p>\n

Monday’s decision does not affect the rest of the SEC’s lawsuit against Tourre, which arose from charges filed against him and Goldman in April 2010.<\/p><\/blockquote>\n

In an astonishing developement, it appears Greece will need more debt write-offs before it stabilizes<\/a>:<\/p>\n

Greece\u2019s debt cannot be cut to 120 per cent of GDP by 2020, the level deemed sustainable by the IMF, unless euro-zone member states write off a portion of their loans to Greece, a document prepared for finance ministers shows.<\/p>\n

The 15-page document, circulated among ministers, the European Central Bank and the International Monetary Fund for a meeting that began on Tuesday and took more than 10 hours, sets out in black-and-white how far off-track Greece is in reducing its debt to the IMF-imposed target, from the current level of around 170 per cent of GDP.<\/p><\/blockquote>\n

Even more surprisingly, this resulted in the scheduling of an emergency meeting<\/a>:<\/p>\n

European finance ministers failed to agree on a debt-reduction package for Greece after battling with the International Monetary Fund over how to nurse the recession- wracked country back to fiscal health.<\/p>\n

With creditors led by Germany refusing to put up fresh money or offer debt relief, the finance chiefs were unable to scrounge together enough funds from other sources to help alleviate Greece\u2019s debt burden, set to hit 190 percent of gross domestic product in 2014.<\/p>\n

More than 11 hours of talks broke up early today in Brussels with praise for the Athens government\u2019s economic overhaul and a declaration that an accord on the financing package will wait at least until a hastily arranged meeting of the ministers on Nov. 26.<\/p><\/blockquote>\n

In today’s laugh from Ottawa, the Junior Republicans are accusing the Dippers of having sound economic policy<\/a>, which they deny:<\/p>\n

The Conservatives have a new line of attack when it comes to the NDP, using television panels and Question Period exchanges to claim the Official Opposition is advocating a GST hike.<\/p>\n

The NDP say the Conservatives are lying.<\/p><\/blockquote>\n

It was a suddenly negative day for the Canadian preferred share market as it welcomed the new ETF (ZPR)<\/a>, with PerpetualPremiums losing 26bp, FixedResets down 21bp and DeemedRetractibles off 16bp. Volatility was average. Volume was a little above 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>\n0.1073 %<\/td>\n2,455.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.19 %<\/td>\n3.53 %<\/td>\n29,610<\/td>\n18.25<\/td>\n1<\/td>\n-0.2198 %<\/td>\n3,844.9<\/td>\n<\/tr>\n
Floater<\/td>\n2.81 %<\/td>\n3.02 %<\/td>\n54,324<\/td>\n19.64<\/td>\n4<\/td>\n0.1073 %<\/td>\n2,651.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.61 %<\/td>\n0.71 %<\/td>\n36,719<\/td>\n0.60<\/td>\n4<\/td>\n-0.0475 %<\/td>\n2,590.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.44 %<\/td>\n4.82 %<\/td>\n59,086<\/td>\n4.47<\/td>\n3<\/td>\n0.4429 %<\/td>\n2,861.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0475 %<\/td>\n2,369.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.26 %<\/td>\n2.74 %<\/td>\n73,204<\/td>\n0.44<\/td>\n30<\/td>\n-0.2659 %<\/td>\n2,314.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.86 %<\/td>\n4.90 %<\/td>\n100,939<\/td>\n15.58<\/td>\n3<\/td>\n0.1912 %<\/td>\n2,619.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.99 %<\/td>\n3.06 %<\/td>\n199,707<\/td>\n4.15<\/td>\n75<\/td>\n-0.2131 %<\/td>\n2,445.1<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.91 %<\/td>\n3.57 %<\/td>\n123,211<\/td>\n1.07<\/td>\n46<\/td>\n-0.1571 %<\/td>\n2,397.8<\/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.PF.B<\/td>\nFixedReset<\/td>\n-1.73 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-11-20
\nMaturity Price : 23.12
\nEvaluated at bid price : 25.06
\nBid-YTW : 3.92 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.25
\nBid-YTW : 3.67 %<\/td>\n<\/tr>\n
BMO.PR.J<\/td>\nDeemed-Retractible<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-02-25
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.06
\nBid-YTW : -0.38 %<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n1.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.35
\nBid-YTW : 4.83 %<\/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
BMO.PR.Q<\/td>\nFixedReset<\/td>\n156,985<\/td>\nRBC crossed 20,000 at 25.15; National crossed 75,000 at the same price; Desjardins crossed 20,000 at the same price again.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.12
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n
RY.PR.B<\/td>\nDeemed-Retractible<\/td>\n79,324<\/td>\nRBC crossed 75,000 at 25.70.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-08-24
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.70
\nBid-YTW : 3.53 %<\/td>\n<\/tr>\n
TD.PR.S<\/td>\nFixedReset<\/td>\n63,562<\/td>\nDesjardins crossed 47,400 at 24.90.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.81
\nBid-YTW : 3.19 %<\/td>\n<\/tr>\n
FTS.PR.J<\/td>\nPerpetual-Premium<\/td>\n51,533<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-12-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.19
\nBid-YTW : 4.68 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset<\/td>\n43,189<\/td>\nTD crossed 25,000 at 26.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.93
\nBid-YTW : 3.45 %<\/td>\n<\/tr>\n
SLF.PR.H<\/td>\nFixedReset<\/td>\n30,775<\/td>\nScotia crossed 25,000 at 25.05.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.05
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n
There were 34 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
TRP.PR.A<\/td>\nFixedReset<\/td>\nQuote: 25.33 – 25.65
\nSpot Rate : 0.3200
\nAverage : 0.1968<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-11-20
\nMaturity Price : 23.67
\nEvaluated at bid price : 25.33
\nBid-YTW : 3.22 %<\/td>\n<\/tr>\n

GWO.PR.N<\/td>\nFixedReset<\/td>\nQuote: 24.06 – 24.39
\nSpot Rate : 0.3300
\nAverage : 0.2240<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.06
\nBid-YTW : 3.55 %<\/td>\n<\/tr>\n

MFC.PR.F<\/td>\nFixedReset<\/td>\nQuote: 24.25 – 24.60
\nSpot Rate : 0.3500
\nAverage : 0.2584<\/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 : 3.67 %<\/td>\n<\/tr>\n

CM.PR.D<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.88 – 26.06
\nSpot Rate : 0.1800
\nAverage : 0.1042<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-20
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.88
\nBid-YTW : -29.90 %<\/td>\n<\/tr>\n

NA.PR.P<\/td>\nFixedReset<\/td>\nQuote: 26.25 – 26.60
\nSpot Rate : 0.3500
\nAverage : 0.2742<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.25
\nBid-YTW : 2.57 %<\/td>\n<\/tr>\n

RY.PR.T<\/td>\nFixedReset<\/td>\nQuote: 26.66 – 26.94
\nSpot Rate : 0.2800
\nAverage : 0.2060<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.66
\nBid-YTW : 2.37 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Bernanke upped the stakes in the fiscal cliff negotiations: Federal Reserve Chairman Ben S. Bernanke said that an agreement on ways to reduce long-term federal budget deficits could remove an impediment to growth, while failure …<\/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-20337","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20337","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=20337"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20337\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}