{"id":20522,"date":"2012-12-11T00:01:18","date_gmt":"2012-12-11T04:01:18","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=20522"},"modified":"2012-12-11T00:01:18","modified_gmt":"2012-12-11T04:01:18","slug":"december-10-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=20522","title":{"rendered":"December 10, 2012"},"content":{"rendered":"

The US has shaken down HSBC & Standard Chartered<\/a>:<\/p>\n

HSBC (HSBA) Holdings Plc will pay at least $1.9 billion in a deferred prosecution agreement that settles U.S. probes of money laundering tied to Europe\u2019s largest bank, a person familiar with the matter said, making it the largest such accord ever.
…<\/b>
Yesterday, Standard Chartered Plc (STAN), Britain\u2019s second-largest bank by market value, agreed to pay $327 million in fines after regulators alleged it violated U.S. sanctions with Iran.<\/p><\/blockquote>\n

As far as I can tell from the Senate REPORT: U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History<\/a>, the problem was that they did not create enough paper:<\/p>\n

An outside auditor hired by HBUS has so far identified, from 2001 to 2007, more than 28,000 undisclosed, OFAC sensitive transactions that were sent through HBUS involving $19.7 billion. Of those 28,000 transactions, nearly 25,000 involved Iran, while 3,000 involved other prohibited countries or persons. The review has characterized nearly 2,600 of those transactions, including 79 involving Iran, and with total assets of more than $367 million, as \u201cTransactions of Interest\u201d requiring additional analysis to determine whether violations of U.S. law occurred. While the aim in many of those cases may have been to avoid the delays associated with the OFAC filter and individualized reviews, rather than to facilitate prohibited transactions, actions taken by HSBC affiliates to circumvent OFAC safeguards may have facilitated transactions on behalf of terrorists, drug traffickers, or other wrongdoers. While HBUS insisted, when asked, that HSBC affiliates provide fully transparent transaction information, when it obtained evidence that some affiliates were acting to circumvent the OFAC filter, HBUS failed to take decisive action to confront those affiliates and put an end to the conduct. HBUS\u2019 experience demonstrates the strong measures that the U.S. affiliate of a global bank must take to prevent affiliates from circumventing OFAC prohibitions.<\/p><\/blockquote>\n

It was a directionless day for the Canadian preferred share market, with PerpetualPremiums up 4bp while FixedResets and DeemedRetractibles both gained 1bp. Volatility was low. 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>\n0.0133 %<\/td>\n2,477.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.11 %<\/td>\n3.47 %<\/td>\n27,743<\/td>\n18.34<\/td>\n1<\/td>\n0.0000 %<\/td>\n3,912.6<\/td>\n<\/tr>\n
Floater<\/td>\n2.79 %<\/td>\n3.00 %<\/td>\n56,227<\/td>\n19.64<\/td>\n4<\/td>\n0.0133 %<\/td>\n2,675.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.60 %<\/td>\n1.97 %<\/td>\n48,654<\/td>\n0.52<\/td>\n4<\/td>\n-0.1231 %<\/td>\n2,596.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.67 %<\/td>\n4.75 %<\/td>\n64,641<\/td>\n4.42<\/td>\n2<\/td>\n-0.0608 %<\/td>\n2,853.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1231 %<\/td>\n2,374.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.26 %<\/td>\n1.75 %<\/td>\n71,809<\/td>\n0.82<\/td>\n30<\/td>\n0.0356 %<\/td>\n2,318.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.83 %<\/td>\n4.87 %<\/td>\n127,243<\/td>\n15.62<\/td>\n4<\/td>\n-0.0708 %<\/td>\n2,630.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.94 %<\/td>\n3.03 %<\/td>\n221,169<\/td>\n4.34<\/td>\n77<\/td>\n0.0055 %<\/td>\n2,449.1<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.91 %<\/td>\n3.24 %<\/td>\n117,205<\/td>\n0.86<\/td>\n46<\/td>\n0.0051 %<\/td>\n2,407.0<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nDeemed-Retractible<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.50
\nBid-YTW : 5.02 %<\/td>\n<\/tr>\n
IFC.PR.C<\/td>\nFixedReset<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.50
\nBid-YTW : 2.77 %<\/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.S<\/td>\nFixedReset<\/td>\n116,203<\/td>\nNesbitt bought three blocks from TD, of 14,000 shares, 10,200 and 15,000, all at 24.84, then crossed 31,600 at 24.85.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.84
\nBid-YTW : 3.17 %<\/td>\n<\/tr>\n
NA.PR.K<\/td>\nDeemed-Retractible<\/td>\n101,103<\/td>\nDesjardins crossed 90,300 at 25.20.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-01-09
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.18
\nBid-YTW : 1.95 %<\/td>\n<\/tr>\n
TD.PR.Y<\/td>\nFixedReset<\/td>\n83,165<\/td>\nTD crossed 62,600 at 24.84.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.90
\nBid-YTW : 3.29 %<\/td>\n<\/tr>\n
BMO.PR.M<\/td>\nFixedReset<\/td>\n66,278<\/td>\nNesbitt crossed blocks of 35,000 and 15,000, both at 24.75.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.74
\nBid-YTW : 3.23 %<\/td>\n<\/tr>\n
ENB.PR.T<\/td>\nFixedReset<\/td>\n53,117<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-12-10
\nMaturity Price : 23.10
\nEvaluated at bid price : 25.01
\nBid-YTW : 3.70 %<\/td>\n<\/tr>\n
BMO.PR.Q<\/td>\nFixedReset<\/td>\n48,444<\/td>\nTD crossed 15,300 at 24.77.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.77
\nBid-YTW : 3.19 %<\/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.C<\/td>\nFloater<\/td>\nQuote: 17.58 – 18.58
\nSpot Rate : 1.0000
\nAverage : 0.5591<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-12-10
\nMaturity Price : 17.58
\nEvaluated at bid price : 17.58
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n

TCA.PR.X<\/td>\nPerpetual-Premium<\/td>\nQuote: 51.92 – 52.95
\nSpot Rate : 1.0300
\nAverage : 0.6847<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-10-15
\nMaturity Price : 50.00
\nEvaluated at bid price : 51.92
\nBid-YTW : 1.75 %<\/td>\n<\/tr>\n

CU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 26.16 – 26.48
\nSpot Rate : 0.3200
\nAverage : 0.1790<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.16
\nBid-YTW : 2.93 %<\/td>\n<\/tr>\n

BNA.PR.E<\/td>\nSplitShare<\/td>\nQuote: 25.15 – 25.54
\nSpot Rate : 0.3900
\nAverage : 0.2635<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2017-12-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.15
\nBid-YTW : 4.75 %<\/td>\n<\/tr>\n

CM.PR.D<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.80 – 26.00
\nSpot Rate : 0.2000
\nAverage : 0.1273<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-01-09
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.80
\nBid-YTW : -23.34 %<\/td>\n<\/tr>\n

GWO.PR.H<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.97 – 25.22
\nSpot Rate : 0.2500
\nAverage : 0.1833<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.97
\nBid-YTW : 4.79 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The US has shaken down HSBC & Standard Chartered: HSBC (HSBA) Holdings Plc will pay at least $1.9 billion in a deferred prosecution agreement that settles U.S. probes of money laundering tied to Europe\u2019s largest …<\/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-20522","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20522","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=20522"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20522\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}