{"id":20730,"date":"2013-01-03T01:52:24","date_gmt":"2013-01-03T05:52:24","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=20730"},"modified":"2013-01-03T01:52:24","modified_gmt":"2013-01-03T05:52:24","slug":"january-2-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=20730","title":{"rendered":"January 2, 2013"},"content":{"rendered":"

Good news on pensions – but not for the sponsors<\/a>:<\/p>\n

The solvency of Canadian defined benefit pension plans improved in 2012, a new Mercer study says.<\/p>\n

The consultant said Wednesday that its Pension Health Index stood at 82 per cent on Dec. 31, up two percentage points for the fourth quarter and up six percentage points for the year.<\/p>\n

However, the global pension, health and investment consultancy said economic factors were largely a non-factor.<\/p>\n

Most of the improvement was due to increased employer contributions to fund deficits.<\/p><\/blockquote>\n

It was a mixed day for the Canadian preferred share market, with PerpetualPremiums gaining 10bp, FixedResets up 23bp and DeemedRetractibles off 7bp – seemingly unaffected by excitement in the equity market<\/a>. Volatility was higher than average, comprised of losing DeemedRetractibles and winning FixedResets. However, volume continued its recent stretch of extremely low number, so all this could just be a puff of smoke.<\/p>\n

PerpetualDiscounts now yield 4.88%, equivalent to 6.34% interest at the standard equivalency factor of 1.3x. Long corporates<\/a> now yield about 4.25%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 210bp, unchanged from the figure reported December 27<\/a>.<\/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>\n0.0134 %<\/td>\n2,478.8<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.34 %<\/td>\n3.71 %<\/td>\n30,015<\/td>\n17.85<\/td>\n1<\/td>\n0.0915 %<\/td>\n3,704.3<\/td>\n<\/tr>\n
Floater<\/td>\n2.81 %<\/td>\n3.01 %<\/td>\n53,128<\/td>\n19.74<\/td>\n4<\/td>\n0.0134 %<\/td>\n2,676.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.63 %<\/td>\n1.99 %<\/td>\n53,231<\/td>\n0.46<\/td>\n4<\/td>\n-0.0763 %<\/td>\n2,597.0<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.62 %<\/td>\n4.64 %<\/td>\n50,717<\/td>\n4.36<\/td>\n2<\/td>\n0.2014 %<\/td>\n2,881.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0763 %<\/td>\n2,374.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.26 %<\/td>\n0.31 %<\/td>\n70,018<\/td>\n0.16<\/td>\n30<\/td>\n0.1002 %<\/td>\n2,334.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.86 %<\/td>\n4.88 %<\/td>\n130,914<\/td>\n15.70<\/td>\n4<\/td>\n0.0611 %<\/td>\n2,641.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.91 %<\/td>\n2.94 %<\/td>\n205,918<\/td>\n4.09<\/td>\n78<\/td>\n0.2344 %<\/td>\n2,470.8<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.88 %<\/td>\n0.81 %<\/td>\n109,506<\/td>\n0.36<\/td>\n46<\/td>\n-0.0731 %<\/td>\n2,427.8<\/td>\n<\/tr>\n<\/table>\n\n\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
GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\n-1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-03-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.32
\nBid-YTW : 5.04 %<\/td>\n<\/tr>\n
GWO.PR.Q<\/td>\nDeemed-Retractible<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.91
\nBid-YTW : 4.69 %<\/td>\n<\/tr>\n
IAG.PR.G<\/td>\nFixedReset<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.30
\nBid-YTW : 3.07 %<\/td>\n<\/tr>\n
MFC.PR.G<\/td>\nFixedReset<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.27
\nBid-YTW : 3.09 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n1.64 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.53
\nBid-YTW : 3.78 %<\/td>\n<\/tr>\n
MFC.PR.I<\/td>\nFixedReset<\/td>\n1.70 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-09-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.25
\nBid-YTW : 3.30 %<\/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
ENB.PR.T<\/td>\nFixedReset<\/td>\n28,650<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-01-02
\nMaturity Price : 23.16
\nEvaluated at bid price : 25.21
\nBid-YTW : 3.74 %<\/td>\n<\/tr>\n
FTS.PR.G<\/td>\nFixedReset<\/td>\n21,325<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-01-02
\nMaturity Price : 23.71
\nEvaluated at bid price : 24.34
\nBid-YTW : 3.60 %<\/td>\n<\/tr>\n
NA.PR.O<\/td>\nFixedReset<\/td>\n16,834<\/td>\nNational crossed 11,300 at 26.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.52
\nBid-YTW : 1.89 %<\/td>\n<\/tr>\n
ELF.PR.H<\/td>\nPerpetual-Premium<\/td>\n15,149<\/td>\nNational crossed 12,100 at 25.90.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-17
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.95
\nBid-YTW : 4.94 %<\/td>\n<\/tr>\n
ENB.PR.P<\/td>\nFixedReset<\/td>\n14,287<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-01-02
\nMaturity Price : 23.20
\nEvaluated at bid price : 25.29
\nBid-YTW : 3.73 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n13,548<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.53
\nBid-YTW : 3.78 %<\/td>\n<\/tr>\n
There were 3 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: 17.44 – 19.00
\nSpot Rate : 1.5600
\nAverage : 1.2036<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-01-02
\nMaturity Price : 17.44
\nEvaluated at bid price : 17.44
\nBid-YTW : 3.02 %<\/td>\n<\/tr>\n

GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.32 – 26.84
\nSpot Rate : 0.5200
\nAverage : 0.3643<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-03-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.32
\nBid-YTW : 5.04 %<\/td>\n<\/tr>\n

BAM.PR.G<\/td>\nFixedFloater<\/td>\nQuote: 21.87 – 22.54
\nSpot Rate : 0.6700
\nAverage : 0.5190<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-01-02
\nMaturity Price : 22.45
\nEvaluated at bid price : 21.87
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n

TCA.PR.Y<\/td>\nPerpetual-Premium<\/td>\nQuote: 52.20 – 52.60
\nSpot Rate : 0.4000
\nAverage : 0.2647<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-05
\nMaturity Price : 50.00
\nEvaluated at bid price : 52.20
\nBid-YTW : 1.41 %<\/td>\n<\/tr>\n

GWO.PR.Q<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.91 – 26.30
\nSpot Rate : 0.3900
\nAverage : 0.2610<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.91
\nBid-YTW : 4.69 %<\/td>\n<\/tr>\n

RY.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.02 – 26.34
\nSpot Rate : 0.3200
\nAverage : 0.2159<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-02-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.02
\nBid-YTW : -2.24 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Good news on pensions – but not for the sponsors: The solvency of Canadian defined benefit pension plans improved in 2012, a new Mercer study says. The consultant said Wednesday that its Pension Health Index …<\/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-20730","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20730","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=20730"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20730\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}