{"id":21074,"date":"2013-02-08T20:54:52","date_gmt":"2013-02-09T00:54:52","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=21074"},"modified":"2013-02-08T20:54:52","modified_gmt":"2013-02-09T00:54:52","slug":"february-8-2013-2","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=21074","title":{"rendered":"February 8, 2013"},"content":{"rendered":"

Some pension notes from the States<\/a>:<\/p>\n

Scituate, Rhode Island, population 10,329, operates a pension plan for its police department. The plan is underfunded to the tune of $8.4 million, a liability that has quadrupled since 1999. That doesn’t sound like a big shortfall until you realize that Scituate’s pension plan has only 33 participants, meaning that it is short by more than a quarter million dollars per employee.<\/p>\n

Worse, Scituate isn’t alone. Rhode Island, with just 41 cities and towns, has 36 separate municipal pension systems, and their unfunded liabilities total more than $2.3 billion. Most, like Scituate’s, are less than 50 percent funded. Cranston, Rhode Island’s third-largest city, has funded just 17 percent of its $330 million pension liability. All but one of these plans have fewer than a thousand members.
…<\/b>
The more promising long-term fix, floated by some Rhode Island lawmakers including State Treasurer Gina Raimondo, is to close municipal pension plans and have one pension system for municipal workers overseen by the state government. This would build on the progress Rhode Island has made in improving its statewide pension systems, which already cover some local employees. A 2011 reform improved the largest system’s funding ratio from 48 percent to 61 percent. Benefits were restructured so that some of the risk of investment returns is shifted from taxpayers to employees.<\/p><\/blockquote>\n

What a great way to balance the books! Just renege on your promises!<\/p>\n

It was a positive day for the Canadian preferred share market, with PerpetualPremiums winning 12bp (as the median YTW dipped below zero again), FixedResets gaining 1bp and DeemedRetractibles up 3bp. Volatility was normal. Volume was 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>\n-0.2747 %<\/td>\n2,574.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.19 %<\/td>\n3.51 %<\/td>\n25,820<\/td>\n18.30<\/td>\n1<\/td>\n-0.0441 %<\/td>\n3,879.2<\/td>\n<\/tr>\n
Floater<\/td>\n2.58 %<\/td>\n2.90 %<\/td>\n72,230<\/td>\n19.94<\/td>\n5<\/td>\n-0.2747 %<\/td>\n2,779.3<\/td>\n<\/tr>\n
OpRet<\/td>\n4.75 %<\/td>\n2.12 %<\/td>\n35,170<\/td>\n0.31<\/td>\n5<\/td>\n-0.0153 %<\/td>\n2,608.5<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.56 %<\/td>\n4.28 %<\/td>\n36,783<\/td>\n4.27<\/td>\n2<\/td>\n0.0992 %<\/td>\n2,922.8<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0153 %<\/td>\n2,385.2<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.24 %<\/td>\n-0.64 %<\/td>\n84,884<\/td>\n0.13<\/td>\n29<\/td>\n0.1159 %<\/td>\n2,356.0<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.84 %<\/td>\n4.89 %<\/td>\n140,785<\/td>\n15.63<\/td>\n4<\/td>\n0.0406 %<\/td>\n2,649.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.90 %<\/td>\n2.82 %<\/td>\n274,292<\/td>\n3.53<\/td>\n78<\/td>\n0.0064 %<\/td>\n2,491.6<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.87 %<\/td>\n1.62 %<\/td>\n149,126<\/td>\n0.29<\/td>\n45<\/td>\n0.0327 %<\/td>\n2,435.6<\/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
TRI.PR.B<\/td>\nFloater<\/td>\n-1.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-02-08
\nMaturity Price : 23.33
\nEvaluated at bid price : 23.61
\nBid-YTW : 2.21 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n-1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-02-08
\nMaturity Price : 23.73
\nEvaluated at bid price : 25.68
\nBid-YTW : 2.82 %<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset<\/td>\n1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.42
\nBid-YTW : 3.06 %<\/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
MFC.PR.D<\/td>\nFixedReset<\/td>\n161,327<\/td>\nTD crossed 142,600 at 26.71.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.70
\nBid-YTW : 2.22 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\n80,750<\/td>\nNational crossed blocks of 30,000 shares, 24,000 and 25,000, all at 25.85.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-03-10
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.75
\nBid-YTW : -0.65 %<\/td>\n<\/tr>\n
FTS.PR.G<\/td>\nFixedReset<\/td>\n71,000<\/td>\nNational crossed 50,000 at 25.15.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-02-08
\nMaturity Price : 24.75
\nEvaluated at bid price : 25.15
\nBid-YTW : 3.60 %<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nDeemed-Retractible<\/td>\n34,053<\/td>\nNesbitt crossed 12,000 at 25.40.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.35
\nBid-YTW : 4.25 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n30,810<\/td>\nTD crossed 22,400 at 26.49.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.50
\nBid-YTW : 2.13 %<\/td>\n<\/tr>\n
HSB.PR.E<\/td>\nFixedReset<\/td>\n29,950<\/td>\nScotia bought 16,300 from National at 26.56.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.55
\nBid-YTW : 2.57 %<\/td>\n<\/tr>\n
There were 37 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: 18.00 – 19.00
\nSpot Rate : 1.0000
\nAverage : 0.6876<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-02-08
\nMaturity Price : 18.00
\nEvaluated at bid price : 18.00
\nBid-YTW : 2.94 %<\/td>\n<\/tr>\n

FTS.PR.H<\/td>\nFixedReset<\/td>\nQuote: 25.68 – 26.15
\nSpot Rate : 0.4700
\nAverage : 0.2723<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-02-08
\nMaturity Price : 23.73
\nEvaluated at bid price : 25.68
\nBid-YTW : 2.82 %<\/td>\n<\/tr>\n

PWF.PR.P<\/td>\nFixedReset<\/td>\nQuote: 25.96 – 26.38
\nSpot Rate : 0.4200
\nAverage : 0.2462<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-02-08
\nMaturity Price : 23.68
\nEvaluated at bid price : 25.96
\nBid-YTW : 2.91 %<\/td>\n<\/tr>\n

PWF.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.77 – 26.11
\nSpot Rate : 0.3400
\nAverage : 0.2265<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-03-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.77
\nBid-YTW : -27.74 %<\/td>\n<\/tr>\n

PWF.PR.K<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.18 – 25.63
\nSpot Rate : 0.4500
\nAverage : 0.3454<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.18
\nBid-YTW : 4.61 %<\/td>\n<\/tr>\n

TRI.PR.B<\/td>\nFloater<\/td>\nQuote: 23.61 – 24.24
\nSpot Rate : 0.6300
\nAverage : 0.5357<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-02-08
\nMaturity Price : 23.33
\nEvaluated at bid price : 23.61
\nBid-YTW : 2.21 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Some pension notes from the States: Scituate, Rhode Island, population 10,329, operates a pension plan for its police department. The plan is underfunded to the tune of $8.4 million, a liability that has quadrupled since …<\/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-21074","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21074","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=21074"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21074\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}