{"id":21757,"date":"2013-04-17T21:20:36","date_gmt":"2013-04-18T01:20:36","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=21757"},"modified":"2013-04-17T21:20:36","modified_gmt":"2013-04-18T01:20:36","slug":"april-17-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=21757","title":{"rendered":"April 17, 2013"},"content":{"rendered":"

The Bank of Canada conveyed no surprises in its rate announcement<\/a>:<\/p>\n

On a quarterly basis, growth in Canada is expected to pick up to about 2.5 per cent in the second half of this year. Despite this expected pickup, with the weak growth in the second half of 2012, annual average growth is now projected to be 1.5 per cent in 2013. The economy is then projected to grow by 2.8 per cent in 2014 and 2.7 per cent in 2015, reaching full capacity in mid-2015 \u2013 later than anticipated in the January MPR.<\/p>\n

Total CPI and core inflation have remained low in recent months, broadly in line with expectations in the January MPR. Muted core inflation reflects material excess supply in the economy, heightened competitive pressures in the retail sector, and some special factors such as slower increases in regulated prices and the pass-through of previous declines in agricultural prices to consumer prices. Total CPI inflation has been restrained by low core inflation and declining mortgage interest costs, with some offset from higher gasoline prices.<\/p>\n

Both total and core inflation are expected to remain subdued in coming quarters before gradually rising to 2 per cent by mid-2015 as the economy returns to full capacity, the special factors that are weighing on core inflation subside, and inflation expectations remain well-anchored.<\/p><\/blockquote>\n

The Canadian preferred share market got hit today, with PerpetualPremiums off 8bp, FixedResets down 18bp and DeemedRetractibles losing 21bp. Volatility was minimal. Volume was very high.<\/p>\n

PerpetualDiscounts now yield 4.82%, equivalent to 6.27% interest at the standard equivalency factor of 1.3x. Long Corporates<\/a> now yield a little under 4.1%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 220bp, a significant widening from the 210bp reported April 3<\/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>\n-0.7248 %<\/td>\n2,587.1<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.05 %<\/td>\n3.36 %<\/td>\n32,538<\/td>\n18.67<\/td>\n1<\/td>\n0.0000 %<\/td>\n4,055.6<\/td>\n<\/tr>\n
Floater<\/td>\n2.69 %<\/td>\n2.88 %<\/td>\n88,706<\/td>\n20.06<\/td>\n4<\/td>\n-0.7248 %<\/td>\n2,793.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.79 %<\/td>\n0.42 %<\/td>\n54,742<\/td>\n0.17<\/td>\n5<\/td>\n0.0154 %<\/td>\n2,614.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.80 %<\/td>\n4.02 %<\/td>\n130,600<\/td>\n4.13<\/td>\n5<\/td>\n0.1027 %<\/td>\n2,960.2<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0154 %<\/td>\n2,390.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.18 %<\/td>\n3.10 %<\/td>\n82,131<\/td>\n0.86<\/td>\n32<\/td>\n-0.0822 %<\/td>\n2,381.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.83 %<\/td>\n4.82 %<\/td>\n175,942<\/td>\n15.76<\/td>\n4<\/td>\n-0.0607 %<\/td>\n2,691.3<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.93 %<\/td>\n2.78 %<\/td>\n238,676<\/td>\n3.78<\/td>\n80<\/td>\n-0.1783 %<\/td>\n2,503.6<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.87 %<\/td>\n3.55 %<\/td>\n125,778<\/td>\n0.59<\/td>\n44<\/td>\n-0.2120 %<\/td>\n2,453.1<\/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
BAM.PR.C<\/td>\nFloater<\/td>\n-2.88 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-04-17
\nMaturity Price : 17.53
\nEvaluated at bid price : 17.53
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n
MFC.PR.J<\/td>\nFixedReset<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.15
\nBid-YTW : 3.07 %<\/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
PWF.PR.S<\/td>\nPerpetual-Premium<\/td>\n202,970<\/td>\nScotia crossed 75,000 at 25.45. RBC crossed blocks of 75,000 and 40,000, both at 25.45.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.40
\nBid-YTW : 4.58 %<\/td>\n<\/tr>\n
TRP.PR.D<\/td>\nFixedReset<\/td>\n89,897<\/td>\nTD crossed 23,400 at 26.14; Scotia crossed 35,000 at 26.10.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.04
\nBid-YTW : 3.34 %<\/td>\n<\/tr>\n
POW.PR.B<\/td>\nPerpetual-Premium<\/td>\n76,256<\/td>\nScotia crossed 50,000 at 25.47; TD crossed 20,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-05-17
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : -15.40 %<\/td>\n<\/tr>\n
ENB.PR.F<\/td>\nFixedReset<\/td>\n71,274<\/td>\nDesjardins crossed 49,200 at 25.95.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.88
\nBid-YTW : 3.37 %<\/td>\n<\/tr>\n
BNS.PR.R<\/td>\nFixedReset<\/td>\n43,990<\/td>\nNational crossed 30,000 at 25.32.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.26
\nBid-YTW : 3.02 %<\/td>\n<\/tr>\n
ENB.PR.D<\/td>\nFixedReset<\/td>\n32,811<\/td>\nDesjardins crossed 19,400 at 25.92.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-04-17
\nMaturity Price : 23.42
\nEvaluated at bid price : 25.84
\nBid-YTW : 3.37 %<\/td>\n<\/tr>\n
There were 51 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
FTS.PR.J<\/td>\nPerpetual-Premium<\/td>\nQuote: 26.00 – 27.00
\nSpot Rate : 1.0000
\nAverage : 0.6933<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-12-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 4.30 %<\/td>\n<\/tr>\n

BAM.PR.C<\/td>\nFloater<\/td>\nQuote: 17.53 – 18.20
\nSpot Rate : 0.6700
\nAverage : 0.4249<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-04-17
\nMaturity Price : 17.53
\nEvaluated at bid price : 17.53
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n

MFC.PR.J<\/td>\nFixedReset<\/td>\nQuote: 26.15 – 26.48
\nSpot Rate : 0.3300
\nAverage : 0.2289<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.15
\nBid-YTW : 3.07 %<\/td>\n<\/tr>\n

TRI.PR.B<\/td>\nFloater<\/td>\nQuote: 24.05 – 24.55
\nSpot Rate : 0.5000
\nAverage : 0.4024<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-04-17
\nMaturity Price : 23.74
\nEvaluated at bid price : 24.05
\nBid-YTW : 2.16 %<\/td>\n<\/tr>\n

TD.PR.O<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.73 – 26.00
\nSpot Rate : 0.2700
\nAverage : 0.1749<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-05-17
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.73
\nBid-YTW : -8.08 %<\/td>\n<\/tr>\n

BMO.PR.L<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.70 – 26.95
\nSpot Rate : 0.2500
\nAverage : 0.1606<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-05-25
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.70
\nBid-YTW : -12.18 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The Bank of Canada conveyed no surprises in its rate announcement: On a quarterly basis, growth in Canada is expected to pick up to about 2.5 per cent in the second half of this year. …<\/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-21757","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21757","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=21757"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21757\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}