{"id":21780,"date":"2013-04-22T22:32:21","date_gmt":"2013-04-23T02:32:21","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=21780"},"modified":"2013-04-22T22:32:21","modified_gmt":"2013-04-23T02:32:21","slug":"april-22-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=21780","title":{"rendered":"April 22, 2013"},"content":{"rendered":"

I am convinced that Toronto will have a major global competitive advantage in the next century – access to Lake Ontario<\/a>:<\/p>\n

India, the world\u2019s second-most populous nation, is doubling spending on water management to a record as conglomerates from the Tatas to Adani face shortages that the United Nations calls an impending crisis.
…<\/b>
Disputes with farmers demanding rights to their irrigated land have stalled about $80 billion of investment by companies including Posco and ArcelorMittal (MT) as Prime Minister Manmohan Singh seeks to revive an economy growing at the slowest pace in a decade. Tata Steel Ltd. (TATA), India\u2019s biggest maker of the alloy, is setting annual targets to cut water usage as two-thirds of the country faces a scarcity, H.M. Nerurkar, managing director said in an April 11 interview.<\/p>\n

\u201cWater availability is a very big issue and in the coming days this will be a far bigger issue,\u201d A.P. Choudhary, chairman of Rashtriya Ispat Nigam Ltd., India\u2019s second-biggest state-run steelmaker, said in an interview. \u201cWater is critical for the steel industry\u2019s growth and no company is comfortably placed.\u201d<\/p><\/blockquote>\n

Toronto area real-estate is already pretty expensive, but if I were a speculating kind of guy, I’d be thinking seriously about buying land in places like Cleveland and Detroit, and just trying to get enough current revenue to break even for the next thirty years.<\/p>\n

It’s an ill wind that blows nobody any good<\/a>:<\/p>\n

Donald R. Mullen Jr., who helped Goldman Sachs Group Inc. (GS) profit from the U.S. housing crash, is giving the firm and its clients a way to gain from the recovery.<\/p>\n

Mullen, 54, has raised almost $1 billion to buy single- family houses to rent since leaving Goldman Sachs last year as head of global credit and mortgages, five years after overseeing the bank\u2019s bet against the imploding subprime home-loan market. His Fundamental REO LLC has already purchased or is close to acquiring almost 2,500 properties through foreclosure auctions, government agencies and even an Arizona non-profit that promotes affordable-home ownership, property records show.<\/p><\/blockquote>\n

Spend-Every-Penny is explaining<\/a> why he has to extend his control over, and micromanagement of, the country’s financial system:<\/p>\n

he federal budget, released in March, plans to prohibit lenders from selling insured mortgages to investors through any securitization method that is not managed by federally-run Canada Mortgage and Housing Corp<\/a> . (CMHC).<\/p>\n

That bombshell came \u201cwithout any warning and without any consultation,\u201d said Stephen Smith, president of the largest non-bank lender, First National. Speaking at the National Bank Canadian Financial Services Conference, Mr. Smith said the \u201ccollateral damage\u201d to ABCP and smaller lenders \u201cwas not fully considered\u201d by government officials.
…<\/b>
In a statement, a Department of Finance official explained the government\u2019s reasoning as follows:<\/p>\n

\u201cThe Government is making these changes to increase market discipline in residential lending and reduce taxpayer exposure to the housing sector. Funding channels that use taxpayer-backed insured mortgages should be subject to minimum standards and Canadian oversight in order to promote financial stability.\u201d
…<\/b>
What the new rules really do is force lenders to sell their mortgages in the specific method dictated by Ottawa, as opposed to potentially lower cost private securitization.<\/p><\/blockquote>\n

The Central Planners have learnt the lessons of the Credit Crunch well – you can justify any idiocy you like, as long as you chant the magic words: “Hocus Pocus, Financial Stability, Abracadabra!”<\/p>\n

Stop the presses! Gensler of the CFTC said something sensible<\/a>!<\/p>\n

Two interest rate benchmarks that banks were fined for rigging should be scrapped and replaced by indicators based on market transactions, a top U.S. regulator said on Monday.<\/p>\n

The changes should also include benchmarks linked to gold, oil and other commodities, said Gary Gensler, chairman of the Commodity Futures Trading Commission.<\/p><\/blockquote>\n

Regrettably, he did not explain how such a ban would be enforced. But doubtless there are lots of levers to use – call it terrorism, for instance<\/a>. That’s what the Brits do<\/a>.<\/p>\n

We now know why the feds introduced covered bond legislation: it was to give a regulatory advantage to their future employers<\/a>:<\/p>\n

DBRS notes that there appear to be two unintended consequences of the legislation and the Guide, based on discussions with several Canadian issuers over the past few months.<\/p>\n

First, as the requirements for continuous disclosure and data compliance required by the Guide are broad, extensive and, at times, onerous, the amount of time and effort required to comply with the mandated standard is substantial, which is also expected to be costly. Therefore, DBRS is of the opinion that lenders other than domestic systemically important banks (DSIBs) are not likely to pursue registration as a covered bond issuer under the legislation, and would therefore be at a disadvantage without the benefit of covered bond funding.<\/p>\n

Second, as the legislation explicitly prohibits the issuance of covered bonds without registration, DBRS does not expect to see any coexistence of registered covered bonds and non-registered covered bonds in Canada, except for existing grandfathered covered bond programs.<\/p><\/blockquote>\n

It was a good day for the Canadian preferred share market, with PerpetualPremiums gaining 3bp, FixedResets winning 32bp and DeemedRetractibles gaining 14bp. Volatility was very good, dominated by winning FixedResets. Volume was quite high.<\/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>\n0.2306 %<\/td>\n2,592.4<\/td>\n<\/tr>\n
FixedFloater<\/td>\n3.97 %<\/td>\n3.20 %<\/td>\n32,755<\/td>\n18.74<\/td>\n1<\/td>\n-1.4839 %<\/td>\n4,133.4<\/td>\n<\/tr>\n
Floater<\/td>\n2.68 %<\/td>\n2.88 %<\/td>\n83,600<\/td>\n20.05<\/td>\n4<\/td>\n0.2306 %<\/td>\n2,799.1<\/td>\n<\/tr>\n
OpRet<\/td>\n4.81 %<\/td>\n2.18 %<\/td>\n63,087<\/td>\n0.19<\/td>\n5<\/td>\n0.0000 %<\/td>\n2,606.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.80 %<\/td>\n4.03 %<\/td>\n127,316<\/td>\n4.12<\/td>\n5<\/td>\n-0.0078 %<\/td>\n2,962.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0000 %<\/td>\n2,383.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.19 %<\/td>\n3.07 %<\/td>\n84,755<\/td>\n0.85<\/td>\n32<\/td>\n0.0279 %<\/td>\n2,377.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.84 %<\/td>\n4.84 %<\/td>\n169,807<\/td>\n15.72<\/td>\n4<\/td>\n0.0000 %<\/td>\n2,690.0<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.93 %<\/td>\n2.81 %<\/td>\n251,665<\/td>\n3.78<\/td>\n80<\/td>\n0.3176 %<\/td>\n2,503.0<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.87 %<\/td>\n3.52 %<\/td>\n129,030<\/td>\n1.38<\/td>\n44<\/td>\n0.1449 %<\/td>\n2,451.2<\/td>\n<\/tr>\n<\/table>\n\n\n\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
BAM.PR.G<\/td>\nFixedFloater<\/td>\n-1.48 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-04-22
\nMaturity Price : 22.92
\nEvaluated at bid price : 23.90
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.13
\nBid-YTW : 3.04 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-04-22
\nMaturity Price : 23.76
\nEvaluated at bid price : 25.59
\nBid-YTW : 2.53 %<\/td>\n<\/tr>\n
MFC.PR.J<\/td>\nFixedReset<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.17
\nBid-YTW : 3.06 %<\/td>\n<\/tr>\n
MFC.PR.H<\/td>\nFixedReset<\/td>\n1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.58
\nBid-YTW : 3.00 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.10
\nBid-YTW : 3.15 %<\/td>\n<\/tr>\n
GWO.PR.H<\/td>\nDeemed-Retractible<\/td>\n1.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.24
\nBid-YTW : 4.40 %<\/td>\n<\/tr>\n
IAG.PR.G<\/td>\nFixedReset<\/td>\n1.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.36
\nBid-YTW : 2.99 %<\/td>\n<\/tr>\n
MFC.PR.G<\/td>\nFixedReset<\/td>\n6.38 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.33
\nBid-YTW : 2.98 %<\/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>\n175,668<\/td>\nScotia crossed 40,000 at 25.55. RBC crossed blocks of 50,000 and 49,900 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.55
\nBid-YTW : 4.51 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset<\/td>\n105,550<\/td>\nNesbitt crossed 100,000 at 26.05.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.13
\nBid-YTW : 3.04 %<\/td>\n<\/tr>\n
TRP.PR.D<\/td>\nFixedReset<\/td>\n76,990<\/td>\nTD bought 20,700 from RBC at 26.05.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-04-22
\nMaturity Price : 23.40
\nEvaluated at bid price : 26.02
\nBid-YTW : 3.34 %<\/td>\n<\/tr>\n
CU.PR.F<\/td>\nPerpetual-Premium<\/td>\n74,380<\/td>\nTD crossed blocks of 35,000 and 25,000, both at 25.51.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.55
\nBid-YTW : 4.29 %<\/td>\n<\/tr>\n
BAM.PF.A<\/td>\nFixedReset<\/td>\n68,689<\/td>\nNational crossed 20,000 at 26.75. Scotia crossed 25,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.58
\nBid-YTW : 3.29 %<\/td>\n<\/tr>\n
TD.PR.S<\/td>\nFixedReset<\/td>\n57,907<\/td>\nRBC crossed 35,200 at 24.86.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.80
\nBid-YTW : 2.90 %<\/td>\n<\/tr>\n
There were 49 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
RY.PR.I<\/td>\nFixedReset<\/td>\nQuote: 25.46 – 25.86
\nSpot Rate : 0.4000
\nAverage : 0.2571<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.46
\nBid-YTW : 3.11 %<\/td>\n<\/tr>\n

IAG.PR.C<\/td>\nFixedReset<\/td>\nQuote: 25.68 – 25.99
\nSpot Rate : 0.3100
\nAverage : 0.2032<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.68
\nBid-YTW : 2.77 %<\/td>\n<\/tr>\n

BAM.PR.G<\/td>\nFixedFloater<\/td>\nQuote: 23.90 – 24.40
\nSpot Rate : 0.5000
\nAverage : 0.4043<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-04-22
\nMaturity Price : 22.92
\nEvaluated at bid price : 23.90
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n

MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.75 – 25.08
\nSpot Rate : 0.3300
\nAverage : 0.2492<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.75
\nBid-YTW : 4.84 %<\/td>\n<\/tr>\n

IAG.PR.G<\/td>\nFixedReset<\/td>\nQuote: 26.36 – 26.64
\nSpot Rate : 0.2800
\nAverage : 0.1999<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.36
\nBid-YTW : 2.99 %<\/td>\n<\/tr>\n

FTS.PR.G<\/td>\nFixedReset<\/td>\nQuote: 25.06 – 25.28
\nSpot Rate : 0.2200
\nAverage : 0.1443<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-04-22
\nMaturity Price : 24.50
\nEvaluated at bid price : 25.06
\nBid-YTW : 3.27 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

I am convinced that Toronto will have a major global competitive advantage in the next century – access to Lake Ontario: India, the world\u2019s second-most populous nation, is doubling spending on water management to a …<\/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-21780","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21780","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=21780"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21780\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}