{"id":21887,"date":"2013-05-04T01:01:46","date_gmt":"2013-05-04T05:01:46","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=21887"},"modified":"2013-05-04T01:01:46","modified_gmt":"2013-05-04T05:01:46","slug":"may-3-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=21887","title":{"rendered":"May 3, 2013"},"content":{"rendered":"

There was a good jobs number in the US<\/a>:<\/p>\n

American employers took on more workers than forecast in April and the jobless rate unexpectedly fell to a four-year low of 7.5 percent, reflecting confidence in the outlook for the world\u2019s biggest economy.<\/p>\n

Payrolls expanded by 165,000 following a revised 138,000 increase in March that was larger than first estimated, Labor Department figures showed today in Washington. Revisions added a total of 114,000 jobs to the counts for February and March.<\/p><\/blockquote>\n

There continues to be some concern amongst those who have recently realized that central bank heads should be independent<\/a>:<\/p>\n

The decision of the Harper government to name an outsider as the next governor of the Bank of Canada will raise uncomfortable questions over the sacrosanct independence of the central bank.<\/p>\n

That\u2019s not to suggest that Stephen Poloz isn\u2019t qualified for the key position, only that he comes to the job with that hanging over his head.
…<\/b>
The job of finding a Bank of Canada governor actually lies with the central bank\u2019s board of directors, which interviews candidates and then presents its recommendation to the finance minister.<\/p>\n

However, this time around, Mr. Flaherty in January issued a news release saying that he would be interviewing a short list of potential governors. He actually did that in 2007, as well, but without the fanfare.<\/p><\/blockquote>\n

Bloomberg reminds me that<\/a>:<\/p>\n

At the European Central Bank, it was Bundesbank President Axel Weber who made the early running to replace Jean-Claude Trichet as head in 2011 before dropping out in part because he anticipated clashing with governments. The post went instead to Bank of Italy Governor Mario Draghi.<\/p><\/blockquote>\n

And some snippets of interest have already been reported<\/a>:<\/p>\n

Flaherty says “you’re doing great” after Poloz said: \u201cI certainly wouldn\u2019t express a judgement about fiscal policies in any jurisdiction.\u201d<\/p><\/blockquote>\n

As well as comment in the media<\/a>:<\/p>\n

In reality, it is a very political appointment \u2013 which, in part, explains why Stephen Poloz is the new Governor.
…<\/b>
But at the end of the day, it was likely Mr. Poloz\u2019s indication that he was happy to accommodate the government\u2019s agenda that won him the job.<\/p>\n

Nothing impresses the members of this government more than agreeing with them.<\/p><\/blockquote>\n

In the opinion of Moody’s analysts<\/a>:<\/p>\n

The signal sent to markets is not clear, but suggests the government wants to exercise more control over policymaking.<\/p><\/blockquote>\n

Julie Dickson of OSFI made a speech<\/a> at the 2013 Financial Services Invitational Forum:<\/p>\n

At OSFI, cyber risk has become one of our top concerns. A growing number of North American banks have been hit with denial of service attacks, in some cases causing websites to go down, thereby creating problems for customers trying to do everyday transactions.
…<\/b>
At OSFI, we have significantly increased our supervisory resources in the Op-risk area, and have launched a number of initiatives, such as conducting in-depth reviews of institutions\u2019 current cyber protection practices.
…<\/b>
Some other countries are experiencing frothy real estate markets and have introduced floors on risk weights \u2014 sometimes around 15 per cent. Given that in Canada the uninsured mortgages would tend to be of higher quality than the average loan portfolio in other countries (because uninsured loans in Canada have maximum loan-to-value ratios of 80 per cent), we are generally comfortable with the capital being held by banks using models. OSFI is also aware that floors can become safe harbours and lead banks and supervisors to pay less attention to the \u2015appropriate\u2016 risk weight, especially when it should be well above the floor for a particular bank. Thus, our focus will continue to be on scrutinizing models currently in use.
…<\/b>
The natural genetics of a bank are sometimes to give the business lines considerable leeway and to see risk management and internal audit as standing in the way of progress. This \u2015wiring\u2016 reflects the fact that the business is where the money is made \u2013 at least in the short term. A bank cannot consistently make money without regard for sound risk management. So, structures and processes need to be built as a counterbalance, and to reinforce a broader and longer perspective. Risk appetite statements are part of the new suite of tools to aid in ensuring that the bank management and the board have a 100 per cent agreement on the balance of power in the institution and the overall risk stance.<\/p><\/blockquote>\n

It was a mixed day for the Canadian preferred share market, with PerpetualPremiums gaining 2bp, FixedResets off 7bp and DeemedRetractibles up 5bp. Volatility was minimal. Volume was ludicrously low – did everybody take off early for the first warm weekend?<\/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-0.0126 %<\/td>\n2,620.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n3.94 %<\/td>\n3.17 %<\/td>\n33,441<\/td>\n18.77<\/td>\n1<\/td>\n0.0000 %<\/td>\n4,168.0<\/td>\n<\/tr>\n
Floater<\/td>\n2.66 %<\/td>\n2.86 %<\/td>\n83,505<\/td>\n20.07<\/td>\n4<\/td>\n-0.0126 %<\/td>\n2,829.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.80 %<\/td>\n0.25 %<\/td>\n60,909<\/td>\n0.16<\/td>\n5<\/td>\n-0.0695 %<\/td>\n2,610.4<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.79 %<\/td>\n4.07 %<\/td>\n109,885<\/td>\n4.09<\/td>\n5<\/td>\n0.0001 %<\/td>\n2,964.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0695 %<\/td>\n2,387.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.20 %<\/td>\n2.95 %<\/td>\n87,018<\/td>\n0.45<\/td>\n31<\/td>\n0.0218 %<\/td>\n2,383.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.83 %<\/td>\n4.85 %<\/td>\n180,552<\/td>\n15.68<\/td>\n4<\/td>\n0.1826 %<\/td>\n2,691.1<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.88 %<\/td>\n2.71 %<\/td>\n241,050<\/td>\n3.74<\/td>\n81<\/td>\n-0.0706 %<\/td>\n2,514.8<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.87 %<\/td>\n3.39 %<\/td>\n136,150<\/td>\n0.96<\/td>\n44<\/td>\n0.0521 %<\/td>\n2,459.7<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n-1.40 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.70
\nBid-YTW : 2.43 %<\/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
TRP.PR.B<\/td>\nFixedReset<\/td>\n65,791<\/td>\nDesjardins crossed 49,700 at 24.91.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-05-03
\nMaturity Price : 23.51
\nEvaluated at bid price : 24.90
\nBid-YTW : 2.45 %<\/td>\n<\/tr>\n
W.PR.H<\/td>\nPerpetual-Premium<\/td>\n43,506<\/td>\nNesbitt crossed 41,200 at 25.68.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-02
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : -19.13 %<\/td>\n<\/tr>\n
W.PR.J<\/td>\nPerpetual-Premium<\/td>\n41,640<\/td>\nNesbitt crossed 28,200 at 25.40.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-02
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : -12.39 %<\/td>\n<\/tr>\n
TD.PR.P<\/td>\nDeemed-Retractible<\/td>\n40,400<\/td>\nNesbitt crossed 40,000 at 26.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-02
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.45
\nBid-YTW : -14.78 %<\/td>\n<\/tr>\n
ENB.PR.F<\/td>\nFixedReset<\/td>\n29,981<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.92
\nBid-YTW : 3.37 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n22,640<\/td>\nTD crossed 20,000 at 26.27.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.22
\nBid-YTW : 2.19 %<\/td>\n<\/tr>\n
There were 10 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
CIU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 25.03 – 25.64
\nSpot Rate : 0.6100
\nAverage : 0.4870<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-05-03
\nMaturity Price : 23.38
\nEvaluated at bid price : 25.03
\nBid-YTW : 2.55 %<\/td>\n<\/tr>\n

PWF.PR.P<\/td>\nFixedReset<\/td>\nQuote: 25.56 – 25.94
\nSpot Rate : 0.3800
\nAverage : 0.2727<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-05-03
\nMaturity Price : 23.61
\nEvaluated at bid price : 25.56
\nBid-YTW : 2.72 %<\/td>\n<\/tr>\n

MFC.PR.I<\/td>\nFixedReset<\/td>\nQuote: 26.35 – 26.60
\nSpot Rate : 0.2500
\nAverage : 0.1481<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-09-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.35
\nBid-YTW : 3.22 %<\/td>\n<\/tr>\n

CU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 26.70 – 27.00
\nSpot Rate : 0.3000
\nAverage : 0.2024<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.70
\nBid-YTW : 2.43 %<\/td>\n<\/tr>\n

IAG.PR.C<\/td>\nFixedReset<\/td>\nQuote: 25.65 – 25.98
\nSpot Rate : 0.3300
\nAverage : 0.2441<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.65
\nBid-YTW : 3.09 %<\/td>\n<\/tr>\n

W.PR.J<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.45 – 25.76
\nSpot Rate : 0.3100
\nAverage : 0.2308<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-02
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : -12.39 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

There was a good jobs number in the US: American employers took on more workers than forecast in April and the jobless rate unexpectedly fell to a four-year low of 7.5 percent, reflecting confidence in …<\/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-21887","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21887","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=21887"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21887\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}