{"id":21927,"date":"2013-05-07T21:02:13","date_gmt":"2013-05-08T01:02:13","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=21927"},"modified":"2013-05-07T21:02:13","modified_gmt":"2013-05-08T01:02:13","slug":"may-7-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=21927","title":{"rendered":"May 7, 2013"},"content":{"rendered":"

I am pleased to announce that the regulatory response to the Credit Crunch has achieved its goal<\/a>:<\/p>\n

Job vacancies at London\u2019s financial- services companies climbed 19 percent last month as tougher regulation of banks spurred hiring in compliance and anti-money laundering, recruitment firm Astbury Marsden said.
…<\/b>
Firms in the City, the world\u2019s number one financial center, according to consulting firm Z\/Yen Group Ltd., have been hiring to improve compliance and reduce risk amid regulatory scrutiny following scandals including interest-rate rigging and money laundering. Banks, insurers and asset managers may add 4,000 jobs in the first half of the year, ending three consecutive quarters of cuts, the Confederation of British Industry said last month.<\/p>\n

\u201cRegulation is still driving recruitment in the City, as banks focus on trimming their businesses back to their most profitable areas in order to manage new capital requirements,\u201d said Astbury Marsden in the statement.<\/p>\n

European corporate and investment banks face a reduction in profitability from increased taxation, compensation restrictions and regulatory burdens, according to a report by Oliver Wyman and Morgan Stanley last month.<\/p><\/blockquote>\n

A rather audacious fraud has been uncovered<\/a>:<\/p>\n

The Securities and Exchange Commission today charged four individuals with ties to a New York City brokerage firm in a scheme involving millions of dollars in illicit bribes paid to a high-ranking Venezuelan finance official to secure the bond trading business of a state-owned Venezuelan bank.<\/p>\n

According to the SEC’s complaint filed in federal court in Manhattan, the global markets group at broker-dealer Direct Access Partners (DAP) executed fixed income trades for customers in foreign sovereign debt. DAP Global generated more than $66 million in revenue for DAP from transaction fees – in the form of markups and markdowns – on riskless principal trade executions in Venezuelan sovereign or state-sponsored bonds for Banco de Desarrollo Econ\u00f3mico y Social de Venezuela (BANDES). A portion of this revenue was illicitly paid to BANDES Vice President of Finance, Mar\u00eda de los \u00c1ngeles Gonz\u00e1lez de Hernandez, who authorized the fraudulent trades.<\/p><\/blockquote>\n

There’s a few more words on Lapdog Carney’s legacy<\/a>, this time from Philip Cross, Research Coordinator at the Macdonald-Laurier Institute and former Chief Economic Analyst at Statistics Canada:<\/p>\n

The Bank of Canada proudly defends its independence. However, this independence places responsibilities on both the government and the Bank. The government is obliged to allow the Bank to set monetary policy, notably interest rates, without political interference. In return, the Bank is obliged to act in a non-partisan way. It is the latter that was tarnished during Carney\u2019s tenure, not the former.<\/p>\n

There are several examples of Carney over-stepping the constraints of non-partisanship. Most obvious was his dalliance with Liberal powerbrokers over their leadership.<\/p><\/blockquote>\n

I wasn’t really disturbed by the Grit thing. It was clear that that was all about Carney the man, not Carney the Bank Boss. My complaints about Carney relate to his eagerness to be a stalking horse for political pronouncements, e.g. “Ban the Bond” and the idiotic Central Clearing for Derivatives. But it worked! He got his reward! Firstly as boss of the Financial Stability Board and next as Monetary Puppet for another micromanaging western government.<\/p>\n

It was a mixed day for the Canadian preferred share market, with PerpetualPremiums down 16bp, FixedResets gaining 4bp and DeemedRetractibles off 1bp. Volatility was low. Volume was ENORMOUS! Absolutely ENORMOUS! I don’t know what happened.<\/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-0.1772 %<\/td>\n2,612.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n3.91 %<\/td>\n3.13 %<\/td>\n33,598<\/td>\n18.82<\/td>\n1<\/td>\n0.5795 %<\/td>\n4,202.6<\/td>\n<\/tr>\n
Floater<\/td>\n2.66 %<\/td>\n2.87 %<\/td>\n83,309<\/td>\n20.04<\/td>\n4<\/td>\n-0.1772 %<\/td>\n2,821.3<\/td>\n<\/tr>\n
OpRet<\/td>\n4.79 %<\/td>\n-0.04 %<\/td>\n65,312<\/td>\n0.15<\/td>\n5<\/td>\n0.0309 %<\/td>\n2,613.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.80 %<\/td>\n4.11 %<\/td>\n107,938<\/td>\n4.08<\/td>\n5<\/td>\n-0.0706 %<\/td>\n2,963.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0309 %<\/td>\n2,390.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.20 %<\/td>\n2.21 %<\/td>\n93,368<\/td>\n0.44<\/td>\n31<\/td>\n-0.1645 %<\/td>\n2,381.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.84 %<\/td>\n4.86 %<\/td>\n190,781<\/td>\n15.68<\/td>\n4<\/td>\n0.0405 %<\/td>\n2,689.7<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.86 %<\/td>\n2.70 %<\/td>\n258,532<\/td>\n3.37<\/td>\n81<\/td>\n0.0386 %<\/td>\n2,522.4<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.87 %<\/td>\n3.30 %<\/td>\n137,274<\/td>\n0.79<\/td>\n44<\/td>\n-0.0141 %<\/td>\n2,460.5<\/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
VNR.PR.A<\/td>\nFixedReset<\/td>\n-1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-10-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.65
\nBid-YTW : 2.84 %<\/td>\n<\/tr>\n
PWF.PR.P<\/td>\nFixedReset<\/td>\n1.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-05-07
\nMaturity Price : 23.76
\nEvaluated at bid price : 26.09
\nBid-YTW : 2.70 %<\/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
RY.PR.R<\/td>\nFixedReset<\/td>\n198,264<\/td>\nScotia crossed 25,000 at 25.73. TD crossed three blocks, of 32,100 shares, 51,000 and 17,100 shares, all at the same price. National crossed 50,100 at the same price again.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.73
\nBid-YTW : 2.18 %<\/td>\n<\/tr>\n
FTS.PR.E<\/td>\nOpRet<\/td>\n128,368<\/td>\nNesbitt crossed blocks of 27,300 and 25,000, both at 26.40. RBC sold 20,600 to anonymous at 26.42, then crossed 45,400 at 26.40.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-07-01
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.41
\nBid-YTW : -6.33 %<\/td>\n<\/tr>\n
ENB.PR.F<\/td>\nFixedReset<\/td>\n108,908<\/td>\nScotia crossed 39,100 at 25.95. Desjardins crossed 50,000 at 25.98.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.98
\nBid-YTW : 3.33 %<\/td>\n<\/tr>\n
MFC.PR.D<\/td>\nFixedReset<\/td>\n103,757<\/td>\nRBC crossed blocks of 26,800 and 25,000, both at 26.35. Desjardins crossed 25,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.40
\nBid-YTW : 2.32 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n91,128<\/td>\nRBC crossed 30,300 at 26.20, then another 37,000 at 26.21.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.23
\nBid-YTW : 2.18 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n90,166<\/td>\nScotia crossed 40,000 at 25.50. National crossed 40,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-05-07
\nMaturity Price : 23.85
\nEvaluated at bid price : 25.49
\nBid-YTW : 3.07 %<\/td>\n<\/tr>\n
There were 90 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
MFC.PR.G<\/td>\nFixedReset<\/td>\nQuote: 26.40 – 26.77
\nSpot Rate : 0.3700
\nAverage : 0.2427<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.40
\nBid-YTW : 2.94 %<\/td>\n<\/tr>\n

VNR.PR.A<\/td>\nFixedReset<\/td>\nQuote: 26.65 – 26.95
\nSpot Rate : 0.3000
\nAverage : 0.2035<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-10-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.65
\nBid-YTW : 2.84 %<\/td>\n<\/tr>\n

BNS.PR.Y<\/td>\nFixedReset<\/td>\nQuote: 24.76 – 24.97
\nSpot Rate : 0.2100
\nAverage : 0.1315<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.76
\nBid-YTW : 2.70 %<\/td>\n<\/tr>\n

FTS.PR.H<\/td>\nFixedReset<\/td>\nQuote: 25.35 – 25.65
\nSpot Rate : 0.3000
\nAverage : 0.2262<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-05-07
\nMaturity Price : 23.69
\nEvaluated at bid price : 25.35
\nBid-YTW : 2.66 %<\/td>\n<\/tr>\n

ENB.PR.A<\/td>\nPerpetual-Premium<\/td>\nQuote: 26.16 – 26.34
\nSpot Rate : 0.1800
\nAverage : 0.1094<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-06
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.16
\nBid-YTW : -34.42 %<\/td>\n<\/tr>\n

IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.66 – 24.89
\nSpot Rate : 0.2300
\nAverage : 0.1704<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.66
\nBid-YTW : 4.83 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

I am pleased to announce that the regulatory response to the Credit Crunch has achieved its goal: Job vacancies at London\u2019s financial- services companies climbed 19 percent last month as tougher regulation of banks spurred …<\/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-21927","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21927","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=21927"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21927\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}