{"id":22102,"date":"2013-05-30T21:31:51","date_gmt":"2013-05-31T01:31:51","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=22102"},"modified":"2013-05-30T21:31:51","modified_gmt":"2013-05-31T01:31:51","slug":"may-30-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=22102","title":{"rendered":"May 30, 2013"},"content":{"rendered":"<p>S&#038;P has a <a href=\"http:\/\/www.standardandpoors.com\/prot\/ratings\/articles\/en\/us\/?articleType=HTML&#038;assetID=1245352387974\">negative outlook on Ontario<\/a>:<\/p>\n<blockquote>\n<ul>\n<li>\u2022In our view, Ontario continues to have a large, wealthy, and well-diversified economy; ongoing transfer payment support from the federal government for various social programs; adequate liquidity support; and exceptional access to capital markets.\n<li>\u2022We are affirming our ratings, including our &#8216;AA-&#8216; long-term and &#8216;A-1+&#8217;  short-term issuer credit ratings on the province.\n<li>\u2022The negative outlook reflects our view regarding the minority legislature&#8217;s ability in the next one to two years to meet what we view as aggressive cost containment targets necessary for the debt burden to peak in fiscal 2015 as planned.<\/ul>\n<p><b>&#8230;<\/b><br \/>The provincial government estimates that real GDP growth slowed to 1.6% in 2012 from a 1.8% gain in 2011. The government is forecasting real GDP growth to advance at a more tepid pace of 1.5% in 2013.<br \/><b>&#8230;<\/b><br \/>Ontario&#8217;s large budgetary deficits since the recession have significantly boosted its debt burden. At the end of fiscal 2013, Ontario&#8217;s tax-supported debt totaled C$259.7 billion, representing 230% of consolidated operating revenues (or about 39% of GDP). This is a sharp increase from 134% of consolidated operating revenues in fiscal 2008. Owing to the still-large after-capital deficits expected for fiscal 2014, the province projects its tax-supported debt burden will increase further to 235% of projected consolidated operating revenues (or about C$271.3 billion) this year, which represents an improvement from its forecast level in the fiscal 2013 budget. However, in our opinion, the rate of growth of Ontario&#8217;s debt burden remains a concern, as it is already at the high end of the range for similarly rated domestic and international peers.<\/p>\n<p>The negative outlook reflects our view that there is at least a one-in-three likelihood that we could lower the long-term rating one notch in the next year.<\/p><\/blockquote>\n<p>Additionally, <a href=\"http:\/\/www.dbrs.com\/research\/257779\/dbrs-discontinues-rating-on-diversified-preferred-share-trust.html\">DPS.UN is officially defunct<\/a>:<\/p>\n<blockquote><p>DBRS has today discontinued the stability rating on the retractable units (the Units) issued by Diversified Preferred Share Trust following completion of its restructuring into an open-end mutual fund on May 24, 2013. <\/p><\/blockquote>\n<p>The announcement of the conversion was <a href=\"http:\/\/www.prefblog.com\/?p=21870\">discussed on PrefBlog<\/a>.<\/p>\n<p>Of far greater interest was a <a href=\"http:\/\/www.ontarionature.org\/protect\/species\/reptiles_and_amphibians\/american_toad.php\">new visitor to my garden<\/a>:<\/p>\n<div align=\"center\"><a href=\"http:\/\/www.prefblog.com\/wp-content\/uploads\/2013\/05\/AmericanToad_1_crop.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.prefblog.com\/wp-content\/uploads\/2013\/05\/AmericanToad_1_crop.jpg\" alt=\"\" title=\"AmericanToad_1_crop\" width=\"400\" height=\"403\" class=\"alignnone size-full wp-image-22103\" \/><\/a><br \/><i>Click for Big<\/i><\/p>\n<p><a href=\"http:\/\/www.prefblog.com\/wp-content\/uploads\/2013\/05\/AmericanToad_2_crop.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.prefblog.com\/wp-content\/uploads\/2013\/05\/AmericanToad_2_crop.jpg\" alt=\"\" title=\"AmericanToad_2_crop\" width=\"400\" height=\"419\" class=\"alignnone size-full wp-image-22104\" \/><\/a><br \/><i>Click for Big<\/i><\/div>\n<p>It was another negative day for the Canadian preferred share market, with PerpetualPremiums losing 15bp, FixedResets off 6bp and DeemedRetractibles down 9bp. Volatility was minimal &#8211; the only highlight is <a href=\"http:\/\/www.prefblog.com\/?p=22090\">RY.PR.H, which was called today<\/a>. Volume was high.<\/p>\n<table border='1'>\n<tr>\n<td colspan='8'><strong>HIMIPref&trade; Preferred Indices<br \/>These values reflect the December 2008 revision of the HIMIPref&trade; Indices<\/strong><br \/>Values are provisional and are finalized monthly<\/td>\n<\/tr>\n<tr>\n<td>Index<\/td>\n<td>Mean<br \/>Current<br \/>Yield<br \/>(at bid)<\/td>\n<td>Median<br \/>YTW<\/td>\n<td>Median<br \/>Average<br \/>Trading<br \/>Value<\/td>\n<td>Median<br \/>Mod Dur<br \/>(YTW)<\/td>\n<td>Issues<\/td>\n<td>Day&#8217;s Perf.<\/td>\n<td>Index Value<\/td>\n<\/tr>\n<tr>\n<td>Ratchet<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>0.6414 %<\/td>\n<td>2,548.0<\/td>\n<\/tr>\n<tr>\n<td>FixedFloater<\/td>\n<td>3.92 %<\/td>\n<td>3.15 %<\/td>\n<td>40,072<\/td>\n<td>18.76<\/td>\n<td>1<\/td>\n<td>0.2479 %<\/td>\n<td>4,195.7<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>2.73 %<\/td>\n<td>2.97 %<\/td>\n<td>77,718<\/td>\n<td>19.75<\/td>\n<td>4<\/td>\n<td>0.6414 %<\/td>\n<td>2,751.2<\/td>\n<\/tr>\n<tr>\n<td>OpRet<\/td>\n<td>4.82 %<\/td>\n<td>1.00 %<\/td>\n<td>68,765<\/td>\n<td>0.09<\/td>\n<td>5<\/td>\n<td>0.1165 %<\/td>\n<td>2,617.4<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>4.63 %<\/td>\n<td>4.16 %<\/td>\n<td>99,884<\/td>\n<td>4.06<\/td>\n<td>6<\/td>\n<td>0.0386 %<\/td>\n<td>2,986.0<\/td>\n<\/tr>\n<tr>\n<td>Interest-Bearing<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>0.1165 %<\/td>\n<td>2,393.4<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/td>\n<td>5.21 %<\/td>\n<td>3.82 %<\/td>\n<td>97,837<\/td>\n<td>0.74<\/td>\n<td>32<\/td>\n<td>-0.1494 %<\/td>\n<td>2,374.7<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>4.90 %<\/td>\n<td>4.96 %<\/td>\n<td>198,075<\/td>\n<td>15.47<\/td>\n<td>4<\/td>\n<td>-0.4291 %<\/td>\n<td>2,655.9<\/td>\n<\/tr>\n<tr>\n<td>FixedReset<\/td>\n<td>4.89 %<\/td>\n<td>2.71 %<\/td>\n<td>244,741<\/td>\n<td>3.31<\/td>\n<td>81<\/td>\n<td>-0.0589 %<\/td>\n<td>2,516.6<\/td>\n<\/tr>\n<tr>\n<td>Deemed-Retractible<\/td>\n<td>4.90 %<\/td>\n<td>3.60 %<\/td>\n<td>139,004<\/td>\n<td>1.43<\/td>\n<td>44<\/td>\n<td>-0.0949 %<\/td>\n<td>2,456.0<\/td>\n<\/tr>\n<\/table>\n<table border='1'>\n<tr>\n<td colspan='4'><strong>Performance Highlights<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Index<\/td>\n<td>Change<\/td>\n<td>Notes<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.H<\/td>\n<td>Deemed-Retractible<\/td>\n<td>-1.10 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2013-06-29<br \/>\nMaturity Price  : 26.00<br \/>\nEvaluated at bid price : 26.10<br \/>\nBid-YTW : 1.84 %<\/td>\n<\/tr>\n<\/table>\n<table border='1'>\n<tr>\n<td colspan='4'><strong>Volume Highlights<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Index<\/td>\n<td>Shares<br \/>Traded<\/td>\n<td>Notes<\/td>\n<\/tr>\n<tr>\n<td>CGI.PR.D<\/td>\n<td>SplitShare<\/td>\n<td>435,750<\/td>\n<td><a href=\"http:\/\/www.prefblog.com\/?p=22092\">new issue settled today<\/a>.<br \/>\nYTW SCENARIO<br \/>\nMaturity Type   : Soft Maturity<br \/>\nMaturity Date\t: 2023-06-14<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.25<br \/>\nBid-YTW : 3.65 %<\/td>\n<\/tr>\n<tr>\n<td>GWO.PR.N<\/td>\n<td>FixedReset<\/td>\n<td>120,350<\/td>\n<td>National crossed blocks of 75,000 and 39,400, both at 24.82.<br \/>\nYTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2025-01-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 24.72<br \/>\nBid-YTW : 2.97 %<\/td>\n<\/tr>\n<tr>\n<td>SLF.PR.F<\/td>\n<td>FixedReset<\/td>\n<td>115,300<\/td>\n<td>National crossed 75,000 at 25.89 and bought 20,000 from RBC at the same price. RBC crossed 13,200 at the same price again.<br \/>\nYTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2014-06-30<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.88<br \/>\nBid-YTW : 2.25 %<\/td>\n<\/tr>\n<tr>\n<td>TRP.PR.D<\/td>\n<td>FixedReset<\/td>\n<td>105,457<\/td>\n<td>Scotia crossed blocks of 25,000 and 60,000, both at 25.90.<br \/>\nYTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2019-04-30<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.85<br \/>\nBid-YTW : 3.44 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PR.Q<\/td>\n<td>Deemed-Retractible<\/td>\n<td>103,400<\/td>\n<td>RBC crossed 98,300 at 26.60.<br \/>\nYTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2013-06-29<br \/>\nMaturity Price  : 26.00<br \/>\nEvaluated at bid price : 26.53<br \/>\nBid-YTW : -13.38 %<\/td>\n<\/tr>\n<tr>\n<td>BNS.PR.T<\/td>\n<td>FixedReset<\/td>\n<td>54,087<\/td>\n<td>Scotia crossed 25,000 at 26.05. Nesbitt crossed 25,000 at the same price.<br \/>\nYTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2014-04-25<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.01<br \/>\nBid-YTW : 2.28 %<\/td>\n<\/tr>\n<tr>\n<td colspan='4'>There were 51 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n<table border='1'>\n<tr>\n<td colspan='3'><strong>Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Index<\/td>\n<td>Quote Data and Yield Notes<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.P<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 25.52 &#8211; 25.85<br \/>\nSpot Rate  :  0.3300<br \/>\nAverage  :  0.2331<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2043-05-30<br \/>\nMaturity Price  : 23.61<br \/>\nEvaluated at bid price : 25.52<br \/>\nBid-YTW : 2.91 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PF.C<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 24.54 &#8211; 24.86<br \/>\nSpot Rate  :  0.3200<br \/>\nAverage  :  0.2417<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2043-05-30<br \/>\nMaturity Price  : 24.17<br \/>\nEvaluated at bid price : 24.54<br \/>\nBid-YTW : 5.00 %<\/td>\n<\/tr>\n<tr>\n<td>BAM.PR.N<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 24.23 &#8211; 24.46<br \/>\nSpot Rate  :  0.2300<br \/>\nAverage  :  0.1576<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2043-05-30<br \/>\nMaturity Price  : 23.94<br \/>\nEvaluated at bid price : 24.23<br \/>\nBid-YTW : 4.96 %<\/td>\n<\/tr>\n<tr>\n<td>W.PR.H<\/td>\n<td>Perpetual-Premium<\/td>\n<td>Quote: 25.57 &#8211; 25.78<br \/>\nSpot Rate  :  0.2100<br \/>\nAverage  :  0.1396<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2013-06-29<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 25.57<br \/>\nBid-YTW : -13.31 %<\/td>\n<\/tr>\n<tr>\n<td>ELF.PR.H<\/td>\n<td>Perpetual-Premium<\/td>\n<td>Quote: 26.29 &#8211; 26.50<br \/>\nSpot Rate  :  0.2100<br \/>\nAverage  :  0.1450<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2021-04-17<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 26.29<br \/>\nBid-YTW : 4.84 %<\/td>\n<\/tr>\n<tr>\n<td>HSE.PR.A<\/td>\n<td>FixedReset<\/td>\n<td>Quote: 25.48 &#8211; 25.83<br \/>\nSpot Rate  :  0.3500<br \/>\nAverage  :  0.2895<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2043-05-30<br \/>\nMaturity Price  : 23.57<br \/>\nEvaluated at bid price : 25.48<br \/>\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>S&#038;P has a negative outlook on Ontario: \u2022In our view, Ontario continues to have a large, wealthy, and well-diversified economy; ongoing transfer payment support from the federal government for various social programs; adequate liquidity support; &hellip;<\/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-22102","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22102","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=22102"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22102\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}