{"id":22231,"date":"2013-06-13T22:10:37","date_gmt":"2013-06-14T02:10:37","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=22231"},"modified":"2013-06-13T22:10:37","modified_gmt":"2013-06-14T02:10:37","slug":"june-13-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=22231","title":{"rendered":"June 13, 2013"},"content":{"rendered":"

Riding the tiger is easy … the hard part is getting off<\/a>:<\/p>\n

Federal Reserve Chairman Ben S. Bernanke has repeatedly said a reduction in the Fed\u2019s $85 billion in monthly bond purchases wouldn\u2019t mean an end to record easing. Investors are behaving as if they don\u2019t believe him.<\/p>\n

The yield on the 10-year Treasury note has risen to 2.19 percent, an almost 14-month high, from 1.63 percent on May 2 as investors bet the Fed will begin trimming bond buying. The surge is undermining Bernanke\u2019s unprecedented effort to hold down borrowing costs and combat 7.6 percent unemployment.
…<\/b>
Investors interpret policy makers\u2019 talk of reduced bond purchases as a signal the Fed will begin to increase its main interest rate as soon as next year. They see a 47 percent chance the Fed will raise the rate to at least 0.5 percent from zero to 0.25 percent by December 2014, according to prices for federal funds futures contracts.<\/p>\n

That\u2019s an increase from about 20 percent probability two months ago. It also contrasts with a majority of 14 Fed officials who forecast in March that the FOMC won\u2019t increase the federal funds rate until 2015 or later. The Fed has held the rate banks charge one another for overnight loans near zero since December 2008.<\/p><\/blockquote>\n

I mentioned a pseudo-scandal in the FX market yesterday … naturally it is being used as an excuse for more regulation<\/a>:<\/p>\n

Global regulators may start overseeing currency rates in a widening response to benchmark-rate setting scandals that began with revelations on the manipulation of Libor, according to two people familiar with the matter.<\/p>\n

The International Organization of Securities Commissions, a Madrid-based group known as Iosco that harmonizes market rules, may propose final guidelines improving transparency and oversight of benchmarks, including the WM\/Reuters rates, as soon as next month, said the people, who asked not to be named because the talks aren\u2019t finalized.<\/p><\/blockquote>\n

There was a bit of a rebound for the Canadian preferred share market today, with PerpetualPremiums winning 13bp, FixedResets up 10bp and DeemedRetractibles gaining 6bp. The lengthy Performance Highlights Table has more winners than losers, for a change, with BAM PerpetualDiscounts continuing to head the loser list. Volume was above average.<\/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>\n0.2694 %<\/td>\n2,561.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.02 %<\/td>\n3.35 %<\/td>\n43,222<\/td>\n18.60<\/td>\n1<\/td>\n0.8529 %<\/td>\n4,090.2<\/td>\n<\/tr>\n
Floater<\/td>\n2.61 %<\/td>\n2.91 %<\/td>\n83,063<\/td>\n19.97<\/td>\n5<\/td>\n0.2694 %<\/td>\n2,765.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.85 %<\/td>\n2.27 %<\/td>\n64,150<\/td>\n0.08<\/td>\n5<\/td>\n0.0156 %<\/td>\n2,616.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.64 %<\/td>\n4.06 %<\/td>\n105,869<\/td>\n4.03<\/td>\n6<\/td>\n0.0842 %<\/td>\n2,982.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0156 %<\/td>\n2,392.6<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.36 %<\/td>\n4.98 %<\/td>\n89,851<\/td>\n14.28<\/td>\n32<\/td>\n0.1347 %<\/td>\n2,317.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.19 %<\/td>\n5.41 %<\/td>\n411,494<\/td>\n14.88<\/td>\n7<\/td>\n-2.0853 %<\/td>\n2,431.7<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.94 %<\/td>\n3.07 %<\/td>\n237,297<\/td>\n3.46<\/td>\n82<\/td>\n0.0972 %<\/td>\n2,492.0<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.01 %<\/td>\n4.79 %<\/td>\n148,710<\/td>\n6.99<\/td>\n44<\/td>\n0.0636 %<\/td>\n2,403.1<\/td>\n<\/tr>\n<\/table>\n\n\n\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.N<\/td>\nPerpetual-Discount<\/td>\n-1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 21.71
\nEvaluated at bid price : 21.96
\nBid-YTW : 5.41 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n-1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 22.02
\nEvaluated at bid price : 22.02
\nBid-YTW : 5.41 %<\/td>\n<\/tr>\n
RY.PR.E<\/td>\nDeemed-Retractible<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.01
\nBid-YTW : 4.55 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 23.42
\nEvaluated at bid price : 25.02
\nBid-YTW : 3.21 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Premium<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 24.17
\nEvaluated at bid price : 24.50
\nBid-YTW : 5.02 %<\/td>\n<\/tr>\n
ELF.PR.H<\/td>\nPerpetual-Premium<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-17
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.36
\nBid-YTW : 5.44 %<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nDeemed-Retractible<\/td>\n1.23 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.03
\nBid-YTW : 5.43 %<\/td>\n<\/tr>\n
CU.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 23.08
\nEvaluated at bid price : 23.50
\nBid-YTW : 4.80 %<\/td>\n<\/tr>\n
IFC.PR.C<\/td>\nFixedReset<\/td>\n1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.62
\nBid-YTW : 3.35 %<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset<\/td>\n1.40 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.42
\nBid-YTW : 3.43 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n1.64 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 23.49
\nEvaluated at bid price : 24.73
\nBid-YTW : 2.93 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n2.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.86
\nBid-YTW : 3.12 %<\/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
BAM.PF.D<\/td>\nPerpetual-Discount<\/td>\n454,120<\/td>\nNew issue settled today<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 21.99
\nEvaluated at bid price : 22.30
\nBid-YTW : 5.51 %<\/td>\n<\/tr>\n
TRP.PR.D<\/td>\nFixedReset<\/td>\n255,562<\/td>\nNesbitt crossed blocks of 40,000 shares, 50,000 shares, 23,600 and 75,000, all at 25.30. RBC crossed 40,000 at 25.30.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 23.24
\nEvaluated at bid price : 25.40
\nBid-YTW : 3.68 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset<\/td>\n122,001<\/td>\nNational crossed blocks of 49,500 and 50,500, both at 24.75.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.69
\nBid-YTW : 3.31 %<\/td>\n<\/tr>\n
PWF.PR.S<\/td>\nPerpetual-Premium<\/td>\n97,988<\/td>\nTD crossed 79,800 at 24.70.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 24.30
\nEvaluated at bid price : 24.68
\nBid-YTW : 4.91 %<\/td>\n<\/tr>\n
ENB.PR.Y<\/td>\nFixedReset<\/td>\n81,860<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 23.09
\nEvaluated at bid price : 24.96
\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n
CM.PR.M<\/td>\nFixedReset<\/td>\n68,871<\/td>\nNesbitt crossed blocks of 24,900 and 25,000, both at 26.39.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.39
\nBid-YTW : 2.22 %<\/td>\n<\/tr>\n
There were 42 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
TRI.PR.B<\/td>\nFloater<\/td>\nQuote: 23.50 – 24.50
\nSpot Rate : 1.0000
\nAverage : 0.6625<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 23.20
\nEvaluated at bid price : 23.50
\nBid-YTW : 2.22 %<\/td>\n<\/tr>\n

HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.85 – 25.75
\nSpot Rate : 0.9000
\nAverage : 0.6047<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.85
\nBid-YTW : 5.08 %<\/td>\n<\/tr>\n

PWF.PR.A<\/td>\nFloater<\/td>\nQuote: 23.62 – 24.25
\nSpot Rate : 0.6300
\nAverage : 0.4885<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 23.33
\nEvaluated at bid price : 23.62
\nBid-YTW : 2.20 %<\/td>\n<\/tr>\n

RY.PR.E<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.01 – 25.36
\nSpot Rate : 0.3500
\nAverage : 0.2228<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.01
\nBid-YTW : 4.55 %<\/td>\n<\/tr>\n

RY.PR.F<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.35 – 25.65
\nSpot Rate : 0.3000
\nAverage : 0.1797<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.35
\nBid-YTW : 4.31 %<\/td>\n<\/tr>\n

HSE.PR.A<\/td>\nFixedReset<\/td>\nQuote: 25.02 – 25.37
\nSpot Rate : 0.3500
\nAverage : 0.2448<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-06-13
\nMaturity Price : 23.42
\nEvaluated at bid price : 25.02
\nBid-YTW : 3.21 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Riding the tiger is easy … the hard part is getting off: Federal Reserve Chairman Ben S. Bernanke has repeatedly said a reduction in the Fed\u2019s $85 billion in monthly bond purchases wouldn\u2019t mean an …<\/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-22231","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22231","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=22231"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22231\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}