{"id":22435,"date":"2013-07-07T12:56:43","date_gmt":"2013-07-07T16:56:43","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=22435"},"modified":"2013-07-07T12:56:43","modified_gmt":"2013-07-07T16:56:43","slug":"july-5-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=22435","title":{"rendered":"July 5, 2013"},"content":{"rendered":"

Nice article on pension derisking<\/a>:<\/p>\n

Such pension \u201cderisking\u201d approaches include lump-sum payouts to vested, terminated employees; liability-driven investment (LDI) strategies that match up plan assets with pension liabilities by moving from equities to long-term bonds; and the one currently making headlines \u2014 annuitization, the transfer of a sizable percentage of pension obligations to an insurance company for a paid premium. These tactics join more-traditional approaches, such as freezing and closing pension plans. Taken together, they constitute a sea change in pension-plan treatment.<\/p><\/blockquote>\n

A good US jobs number had the market in a tizzy<\/a>:<\/p>\n

Employment roared ahead in June, indicating the U.S. economy is poised for faster growth as it shakes off the impact of tax increases and budget cuts.<\/p>\n

Payrolls rose by 195,000 workers for a second month, the Labor Department reported today in Washington, exceeding the 165,000 gain projected by economists in a Bloomberg survey. The jobless rate stayed at 7.6 percent, close to a four-year low.<\/p>\n

Hourly earnings in the year ended in June advanced by the most since July 2011, giving Americans already buoyed by higher home prices more reason to boost household spending, which accounts for 70 percent of the economy. Stocks climbed, while the yield on 10-year Treasuries rose to the highest in almost two years on expectations the Federal Reserve will start trimming $85 billion in monthly bond purchases in September.<\/p><\/blockquote>\n

The Canadian preferred share market got knocked back, with PerpetualDiscounts losing 51bp, FixedResets off 20bp and DeemedRetractibles down 35bp. The Performance Highlights table was suitably dismal: very lengthy with only one winner; Brookfield issues led the way downwards. Interestingly, the Volume Highlights table is comprised entirely of Royal Bank issues, led by DeemedRetractibles; 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>\n-0.7751 %<\/td>\n2,566.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.22 %<\/td>\n3.56 %<\/td>\n44,070<\/td>\n18.15<\/td>\n1<\/td>\n-2.1304 %<\/td>\n3,893.0<\/td>\n<\/tr>\n
Floater<\/td>\n2.73 %<\/td>\n2.90 %<\/td>\n79,674<\/td>\n20.02<\/td>\n4<\/td>\n-0.7751 %<\/td>\n2,771.6<\/td>\n<\/tr>\n
OpRet<\/td>\n4.84 %<\/td>\n3.30 %<\/td>\n63,983<\/td>\n0.15<\/td>\n5<\/td>\n0.1483 %<\/td>\n2,619.1<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.67 %<\/td>\n4.27 %<\/td>\n69,221<\/td>\n3.96<\/td>\n6<\/td>\n-0.2030 %<\/td>\n2,966.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1483 %<\/td>\n2,394.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.60 %<\/td>\n4.12 %<\/td>\n102,524<\/td>\n0.09<\/td>\n12<\/td>\n-0.2568 %<\/td>\n2,278.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.35 %<\/td>\n5.38 %<\/td>\n141,102<\/td>\n14.74<\/td>\n26<\/td>\n-0.5064 %<\/td>\n2,402.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.96 %<\/td>\n3.44 %<\/td>\n241,676<\/td>\n3.60<\/td>\n83<\/td>\n-0.2027 %<\/td>\n2,482.7<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.06 %<\/td>\n4.49 %<\/td>\n178,207<\/td>\n4.87<\/td>\n44<\/td>\n-0.3485 %<\/td>\n2,390.5<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\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.G<\/td>\nFixedFloater<\/td>\n-2.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 22.82
\nEvaluated at bid price : 22.51
\nBid-YTW : 3.56 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n-1.93 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 21.29
\nEvaluated at bid price : 21.29
\nBid-YTW : 5.62 %<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\n-1.71 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 21.27
\nEvaluated at bid price : 21.27
\nBid-YTW : 5.63 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.71 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 23.86
\nEvaluated at bid price : 24.20
\nBid-YTW : 5.10 %<\/td>\n<\/tr>\n
BAM.PF.C<\/td>\nPerpetual-Discount<\/td>\n-1.60 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 21.50
\nEvaluated at bid price : 21.50
\nBid-YTW : 5.68 %<\/td>\n<\/tr>\n
CU.PR.G<\/td>\nPerpetual-Discount<\/td>\n-1.57 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 22.20
\nEvaluated at bid price : 22.55
\nBid-YTW : 5.04 %<\/td>\n<\/tr>\n
TRI.PR.B<\/td>\nFloater<\/td>\n-1.57 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 22.98
\nEvaluated at bid price : 23.25
\nBid-YTW : 2.24 %<\/td>\n<\/tr>\n
CU.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.54 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 22.04
\nEvaluated at bid price : 22.35
\nBid-YTW : 5.08 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n-1.46 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 17.57
\nEvaluated at bid price : 17.57
\nBid-YTW : 3.00 %<\/td>\n<\/tr>\n
SLF.PR.B<\/td>\nDeemed-Retractible<\/td>\n-1.40 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.28
\nBid-YTW : 5.66 %<\/td>\n<\/tr>\n
BAM.PF.B<\/td>\nFixedReset<\/td>\n-1.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 23.04
\nEvaluated at bid price : 24.76
\nBid-YTW : 4.29 %<\/td>\n<\/tr>\n
ELF.PR.H<\/td>\nPerpetual-Premium<\/td>\n-1.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 24.49
\nEvaluated at bid price : 24.90
\nBid-YTW : 5.53 %<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset<\/td>\n-1.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.35
\nBid-YTW : 3.68 %<\/td>\n<\/tr>\n
ELF.PR.G<\/td>\nPerpetual-Discount<\/td>\n-1.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 22.15
\nEvaluated at bid price : 22.15
\nBid-YTW : 5.38 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\n-1.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.08
\nBid-YTW : 5.62 %<\/td>\n<\/tr>\n
BAM.PR.Z<\/td>\nFixedReset<\/td>\n-1.31 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.66
\nBid-YTW : 4.19 %<\/td>\n<\/tr>\n
IFC.PR.C<\/td>\nFixedReset<\/td>\n-1.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.52
\nBid-YTW : 3.55 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nDeemed-Retractible<\/td>\n-1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.51
\nBid-YTW : 5.74 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nDeemed-Retractible<\/td>\n-1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.65
\nBid-YTW : 5.66 %<\/td>\n<\/tr>\n
GWO.PR.P<\/td>\nDeemed-Retractible<\/td>\n-1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.01
\nBid-YTW : 5.44 %<\/td>\n<\/tr>\n
GWO.PR.R<\/td>\nDeemed-Retractible<\/td>\n-1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.15
\nBid-YTW : 5.23 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.72
\nBid-YTW : 3.33 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nDeemed-Retractible<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.26
\nBid-YTW : 5.80 %<\/td>\n<\/tr>\n
BAM.PF.D<\/td>\nPerpetual-Discount<\/td>\n-1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 22.45
\nEvaluated at bid price : 22.75
\nBid-YTW : 5.42 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.51
\nBid-YTW : 5.33 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 23.24
\nEvaluated at bid price : 24.50
\nBid-YTW : 3.63 %<\/td>\n<\/tr>\n
PWF.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 24.51
\nEvaluated at bid price : 24.76
\nBid-YTW : 5.39 %<\/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.D<\/td>\nDeemed-Retractible<\/td>\n167,769<\/td>\nNesbitt crossed 150,000 at 25.20.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.21
\nBid-YTW : 4.48 %<\/td>\n<\/tr>\n
RY.PR.B<\/td>\nDeemed-Retractible<\/td>\n162,337<\/td>\nNesbitt crossed 155,000 at 25.40.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.32
\nBid-YTW : 4.36 %<\/td>\n<\/tr>\n
RY.PR.G<\/td>\nDeemed-Retractible<\/td>\n138,040<\/td>\nNesbitt crossed 130,000 at 25.20.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.15
\nBid-YTW : 4.51 %<\/td>\n<\/tr>\n
RY.PR.C<\/td>\nDeemed-Retractible<\/td>\n137,600<\/td>\nNesbitt crossed 130,000 at 25.30.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.31
\nBid-YTW : 4.52 %<\/td>\n<\/tr>\n
RY.PR.T<\/td>\nFixedReset<\/td>\n104,233<\/td>\nNesbitt crossed 50,000 at 26.30; RBC crossed 48,900 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.25
\nBid-YTW : 2.43 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n67,566<\/td>\nRBC crossed blocks of 12,500 and 50,000, both at 25.40.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.38
\nBid-YTW : 3.49 %<\/td>\n<\/tr>\n
There were 38 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
PWF.PR.K<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.80 – 24.19
\nSpot Rate : 0.3900
\nAverage : 0.2633<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 23.53
\nEvaluated at bid price : 23.80
\nBid-YTW : 5.28 %<\/td>\n<\/tr>\n

POW.PR.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.71 – 25.05
\nSpot Rate : 0.3400
\nAverage : 0.2366<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 24.47
\nEvaluated at bid price : 24.71
\nBid-YTW : 5.68 %<\/td>\n<\/tr>\n

BAM.PR.K<\/td>\nFloater<\/td>\nQuote: 17.57 – 17.90
\nSpot Rate : 0.3300
\nAverage : 0.2270<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-05
\nMaturity Price : 17.57
\nEvaluated at bid price : 17.57
\nBid-YTW : 3.00 %<\/td>\n<\/tr>\n

BMO.PR.J<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.30 – 25.59
\nSpot Rate : 0.2900
\nAverage : 0.1923<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.30
\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n

FTS.PR.E<\/td>\nOpRet<\/td>\nQuote: 26.08 – 26.51
\nSpot Rate : 0.4300
\nAverage : 0.3346<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-08-04
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.08
\nBid-YTW : -5.33 %<\/td>\n<\/tr>\n

RY.PR.P<\/td>\nFixedReset<\/td>\nQuote: 25.60 – 25.85
\nSpot Rate : 0.2500
\nAverage : 0.1638<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : 3.56 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Nice article on pension derisking: Such pension \u201cderisking\u201d approaches include lump-sum payouts to vested, terminated employees; liability-driven investment (LDI) strategies that match up plan assets with pension liabilities by moving from equities to long-term bonds; …<\/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-22435","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22435","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=22435"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22435\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}