{"id":22928,"date":"2013-08-30T21:31:41","date_gmt":"2013-08-31T01:31:41","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=22928"},"modified":"2013-08-30T21:31:41","modified_gmt":"2013-08-31T01:31:41","slug":"august-30-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=22928","title":{"rendered":"August 30, 2013"},"content":{"rendered":"

Bloomberg has some chatter on the Fed derby<\/a>:<\/p>\n

Investors are increasingly seeking advice on how the potential nomination of Lawrence Summers as chairman of the Federal Reserve instead of Vice Chairman Janet Yellen might influence monetary policy and financial markets.<\/p>\n

Inquiries about Summers\u2019s chances \u201care picking up a lot,\u201d said Matthew Benjamin, an analyst at Medley Global Advisors LLC in Washington, a firm that provides political intelligence to hedge funds. \u201cWall Street is very interested in this, and there is a perception that there is a difference between Yellen and Summers\u201d in their approach to monetary stimulus.
…<\/b>
The possibility of a Summers chairmanship has contributed to the increase in borrowing costs because he is seen as likely to end the Fed\u2019s quantitative easing sooner than Yellen would, said Krishna Memani, New York-based chief investment officer of fixed income at Oppenheimer Funds Inc., with about $208 billion under management.
…<\/b>
While former Treasury Secretary Summers, 58, has no record making monetary policy, he expressed skepticism about the effectiveness of QE in an April conference hosted by Drobny Global Advisors.<\/p>\n

By contrast, Yellen\u2019s views are well known after more than a decade at the central bank. Yellen, 67, was a Fed governor from 1994 to 1997, president of the San Francisco Fed from 2004 to 2010 and vice chairman since 2010.<\/p>\n

She has been an architect of the current stimulus campaign and Fed communication strategy and has never dissented from a monetary policy decision under Bernanke.<\/p>\n

\u201cWe know with Yellen that she will continue with their current program,\u201d Memani said. \u201cWith Summers it\u2019s a lot less certain.\u201d<\/p><\/blockquote>\n

Organized labour – such as it is – has indicated a preference for Yellen<\/a>:<\/p>\n

[AFL-CIO President Richard] TRUMKA: Well, what I said is, if you look at history and their records, she seems to have the edge, she seems to be a better candidate from our point of view, and here\u2019s why. One, when things were going wrong in the economy, in each one of those instances, she predicted them accurately. Larry didn\u2019t. Larry we thought at that time was too close to Wall Street, and it allowed him to jade his thought process.
\nThe second thing is, Janet Yellen has been for a balanced approach to the Federal Reserve. That means that – they have two mandates, fight inflation and create full employment. Larry and everyone before, all the way back to Paul Volcker, have said we\u2019re not going to worry about full employment, we\u2019re only going to worry –
\n[Talking Head Al] HUNT: But Larry does say he worries about full employment.
\nTRUMKA: Recently. And I hope that that continues on. And if he becomes the – the chair of the Fed, I hope he continues on and – and aggressively enforces that part of his mandate, as he does the inflation mandate.
\nHUNT: So, therefore, if Obama were to nominate Summers rather than your preference, which would be Yellen, you wouldn\u2019t oppose the Summers nomination?
\nTRUMKA: I don\u2019t know. It would all depend on what happens, you know, what\u2019s said and what he\u2019s going to do.<\/p><\/blockquote>\n

The Canadian preferred share market closed the month with another good day, with PerpetualDiscounts winning 40bp, FixedResets gaining 12bp and DeemedRetractibles up 26bp. The Performance Highlights table reflects the move, although it is much shorter than it has been in the past couple of weeks. Volume was on the low side of 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-0.0785 %<\/td>\n2,608.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.25 %<\/td>\n3.55 %<\/td>\n35,832<\/td>\n18.22<\/td>\n1<\/td>\n-1.7590 %<\/td>\n3,904.9<\/td>\n<\/tr>\n
Floater<\/td>\n2.58 %<\/td>\n2.92 %<\/td>\n70,958<\/td>\n19.86<\/td>\n5<\/td>\n-0.0785 %<\/td>\n2,816.7<\/td>\n<\/tr>\n
OpRet<\/td>\n4.64 %<\/td>\n2.08 %<\/td>\n67,440<\/td>\n0.08<\/td>\n3<\/td>\n0.0773 %<\/td>\n2,620.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.73 %<\/td>\n4.87 %<\/td>\n55,261<\/td>\n3.85<\/td>\n6<\/td>\n-0.0067 %<\/td>\n2,958.6<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0773 %<\/td>\n2,396.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.76 %<\/td>\n5.82 %<\/td>\n120,718<\/td>\n14.03<\/td>\n12<\/td>\n0.2848 %<\/td>\n2,248.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.62 %<\/td>\n5.77 %<\/td>\n156,174<\/td>\n14.19<\/td>\n25<\/td>\n0.3977 %<\/td>\n2,295.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.95 %<\/td>\n3.81 %<\/td>\n243,431<\/td>\n3.87<\/td>\n85<\/td>\n0.1163 %<\/td>\n2,451.7<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.20 %<\/td>\n5.13 %<\/td>\n201,913<\/td>\n6.95<\/td>\n43<\/td>\n0.2616 %<\/td>\n2,339.9<\/td>\n<\/tr>\n<\/table>\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-1.76 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-08-30
\nMaturity Price : 22.67
\nEvaluated at bid price : 22.34
\nBid-YTW : 3.55 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.40
\nBid-YTW : 4.37 %<\/td>\n<\/tr>\n
RY.PR.F<\/td>\nDeemed-Retractible<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.77
\nBid-YTW : 4.62 %<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nDeemed-Retractible<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.00
\nBid-YTW : 6.49 %<\/td>\n<\/tr>\n
BNS.PR.Y<\/td>\nFixedReset<\/td>\n1.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.44
\nBid-YTW : 4.06 %<\/td>\n<\/tr>\n
CU.PR.E<\/td>\nPerpetual-Discount<\/td>\n1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-08-30
\nMaturity Price : 22.27
\nEvaluated at bid price : 22.59
\nBid-YTW : 5.44 %<\/td>\n<\/tr>\n
POW.PR.G<\/td>\nPerpetual-Premium<\/td>\n1.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-08-30
\nMaturity Price : 24.19
\nEvaluated at bid price : 24.59
\nBid-YTW : 5.76 %<\/td>\n<\/tr>\n
BNS.PR.L<\/td>\nDeemed-Retractible<\/td>\n1.47 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.92
\nBid-YTW : 4.62 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.51 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-08-30
\nMaturity Price : 22.15
\nEvaluated at bid price : 22.15
\nBid-YTW : 5.57 %<\/td>\n<\/tr>\n
PWF.PR.R<\/td>\nPerpetual-Discount<\/td>\n1.66 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-08-30
\nMaturity Price : 24.11
\nEvaluated at bid price : 24.50
\nBid-YTW : 5.66 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nDeemed-Retractible<\/td>\n1.69 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.00
\nBid-YTW : 6.44 %<\/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
TD.PR.T<\/td>\nFixedReset<\/td>\n149,252<\/td>\nRecent exchange issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 2.52 %<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nDeemed-Retractible<\/td>\n105,100<\/td>\nTD crossed 49,500 at 25.00 and 45,000 at 25.02.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.02
\nBid-YTW : 4.92 %<\/td>\n<\/tr>\n
BMO.PR.J<\/td>\nDeemed-Retractible<\/td>\n60,956<\/td>\nNesbitt crossed blocks of 28,400 and 25,000, both at 25.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.03
\nBid-YTW : 4.50 %<\/td>\n<\/tr>\n
PWF.PR.H<\/td>\nPerpetual-Premium<\/td>\n31,905<\/td>\nTD crossed 30,000 at 24.50.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-08-30
\nMaturity Price : 24.18
\nEvaluated at bid price : 24.44
\nBid-YTW : 5.95 %<\/td>\n<\/tr>\n
BNS.PR.N<\/td>\nDeemed-Retractible<\/td>\n31,815<\/td>\nTD crossed 25,000 at 25.36.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-01-27
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.22
\nBid-YTW : 5.13 %<\/td>\n<\/tr>\n
PWF.PR.G<\/td>\nPerpetual-Premium<\/td>\n30,772<\/td>\nTD crossed 29,900 at 24.90.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-08-30
\nMaturity Price : 24.66
\nEvaluated at bid price : 24.92
\nBid-YTW : 5.98 %<\/td>\n<\/tr>\n
There were 29 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
HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.59 – 25.49
\nSpot Rate : 0.9000
\nAverage : 0.5782<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.59
\nBid-YTW : 5.40 %<\/td>\n<\/tr>\n

GWO.PR.N<\/td>\nFixedReset<\/td>\nQuote: 21.62 – 22.50
\nSpot Rate : 0.8800
\nAverage : 0.6549<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.62
\nBid-YTW : 4.86 %<\/td>\n<\/tr>\n

MFC.PR.G<\/td>\nFixedReset<\/td>\nQuote: 25.40 – 25.74
\nSpot Rate : 0.3400
\nAverage : 0.2214<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.40
\nBid-YTW : 3.82 %<\/td>\n<\/tr>\n

PWF.PR.L<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.28 – 22.67
\nSpot Rate : 0.3900
\nAverage : 0.2794<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-08-30
\nMaturity Price : 22.04
\nEvaluated at bid price : 22.28
\nBid-YTW : 5.78 %<\/td>\n<\/tr>\n

RY.PR.E<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.61 – 24.92
\nSpot Rate : 0.3100
\nAverage : 0.2015<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.61
\nBid-YTW : 4.76 %<\/td>\n<\/tr>\n

CU.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 21.08 – 21.45
\nSpot Rate : 0.3700
\nAverage : 0.2624<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-08-30
\nMaturity Price : 21.08
\nEvaluated at bid price : 21.08
\nBid-YTW : 5.37 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Bloomberg has some chatter on the Fed derby: Investors are increasingly seeking advice on how the potential nomination of Lawrence Summers as chairman of the Federal Reserve instead of Vice Chairman Janet Yellen might influence …<\/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-22928","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22928","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=22928"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22928\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}