{"id":23027,"date":"2013-09-10T20:46:24","date_gmt":"2013-09-11T00:46:24","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=23027"},"modified":"2013-09-10T20:46:24","modified_gmt":"2013-09-11T00:46:24","slug":"september-10-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=23027","title":{"rendered":"September 10, 2013"},"content":{"rendered":"

Jayson Horner, chief executive officer, president, and co-founder of CanDeal, writes a piece in the Globe on electronic bond trading<\/a>:<\/p>\n

As regulators seek to enact change, they must balance their transparency objectives with the needs of market participants, respecting the unique properties and characteristics of each market and its participants.<\/p>\n

An optimally transparent solution will facilitate price discovery, but should not compromise an investor\u2019s ability to successfully execute a trade strategy, or obstruct liquidity providers looking to prudently manage their risk. Interestingly, the knock-on effect of excessive transparency can ultimately also harm the retail investor to the extent that institutional investors act as fiduciaries for their benefit \u2013 through for example third-party asset management, pension plans and insurance.<\/p><\/blockquote>\n

That’s certainly the right idea, but harm to retail investors doesn’t stop there. Harm is also caused when dealers can’t make money out of corporate debt in the public markets, so they become reluctant to finance inventory, which in turn encourages issuers to go the private placement route. This is happening in the States; I have often railed in this blog about the harm that TRACE is doing to all participants in the US corporate bond market.<\/p>\n

As I have also said before, regulators must ask themselves: what is the market for? Specifically, what is this market for? Is it something that, ideally, will allow grandma to invest her $5,000 at a so-called fair price? Or is it something that, ideally, will allow Very Big Manufacturing, Inc., to issue $500-million in debt with entirely reasonable prospects of rolling it on maturity?<\/p>\n

Grandma’s got the alternative of mutual funds and ETFs which, for most people, make more sense than individual bond purchases anyway. Very Big Manufacturing, Inc.’s alternatives are to look for money abroad (at much higher risk and expense), or issue as a private placement (reducing investor choice), or simply not to expand due to financing difficulties.<\/p>\n

It was a poor day for the Canadian preferred share market, with PerpetualDiscounts off 10bp, FixedResets down 20bp and DeemedRetractibles losing 23bp. The Performance Highlights table is surprisingly lengthy and comprised almost entirely of losers. Volume was extremely high.<\/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>\n0.2283 %<\/td>\n2,586.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.31 %<\/td>\n3.61 %<\/td>\n33,478<\/td>\n18.09<\/td>\n1<\/td>\n-2.3462 %<\/td>\n3,855.9<\/td>\n<\/tr>\n
Floater<\/td>\n2.60 %<\/td>\n2.90 %<\/td>\n67,498<\/td>\n19.89<\/td>\n5<\/td>\n0.2283 %<\/td>\n2,792.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.63 %<\/td>\n2.92 %<\/td>\n66,780<\/td>\n0.54<\/td>\n3<\/td>\n0.0644 %<\/td>\n2,624.0<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.76 %<\/td>\n4.79 %<\/td>\n52,834<\/td>\n4.09<\/td>\n6<\/td>\n0.0675 %<\/td>\n2,945.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0644 %<\/td>\n2,399.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.94 %<\/td>\n5.95 %<\/td>\n114,987<\/td>\n0.08<\/td>\n2<\/td>\n-0.0798 %<\/td>\n2,232.5<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.67 %<\/td>\n5.80 %<\/td>\n130,784<\/td>\n14.13<\/td>\n36<\/td>\n-0.1001 %<\/td>\n2,289.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.94 %<\/td>\n3.89 %<\/td>\n241,921<\/td>\n3.84<\/td>\n85<\/td>\n-0.2026 %<\/td>\n2,445.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.20 %<\/td>\n5.11 %<\/td>\n191,194<\/td>\n6.93<\/td>\n43<\/td>\n-0.2285 %<\/td>\n2,340.5<\/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
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-2.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 22.47
\nEvaluated at bid price : 22.06
\nBid-YTW : 3.61 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n-2.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 20.57
\nEvaluated at bid price : 20.57
\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n-2.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.56
\nBid-YTW : 5.07 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nDeemed-Retractible<\/td>\n-1.73 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.03
\nBid-YTW : 6.50 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n-1.62 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 23.94
\nEvaluated at bid price : 24.35
\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\n-1.48 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.55
\nBid-YTW : 5.45 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset<\/td>\n-1.44 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.31
\nBid-YTW : 4.58 %<\/td>\n<\/tr>\n
CU.PR.D<\/td>\nPerpetual-Discount<\/td>\n-1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 22.28
\nEvaluated at bid price : 22.60
\nBid-YTW : 5.45 %<\/td>\n<\/tr>\n
BAM.PR.Z<\/td>\nFixedReset<\/td>\n-1.24 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.51
\nBid-YTW : 4.54 %<\/td>\n<\/tr>\n
TRP.PR.B<\/td>\nFixedReset<\/td>\n-1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 20.16
\nEvaluated at bid price : 20.16
\nBid-YTW : 4.27 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nDeemed-Retractible<\/td>\n-1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.73
\nBid-YTW : 6.61 %<\/td>\n<\/tr>\n
BAM.PF.B<\/td>\nFixedReset<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 22.77
\nEvaluated at bid price : 24.05
\nBid-YTW : 4.75 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.25
\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n
CU.PR.E<\/td>\nPerpetual-Discount<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 22.20
\nEvaluated at bid price : 22.50
\nBid-YTW : 5.47 %<\/td>\n<\/tr>\n
SLF.PR.B<\/td>\nDeemed-Retractible<\/td>\n-1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.91
\nBid-YTW : 6.35 %<\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nDeemed-Retractible<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.74
\nBid-YTW : 6.38 %<\/td>\n<\/tr>\n
TRI.PR.B<\/td>\nFloater<\/td>\n1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 22.72
\nEvaluated at bid price : 23.01
\nBid-YTW : 2.27 %<\/td>\n<\/tr>\n
BAM.PR.X<\/td>\nFixedReset<\/td>\n1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 22.76
\nEvaluated at bid price : 23.75
\nBid-YTW : 4.26 %<\/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.Y<\/td>\nFixedReset<\/td>\n230,408<\/td>\nDesjardins crossed 72,400 at 24.92; TD crossed 139,500 at 24.82.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.91
\nBid-YTW : 3.94 %<\/td>\n<\/tr>\n
ENB.PR.F<\/td>\nFixedReset<\/td>\n88,696<\/td>\nNesbitt crossed 30,200 at 24.10.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 22.83
\nEvaluated at bid price : 24.08
\nBid-YTW : 4.58 %<\/td>\n<\/tr>\n
BNS.PR.Q<\/td>\nFixedReset<\/td>\n68,770<\/td>\nDesjardins crossed 38,000 at 25.00; RBC crossed 15,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 3.91 %<\/td>\n<\/tr>\n
ENB.PR.Y<\/td>\nFixedReset<\/td>\n66,564<\/td>\nNesbitt crossed 50,000 at 23.83.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 22.60
\nEvaluated at bid price : 23.72
\nBid-YTW : 4.52 %<\/td>\n<\/tr>\n
BMO.PR.J<\/td>\nDeemed-Retractible<\/td>\n54,541<\/td>\nNesbitt crossed 40,000 at 25.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.07
\nBid-YTW : 4.49 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n49,921<\/td>\nTD crossed 35,000 at 24.52.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.50
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
There were 59 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
FTS.PR.H<\/td>\nFixedReset<\/td>\nQuote: 20.57 – 21.25
\nSpot Rate : 0.6800
\nAverage : 0.4470<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 20.57
\nEvaluated at bid price : 20.57
\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n

BAM.PF.D<\/td>\nPerpetual-Discount<\/td>\nQuote: 21.00 – 21.50
\nSpot Rate : 0.5000
\nAverage : 0.3134<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 21.00
\nEvaluated at bid price : 21.00
\nBid-YTW : 5.98 %<\/td>\n<\/tr>\n

HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.55 – 25.20
\nSpot Rate : 0.6500
\nAverage : 0.4738<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.55
\nBid-YTW : 5.45 %<\/td>\n<\/tr>\n

BAM.PR.Z<\/td>\nFixedReset<\/td>\nQuote: 25.51 – 25.85
\nSpot Rate : 0.3400
\nAverage : 0.2318<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.51
\nBid-YTW : 4.54 %<\/td>\n<\/tr>\n

FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 21.80 – 22.23
\nSpot Rate : 0.4300
\nAverage : 0.3306<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-10
\nMaturity Price : 21.80
\nEvaluated at bid price : 21.80
\nBid-YTW : 5.67 %<\/td>\n<\/tr>\n

SLF.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 21.74 – 22.04
\nSpot Rate : 0.3000
\nAverage : 0.2081<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.74
\nBid-YTW : 6.38 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Jayson Horner, chief executive officer, president, and co-founder of CanDeal, writes a piece in the Globe on electronic bond trading: As regulators seek to enact change, they must balance their transparency objectives with the needs …<\/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-23027","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/23027","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=23027"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/23027\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}