{"id":23033,"date":"2013-09-11T22:31:04","date_gmt":"2013-09-12T02:31:04","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=23033"},"modified":"2013-09-11T22:31:04","modified_gmt":"2013-09-12T02:31:04","slug":"september-11-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=23033","title":{"rendered":"September 11, 2013"},"content":{"rendered":"

The revolving door revolved again<\/a>:<\/p>\n

The former chief of staff to federal finance minister Jim Flaherty has left Ottawa to take on a new role at the Bank of Nova Scotia.<\/p>\n

Kevin McCarthy will become a director in Scotiabank\u2019s Canadian banking unit starting in November.<\/p><\/blockquote>\n

It always pays to remind the political hacks of what you can do for them – you never know when you’re going to have to kowtow<\/a>. Three cheers for the Crony Capitalist Snivel Servants’ Superannuation Scheme!<\/p>\n

Who wants to buy some bonds<\/a>?<\/p>\n

Verizon Communications Inc. (VZ) is poised to pay investors a premium on an unprecedented $49 billion of bonds, a cost Apple Inc. (AAPL) escaped during its then-record $17 billion offering four months ago.<\/p>\n

The telephone company may sell $11 billion of 10-year bonds today at a yield that\u2019s 225 basis points more than Treasuries, according to a person with knowledge of the issue. The yield is 47 basis points more than investors demand to own bonds with similar maturities and BBB ratings, according to data compiled by Bloomberg.
…<\/b>
Along with $4 billion of floating-rate debt due in 2016 and 2018, Verizon also plans to sell $4.25 billion of three-year, fixed-rate notes that may yield 165 basis points more than Treasuries; $4.75 billion of five-year debt with a spread of 190 basis points; $4 billion of seven-year securities that pay 215; $6 billion of 20-year bonds yielding 250 more than benchmarks; and a $15 billion, 30-year portion with a spread of 265, the person said.<\/p><\/blockquote>\n

DBRS considers that the GMP – Richardson – Macquarie dance has no effects on the creditworthiness of GMP.PR.B<\/a>:<\/p>\n

Richardson-GMP, which is roughly one third owned by GMP, announced last night an agreement to purchase MPW for $132 million. Richardson-GMP will be issuing $60 million of preferred shares, half of which will be purchased by GMP, and $30 million of common shares of which GMP will purchase roughly $10 million. GMP will use existing cash resources to fund its net $40 million incremental investment in Richardson-GMP.<\/p>\n

While Richardson-GMP has not been contributing much to GMP\u2019s bottom line, it has been modestly profitable recently. With MPW adding nearly $13 billion in assets under administration to Richardson-GMP\u2019s existing $15 billion, the incremental scale will improve Richardson-GMP\u2019s profitability. DBRS views the private wealth business as a diversifying influence in GMP\u2019s profitability profile, but this acquisition does not overcome the fundamental capital market weakness challenges which are the primary reason for the existing Negative trend.<\/p><\/blockquote>\n

IGM, proud issuer of IGM.PR.B, was confirmed at Pfd-2(high) by DBRS<\/a>:<\/p>\n

With the help of its unique exclusive consultant network, IG has returned to positive net sales during the first half of 2013, after experiencing net redemptions of $149 million during the same period in 2012. The IG distribution model \u2013 which relies on close communication between consultants and customers \u2013 yields a lower redemption rate (9.8% twelve-month trailing redemption rate on long-term mutual funds at June 30, 2013) than that of the industry (16.5% industry average, provided by IGM).<\/p>\n

By contrast, the Mackenzie business model, which caters to third-party distribution, is more vulnerable to underlying fund performance and investor sentiment, which is reflected in the higher redemption rate of 16.2% for the twelve months trailing Q2 2013. Overall assets under management (AUM) is up, helped by favourable equity market performance and modest net sales so far in 2013. When investor sentiment towards equities stabilizes, Mackenzie funds should fare well versus its peers.
…<\/b>
In addition to strong profitability, the Company\u2019s credit rating also benefits from strong cash flows (which easily cover the upfront distribution costs of mutual fund sales), strong liquidity and a conservative financial profile. Debt plus preferred shares-to-EBITDA was 1.1 times (x) in 2012 and for H1 2013, which is conservative. The Company\u2019s ratio of debt plus preferred shares-to-total capitalization remains appropriate for the rating, at just over 25%, down noticeably from 2010.<\/p><\/blockquote>\n

The Canadian preferred share market came back a little today, with PerpetualDiscounts winning 23bp, FixedResets gaining 5bp and DeemedRetractibles up 12bp. Volatility continues to be high, with another lengthy Performance Highlights table heavily skewed towards winners, with BAM PerpetualDiscount issues prominent. Volume was slightly above average.<\/p>\n

PerpetualDiscounts now yield 5.78%, equivalent to 7.51% interest at the standard equivalency factor of 1.3x. Long Corporates<\/a> now yield about 5.0%, so the pre-tax interest-equivalent spread (in this context, the Seniority Spread) is now about 250bp, a sharp decline from the 270bp reported September 4<\/a>, as PerpetualDiscounts are, overall, unchanged while long corporates got thumped for 20bp.<\/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-0.0755 %<\/td>\n2,584.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.28 %<\/td>\n3.59 %<\/td>\n32,925<\/td>\n18.14<\/td>\n1<\/td>\n0.6346 %<\/td>\n3,880.4<\/td>\n<\/tr>\n
Floater<\/td>\n2.61 %<\/td>\n2.87 %<\/td>\n67,765<\/td>\n20.07<\/td>\n5<\/td>\n-0.0755 %<\/td>\n2,790.8<\/td>\n<\/tr>\n
OpRet<\/td>\n4.65 %<\/td>\n2.98 %<\/td>\n67,273<\/td>\n0.54<\/td>\n3<\/td>\n0.1383 %<\/td>\n2,627.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.76 %<\/td>\n4.79 %<\/td>\n52,829<\/td>\n4.09<\/td>\n6<\/td>\n0.0092 %<\/td>\n2,945.8<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1383 %<\/td>\n2,402.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.94 %<\/td>\n6.06 %<\/td>\n116,508<\/td>\n13.75<\/td>\n2<\/td>\n0.0000 %<\/td>\n2,232.5<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.67 %<\/td>\n5.78 %<\/td>\n129,740<\/td>\n14.16<\/td>\n36<\/td>\n0.2303 %<\/td>\n2,295.0<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.95 %<\/td>\n3.90 %<\/td>\n242,985<\/td>\n3.89<\/td>\n85<\/td>\n0.0475 %<\/td>\n2,446.6<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.20 %<\/td>\n4.92 %<\/td>\n190,210<\/td>\n6.93<\/td>\n43<\/td>\n0.1248 %<\/td>\n2,343.4<\/td>\n<\/tr>\n<\/table>\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.PF.B<\/td>\nFixedReset<\/td>\n-2.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 22.41
\nEvaluated at bid price : 23.30
\nBid-YTW : 4.86 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset<\/td>\n-1.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.93
\nBid-YTW : 4.57 %<\/td>\n<\/tr>\n
TRI.PR.B<\/td>\nFloater<\/td>\n-1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 22.50
\nEvaluated at bid price : 22.76
\nBid-YTW : 2.30 %<\/td>\n<\/tr>\n
TRP.PR.D<\/td>\nFixedReset<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 23.00
\nEvaluated at bid price : 24.65
\nBid-YTW : 4.35 %<\/td>\n<\/tr>\n
BAM.PR.Z<\/td>\nFixedReset<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.48
\nBid-YTW : 4.27 %<\/td>\n<\/tr>\n
HSB.PR.C<\/td>\nDeemed-Retractible<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 4.82 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.61
\nBid-YTW : 4.33 %<\/td>\n<\/tr>\n
PWF.PR.P<\/td>\nFixedReset<\/td>\n1.23 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 23.03
\nEvaluated at bid price : 23.90
\nBid-YTW : 3.94 %<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\n1.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 20.05
\nEvaluated at bid price : 20.05
\nBid-YTW : 5.95 %<\/td>\n<\/tr>\n
CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\n1.29 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 20.40
\nEvaluated at bid price : 20.40
\nBid-YTW : 5.69 %<\/td>\n<\/tr>\n
BAM.PF.C<\/td>\nPerpetual-Discount<\/td>\n1.59 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 20.29
\nEvaluated at bid price : 20.29
\nBid-YTW : 6.00 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n1.62 %<\/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 : 4.89 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\n1.72 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.66
\nBid-YTW : 5.20 %<\/td>\n<\/tr>\n
BAM.PF.D<\/td>\nPerpetual-Discount<\/td>\n1.98 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 21.05
\nEvaluated at bid price : 21.05
\nBid-YTW : 5.84 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset<\/td>\n2.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 22.56
\nEvaluated at bid price : 23.06
\nBid-YTW : 4.06 %<\/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
BNS.PR.T<\/td>\nFixedReset<\/td>\n138,030<\/td>\nRBC bought 57,800 from Scotia at 25.65, crossed 30,000 at 25.69, sold 10,000 to Nesbitt at 25.69, then crossed blocks of 10,000 and 19,000 at 25.69. Busy day!
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.70
\nBid-YTW : 2.79 %<\/td>\n<\/tr>\n
TD.PR.T<\/td>\nFixedReset<\/td>\n97,200<\/td>\nDesjardins crossed 20,000 at 25.09; RBC crossed blocks of 50,000 and 20,700 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.03
\nBid-YTW : 2.52 %<\/td>\n<\/tr>\n
RY.PR.P<\/td>\nFixedReset<\/td>\n65,250<\/td>\nRBC bought 13,200 from CIBC at 13,200; Desjardins crossed 40,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.44
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n
ENB.PR.Y<\/td>\nFixedReset<\/td>\n59,544<\/td>\nRBC crossed 43,000 at 23.83.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 22.53
\nEvaluated at bid price : 23.57
\nBid-YTW : 4.56 %<\/td>\n<\/tr>\n
CU.PR.G<\/td>\nPerpetual-Discount<\/td>\n38,452<\/td>\nRBC crossed 30,000 at 20.44.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 20.46
\nEvaluated at bid price : 20.46
\nBid-YTW : 5.55 %<\/td>\n<\/tr>\n
BMO.PR.R<\/td>\nFixedReset<\/td>\n31,150<\/td>\nTD crossed 20,000 at 25.07.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-08-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.07
\nBid-YTW : 2.54 %<\/td>\n<\/tr>\n
There were 37 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
MFC.PR.K<\/td>\nFixedReset<\/td>\nQuote: 23.93 – 24.50
\nSpot Rate : 0.5700
\nAverage : 0.3967<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.93
\nBid-YTW : 4.57 %<\/td>\n<\/tr>\n

BAM.PR.G<\/td>\nFixedFloater<\/td>\nQuote: 22.20 – 22.92
\nSpot Rate : 0.7200
\nAverage : 0.5572<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 22.57
\nEvaluated at bid price : 22.20
\nBid-YTW : 3.59 %<\/td>\n<\/tr>\n

CIU.PR.B<\/td>\nFixedReset<\/td>\nQuote: 25.57 – 25.94
\nSpot Rate : 0.3700
\nAverage : 0.2405<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.57
\nBid-YTW : 3.79 %<\/td>\n<\/tr>\n

CU.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 20.46 – 20.79
\nSpot Rate : 0.3300
\nAverage : 0.2278<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-09-11
\nMaturity Price : 20.46
\nEvaluated at bid price : 20.46
\nBid-YTW : 5.55 %<\/td>\n<\/tr>\n

IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 21.51 – 21.88
\nSpot Rate : 0.3700
\nAverage : 0.2717<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.51
\nBid-YTW : 6.35 %<\/td>\n<\/tr>\n

VNR.PR.A<\/td>\nFixedReset<\/td>\nQuote: 25.25 – 25.54
\nSpot Rate : 0.2900
\nAverage : 0.1950<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-10-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.25
\nBid-YTW : 4.29 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The revolving door revolved again: The former chief of staff to federal finance minister Jim Flaherty has left Ottawa to take on a new role at the Bank of Nova Scotia. Kevin McCarthy will become …<\/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-23033","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/23033","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=23033"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/23033\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}