{"id":23284,"date":"2013-10-07T20:56:20","date_gmt":"2013-10-08T00:56:20","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=23284"},"modified":"2013-10-07T20:56:20","modified_gmt":"2013-10-08T00:56:20","slug":"october-7-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=23284","title":{"rendered":"October 7, 2013"},"content":{"rendered":"

Lawrence Schembri, Deputy Governor of the Bank of Canada is assiduously sucking up to the politicians<\/a>:<\/p>\n

From my perspective, the FSB is a unique international organization that has certain qualities that many associate with Canadians, qualities I believe will help ensure its success in making the global financial system more resilient. A resilient global financial system is not an end in itself, but a necessary foundation for strong, sustainable and balanced global economic growth, leading to higher employment and improved living standards.<\/p>\n

The FSB was born of necessity in the aftermath of the financial crisis. Its raison d\u2019\u00eatre stems from one overarching fact: the global financial system is highly integrated.2 Financial institutions and markets are interconnected and interdependent within and across various sectors, including banking, insurance, and pension and investment funds, and, increasingly, across national jurisdictions.<\/p>\n

Thus, to achieve a comprehensive and coherent approach to the financial regulation and oversight necessary to attain the global public good of financial stability, coordination is essential across countries, across all of the elements of the reforms, and across many different regulators and supervisors. Failure to coordinate would lead to the fragmentation of the financial system, which would impede the global recovery. This need for effective coordination is why the G-20 established the FSB in 2009.<\/p><\/blockquote>\n

Can’t blame him, really – it worked for Lapdog Carney!<\/p>\n

There’s some apocalyptic commentary on the potential for a US default<\/a>:<\/p>\n

Anyone who remembers the collapse of Lehman Brothers Holdings Inc. little more than five years ago knows what a global financial disaster is. A U.S. government default, just weeks away if Congress fails to raise the debt ceiling as it now threatens to do, will be an economic calamity like none the world has ever seen.
\nFailure by the world\u2019s largest borrower to pay its debt — unprecedented in modern history — will devastate stock markets from Brazil to Zurich, halt a $5 trillion lending mechanism for investors who rely on Treasuries, blow up borrowing costs for billions of people and companies, ravage the dollar and throw the U.S. and world economies into a recession that probably would become a depression. Among the dozens of money managers, economists, bankers, traders and former government officials interviewed for this story, few view a U.S. default as anything but a financial apocalypse.
…<\/b>
While none of the people interviewed for this story expect the world\u2019s largest economy to default this time either, most say the chances of it happening now are higher than in the past.
\n\u201cIt would be insane to default, but it\u2019s no longer a zero-percent probability,\u201d said Simon Johnson, a former chief economist of the International Monetary Fund who teaches economics at the Massachusetts Institute of Technology and is a columnist for Bloomberg View.<\/p><\/blockquote>\n

I consider it all a little hysterical – but hey! In the financial markets, the hysterics are sometimes right!<\/p>\n

I’ve lost a lot of business over the years by admitting there are things I don’t understand – financial guys are supposed to know just precisely how the price of eggs in Spain relates to Brazilian interest rates. But I’m in good company<\/a>:<\/p>\n

Ben S. Bernanke, the world\u2019s most-powerful central banker, says he doesn\u2019t understand gold prices. If his peers had paid attention, they might have stopped expanding reserves that lost $545 billion in value since bullion peaked in 2011.<\/p>\n

Bernanke, who holds economics degrees from Harvard College and the Massachusetts Institute of Technology and led the Federal Reserve through the biggest financial disaster since the Great Depression, told the Senate Banking Committee in July that \u201cnobody really understands gold prices and I don\u2019t pretend to really understand them either.\u201d<\/p><\/blockquote>\n

I generally have a lot of respect for the OTPP. Not this time<\/a>:<\/p>\n

The Ontario Teachers\u2019 Pension Plan is urging the province\u2019s securities regulator to require all public companies have at least three women on their boards, or else risk being delisted from the Toronto Stock Exchange.<\/p>\n

Teachers outlines the proposal in a letter submitted to the Ontario Securities Commission<\/a> in response to its call for comments on a possible new \u201ccomply or explain\u201d disclosure rule to boost the number of women on boards. The OSC proposal would require companies to report annually on their efforts to improve board diversity or else explain why they have opted not to make the disclosure.<\/p><\/blockquote>\n

This is just political nonsense. If Teachers’ really believed that more diverse boards produced better results than less diverse boards and if they were truly interested in outperforming on behalf of their beneficiaries – they would promote a laissez faire<\/i> in which there were all sorts of boards and they invested in those with more diverse boards on the grounds that these companies would kick the asses of those that were less diverse. You know, in the marketplace. I am very disappointed that Teachers’ is pursuing a political agenda.<\/p>\n

Now that Ontario has bought up all the expensive solar panels Mexico is getting the cheap ones<\/a>:<\/p>\n

Mexico, poised to allow foreign oil extraction for the first time in 75 years, is finding its abundant natural resources also appeal to investors in a much cleaner energy: sunshine.<\/p>\n

First Solar Inc. (FSLR) of the U.S. has bought its first projects in Mexico, while more than a dozen other developers including Germany\u2019s Saferay GmbH and Spain\u2019s Grupotec Tecnologia Solar SL own licenses there. Local investor Gauss Energia opened Latin America\u2019s largest photovoltaic plant in the country last month.
…<\/b>
Gauss and Portugal\u2019s Martifer SGPS SA opened a 30-megawatt plant in La Paz, Baja California, on Sept. 12 with funding from International Finance Corp. and Nacional Financiera SNC bank. While Mexico doesn\u2019t subsidize large solar, the $100 million project offered an economic alternative to fossil-fueled power in the area, where solar radiation exceeds the national average.<\/p><\/blockquote>\n

No subsidies and lots of investments! Gee, Mexico must have one of those ‘competitive advantage’ thingamajigs over Ontario when it comes to sunshine! Whoever woulda thunk it?<\/p>\n

It was a poor day for the Canadian preferred share market, with PerpetualDiscounts down 12bp, FixedResets off 6bp and DeemedRetractibles losing 19bp. The Performance Highlights table was surprisingly short – below average even by long-term standards. Volume was 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>\n0.2045 %<\/td>\n2,523.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.32 %<\/td>\n3.64 %<\/td>\n32,450<\/td>\n18.01<\/td>\n1<\/td>\n0.0455 %<\/td>\n3,847.2<\/td>\n<\/tr>\n
Floater<\/td>\n2.68 %<\/td>\n2.92 %<\/td>\n64,982<\/td>\n19.96<\/td>\n5<\/td>\n0.2045 %<\/td>\n2,724.6<\/td>\n<\/tr>\n
OpRet<\/td>\n4.64 %<\/td>\n3.14 %<\/td>\n60,639<\/td>\n0.64<\/td>\n3<\/td>\n-0.0901 %<\/td>\n2,632.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.77 %<\/td>\n5.23 %<\/td>\n60,019<\/td>\n4.02<\/td>\n6<\/td>\n-0.2293 %<\/td>\n2,944.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0901 %<\/td>\n2,407.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.75 %<\/td>\n4.04 %<\/td>\n109,207<\/td>\n0.11<\/td>\n8<\/td>\n0.1883 %<\/td>\n2,281.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.55 %<\/td>\n5.56 %<\/td>\n157,971<\/td>\n14.44<\/td>\n30<\/td>\n-0.1192 %<\/td>\n2,341.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.95 %<\/td>\n3.68 %<\/td>\n233,882<\/td>\n3.61<\/td>\n85<\/td>\n-0.0580 %<\/td>\n2,454.3<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.14 %<\/td>\n4.49 %<\/td>\n191,697<\/td>\n6.74<\/td>\n43<\/td>\n-0.1934 %<\/td>\n2,377.3<\/td>\n<\/tr>\n<\/table>\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
TRP.PR.A<\/td>\nFixedReset<\/td>\n-1.44 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-10-07
\nMaturity Price : 23.53
\nEvaluated at bid price : 24.00
\nBid-YTW : 3.99 %<\/td>\n<\/tr>\n
CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-10-07
\nMaturity Price : 20.40
\nEvaluated at bid price : 20.40
\nBid-YTW : 5.72 %<\/td>\n<\/tr>\n
PWF.PR.O<\/td>\nPerpetual-Premium<\/td>\n1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : 5.53 %<\/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.Q<\/td>\nFixedReset<\/td>\n74,616<\/td>\nNesbitt crossed 28,500 at 24.83; TD crossed 20,000 at 24.82.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.82
\nBid-YTW : 3.68 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n68,605<\/td>\nDesjardins crossed 57,800 at 25.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.01
\nBid-YTW : 4.13 %<\/td>\n<\/tr>\n
RY.PR.A<\/td>\nDeemed-Retractible<\/td>\n37,805<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.11
\nBid-YTW : 4.49 %<\/td>\n<\/tr>\n
TD.PR.Y<\/td>\nFixedReset<\/td>\n34,977<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.79
\nBid-YTW : 3.68 %<\/td>\n<\/tr>\n
CU.PR.E<\/td>\nPerpetual-Discount<\/td>\n32,200<\/td>\nNesbitt crossed 30,000 at 23.65.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-10-07
\nMaturity Price : 23.28
\nEvaluated at bid price : 23.60
\nBid-YTW : 5.24 %<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nDeemed-Retractible<\/td>\n27,134<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.95
\nBid-YTW : 4.76 %<\/td>\n<\/tr>\n
There were 34 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.O<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.60 – 26.18
\nSpot Rate : 0.5800
\nAverage : 0.3626<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : 5.53 %<\/td>\n<\/tr>\n

HSE.PR.A<\/td>\nFixedReset<\/td>\nQuote: 22.67 – 23.13
\nSpot Rate : 0.4600
\nAverage : 0.3053<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-10-07
\nMaturity Price : 22.29
\nEvaluated at bid price : 22.67
\nBid-YTW : 4.09 %<\/td>\n<\/tr>\n

PWF.PR.P<\/td>\nFixedReset<\/td>\nQuote: 24.29 – 24.75
\nSpot Rate : 0.4600
\nAverage : 0.3104<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-10-07
\nMaturity Price : 23.22
\nEvaluated at bid price : 24.29
\nBid-YTW : 3.65 %<\/td>\n<\/tr>\n

FTS.PR.G<\/td>\nFixedReset<\/td>\nQuote: 23.50 – 23.89
\nSpot Rate : 0.3900
\nAverage : 0.2677<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-10-07
\nMaturity Price : 22.55
\nEvaluated at bid price : 23.50
\nBid-YTW : 4.19 %<\/td>\n<\/tr>\n

CU.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 21.15 – 21.58
\nSpot Rate : 0.4300
\nAverage : 0.3086<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-10-07
\nMaturity Price : 21.15
\nEvaluated at bid price : 21.15
\nBid-YTW : 5.39 %<\/td>\n<\/tr>\n

PWF.PR.M<\/td>\nFixedReset<\/td>\nQuote: 25.45 – 25.75
\nSpot Rate : 0.3000
\nAverage : 0.1788<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : 3.80 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Lawrence Schembri, Deputy Governor of the Bank of Canada is assiduously sucking up to the politicians: From my perspective, the FSB is a unique international organization that has certain qualities that many associate with Canadians, …<\/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-23284","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/23284","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=23284"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/23284\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}