{"id":23686,"date":"2013-11-21T00:39:39","date_gmt":"2013-11-21T04:39:39","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=23682"},"modified":"2013-11-21T00:39:39","modified_gmt":"2013-11-21T04:39:39","slug":"november-20-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=23686","title":{"rendered":"November 20, 2013"},"content":{"rendered":"

A tale of two economies! Europe contemplates easing<\/a>:<\/p>\n

The European Central Bank is considering a smaller-than-normal cut in the deposit rate if officials decide to take it negative for the first time, according to two people with knowledge of the debate.<\/p>\n

Policy makers would reduce the rate for commercial lenders who park excess cash at the ECB to minus 0.1 percent from zero, said the people who asked not to be identified because the talks aren\u2019t public. It would be the first time the central bank has adjusted interest rates by less than a quarter of a percentage point. The concept, which has been discussed by Governing Council members, doesn\u2019t yet have a consensus, the people said.<\/p>\n

Members of the council, which is holding a mid-month meeting in Frankfurt this week, have said that a negative deposit rate is a potential tool for warding off deflation. They\u2019ve also cautioned that the consequences of such an unprecedented measure aren\u2019t clear. The central bank this month refrained from cutting the deposit rate even as it reduced its benchmark lending rate to a record low of 0.25 percent, and Governing Council member Jens Weidmann has warned against further loosening of monetary policy.<\/p><\/blockquote>\n

… while the US contemplates less easing<\/a>:<\/p>\n

The U.S. Federal Reserve is getting closer to curbing its experiment in buying financial assets \u2013 but is still a long way from ending the age of easy money.<\/p>\n

Recent communications by the central bank show that policy makers are poised to reduce, or \u201ctaper,\u201d their monthly bond-buying program. Minutes of the Fed\u2019s October policy meeting, released Wednesday after the customary three-week delay, state that \u201csome\u201d officials believed the pace of purchases could be slowed at \u201cone of the next few meetings,\u201d so long as key indicators continue to show the U.S. economy gaining strength.
…<\/b>
But the Fed minutes also make it clear that policy makers will slow the bond-buying program because they are nervous about unintended future outcomes \u2013 not because they think the economy is ready for higher short-term rates. The majority of the Fed\u2019s leaders favour leaving its benchmark rate near zero for a period that most likely will be measured in years rather than months.<\/p><\/blockquote>\n

It was a mixed day for the Canadian preferred share market, with PerpetualDiscounts off 9bp, FixedResets up 7bp and DeemedRetractibles gaining 6bp. The Performance Highlights table is dominated by losers. Volume was well above average.<\/p>\n\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>\n0.3321 %<\/td>\n2,562.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.28 %<\/td>\n3.56 %<\/td>\n31,672<\/td>\n18.24<\/td>\n1<\/td>\n-0.0900 %<\/td>\n3,924.2<\/td>\n<\/tr>\n
Floater<\/td>\n2.90 %<\/td>\n2.92 %<\/td>\n58,835<\/td>\n19.88<\/td>\n3<\/td>\n0.3321 %<\/td>\n2,766.3<\/td>\n<\/tr>\n
OpRet<\/td>\n4.62 %<\/td>\n-0.82 %<\/td>\n72,566<\/td>\n0.08<\/td>\n3<\/td>\n0.0256 %<\/td>\n2,663.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.74 %<\/td>\n4.19 %<\/td>\n68,414<\/td>\n3.90<\/td>\n6<\/td>\n0.1312 %<\/td>\n2,978.6<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0256 %<\/td>\n2,435.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.58 %<\/td>\n4.92 %<\/td>\n124,143<\/td>\n0.28<\/td>\n11<\/td>\n-0.0540 %<\/td>\n2,306.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.57 %<\/td>\n5.56 %<\/td>\n165,987<\/td>\n14.53<\/td>\n27<\/td>\n-0.0906 %<\/td>\n2,366.3<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.97 %<\/td>\n3.33 %<\/td>\n225,015<\/td>\n3.29<\/td>\n82<\/td>\n0.0694 %<\/td>\n2,479.8<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.05 %<\/td>\n3.92 %<\/td>\n192,794<\/td>\n1.45<\/td>\n42<\/td>\n0.0578 %<\/td>\n2,426.0<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.65 %<\/td>\n2.42 %<\/td>\n310,988<\/td>\n4.47<\/td>\n5<\/td>\n0.0158 %<\/td>\n2,459.7<\/td>\n<\/tr>\n<\/table>\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.T<\/td>\nFixedReset<\/td>\n-1.62 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-11-20
\nMaturity Price : 23.04
\nEvaluated at bid price : 24.25
\nBid-YTW : 4.26 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n-1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.69
\nBid-YTW : 4.48 %<\/td>\n<\/tr>\n
PWF.PR.S<\/td>\nPerpetual-Discount<\/td>\n-1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-11-20
\nMaturity Price : 22.24
\nEvaluated at bid price : 22.54
\nBid-YTW : 5.36 %<\/td>\n<\/tr>\n
BAM.PF.C<\/td>\nPerpetual-Discount<\/td>\n-1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-11-20
\nMaturity Price : 19.45
\nEvaluated at bid price : 19.45
\nBid-YTW : 6.35 %<\/td>\n<\/tr>\n
IAG.PR.G<\/td>\nFixedReset<\/td>\n1.51 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.18
\nBid-YTW : 3.11 %<\/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.W<\/td>\nPerpetual-Premium<\/td>\n174,215<\/td>\nDesjardins crossed blocks of 40,000 and 46,200, both at 25.00. RBC crossed 20,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-11-20
\nMaturity Price : 24.74
\nEvaluated at bid price : 24.98
\nBid-YTW : 4.92 %<\/td>\n<\/tr>\n
RY.PR.R<\/td>\nFixedReset<\/td>\n105,388<\/td>\nNesbitt crossed 100,000 at 25.24.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.22
\nBid-YTW : 2.63 %<\/td>\n<\/tr>\n
RY.PR.N<\/td>\nFixedReset<\/td>\n104,663<\/td>\nNesbitt crossed 100,000 at 25.24.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.21
\nBid-YTW : 2.78 %<\/td>\n<\/tr>\n
BNS.PR.O<\/td>\nDeemed-Retractible<\/td>\n58,780<\/td>\nRBC crossed 38,800 and 19,000, both at 26.59.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-20
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.45
\nBid-YTW : -11.60 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset<\/td>\n51,732<\/td>\nNesbitt crossed 40,000 at 24.55.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.50
\nBid-YTW : 4.11 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n46,320<\/td>\nRBC crossed 19,800 at 23.70.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-11-20
\nMaturity Price : 22.76
\nEvaluated at bid price : 23.39
\nBid-YTW : 3.88 %<\/td>\n<\/tr>\n
There were 43 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
RY.PR.G<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.43 – 25.84
\nSpot Rate : 0.4100
\nAverage : 0.2341<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-05-24
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.43
\nBid-YTW : 3.95 %<\/td>\n<\/tr>\n

PWF.PR.S<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.54 – 22.92
\nSpot Rate : 0.3800
\nAverage : 0.2549<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-11-20
\nMaturity Price : 22.24
\nEvaluated at bid price : 22.54
\nBid-YTW : 5.36 %<\/td>\n<\/tr>\n

MFC.PR.H<\/td>\nFixedReset<\/td>\nQuote: 26.07 – 26.44
\nSpot Rate : 0.3700
\nAverage : 0.2596<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.07
\nBid-YTW : 3.14 %<\/td>\n<\/tr>\n

BAM.PR.X<\/td>\nFixedReset<\/td>\nQuote: 22.36 – 22.63
\nSpot Rate : 0.2700
\nAverage : 0.1749<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-11-20
\nMaturity Price : 21.97
\nEvaluated at bid price : 22.36
\nBid-YTW : 4.24 %<\/td>\n<\/tr>\n

TCA.PR.Y<\/td>\nPerpetual-Premium<\/td>\nQuote: 50.17 – 50.40
\nSpot Rate : 0.2300
\nAverage : 0.1541<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-05
\nMaturity Price : 50.00
\nEvaluated at bid price : 50.17
\nBid-YTW : 5.43 %<\/td>\n<\/tr>\n

ELF.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 21.57 – 21.97
\nSpot Rate : 0.4000
\nAverage : 0.3289<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-11-20
\nMaturity Price : 21.57
\nEvaluated at bid price : 21.57
\nBid-YTW : 5.58 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

A tale of two economies! Europe contemplates easing: The European Central Bank is considering a smaller-than-normal cut in the deposit rate if officials decide to take it negative for the first time, according to two …<\/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-23686","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/23686","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=23686"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/23686\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}