{"id":23755,"date":"2013-12-05T04:20:12","date_gmt":"2013-12-05T04:20:12","guid":{"rendered":"http:\/\/prefblog.com\/?p=23755"},"modified":"2013-12-05T04:20:12","modified_gmt":"2013-12-05T04:20:12","slug":"december-4-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=23755","title":{"rendered":"December 4, 2013"},"content":{"rendered":"

More good news for fixed-income investors<\/a> …:<\/p>\n

The Bank of Canada says deep discounting by retailers is spreading disinflation \u2013 a byproduct of more consumers crossing the border to shop and the arrival here of U.S. chains such as Target Corp.<\/p>\n

The central bank left its key overnight interest unchanged at 1 per cent Wednesday, citing a heightened risk of even lower inflation. The bank blamed excess supply in the economy and heightened competition in the retail sector, which it said are proving to be \u201cmore persistent than anticipated.\u201d<\/p>\n

Canada isn\u2019t yet facing deflation \u2013 outright falling prices. But inflation is now running disquietingly below the Bank of Canada\u2019s 2-per-cent target, and outside its acceptable range of 1 to 3 per cent. Consumer prices rose at a meagre annual rate of just 0.7 per cent in October, and economists expect inflation to remain similarly dormant in the months ahead.<\/p><\/blockquote>\n

The good news didn’t impress the Canadian preferred share market, with PerpetualDiscounts down 25bp, FixedResets off 17bp and DeemedRetractibles losing 34bp. The performance highlights table is comprised entirely of losers. Volume was very high.<\/p>\n

PerpetualDiscounts now yield 5.62%, equivalent to 7.31% interest at the standard equivalency factor of 1.3x. Long corporates<\/a> now yield about 4.8%, so the pre-tax, interest-equivalent spread (in this context, the “Seniority Spread”) is now about 250bp, a minor (and perhaps spurious) widening from the 245bp reported November 27<\/a>.<\/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>\n-0.5287 %<\/td>\n2,481.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.27 %<\/td>\n3.56 %<\/td>\n38,709<\/td>\n18.21<\/td>\n1<\/td>\n0.9537 %<\/td>\n3,927.7<\/td>\n<\/tr>\n
Floater<\/td>\n2.99 %<\/td>\n3.02 %<\/td>\n64,950<\/td>\n19.61<\/td>\n3<\/td>\n-0.5287 %<\/td>\n2,679.8<\/td>\n<\/tr>\n
OpRet<\/td>\n4.62 %<\/td>\n-3.21 %<\/td>\n78,154<\/td>\n0.08<\/td>\n3<\/td>\n-0.2050 %<\/td>\n2,659.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.88 %<\/td>\n4.70 %<\/td>\n71,084<\/td>\n4.53<\/td>\n5<\/td>\n0.1939 %<\/td>\n3,000.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2050 %<\/td>\n2,432.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.61 %<\/td>\n4.94 %<\/td>\n135,814<\/td>\n0.24<\/td>\n13<\/td>\n-0.1705 %<\/td>\n2,305.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.61 %<\/td>\n5.62 %<\/td>\n153,249<\/td>\n14.41<\/td>\n25<\/td>\n-0.2486 %<\/td>\n2,343.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.98 %<\/td>\n3.42 %<\/td>\n231,704<\/td>\n3.31<\/td>\n82<\/td>\n-0.1739 %<\/td>\n2,481.6<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.09 %<\/td>\n4.07 %<\/td>\n189,207<\/td>\n1.41<\/td>\n42<\/td>\n-0.3375 %<\/td>\n2,417.6<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.64 %<\/td>\n2.32 %<\/td>\n348,513<\/td>\n4.43<\/td>\n5<\/td>\n-0.0553 %<\/td>\n2,464.4<\/td>\n<\/tr>\n<\/table>\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
GWO.PR.N<\/td>\nFixedReset<\/td>\n-1.63 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.75
\nBid-YTW : 4.68 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\n-1.46 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.60
\nBid-YTW : 6.39 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset<\/td>\n-1.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-04
\nMaturity Price : 21.60
\nEvaluated at bid price : 22.01
\nBid-YTW : 3.89 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n-1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.58
\nBid-YTW : 4.44 %<\/td>\n<\/tr>\n
SLF.PR.B<\/td>\nDeemed-Retractible<\/td>\n-1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.25
\nBid-YTW : 6.17 %<\/td>\n<\/tr>\n
POW.PR.B<\/td>\nPerpetual-Discount<\/td>\n-1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-04
\nMaturity Price : 23.64
\nEvaluated at bid price : 23.91
\nBid-YTW : 5.67 %<\/td>\n<\/tr>\n
PWF.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-04
\nMaturity Price : 23.33
\nEvaluated at bid price : 23.61
\nBid-YTW : 5.62 %<\/td>\n<\/tr>\n
POW.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-04
\nMaturity Price : 24.34
\nEvaluated at bid price : 24.65
\nBid-YTW : 5.76 %<\/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
TRP.PR.B<\/td>\nFixedReset<\/td>\n113,734<\/td>\nNational sold 17,900 to anonymous at 20.34; Nesbitt crossed 60,000 at 20.35.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-04
\nMaturity Price : 20.36
\nEvaluated at bid price : 20.36
\nBid-YTW : 3.82 %<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\n87,156<\/td>\nDesjardins crossed 58,600 at 19.60.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-04
\nMaturity Price : 19.49
\nEvaluated at bid price : 19.49
\nBid-YTW : 6.22 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n66,995<\/td>\nNesbitt crossed 35,000 at 21.15.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-04
\nMaturity Price : 21.11
\nEvaluated at bid price : 21.11
\nBid-YTW : 3.91 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n60,450<\/td>\nNesbitt crossed blocks of 25,000 and 25,100, both at 25.24.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.25
\nBid-YTW : 1.15 %<\/td>\n<\/tr>\n
BNS.PR.T<\/td>\nFixedReset<\/td>\n59,768<\/td>\nScotia crossed 25,000 at 25.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 2.50 %<\/td>\n<\/tr>\n
CU.PR.G<\/td>\nPerpetual-Discount<\/td>\n57,074<\/td>\nRBC crossed 23,500 at 20.50.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-04
\nMaturity Price : 20.51
\nEvaluated at bid price : 20.51
\nBid-YTW : 5.53 %<\/td>\n<\/tr>\n
There were 64 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
BNA.PR.E<\/td>\nSplitShare<\/td>\nQuote: 25.15 – 25.47
\nSpot Rate : 0.3200
\nAverage : 0.2218<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2017-12-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.15
\nBid-YTW : 4.70 %<\/td>\n<\/tr>\n

BAM.PR.K<\/td>\nFloater<\/td>\nQuote: 17.53 – 17.83
\nSpot Rate : 0.3000
\nAverage : 0.2073<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-04
\nMaturity Price : 17.53
\nEvaluated at bid price : 17.53
\nBid-YTW : 3.02 %<\/td>\n<\/tr>\n

RY.PR.C<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.52 – 25.72
\nSpot Rate : 0.2000
\nAverage : 0.1199<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-11-24
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.52
\nBid-YTW : 3.59 %<\/td>\n<\/tr>\n

PWF.PR.O<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.36 – 25.66
\nSpot Rate : 0.3000
\nAverage : 0.2223<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.36
\nBid-YTW : 5.63 %<\/td>\n<\/tr>\n

POW.PR.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.65 – 24.85
\nSpot Rate : 0.2000
\nAverage : 0.1256<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-04
\nMaturity Price : 24.34
\nEvaluated at bid price : 24.65
\nBid-YTW : 5.76 %<\/td>\n<\/tr>\n

RY.PR.W<\/td>\nPerpetual-Premium<\/td>\nQuote: 24.88 – 25.08
\nSpot Rate : 0.2000
\nAverage : 0.1270<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-04
\nMaturity Price : 24.58
\nEvaluated at bid price : 24.88
\nBid-YTW : 4.94 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

More good news for fixed-income investors …: The Bank of Canada says deep discounting by retailers is spreading disinflation \u2013 a byproduct of more consumers crossing the border to shop and the arrival here of …<\/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-23755","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/23755","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=23755"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/23755\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}