{"id":23979,"date":"2013-12-12T20:39:47","date_gmt":"2013-12-13T01:39:47","guid":{"rendered":"http:\/\/prefblog.com\/?p=23979"},"modified":"2013-12-12T20:39:47","modified_gmt":"2013-12-13T01:39:47","slug":"december-12-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=23979","title":{"rendered":"December 12, 2013"},"content":{"rendered":"

Parakeet Poloz chirped a little today<\/a>:<\/p>\n

The Canadian economy faces the risk of deflation and won\u2019t reach full capacity for two years, with imbalances in household debt and the housing market gradually diminishing in that time, Bank of Canada Governor Stephen Poloz said Thursday.<\/p>\n

He still expects a soft landing in the housing market, which will be offset by a pickup in exports and business investments.
…<\/b>
\u201cRight now, it looks to us like it will take around two years to get inflation back up to 2 per cent,\u201d he said in a speech, peppered with nautical references, to the Canadian Club of Montreal Thursday.<\/p>\n

Canada\u2019s annual inflation rate has slumped to 0.7 per cent, well below the lower end of the central bank\u2019s 1-to-3 per cent target range. The central bank governor suggested he\u2019s more concerned about inflation cooling further than a pickup.<\/p><\/blockquote>\n

Merry Christmas<\/a>!<\/p>\n

Unemployment benefits for 1.3 million people in the U.S. are poised to end Dec. 28 as Democrats failed in their last-ditch effort to extend the jobless assistance before the House adjourns tomorrow.<\/p>\n

Republicans who control the House refused to keep the aid flowing to the long-term unemployed without agreement on budget cuts elsewhere. Extending the benefits would cost $26 billion over two years, according to the Congressional Budget Office.
…<\/b>
The failure of Congress to agree could put a dent in the nation\u2019s economy. The Congressional Budget Office estimates that extending the program would boost growth by 0.2 percent and add about 200,000 jobs.<\/p><\/blockquote>\n

Of course, that’s $130,000 per job.<\/p>\n

One might think that all this cheery news would be good for fixed income, but one might think wrong! The Canadian preferred share market got whacked today, with PerpetualDiscounts losing 33bp, FixedResets off 14bp and DeemedRetractibles down 20bp. The Performance Highlights table is relatively modest, dominated by losing BAM FixedResets. Volume was extremely high.<\/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-0.0935 %<\/td>\n2,534.4<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.40 %<\/td>\n3.67 %<\/td>\n40,188<\/td>\n17.95<\/td>\n1<\/td>\n-0.0463 %<\/td>\n3,814.6<\/td>\n<\/tr>\n
Floater<\/td>\n2.95 %<\/td>\n2.95 %<\/td>\n62,375<\/td>\n19.87<\/td>\n3<\/td>\n-0.0935 %<\/td>\n2,736.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.63 %<\/td>\n0.69 %<\/td>\n84,021<\/td>\n0.08<\/td>\n3<\/td>\n-0.2056 %<\/td>\n2,663.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.89 %<\/td>\n4.79 %<\/td>\n75,558<\/td>\n4.51<\/td>\n5<\/td>\n-0.1695 %<\/td>\n2,992.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2056 %<\/td>\n2,435.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.63 %<\/td>\n5.55 %<\/td>\n133,739<\/td>\n14.07<\/td>\n13<\/td>\n-0.1484 %<\/td>\n2,295.5<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.71 %<\/td>\n5.71 %<\/td>\n175,952<\/td>\n14.24<\/td>\n25<\/td>\n-0.3344 %<\/td>\n2,305.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.01 %<\/td>\n3.73 %<\/td>\n232,817<\/td>\n3.47<\/td>\n84<\/td>\n-0.1393 %<\/td>\n2,463.1<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.15 %<\/td>\n4.27 %<\/td>\n201,560<\/td>\n2.08<\/td>\n42<\/td>\n-0.1979 %<\/td>\n2,392.0<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.63 %<\/td>\n2.34 %<\/td>\n315,425<\/td>\n4.41<\/td>\n5<\/td>\n-0.0790 %<\/td>\n2,463.6<\/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
BAM.PR.X<\/td>\nFixedReset<\/td>\n-2.77 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-12
\nMaturity Price : 20.69
\nEvaluated at bid price : 20.69
\nBid-YTW : 4.60 %<\/td>\n<\/tr>\n
GWO.PR.R<\/td>\nDeemed-Retractible<\/td>\n-2.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.54
\nBid-YTW : 6.58 %<\/td>\n<\/tr>\n
CIU.PR.C<\/td>\nFixedReset<\/td>\n-2.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-12
\nMaturity Price : 20.44
\nEvaluated at bid price : 20.44
\nBid-YTW : 4.00 %<\/td>\n<\/tr>\n
BAM.PF.B<\/td>\nFixedReset<\/td>\n-1.68 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-12
\nMaturity Price : 22.78
\nEvaluated at bid price : 24.05
\nBid-YTW : 4.47 %<\/td>\n<\/tr>\n
FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.46 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-12
\nMaturity Price : 22.63
\nEvaluated at bid price : 22.92
\nBid-YTW : 5.38 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n-1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-12
\nMaturity Price : 22.93
\nEvaluated at bid price : 24.00
\nBid-YTW : 4.30 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n-1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-12
\nMaturity Price : 22.69
\nEvaluated at bid price : 23.25
\nBid-YTW : 3.88 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n1.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.00
\nBid-YTW : 4.90 %<\/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
ENB.PR.J<\/td>\nFixedReset<\/td>\n436,827<\/td>\nNew issue settled today<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-12
\nMaturity Price : 23.08
\nEvaluated at bid price : 24.80
\nBid-YTW : 4.33 %<\/td>\n<\/tr>\n
HSB.PR.E<\/td>\nFixedReset<\/td>\n185,716<\/td>\nRBC crossed blocks of 75,000 and 100,000, both at 25.49.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.40
\nBid-YTW : 3.03 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nDeemed-Retractible<\/td>\n129,346<\/td>\nNesbitt crossed 50,000 at 21.40 and 25,000 at 21.25.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.20
\nBid-YTW : 6.44 %<\/td>\n<\/tr>\n
PWF.PR.T<\/td>\nFixedReset<\/td>\n121,380<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.26
\nBid-YTW : 3.99 %<\/td>\n<\/tr>\n
CU.PR.F<\/td>\nPerpetual-Discount<\/td>\n89,600<\/td>\nScotia crossed 73,800 at 20.37.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-12
\nMaturity Price : 20.40
\nEvaluated at bid price : 20.40
\nBid-YTW : 5.57 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n72,885<\/td>\nDesjardins bought 13,000 from Scotia at 22.29, then crossed 24,900 at the same price.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.25
\nBid-YTW : 4.66 %<\/td>\n<\/tr>\n
There were 78 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
TD.PR.P<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.05 – 26.36
\nSpot Rate : 0.3100
\nAverage : 0.1812<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-11
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.05
\nBid-YTW : -1.92 %<\/td>\n<\/tr>\n

ENB.PR.N<\/td>\nFixedReset<\/td>\nQuote: 24.11 – 24.45
\nSpot Rate : 0.3400
\nAverage : 0.2501<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-12
\nMaturity Price : 22.83
\nEvaluated at bid price : 24.11
\nBid-YTW : 4.45 %<\/td>\n<\/tr>\n

PWF.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 24.92 – 25.22
\nSpot Rate : 0.3000
\nAverage : 0.2123<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-12
\nMaturity Price : 24.66
\nEvaluated at bid price : 24.92
\nBid-YTW : 5.84 %<\/td>\n<\/tr>\n

RY.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.42 – 25.65
\nSpot Rate : 0.2300
\nAverage : 0.1558<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.42
\nBid-YTW : 3.85 %<\/td>\n<\/tr>\n

TRP.PR.B<\/td>\nFixedReset<\/td>\nQuote: 20.10 – 20.34
\nSpot Rate : 0.2400
\nAverage : 0.1714<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-12
\nMaturity Price : 20.10
\nEvaluated at bid price : 20.10
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n

TD.PR.S<\/td>\nFixedReset<\/td>\nQuote: 24.92 – 25.09
\nSpot Rate : 0.1700
\nAverage : 0.1092<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.92
\nBid-YTW : 3.50 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Parakeet Poloz chirped a little today: The Canadian economy faces the risk of deflation and won\u2019t reach full capacity for two years, with imbalances in household debt and the housing market gradually diminishing in that …<\/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-23979","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/23979","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=23979"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/23979\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}