{"id":24087,"date":"2013-12-30T22:34:50","date_gmt":"2013-12-31T03:34:50","guid":{"rendered":"http:\/\/prefblog.com\/?p=24087"},"modified":"2013-12-30T22:34:50","modified_gmt":"2013-12-31T03:34:50","slug":"december-30-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=24087","title":{"rendered":"December 30, 2013"},"content":{"rendered":"

It seems I have another competitor, of whom I was not previously aware: NexGen Canadian Preferred Share Tax Managed Fund<\/a>, managed by Jeff Herold of JZechner Associates Inc.<\/a>. He had a piece in the Globe today titled Preferred shares offer lush yields for those who do their homework<\/a>.<\/p>\n

They’ve accumulated over $37-million in assets! Sure is nice to have good distribution channels…<\/p>\n

Boyd Erman of the Globe writes a polemic titled Hyperinflation thesis has been discredited, yet it still ticks<\/a>:<\/p>\n

Looking back over 2013, it\u2019s hard to imagine a more off-base call than the hyperinflation thesis. In fact, the whole idea that \u201cmoney printing\u201d would cause prices to skyrocket, turning the world into one big Zimbabwe, has been wrong for a number of years since it cropped up as a result of central banks\u2019 response to the 2008 crisis.<\/p>\n

As that realization finally set in this year, most commodity prices fell. Worse for many Canadian investors, gold went off a cliff, falling from nearly $1,700 (U.S.) an ounce to about $1,200. Without the notion of the metal as an inflation hedge, any \u201cneed\u201d for gold vanished, aside from bling.
…<\/b>
Wrong-headed forecasts about inflation are hammering lots of small investors who were sucked into the hysteria. They, of course, are not alone. John Paulson, please stand up, along with gold miners who invested in big projects at the peak.<\/p><\/blockquote>\n

The Canadian preferred share market was on wheels today, with PerpetualDiscounts winning 68bp, FixedResets gaining 3bp and DeemedRetractibles up 24bp. Not surprisingly, the Performance Highlights table was dominated by winning PerpetualDiscounts and DeemedRetractibles. Volume, such as it was, which wasn’t much, was also notable for its high proportion of Straights.<\/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-0.2087 %<\/td>\n2,495.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.60 %<\/td>\n3.90 %<\/td>\n38,445<\/td>\n17.55<\/td>\n1<\/td>\n-1.1021 %<\/td>\n3,646.8<\/td>\n<\/tr>\n
Floater<\/td>\n2.99 %<\/td>\n2.99 %<\/td>\n61,928<\/td>\n19.73<\/td>\n3<\/td>\n-0.2087 %<\/td>\n2,694.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.64 %<\/td>\n2.14 %<\/td>\n83,438<\/td>\n0.41<\/td>\n3<\/td>\n0.1032 %<\/td>\n2,660.5<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.86 %<\/td>\n4.62 %<\/td>\n72,956<\/td>\n4.46<\/td>\n5<\/td>\n0.1769 %<\/td>\n3,018.6<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1032 %<\/td>\n2,432.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.64 %<\/td>\n5.44 %<\/td>\n131,957<\/td>\n4.34<\/td>\n13<\/td>\n0.1582 %<\/td>\n2,310.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.69 %<\/td>\n5.69 %<\/td>\n181,976<\/td>\n14.39<\/td>\n25<\/td>\n0.6770 %<\/td>\n2,327.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.00 %<\/td>\n3.54 %<\/td>\n231,153<\/td>\n3.45<\/td>\n84<\/td>\n0.0320 %<\/td>\n2,466.9<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.15 %<\/td>\n4.39 %<\/td>\n191,586<\/td>\n2.61<\/td>\n42<\/td>\n0.2430 %<\/td>\n2,391.7<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.62 %<\/td>\n2.36 %<\/td>\n264,328<\/td>\n4.36<\/td>\n5<\/td>\n0.1267 %<\/td>\n2,467.5<\/td>\n<\/tr>\n<\/table>\n\n\n\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
MFC.PR.K<\/td>\nFixedReset<\/td>\n-1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.45
\nBid-YTW : 4.28 %<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixedFloater<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-30
\nMaturity Price : 21.44
\nEvaluated at bid price : 20.64
\nBid-YTW : 3.90 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.40
\nBid-YTW : 3.62 %<\/td>\n<\/tr>\n
GWO.PR.P<\/td>\nDeemed-Retractible<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.99
\nBid-YTW : 5.94 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-30
\nMaturity Price : 23.08
\nEvaluated at bid price : 23.64
\nBid-YTW : 4.11 %<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nDeemed-Retractible<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.92
\nBid-YTW : 6.64 %<\/td>\n<\/tr>\n
CU.PR.G<\/td>\nPerpetual-Discount<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-30
\nMaturity Price : 21.00
\nEvaluated at bid price : 21.00
\nBid-YTW : 5.42 %<\/td>\n<\/tr>\n
IGM.PR.B<\/td>\nPerpetual-Premium<\/td>\n1.24 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.36
\nBid-YTW : 5.49 %<\/td>\n<\/tr>\n
ELF.PR.G<\/td>\nPerpetual-Discount<\/td>\n1.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-30
\nMaturity Price : 20.57
\nEvaluated at bid price : 20.57
\nBid-YTW : 5.80 %<\/td>\n<\/tr>\n
GWO.PR.L<\/td>\nDeemed-Retractible<\/td>\n1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.96
\nBid-YTW : 5.71 %<\/td>\n<\/tr>\n
CU.PR.E<\/td>\nPerpetual-Discount<\/td>\n1.29 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-30
\nMaturity Price : 22.43
\nEvaluated at bid price : 22.79
\nBid-YTW : 5.42 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-30
\nMaturity Price : 22.08
\nEvaluated at bid price : 22.36
\nBid-YTW : 5.93 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nDeemed-Retractible<\/td>\n1.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.68
\nBid-YTW : 6.72 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nDeemed-Retractible<\/td>\n1.47 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.65
\nBid-YTW : 6.74 %<\/td>\n<\/tr>\n
CU.PR.D<\/td>\nPerpetual-Discount<\/td>\n1.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-30
\nMaturity Price : 22.61
\nEvaluated at bid price : 23.00
\nBid-YTW : 5.37 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n2.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.52
\nBid-YTW : 6.41 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n2.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-30
\nMaturity Price : 18.93
\nEvaluated at bid price : 18.93
\nBid-YTW : 6.32 %<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\n2.43 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-30
\nMaturity Price : 19.00
\nEvaluated at bid price : 19.00
\nBid-YTW : 6.30 %<\/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
GWO.PR.F<\/td>\nDeemed-Retractible<\/td>\n78,609<\/td>\nTD bought 14,500 from Scotia at 25.10.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-29
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.07
\nBid-YTW : 2.30 %<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\n38,483<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-30
\nMaturity Price : 19.00
\nEvaluated at bid price : 19.00
\nBid-YTW : 6.30 %<\/td>\n<\/tr>\n
BNS.PR.X<\/td>\nFixedReset<\/td>\n26,000<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.63
\nBid-YTW : 1.44 %<\/td>\n<\/tr>\n
POW.PR.G<\/td>\nPerpetual-Premium<\/td>\n23,630<\/td>\nNesbitt crossed 20,000 at 24.95.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-30
\nMaturity Price : 24.46
\nEvaluated at bid price : 24.88
\nBid-YTW : 5.63 %<\/td>\n<\/tr>\n
BNS.PR.M<\/td>\nDeemed-Retractible<\/td>\n23,140<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-07-27
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.50
\nBid-YTW : 4.31 %<\/td>\n<\/tr>\n
NA.PR.L<\/td>\nDeemed-Retractible<\/td>\n20,000<\/td>\nTD crossed 15,000 at 25.09.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.10
\nBid-YTW : 4.91 %<\/td>\n<\/tr>\n
There were 12 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
GWO.PR.J<\/td>\nFixedReset<\/td>\nQuote: 24.99 – 25.49
\nSpot Rate : 0.5000
\nAverage : 0.2708<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.99
\nBid-YTW : 5.06 %<\/td>\n<\/tr>\n

BAM.PR.R<\/td>\nFixedReset<\/td>\nQuote: 25.27 – 25.77
\nSpot Rate : 0.5000
\nAverage : 0.3219<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-12-30
\nMaturity Price : 23.56
\nEvaluated at bid price : 25.27
\nBid-YTW : 4.26 %<\/td>\n<\/tr>\n

IAG.PR.C<\/td>\nFixedReset<\/td>\nQuote: 24.99 – 25.29
\nSpot Rate : 0.3000
\nAverage : 0.1664<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.99
\nBid-YTW : 5.37 %<\/td>\n<\/tr>\n

MFC.PR.F<\/td>\nFixedReset<\/td>\nQuote: 21.75 – 22.09
\nSpot Rate : 0.3400
\nAverage : 0.2079<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.75
\nBid-YTW : 5.17 %<\/td>\n<\/tr>\n

GWO.PR.N<\/td>\nFixedReset<\/td>\nQuote: 21.10 – 21.47
\nSpot Rate : 0.3700
\nAverage : 0.2427<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.10
\nBid-YTW : 5.22 %<\/td>\n<\/tr>\n

CU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 25.40 – 25.70
\nSpot Rate : 0.3000
\nAverage : 0.1748<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.40
\nBid-YTW : 3.62 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

It seems I have another competitor, of whom I was not previously aware: NexGen Canadian Preferred Share Tax Managed Fund, managed by Jeff Herold of JZechner Associates Inc.. He had a piece in the Globe …<\/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-24087","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24087","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=24087"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24087\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}