{"id":24271,"date":"2014-01-23T23:03:25","date_gmt":"2014-01-24T04:03:25","guid":{"rendered":"http:\/\/prefblog.com\/?p=24271"},"modified":"2014-01-23T23:03:25","modified_gmt":"2014-01-24T04:03:25","slug":"january-23-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=24271","title":{"rendered":"January 23, 2014"},"content":{"rendered":"

Taper? Schmaper!<\/a>:<\/p>\n

Treasuries rose the most in almost two weeks, pushing the 10-year note yield further below the level when the Federal Reserve voted last month to taper its bond purchases, as economic reports showed an uneven economic expansion.<\/p>\n

The benchmark yield reached a seven-week low as an emerging-market currencies selloff amid slowing economic growth and rising social tension stoked demand for safety. Continuing jobless claims rose last week more than forecast, a manufacturing gauge unexpectedly fell this month, pushing yield further below where it stood after the central bank announced Dec. 18 it would reduce its bond purchases to $75 billion per month from $85 billion amid signs of improved economic growth.<\/p><\/blockquote>\n

Much handwringing over the loony<\/a>:<\/p>\n

The Canadian dollar weakened to the lowest in 4 1\/2 years against its U.S. counterpart after Poloz left the main interest rate unchanged yesterday and said the strength of the currency is hurting exporters. Hedge funds and other large speculators have already amassed near-record bets this year for the local dollar to decline as Canada\u2019s trade deficit came in nine times wider than forecast and a report showed the country shed jobs in December.<\/p>\n

The drop pushed the currency below the median forecast of C$1.10 per U.S. dollar for the end of the year in a Bloomberg survey of 63 contributors, suggesting strategists will be revising estimates lower. While some investors speculated that the central bank would signal a bias toward easing policy, Poloz said his next rate move depends on how economic data change the balance of risks to the world\u2019s 11th-largest economy.
…<\/b>
Canada\u2019s dollar, often called the loonie for the aquatic bird on the C$1 coin, fell as much as 0.8 percent today to C$1.1174, the lowest level since July 2009, and was at C$1.1117 as of 8:48 a.m. in Toronto. That added to its 1.1 percent slide yesterday. Fair value is around C$1.15, according to [Deutsche Bank global head of Group of 10 foreign exchange Alan] Ruskin.<\/p>\n

The loonie is the worst performer during the past one and six months against a basket of nine developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes, with declines of 4.9 percent and 8.3 percent. Even so, the Canadian currency is still about 11 percent overvalued compared with its U.S. peer, according the Organisation for Economic Cooperation and Development\u2019s purchasing-power data.<\/p><\/blockquote>\n

It was a good day for the Canadian preferred share market, with PerpetualDiscounts winning 28bp, FixedResets gaining 14bp and DeemedRetractibles up 26bp. An average-sized Performance Highlights table has a preponderance of winning PerpetualDiscounts. Volume was 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>\n0.7838 %<\/td>\n2,502.1<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.47 %<\/td>\n3.71 %<\/td>\n31,872<\/td>\n17.99<\/td>\n1<\/td>\n0.4253 %<\/td>\n3,796.0<\/td>\n<\/tr>\n
Floater<\/td>\n2.99 %<\/td>\n3.00 %<\/td>\n71,752<\/td>\n19.72<\/td>\n3<\/td>\n0.7838 %<\/td>\n2,701.6<\/td>\n<\/tr>\n
OpRet<\/td>\n4.61 %<\/td>\n0.39 %<\/td>\n76,390<\/td>\n0.18<\/td>\n3<\/td>\n-0.0512 %<\/td>\n2,676.3<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.86 %<\/td>\n4.93 %<\/td>\n63,250<\/td>\n4.40<\/td>\n5<\/td>\n-0.2962 %<\/td>\n3,018.6<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0512 %<\/td>\n2,447.2<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.62 %<\/td>\n2.54 %<\/td>\n120,504<\/td>\n0.09<\/td>\n13<\/td>\n0.1074 %<\/td>\n2,331.0<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.59 %<\/td>\n5.66 %<\/td>\n171,734<\/td>\n14.42<\/td>\n25<\/td>\n0.2814 %<\/td>\n2,374.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.94 %<\/td>\n3.54 %<\/td>\n223,826<\/td>\n3.95<\/td>\n83<\/td>\n0.1421 %<\/td>\n2,493.7<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.14 %<\/td>\n4.19 %<\/td>\n180,096<\/td>\n1.99<\/td>\n42<\/td>\n0.2610 %<\/td>\n2,408.7<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.61 %<\/td>\n2.34 %<\/td>\n251,031<\/td>\n4.30<\/td>\n5<\/td>\n0.0715 %<\/td>\n2,465.9<\/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.X<\/td>\nFixedReset<\/td>\n-1.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-01-23
\nMaturity Price : 21.31
\nEvaluated at bid price : 21.60
\nBid-YTW : 4.27 %<\/td>\n<\/tr>\n
CU.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-01-23
\nMaturity Price : 21.30
\nEvaluated at bid price : 21.60
\nBid-YTW : 5.27 %<\/td>\n<\/tr>\n
BNS.PR.Y<\/td>\nFixedReset<\/td>\n1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.85
\nBid-YTW : 3.54 %<\/td>\n<\/tr>\n
PWF.PR.S<\/td>\nPerpetual-Discount<\/td>\n1.31 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-01-23
\nMaturity Price : 22.05
\nEvaluated at bid price : 22.35
\nBid-YTW : 5.38 %<\/td>\n<\/tr>\n
CU.PR.D<\/td>\nPerpetual-Discount<\/td>\n1.59 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-01-23
\nMaturity Price : 22.61
\nEvaluated at bid price : 23.01
\nBid-YTW : 5.39 %<\/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>\n151,462<\/td>\nRBC crossed 97,800 at 25.00; Nesbitt crossed 35,900 at the same price.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-01-23
\nMaturity Price : 23.15
\nEvaluated at bid price : 25.00
\nBid-YTW : 4.21 %<\/td>\n<\/tr>\n
ENB.PR.P<\/td>\nFixedReset<\/td>\n105,900<\/td>\nRBC crossed 50,000 at 24.33 and bought blocks of 10,000 and 20,000 from National at 24.30.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-01-23
\nMaturity Price : 22.91
\nEvaluated at bid price : 24.33
\nBid-YTW : 4.20 %<\/td>\n<\/tr>\n
TRP.PR.E<\/td>\nFixedReset<\/td>\n89,830<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-01-23
\nMaturity Price : 23.11
\nEvaluated at bid price : 24.96
\nBid-YTW : 3.98 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n52,040<\/td>\nWill be extended<\/a>. Yield to DeemedMaturity is 3.60%.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 0.00 %<\/td>\n<\/tr>\n
BAM.PR.X<\/td>\nFixedReset<\/td>\n50,003<\/td>\nTD crossed 15,400 at 21.85.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-01-23
\nMaturity Price : 21.31
\nEvaluated at bid price : 21.60
\nBid-YTW : 4.27 %<\/td>\n<\/tr>\n
ENB.PR.H<\/td>\nFixedReset<\/td>\n49,788<\/td>\nNesbitt crossed 35,600 at 23.50.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-01-23
\nMaturity Price : 22.60
\nEvaluated at bid price : 23.56
\nBid-YTW : 4.06 %<\/td>\n<\/tr>\n
There were 53 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
CGI.PR.D<\/td>\nSplitShare<\/td>\nQuote: 24.70 – 25.00
\nSpot Rate : 0.3000
\nAverage : 0.1986<\/p>\n

YTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2023-06-14
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.70
\nBid-YTW : 3.98 %<\/td>\n<\/tr>\n

BMO.PR.L<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.38 – 26.65
\nSpot Rate : 0.2700
\nAverage : 0.1825<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-22
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.38
\nBid-YTW : -1.23 %<\/td>\n<\/tr>\n

MFC.PR.G<\/td>\nFixedReset<\/td>\nQuote: 25.85 – 26.07
\nSpot Rate : 0.2200
\nAverage : 0.1397<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.85
\nBid-YTW : 3.33 %<\/td>\n<\/tr>\n

BNS.PR.K<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.12 – 25.34
\nSpot Rate : 0.2200
\nAverage : 0.1463<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-28
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.12
\nBid-YTW : 2.50 %<\/td>\n<\/tr>\n

FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.40 – 22.65
\nSpot Rate : 0.2500
\nAverage : 0.1943<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-01-23
\nMaturity Price : 22.12
\nEvaluated at bid price : 22.40
\nBid-YTW : 5.55 %<\/td>\n<\/tr>\n

MFC.PR.D<\/td>\nFixedReset<\/td>\nQuote: 25.54 – 25.70
\nSpot Rate : 0.1600
\nAverage : 0.1052<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.54
\nBid-YTW : 2.84 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Taper? Schmaper!: Treasuries rose the most in almost two weeks, pushing the 10-year note yield further below the level when the Federal Reserve voted last month to taper its bond purchases, as economic reports showed …<\/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-24271","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24271","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=24271"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24271\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}