{"id":24372,"date":"2014-02-03T21:07:33","date_gmt":"2014-02-04T02:07:33","guid":{"rendered":"http:\/\/prefblog.com\/?p=24372"},"modified":"2014-02-03T21:07:33","modified_gmt":"2014-02-04T02:07:33","slug":"february-3-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=24372","title":{"rendered":"February 3, 2014"},"content":{"rendered":"

More blather about housing prices<\/a>:<\/p>\n

The price-to-rent ratio pegs the level at 60 per cent, [TD economist] Ms. [Diana] Petramala said, but is \u201cskewed\u201d by rent controls, and thus it\u2019s hard to determine whether the prices are too high or if the rents are too low.<\/p>\n

The price-to-income ratio puts overvaluation at up to 30 per cent, she added, but that really depends on what you consider income.<\/p>\n

\u201cA more encompassing definition of income, including government transfers and investment income, suggests the housing market is only 8 per cent overvalued.\u201d<\/p>\n

But it\u2019s affordability that is key, she said, and various readings don\u2019t factor in declining interest rates over the last 20 years. A \u201cmore normal interest rate environment\u201d suggest 25 per cent, while current rates suggest fair value.<\/p>\n

\u201cHowever, current interest rates are likely unsustainable, nor are they expected to increase to more normal levels in the near future,\u201d Ms. Petramala said.<\/p>\n

\u201cOver all, given the expectations of a modest increase in interest rates, home prices are likely 10-per-cent overvalued.\u201d<\/p><\/blockquote>\n

Make of it what you will. Personally, I think forecasting the real estate market is about as useful an exercise as timing the financial markets. When I bought my place in 2000, I had lots of people tell me what an idiot I was; but I needed a place to live.<\/p>\n

It was a mixed day for the Canadian preferred share market, with PerpetualDiscounts down 20bp, FixedResets off 1bp and DeemedRetractibles gaining 3bp. Floaters got hammered, dominating the bad part of the Performance Highlights table. Volume was very extremely awfully low.<\/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-2.4668 %<\/td>\n2,357.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.61 %<\/td>\n3.86 %<\/td>\n28,959<\/td>\n17.73<\/td>\n1<\/td>\n-0.1937 %<\/td>\n3,681.7<\/td>\n<\/tr>\n
Floater<\/td>\n3.07 %<\/td>\n3.16 %<\/td>\n54,825<\/td>\n19.31<\/td>\n4<\/td>\n-2.4668 %<\/td>\n2,545.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.61 %<\/td>\n0.90 %<\/td>\n76,145<\/td>\n0.32<\/td>\n3<\/td>\n0.0256 %<\/td>\n2,681.1<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.87 %<\/td>\n4.96 %<\/td>\n61,610<\/td>\n4.37<\/td>\n5<\/td>\n0.0805 %<\/td>\n3,013.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0256 %<\/td>\n2,451.6<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.66 %<\/td>\n2.53 %<\/td>\n106,452<\/td>\n0.08<\/td>\n12<\/td>\n-0.0231 %<\/td>\n2,334.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.54 %<\/td>\n5.60 %<\/td>\n162,177<\/td>\n14.50<\/td>\n26<\/td>\n-0.2043 %<\/td>\n2,387.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.91 %<\/td>\n3.65 %<\/td>\n217,555<\/td>\n4.17<\/td>\n81<\/td>\n-0.0101 %<\/td>\n2,485.4<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.13 %<\/td>\n4.13 %<\/td>\n171,462<\/td>\n1.96<\/td>\n42<\/td>\n0.0313 %<\/td>\n2,416.5<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.66 %<\/td>\n2.59 %<\/td>\n192,963<\/td>\n4.45<\/td>\n6<\/td>\n0.1406 %<\/td>\n2,444.3<\/td>\n<\/tr>\n<\/table>\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
PWF.PR.A<\/td>\nFloater<\/td>\n-4.38 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-03
\nMaturity Price : 18.36
\nEvaluated at bid price : 18.36
\nBid-YTW : 2.85 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n-2.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-03
\nMaturity Price : 16.65
\nEvaluated at bid price : 16.65
\nBid-YTW : 3.18 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n-1.70 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-03
\nMaturity Price : 16.74
\nEvaluated at bid price : 16.74
\nBid-YTW : 3.16 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n-1.48 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-03
\nMaturity Price : 16.65
\nEvaluated at bid price : 16.65
\nBid-YTW : 3.18 %<\/td>\n<\/tr>\n
BAM.PF.D<\/td>\nPerpetual-Discount<\/td>\n-1.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-03
\nMaturity Price : 20.75
\nEvaluated at bid price : 20.75
\nBid-YTW : 5.99 %<\/td>\n<\/tr>\n
CIU.PR.C<\/td>\nFixedReset<\/td>\n2.69 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-03
\nMaturity Price : 20.65
\nEvaluated at bid price : 20.65
\nBid-YTW : 3.71 %<\/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.Z<\/td>\nFixedReset<\/td>\n158,010<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-03
\nMaturity Price : 23.14
\nEvaluated at bid price : 24.99
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n
MFC.PR.H<\/td>\nFixedReset<\/td>\n74,914<\/td>\nTD crossed 30,000 at 26.15; Scotia crossed 40,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.13
\nBid-YTW : 3.28 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n47,080<\/td>\nWill reset at 3.52%<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.72
\nBid-YTW : 3.66 %<\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nDeemed-Retractible<\/td>\n29,710<\/td>\nDesjardins crossed two blocks of 10,000 each, both at 22.26.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.20
\nBid-YTW : 6.27 %<\/td>\n<\/tr>\n
HSB.PR.E<\/td>\nFixedReset<\/td>\n28,602<\/td>\nRBC crossed 25,000 at 25.55.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.55
\nBid-YTW : 2.65 %<\/td>\n<\/tr>\n
BAM.PR.P<\/td>\nFixedReset<\/td>\n23,933<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.72
\nBid-YTW : 3.57 %<\/td>\n<\/tr>\n
There were 11 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
PWF.PR.A<\/td>\nFloater<\/td>\nQuote: 18.36 – 18.99
\nSpot Rate : 0.6300
\nAverage : 0.4699<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-03
\nMaturity Price : 18.36
\nEvaluated at bid price : 18.36
\nBid-YTW : 2.85 %<\/td>\n<\/tr>\n

BAM.PF.D<\/td>\nPerpetual-Discount<\/td>\nQuote: 20.75 – 21.02
\nSpot Rate : 0.2700
\nAverage : 0.1844<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-03
\nMaturity Price : 20.75
\nEvaluated at bid price : 20.75
\nBid-YTW : 5.99 %<\/td>\n<\/tr>\n

SLF.PR.H<\/td>\nFixedReset<\/td>\nQuote: 25.00 – 25.25
\nSpot Rate : 0.2500
\nAverage : 0.1676<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 3.83 %<\/td>\n<\/tr>\n

CU.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 21.20 – 21.47
\nSpot Rate : 0.2700
\nAverage : 0.1894<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-03
\nMaturity Price : 21.20
\nEvaluated at bid price : 21.20
\nBid-YTW : 5.41 %<\/td>\n<\/tr>\n

GWO.PR.N<\/td>\nFixedReset<\/td>\nQuote: 22.42 – 22.69
\nSpot Rate : 0.2700
\nAverage : 0.1942<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.42
\nBid-YTW : 4.24 %<\/td>\n<\/tr>\n

BNS.PR.N<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.82 – 26.10
\nSpot Rate : 0.2800
\nAverage : 0.2061<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-05
\nMaturity Price : 25.75
\nEvaluated at bid price : 25.82
\nBid-YTW : 2.13 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

More blather about housing prices: The price-to-rent ratio pegs the level at 60 per cent, [TD economist] Ms. [Diana] Petramala said, but is \u201cskewed\u201d by rent controls, and thus it\u2019s hard to determine whether the …<\/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-24372","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24372","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=24372"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24372\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}