{"id":24443,"date":"2014-02-13T21:10:12","date_gmt":"2014-02-14T02:10:12","guid":{"rendered":"http:\/\/prefblog.com\/?p=24443"},"modified":"2014-02-13T21:10:12","modified_gmt":"2014-02-14T02:10:12","slug":"february-13-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=24443","title":{"rendered":"February 13, 2014"},"content":{"rendered":"

Changes in Fed policy can disproportionate effects<\/a>:<\/p>\n

Federal Reserve Bank of St. Louis President James Bullard said Fed officials will probably be careful about altering the pace of their reductions to bond buying because of a potentially significant impact on markets.<\/p>\n

\u201cIf we move off our baseline, it\u2019s going to have pretty big repercussions,\u201d Bullard said today in an interview at Bloomberg\u2019s headquarters in New York. \u201cWe\u2019d be cautious in using that — it\u2019s going to have to be a situation where you\u2019re pretty sure things are moving off track.\u201d
…<\/b>
Bullard said the market\u2019s reaction last June to a potential tapering, and the impact of the Fed\u2019s surprise decision in September to maintain the pace of its asset purchases, illustrated that fluctuations in the amount of quantitative easing have \u201cpowerful\u201d consequences.<\/p>\n

In June, global equity markets lost $3 trillion in the five days after former Fed Chairman Ben S. Bernanke said he might reduce his $85 billion in monthly asset purchases that year and end them by mid-2014. In September, the Fed refrained from tapering, reversing a rise in bond yields and pushing back expectations for a tightening of monetary policy.<\/p>\n

\u201cIn both of these cases, it showed it really matters a lot,\u201d Bullard said. \u201cFlow-based purchases have been really a powerful tool.\u201d<\/p><\/blockquote>\n

Market movement was modest for Canadian preferred shares today, with PerpetualDiscounts off 2bp, FixedResets gaining 2bp and DeemedRetractibles up 3bp. The Performance Highlights table is notable for two winning Floating Rate issues. Volume was average.<\/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>\n1.1963 %<\/td>\n2,419.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.75 %<\/td>\n4.33 %<\/td>\n29,742<\/td>\n17.75<\/td>\n1<\/td>\n-0.1498 %<\/td>\n3,572.8<\/td>\n<\/tr>\n
Floater<\/td>\n2.99 %<\/td>\n3.07 %<\/td>\n54,008<\/td>\n19.52<\/td>\n4<\/td>\n1.1963 %<\/td>\n2,612.8<\/td>\n<\/tr>\n
OpRet<\/td>\n4.61 %<\/td>\n-0.61 %<\/td>\n70,954<\/td>\n0.13<\/td>\n3<\/td>\n-0.0384 %<\/td>\n2,686.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.88 %<\/td>\n5.09 %<\/td>\n63,135<\/td>\n4.34<\/td>\n5<\/td>\n-0.1448 %<\/td>\n3,007.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0384 %<\/td>\n2,456.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.67 %<\/td>\n1.23 %<\/td>\n94,948<\/td>\n0.08<\/td>\n12<\/td>\n0.0000 %<\/td>\n2,333.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.56 %<\/td>\n5.58 %<\/td>\n150,800<\/td>\n14.50<\/td>\n26<\/td>\n-0.0543 %<\/td>\n2,385.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.91 %<\/td>\n3.72 %<\/td>\n212,924<\/td>\n6.24<\/td>\n82<\/td>\n0.0248 %<\/td>\n2,486.8<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.12 %<\/td>\n4.12 %<\/td>\n163,399<\/td>\n1.93<\/td>\n42<\/td>\n0.0332 %<\/td>\n2,422.6<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.65 %<\/td>\n2.59 %<\/td>\n164,270<\/td>\n4.60<\/td>\n6<\/td>\n-0.0469 %<\/td>\n2,441.2<\/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
GWO.PR.N<\/td>\nFixedReset<\/td>\n-1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.55
\nBid-YTW : 4.74 %<\/td>\n<\/tr>\n
BAM.PR.X<\/td>\nFixedReset<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-13
\nMaturity Price : 20.67
\nEvaluated at bid price : 20.67
\nBid-YTW : 4.43 %<\/td>\n<\/tr>\n
TD.PR.Y<\/td>\nFixedReset<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.03
\nBid-YTW : 3.47 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-13
\nMaturity Price : 17.09
\nEvaluated at bid price : 17.09
\nBid-YTW : 3.10 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n2.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-13
\nMaturity Price : 17.25
\nEvaluated at bid price : 17.25
\nBid-YTW : 3.07 %<\/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
BMO.PR.R<\/td>\nFloatingReset<\/td>\n291,900<\/td>\nIssue Reset Spread of 165bp makes the dividend prospects to Deemed Maturity so dreary that a fast call has basically the same yield as the Deemed Maturity scenario. TD crossed 289,300 at 24.65.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-08-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.79
\nBid-YTW : 2.59 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n183,230<\/td>\nNesbitt crossed 155,200 at 22.15.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.15
\nBid-YTW : 4.60 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset<\/td>\n165,887<\/td>\nRBC crossed two blocks of 75,000 each, both at 23.74.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.72
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nDeemed-Retractible<\/td>\n125,900<\/td>\nNesbitt crossed 100,000 at 21.45.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.31
\nBid-YTW : 6.51 %<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixedFloater<\/td>\n74,765<\/td>\nNesbitt crossed 71,300 at 20.06.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-13
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 4.33 %<\/td>\n<\/tr>\n
NA.PR.S<\/td>\nFixedReset<\/td>\n65,416<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-13
\nMaturity Price : 23.15
\nEvaluated at bid price : 25.02
\nBid-YTW : 3.91 %<\/td>\n<\/tr>\n
There were 33 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
ELF.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 20.91 – 21.31
\nSpot Rate : 0.4000
\nAverage : 0.3093<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-13
\nMaturity Price : 20.91
\nEvaluated at bid price : 20.91
\nBid-YTW : 5.75 %<\/td>\n<\/tr>\n

FTS.PR.H<\/td>\nFixedReset<\/td>\nQuote: 20.90 – 21.19
\nSpot Rate : 0.2900
\nAverage : 0.2056<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-13
\nMaturity Price : 20.90
\nEvaluated at bid price : 20.90
\nBid-YTW : 3.74 %<\/td>\n<\/tr>\n

ENB.PR.F<\/td>\nFixedReset<\/td>\nQuote: 24.21 – 24.40
\nSpot Rate : 0.1900
\nAverage : 0.1080<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-13
\nMaturity Price : 22.92
\nEvaluated at bid price : 24.21
\nBid-YTW : 4.14 %<\/td>\n<\/tr>\n

BAM.PR.X<\/td>\nFixedReset<\/td>\nQuote: 20.67 – 20.95
\nSpot Rate : 0.2800
\nAverage : 0.1993<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-13
\nMaturity Price : 20.67
\nEvaluated at bid price : 20.67
\nBid-YTW : 4.43 %<\/td>\n<\/tr>\n

CGI.PR.D<\/td>\nSplitShare<\/td>\nQuote: 24.41 – 24.73
\nSpot Rate : 0.3200
\nAverage : 0.2415<\/p>\n

YTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2023-06-14
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.41
\nBid-YTW : 4.16 %<\/td>\n<\/tr>\n

ENB.PR.D<\/td>\nFixedReset<\/td>\nQuote: 23.82 – 24.07
\nSpot Rate : 0.2500
\nAverage : 0.1786<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-13
\nMaturity Price : 22.77
\nEvaluated at bid price : 23.82
\nBid-YTW : 4.11 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Changes in Fed policy can disproportionate effects: Federal Reserve Bank of St. Louis President James Bullard said Fed officials will probably be careful about altering the pace of their reductions to bond buying because 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-24443","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24443","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=24443"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24443\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}