{"id":24811,"date":"2014-03-27T18:11:20","date_gmt":"2014-03-27T23:11:20","guid":{"rendered":"http:\/\/prefblog.com\/?p=24811"},"modified":"2014-03-27T18:11:20","modified_gmt":"2014-03-27T23:11:20","slug":"march-27-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=24811","title":{"rendered":"March 27, 2014"},"content":{"rendered":"

The world is about to end – banks are competing on price<\/a>:<\/p>\n

Just one week after Jim Flaherty stepped down, Bank of Montreal is shaking up the mortgage market, aggressively cutting its five-year rate to levels that caused the former finance minister to intervene last year.<\/p>\n

BMO is now offering five-year fixed mortgages at 2.99 per cent, slashing its rate from 3.49 per cent. While that\u2019s not the lowest rate in the market, BMO is the first big bank to move below the sensitive 3-per-cent threshold.<\/p>\n

The last time a Canadian bank\u2019s mortgage rates fell this low, in March of 2013, Mr. Flaherty stepped in and publicly called for \u201cresponsible lending\u201d because he worried about an overheated housing market.<\/p>\n

BMO\u2019s rate cut comes after Toronto-Dominion Bank lowered its four-year rate to 2.97 per cent earlier in March. Last week, shortly after Mr. Flaherty stepped down, Bank of Nova Scotia also slashed its mortgage rates, and instituted a special 2.94-per-cent four-year rate.<\/p>\n

At least one credit union also moved its five-year rate to 2.99 per cent in February.<\/p><\/blockquote>\n

Meanwhile, the Feds are defending their data<\/a>:<\/p>\n

\nFederal Employment Minister Jason Kenney defended his government\u2019s use of Kijiji, but acknowledged there are technical concerns with the data including the need to weed out repeated postings for the same position.<\/p>\n

\u201cPeople are laughing at Kijiji, but it\u2019s the new classified ads,\u201d he told CTV\u2019s Power Play. \u201cI would just invite some of these economists \u2013 who sit in front of their spreadsheets of inadequate data trying to figure out the world \u2013 I wish they would actually go out into the real world and talk to employers like I do all the time.\u201d<\/p>\n

Mr. Kenney said critics should recognize the challenge of producing reliable labour data in a world of online job boards.<\/p><\/blockquote>\n

Let’s all square our rots for a good boo-hoo-hoo about how analysis is hard. It’s easier than reviewing the strengths and weaknesses of our analysis.<\/p>\n

David Parkinson of the Globe points out<\/a>:<\/p>\n

Finance\u2019s dramatic numbers don\u2019t pass a basic sniff test. Specifically, if Canada really was suffering from acute skills shortages across a broad swath of the economy, it would manifest in significant upward pressure on wages. Those wage pressures, in general, simply aren\u2019t there.<\/p>\n

Year-over-year increases in Canadians\u2019 average weekly wages have trended downward over much of the past two years, even as the country added more than 400,000 jobs. Average year-over-year wage growth last year was just 2 per cent, well below the 10-year average of 2.9 per cent and the five-year average of 2.5 per cent.<\/p>\n

That said, there is certainly evidence of pockets where wage pressures are significant, indicative of possible skills shortages.<\/p>\n

In Alberta, average weekly wages were up 4.6 per cent year over year in December. Two other oil-industry-heavy provinces, Newfoundland and Saskatchewan, posted increases of 3.8 per cent and 3.6 per cent, respectively. Skills- and education-heavy segments of the economy \u2013 such as business management; professional, scientific and technical services; mining and oil and gas extraction; and construction \u2013 have, indeed, shown some of the biggest year-over year wage gains.<\/p><\/blockquote>\n

It was a soft day for the Canadian preferred share market, with PerpetualDiscounts down 4bp, FixedResets off 1bp and DeemedRetractibles flat. Given the overall move, the Performance Highlights table is surprisingly lengthy, with a fair number of losers. Volume was average, but with some very nice block trades.<\/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-0.2572 %<\/td>\n2,419.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.69 %<\/td>\n4.29 %<\/td>\n34,447<\/td>\n17.73<\/td>\n1<\/td>\n0.0494 %<\/td>\n3,619.2<\/td>\n<\/tr>\n
Floater<\/td>\n3.01 %<\/td>\n3.09 %<\/td>\n50,749<\/td>\n19.48<\/td>\n4<\/td>\n-0.2572 %<\/td>\n2,612.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.65 %<\/td>\n-0.88 %<\/td>\n100,053<\/td>\n0.23<\/td>\n3<\/td>\n-0.0258 %<\/td>\n2,687.3<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.81 %<\/td>\n4.11 %<\/td>\n67,229<\/td>\n4.29<\/td>\n5<\/td>\n-0.0159 %<\/td>\n3,083.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0258 %<\/td>\n2,457.2<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.64 %<\/td>\n-5.65 %<\/td>\n93,436<\/td>\n0.08<\/td>\n11<\/td>\n-0.0823 %<\/td>\n2,364.5<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.44 %<\/td>\n5.47 %<\/td>\n121,179<\/td>\n14.56<\/td>\n26<\/td>\n-0.0432 %<\/td>\n2,449.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.69 %<\/td>\n3.53 %<\/td>\n230,414<\/td>\n4.33<\/td>\n79<\/td>\n-0.0069 %<\/td>\n2,516.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.05 %<\/td>\n2.84 %<\/td>\n161,477<\/td>\n0.33<\/td>\n42<\/td>\n0.0029 %<\/td>\n2,471.1<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.61 %<\/td>\n2.56 %<\/td>\n194,631<\/td>\n4.29<\/td>\n5<\/td>\n0.1041 %<\/td>\n2,453.9<\/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
IGM.PR.B<\/td>\nPerpetual-Premium<\/td>\n-1.59 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.44
\nBid-YTW : 5.38 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n-1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-03-27
\nMaturity Price : 16.65
\nEvaluated at bid price : 16.65
\nBid-YTW : 3.15 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\n-1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.02
\nBid-YTW : 6.22 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n-1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-03-27
\nMaturity Price : 20.41
\nEvaluated at bid price : 20.41
\nBid-YTW : 5.86 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.15
\nBid-YTW : 4.49 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.76
\nBid-YTW : 4.46 %<\/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
TRP.PR.A<\/td>\nFixedReset<\/td>\n856,484<\/td>\nRBC crossed two blocks of 427,400 each, both at 23.29.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-03-27
\nMaturity Price : 22.69
\nEvaluated at bid price : 23.30
\nBid-YTW : 3.92 %<\/td>\n<\/tr>\n
MFC.PR.J<\/td>\nFixedReset<\/td>\n201,210<\/td>\nDesjardins crossed blocks of 137,500 and 50,000, both at 25.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.44
\nBid-YTW : 3.56 %<\/td>\n<\/tr>\n
SLF.PR.F<\/td>\nFixedReset<\/td>\n200,100<\/td>\nRBC crossed blocks of 70,000 shares, 50,000 and 74,600, all at 25.33.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.27
\nBid-YTW : 1.52 %<\/td>\n<\/tr>\n
RY.PR.L<\/td>\nFixedReset<\/td>\n114,040<\/td>\nRBC crossed blocks of 49,000 and 20,000, both at 26.45. TD crossed 35,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.38
\nBid-YTW : 3.14 %<\/td>\n<\/tr>\n
RY.PR.B<\/td>\nDeemed-Retractible<\/td>\n101,684<\/td>\nRBC crossed blocks of 75,000 and 20,000, both at 25.60.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.63
\nBid-YTW : 2.01 %<\/td>\n<\/tr>\n
RY.PR.Z<\/td>\nFixedReset<\/td>\n99,610<\/td>\nRBC crossed 85,000 at 25.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-05-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.51
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n
There were 32 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
BAM.PR.G<\/td>\nFixedFloater<\/td>\nQuote: 20.26 – 20.90
\nSpot Rate : 0.6400
\nAverage : 0.4828<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-03-27
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.26
\nBid-YTW : 4.29 %<\/td>\n<\/tr>\n

PWF.PR.A<\/td>\nFloater<\/td>\nQuote: 19.44 – 19.99
\nSpot Rate : 0.5500
\nAverage : 0.4058<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-03-27
\nMaturity Price : 19.44
\nEvaluated at bid price : 19.44
\nBid-YTW : 2.72 %<\/td>\n<\/tr>\n

GWO.PR.P<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.97 – 25.30
\nSpot Rate : 0.3300
\nAverage : 0.1985<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.97
\nBid-YTW : 5.44 %<\/td>\n<\/tr>\n

TRP.PR.B<\/td>\nFixedReset<\/td>\nQuote: 20.15 – 20.59
\nSpot Rate : 0.4400
\nAverage : 0.3206<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-03-27
\nMaturity Price : 20.15
\nEvaluated at bid price : 20.15
\nBid-YTW : 3.82 %<\/td>\n<\/tr>\n

MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 22.02 – 22.34
\nSpot Rate : 0.3200
\nAverage : 0.2170<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.02
\nBid-YTW : 6.22 %<\/td>\n<\/tr>\n

MFC.PR.K<\/td>\nFixedReset<\/td>\nQuote: 24.49 – 24.82
\nSpot Rate : 0.3300
\nAverage : 0.2276<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.49
\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The world is about to end – banks are competing on price: Just one week after Jim Flaherty stepped down, Bank of Montreal is shaking up the mortgage market, aggressively cutting its five-year rate to …<\/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-24811","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24811","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=24811"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24811\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}