{"id":25003,"date":"2014-04-16T22:40:55","date_gmt":"2014-04-17T03:40:55","guid":{"rendered":"http:\/\/prefblog.com\/?p=25003"},"modified":"2014-04-16T22:40:55","modified_gmt":"2014-04-17T03:40:55","slug":"april-16-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=25003","title":{"rendered":"April 16, 2014"},"content":{"rendered":"

The BoC kept the overnight rate low, with a fairly gloomy outlook<\/a>:<\/p>\n

Inflation in Canada remains low. Core inflation is expected to stay well below 2 per cent this year due to the effects of economic slack and heightened retail competition, and these effects will persist until early 2016. However, higher consumer energy prices and the lower Canadian dollar will exert temporary upward pressure on total CPI inflation, pushing it closer to the 2 per cent target in the coming quarters. We expect total CPI inflation will remain close to target throughout the projection, even as upward pressure from energy prices dissipates, because the impact of retail competition will gradually fade and excess capacity will be absorbed.
…<\/b>
The Bank continues to expect Canada\u2019s real GDP growth to average about 2 1\/2 per cent in 2014 and 2015 before easing to around the 2 per cent growth rate of the economy\u2019s potential in 2016. Competitiveness challenges continue to weigh on Canadian exporters\u2019 ability to benefit from stronger growth abroad. However, a range of export subsectors have been growing in line with fundamentals, which suggests that as the U.S. recovery gathers momentum and becomes more broadly-based, many of our exports will benefit. The lower Canadian dollar should provide additional support. We continue to believe that rising global demand for Canadian goods and services, combined with the assumed high level of oil prices, will stimulate business investment in Canada and shift the economy to a more sustainable growth track.
…<\/b>
In sum, the Bank continues to see a gradual strengthening in the fundamental drivers of growth and inflation in Canada. This view hinges critically on the projected upturn in exports and investment. With underlying inflation expected to remain below target for some time, the downside risks to inflation remain important. At the same time, the risks associated with household imbalances remain elevated. The Bank judges that the balance of these risks remains within the zone for which the current stance of monetary policy is appropriate and therefore has decided to maintain the target for the overnight rate at 1 per cent. The timing and direction of the next change to the policy rate will depend on how new information influences the balance of risks.<\/p><\/blockquote>\n

… so the loony got knocked<\/a>:<\/p>\n

The Canadian dollar touched the lowest level in more than a week after the Bank of Canada said its next move on interest rates could be up or down as a forecast pickup in business investment has been slow to materialize.<\/p><\/blockquote>\n

I saw some husked corn for sale at my favourite greengrocer<\/a> today; but was told that it was from the US so it will be all dried out<\/a>. Geez, we can get Chilean apples; why can’t we get Brazilian corn<\/a>?<\/p>\n

It was a good day for the Canadian preferred share market, with PerpetualDiscounts winning 11bp, FixedResets gaining 1bp and DeemedRetractibles up 8bp. Brookfield’s floaters got whacked – probably on the BoC announcement – but otherwise volatility was minimal. Volume was low; all the highlights are FixedResets.<\/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-1.1125 %<\/td>\n2,402.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.68 %<\/td>\n4.23 %<\/td>\n34,104<\/td>\n17.98<\/td>\n1<\/td>\n0.6951 %<\/td>\n3,665.4<\/td>\n<\/tr>\n
Floater<\/td>\n3.03 %<\/td>\n3.15 %<\/td>\n51,027<\/td>\n19.37<\/td>\n4<\/td>\n-1.1125 %<\/td>\n2,594.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.36 %<\/td>\n-4.59 %<\/td>\n33,497<\/td>\n0.13<\/td>\n2<\/td>\n0.0194 %<\/td>\n2,694.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.81 %<\/td>\n4.37 %<\/td>\n62,595<\/td>\n4.24<\/td>\n5<\/td>\n0.0238 %<\/td>\n3,087.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0194 %<\/td>\n2,463.6<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.55 %<\/td>\n-5.26 %<\/td>\n108,806<\/td>\n0.09<\/td>\n13<\/td>\n0.0091 %<\/td>\n2,384.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.42 %<\/td>\n5.40 %<\/td>\n115,367<\/td>\n14.60<\/td>\n23<\/td>\n0.1087 %<\/td>\n2,484.7<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.68 %<\/td>\n3.65 %<\/td>\n195,634<\/td>\n4.19<\/td>\n79<\/td>\n0.0077 %<\/td>\n2,529.9<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.03 %<\/td>\n-0.82 %<\/td>\n147,382<\/td>\n0.13<\/td>\n42<\/td>\n0.0767 %<\/td>\n2,491.9<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.64 %<\/td>\n2.41 %<\/td>\n189,387<\/td>\n4.26<\/td>\n5<\/td>\n0.0557 %<\/td>\n2,481.4<\/td>\n<\/tr>\n<\/table>\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.K<\/td>\nFloater<\/td>\n-1.48 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-04-16
\nMaturity Price : 16.60
\nEvaluated at bid price : 16.60
\nBid-YTW : 3.18 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-04-16
\nMaturity Price : 16.65
\nEvaluated at bid price : 16.65
\nBid-YTW : 3.17 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n-1.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-04-16
\nMaturity Price : 16.77
\nEvaluated at bid price : 16.77
\nBid-YTW : 3.15 %<\/td>\n<\/tr>\n
GWO.PR.I<\/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 : 22.10
\nBid-YTW : 6.03 %<\/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>\n154,340<\/td>\nRBC crossed blocks of 50,000 and 100,000, both at 23.53.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-04-16
\nMaturity Price : 22.85
\nEvaluated at bid price : 23.50
\nBid-YTW : 3.81 %<\/td>\n<\/tr>\n
TD.PR.G<\/td>\nFixedReset<\/td>\n131,900<\/td>\nCalled for redemption<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.99
\nBid-YTW : 4.63 %<\/td>\n<\/tr>\n
MFC.PR.L<\/td>\nFixedReset<\/td>\n105,350<\/td>\nScotia crossed 45,000 and 50,000, both at 24.78.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.78
\nBid-YTW : 4.04 %<\/td>\n<\/tr>\n
BNS.PR.X<\/td>\nFixedReset<\/td>\n80,700<\/td>\nNesbitt crossed 75,000 at 24.99.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.99
\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n
BMO.PR.O<\/td>\nFixedReset<\/td>\n60,040<\/td>\nCalled for redemption<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.35
\nBid-YTW : 1.70 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n49,150<\/td>\nRBC crossed 39,200 at 24.88.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-04-16
\nMaturity Price : 23.28
\nEvaluated at bid price : 24.71
\nBid-YTW : 4.02 %<\/td>\n<\/tr>\n
There were 18 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: 21.47 – 22.14
\nSpot Rate : 0.6700
\nAverage : 0.4575<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-04-16
\nMaturity Price : 21.47
\nEvaluated at bid price : 21.47
\nBid-YTW : 5.57 %<\/td>\n<\/tr>\n

BAM.PF.B<\/td>\nFixedReset<\/td>\nQuote: 24.80 – 25.06
\nSpot Rate : 0.2600
\nAverage : 0.1688<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-04-16
\nMaturity Price : 23.10
\nEvaluated at bid price : 24.80
\nBid-YTW : 4.21 %<\/td>\n<\/tr>\n

BAM.PR.R<\/td>\nFixedReset<\/td>\nQuote: 25.33 – 25.58
\nSpot Rate : 0.2500
\nAverage : 0.1650<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-04-16
\nMaturity Price : 23.65
\nEvaluated at bid price : 25.33
\nBid-YTW : 3.97 %<\/td>\n<\/tr>\n

GWO.PR.N<\/td>\nFixedReset<\/td>\nQuote: 22.15 – 22.50
\nSpot Rate : 0.3500
\nAverage : 0.2651<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.15
\nBid-YTW : 4.44 %<\/td>\n<\/tr>\n

MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 22.51 – 22.78
\nSpot Rate : 0.2700
\nAverage : 0.1899<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.51
\nBid-YTW : 5.99 %<\/td>\n<\/tr>\n

CIU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 20.89 – 21.16
\nSpot Rate : 0.2700
\nAverage : 0.1899<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-04-16
\nMaturity Price : 20.89
\nEvaluated at bid price : 20.89
\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The BoC kept the overnight rate low, with a fairly gloomy outlook: Inflation in Canada remains low. Core inflation is expected to stay well below 2 per cent this year due to the effects 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-25003","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/25003","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=25003"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/25003\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}