{"id":25136,"date":"2014-05-02T20:41:56","date_gmt":"2014-05-03T01:41:56","guid":{"rendered":"http:\/\/prefblog.com\/?p=25136"},"modified":"2014-05-02T20:41:56","modified_gmt":"2014-05-03T01:41:56","slug":"may-2-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=25136","title":{"rendered":"May 2, 2014"},"content":{"rendered":"

The build up of corporate cash since the Credit Crunch has a nice side-effect<\/a>:<\/p>\n

Rather than get the euros or pounds they need through currency markets, there\u2019s speculation U.S. companies including General Electric Co. may be dipping into offshore cash piles they\u2019ve built up to mitigate tax liabilities.<\/p>\n

\u201cBefore the market gets excited that mega takeovers from the U.S. could lift the euro and pound, it\u2019s worth recognizing that U.S. companies are sitting on truly huge cash piles abroad,\u201d Steven Barrow, the head of Group of 10 research at Standard Bank Plc in London, wrote in an April 29 note to clients. \u201cThat does change the way we have to look at these takeovers from a currency perspective.\u201d<\/p><\/blockquote>\n

The New York Times produced an excellent graphic regarding relative price changes<\/a> over the past decade; regrettably but understandably they’ve made it a PNG which doesn’t reproduce well on this blog. Anyway, the point is that the cost of College tuition and fees has soared relative to everything else. I last complained about the universities’ mission-creep on March 6, 2014<\/a>.<\/p>\n

It was another excellent day for the Canadian preferred share market, with PerpetualDiscounts up 19bp, FixedResets winning 26bp and DeemedRetractibles gaining 15bp. Volatility was high, with a lengthy list of winners dominated by FixedResets. 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>\n0.8597 %<\/td>\n2,403.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.62 %<\/td>\n3.85 %<\/td>\n30,409<\/td>\n17.77<\/td>\n1<\/td>\n0.1461 %<\/td>\n3,717.8<\/td>\n<\/tr>\n
Floater<\/td>\n3.03 %<\/td>\n3.18 %<\/td>\n52,833<\/td>\n19.28<\/td>\n4<\/td>\n0.8597 %<\/td>\n2,595.2<\/td>\n<\/tr>\n
OpRet<\/td>\n4.35 %<\/td>\n-7.00 %<\/td>\n33,369<\/td>\n0.08<\/td>\n2<\/td>\n-0.0387 %<\/td>\n2,699.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.79 %<\/td>\n4.33 %<\/td>\n63,718<\/td>\n4.20<\/td>\n5<\/td>\n0.0872 %<\/td>\n3,097.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0387 %<\/td>\n2,468.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.53 %<\/td>\n-5.42 %<\/td>\n99,692<\/td>\n0.08<\/td>\n15<\/td>\n0.0654 %<\/td>\n2,394.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.31 %<\/td>\n5.35 %<\/td>\n120,128<\/td>\n14.90<\/td>\n21<\/td>\n0.1907 %<\/td>\n2,532.7<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.51 %<\/td>\n3.38 %<\/td>\n208,500<\/td>\n4.15<\/td>\n75<\/td>\n0.2562 %<\/td>\n2,563.8<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.98 %<\/td>\n-4.25 %<\/td>\n143,597<\/td>\n0.14<\/td>\n42<\/td>\n0.1483 %<\/td>\n2,520.1<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.68 %<\/td>\n2.30 %<\/td>\n143,689<\/td>\n4.22<\/td>\n6<\/td>\n0.0132 %<\/td>\n2,494.9<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\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
FTS.PR.H<\/td>\nFixedReset<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-05-02
\nMaturity Price : 21.41
\nEvaluated at bid price : 21.73
\nBid-YTW : 3.70 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.21
\nBid-YTW : 2.60 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.95
\nBid-YTW : 4.09 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset<\/td>\n1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.48
\nBid-YTW : 2.10 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.55
\nBid-YTW : 4.08 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.25
\nBid-YTW : 4.10 %<\/td>\n<\/tr>\n
SLF.PR.H<\/td>\nFixedReset<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.98
\nBid-YTW : 2.37 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-05-02
\nMaturity Price : 22.81
\nEvaluated at bid price : 23.16
\nBid-YTW : 3.80 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nDeemed-Retractible<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.70
\nBid-YTW : 5.74 %<\/td>\n<\/tr>\n
PWF.PR.A<\/td>\nFloater<\/td>\n1.51 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-05-02
\nMaturity Price : 19.50
\nEvaluated at bid price : 19.50
\nBid-YTW : 2.68 %<\/td>\n<\/tr>\n
PWF.PR.P<\/td>\nFixedReset<\/td>\n2.88 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-05-02
\nMaturity Price : 23.52
\nEvaluated at bid price : 24.65
\nBid-YTW : 3.35 %<\/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
MFC.PR.D<\/td>\nFixedReset<\/td>\n78,218<\/td>\nCIBC bought four blocks from RBC: 12,200 shares, 11,100 shares, 11,400 and 10,600, all at 25.42. CIBC also bought 24,900 from TD at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.36
\nBid-YTW : 1.67 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset<\/td>\n69,146<\/td>\nDesjardins crossed blocks of 43,000 and 10,000, both at 26.30.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.48
\nBid-YTW : 2.10 %<\/td>\n<\/tr>\n
RY.PR.Z<\/td>\nFixedReset<\/td>\n66,690<\/td>\nRBC crossed blocks of 24,900 and 30,000, both at 25.75.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-05-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.76
\nBid-YTW : 3.30 %<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n56,895<\/td>\nScotia crossed 54,000 at 23.80.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-05-02
\nMaturity Price : 23.46
\nEvaluated at bid price : 23.76
\nBid-YTW : 5.29 %<\/td>\n<\/tr>\n
BAM.PR.P<\/td>\nFixedReset<\/td>\n52,170<\/td>\nScotia crossed 50,000 at 25.65.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.65
\nBid-YTW : 2.13 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset<\/td>\n44,950<\/td>\nRBC crossed 25,000 at 24.75.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.70
\nBid-YTW : 3.38 %<\/td>\n<\/tr>\n
There were 31 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.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.50 – 26.01
\nSpot Rate : 0.5100
\nAverage : 0.2999<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : -17.21 %<\/td>\n<\/tr>\n

CU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 26.21 – 26.70
\nSpot Rate : 0.4900
\nAverage : 0.3034<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.21
\nBid-YTW : 2.60 %<\/td>\n<\/tr>\n

VNR.PR.A<\/td>\nFixedReset<\/td>\nQuote: 25.74 – 26.10
\nSpot Rate : 0.3600
\nAverage : 0.2122<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-10-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.74
\nBid-YTW : 3.51 %<\/td>\n<\/tr>\n

BAM.PR.T<\/td>\nFixedReset<\/td>\nQuote: 25.02 – 25.35
\nSpot Rate : 0.3300
\nAverage : 0.1933<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-05-02
\nMaturity Price : 23.40
\nEvaluated at bid price : 25.02
\nBid-YTW : 3.99 %<\/td>\n<\/tr>\n

TRP.PR.C<\/td>\nFixedReset<\/td>\nQuote: 22.79 – 23.25
\nSpot Rate : 0.4600
\nAverage : 0.3282<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-05-02
\nMaturity Price : 22.44
\nEvaluated at bid price : 22.79
\nBid-YTW : 3.62 %<\/td>\n<\/tr>\n

ENB.PR.Y<\/td>\nFixedReset<\/td>\nQuote: 24.50 – 24.85
\nSpot Rate : 0.3500
\nAverage : 0.2188<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-05-02
\nMaturity Price : 22.96
\nEvaluated at bid price : 24.50
\nBid-YTW : 4.08 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The build up of corporate cash since the Credit Crunch has a nice side-effect: Rather than get the euros or pounds they need through currency markets, there\u2019s speculation U.S. companies including General Electric Co. may …<\/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-25136","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/25136","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=25136"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/25136\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}