{"id":25244,"date":"2014-05-14T19:02:32","date_gmt":"2014-05-15T00:02:32","guid":{"rendered":"http:\/\/prefblog.com\/?p=25244"},"modified":"2014-05-14T19:02:32","modified_gmt":"2014-05-15T00:02:32","slug":"may-14-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=25244","title":{"rendered":"May 14, 2014"},"content":{"rendered":"

Scandal at the Fed<\/a>!<\/p>\n

Some investors may have gotten early word of changes to Federal Reserve policy between 1997 and 2013 and profited by trading before the policy shifts were publicly announced, according to Singapore-based researchers.<\/p>\n

Trading records show abnormally large price movements and imbalances in buy and sell orders that are \u201cstatistically significant and in the direction of the subsequent policy surprise,\u201d according to a paper by Gennaro Bernile, Jianfeng Hu and Yuehua Tang at Singapore Management University.<\/p>\n

The moves occurred before and during the time that reporters were given the Federal Open Market Committee statement in so-called media lockups.<\/p><\/blockquote>\n

I wonder if this allegation will be investigated with as much hand-wringing and vigour as the LIBOR and FX pseudo-scandals.<\/p>\n

Speaking of scandals<\/a>…:<\/p>\n

Ex-U.S. Treasury Secretary Timothy Geithner must comply with Standard & Poor\u2019s demand that he provide documents related to its claim the U.S. sued the company in retaliation for downgrading government debt.<\/p>\n

Harold W. McGraw III, chairman of S&P parent McGraw Hill Financial Inc. (MHFI), said in a court statement that Geithner called him days after S&P downgraded the U.S. debt in August 2011 and told him that the company would be held accountable for it. McGraw said Geithner told him there would be a \u201cresponse\u201d for the downgrade, which the government said was based on an error.<\/p>\n

Geithner is the highest former government official S&P has pursued for information to support its allegations. S&P, the only credit rating company sued by the Justice Department for allegedly giving fraudulent ratings to mortgage-backed securities, has said it was singled out because of the downgrade.<\/p>\n

The Justice Department and Geithner have denied there is a connection between the downgrade and the lawsuit filed last year. The government has said it may seek as much as $5 billion in civil penalties from S&P for losses to federally insured financial institutions that relied on its ratings for mortgage-backed securities and collateralized-debt obligations, or CDOs, that lost value after the housing market collapsed.<\/p><\/blockquote>\n

Here’s a step in the right direction<\/a>!:<\/p>\n

Wall Street\u2019s bonus pool may rise as much as 10 percent this year for asset managers while fixed-income traders could see a 15 percent cut, according to compensation consultant Johnson Associates Inc.
…<\/b>
\u201cMany asset-management firms pay the same or better than the big banks, and this year that gap will get even bigger,\u201d [founder of the consultancy Alan] Johnson said in the interview.<\/p><\/blockquote>\n

It was a day of modest gains for the Canadian preferred share market today, with PerpetualDiscounts winning 9bp, FixedResets gaining 1bp and DeemedRetractibles up 4bp. Volatility was modest. 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>\n0.3252 %<\/td>\n2,464.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.61 %<\/td>\n3.85 %<\/td>\n33,097<\/td>\n17.75<\/td>\n1<\/td>\n-1.1990 %<\/td>\n3,723.2<\/td>\n<\/tr>\n
Floater<\/td>\n2.96 %<\/td>\n3.09 %<\/td>\n51,884<\/td>\n19.47<\/td>\n4<\/td>\n0.3252 %<\/td>\n2,660.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.39 %<\/td>\n-6.96 %<\/td>\n33,423<\/td>\n0.13<\/td>\n2<\/td>\n-0.1039 %<\/td>\n2,707.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.80 %<\/td>\n4.37 %<\/td>\n65,031<\/td>\n4.16<\/td>\n5<\/td>\n-0.2847 %<\/td>\n3,093.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1039 %<\/td>\n2,476.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.50 %<\/td>\n-11.78 %<\/td>\n96,746<\/td>\n0.09<\/td>\n15<\/td>\n-0.0052 %<\/td>\n2,405.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.28 %<\/td>\n5.26 %<\/td>\n115,093<\/td>\n14.91<\/td>\n21<\/td>\n0.0893 %<\/td>\n2,552.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.53 %<\/td>\n3.48 %<\/td>\n205,506<\/td>\n4.27<\/td>\n75<\/td>\n0.0090 %<\/td>\n2,563.2<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.98 %<\/td>\n-5.95 %<\/td>\n142,028<\/td>\n0.11<\/td>\n42<\/td>\n0.0379 %<\/td>\n2,525.4<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.65 %<\/td>\n2.35 %<\/td>\n142,091<\/td>\n4.19<\/td>\n6<\/td>\n-0.0396 %<\/td>\n2,493.3<\/td>\n<\/tr>\n<\/table>\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
GCS.PR.A<\/td>\nSplitShare<\/td>\n-1.91 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.62
\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixedFloater<\/td>\n-1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-05-14
\nMaturity Price : 21.37
\nEvaluated at bid price : 20.60
\nBid-YTW : 3.85 %<\/td>\n<\/tr>\n
CIU.PR.C<\/td>\nFixedReset<\/td>\n1.53 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-05-14
\nMaturity Price : 21.49
\nEvaluated at bid price : 21.85
\nBid-YTW : 3.48 %<\/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
GWO.PR.I<\/td>\nDeemed-Retractible<\/td>\n125,955<\/td>\nTD crossed 48,700 at 22.80. Scotia crossed 70,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.72
\nBid-YTW : 5.75 %<\/td>\n<\/tr>\n
ENB.PR.N<\/td>\nFixedReset<\/td>\n101,554<\/td>\nRBC crossed 69,000 at 24.98.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-12-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.95
\nBid-YTW : 4.02 %<\/td>\n<\/tr>\n
ENB.PR.P<\/td>\nFixedReset<\/td>\n96,071<\/td>\nScotia crossed 86,700 at 24.43.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-05-14
\nMaturity Price : 22.97
\nEvaluated at bid price : 24.44
\nBid-YTW : 4.10 %<\/td>\n<\/tr>\n
BMO.PR.J<\/td>\nDeemed-Retractible<\/td>\n84,607<\/td>\nNesbitt crossed 75,000 at 25.82.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-13
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.79
\nBid-YTW : -10.68 %<\/td>\n<\/tr>\n
BMO.PR.M<\/td>\nFixedReset<\/td>\n80,840<\/td>\nNesbitt crossed 75,000 at 25.35.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-08-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.37
\nBid-YTW : 3.01 %<\/td>\n<\/tr>\n
BNS.PR.M<\/td>\nDeemed-Retractible<\/td>\n73,783<\/td>\nNesbitt crossed blocks of 30,700 and 35,000, both at 25.95.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-27
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.93
\nBid-YTW : -3.01 %<\/td>\n<\/tr>\n
There were 30 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
MFC.PR.A<\/td>\nOpRet<\/td>\nQuote: 25.47 – 26.06
\nSpot Rate : 0.5900
\nAverage : 0.3569<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-19
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.47
\nBid-YTW : -8.61 %<\/td>\n<\/tr>\n

GCS.PR.A<\/td>\nSplitShare<\/td>\nQuote: 24.62 – 24.99
\nSpot Rate : 0.3700
\nAverage : 0.2470<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.62
\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n

BNS.PR.K<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.50 – 25.70
\nSpot Rate : 0.2000
\nAverage : 0.1195<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-13
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : -16.38 %<\/td>\n<\/tr>\n

SLF.PR.C<\/td>\nDeemed-Retractible<\/td>\nQuote: 22.46 – 22.66
\nSpot Rate : 0.2000
\nAverage : 0.1403<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.46
\nBid-YTW : 5.84 %<\/td>\n<\/tr>\n

CM.PR.E<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.46 – 25.65
\nSpot Rate : 0.1900
\nAverage : 0.1314<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-13
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.46
\nBid-YTW : -13.53 %<\/td>\n<\/tr>\n

TD.PR.Y<\/td>\nFixedReset<\/td>\nQuote: 25.57 – 25.75
\nSpot Rate : 0.1800
\nAverage : 0.1304<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.57
\nBid-YTW : 3.06 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Scandal at the Fed! Some investors may have gotten early word of changes to Federal Reserve policy between 1997 and 2013 and profited by trading before the policy shifts were publicly announced, according to Singapore-based …<\/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-25244","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/25244","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=25244"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/25244\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}