{"id":25585,"date":"2014-06-17T19:12:38","date_gmt":"2014-06-18T00:12:38","guid":{"rendered":"http:\/\/prefblog.com\/?p=25585"},"modified":"2014-06-17T19:12:38","modified_gmt":"2014-06-18T00:12:38","slug":"june-17-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=25585","title":{"rendered":"June 17, 2014"},"content":{"rendered":"

Good news, folks! When you (or your bank) applies for mortgage insurance now, there will be a large bureaucracy in place to determine whether the house is appropriate for you<\/a>:<\/p>\n

The head of Canada Mortgage and Housing Corp. is shifting the priority of the mortgage insurer to helping Canadians buy homes they need, not the bigger, pricier homes they might want.
…<\/b>
\u201cWe help Canadians meet their housing needs, not exceed them,\u201d Mr. Siddall told The Globe and Mail\u2019s editorial board, as he outlined the mandate that will guide his time at the helm of the mortgage insurer.<\/p><\/blockquote>\n

Assiduous Readers will remember (probably while grinning) how annoyed I get when the old World Economic Forum survey<\/a> is trotted out to buttress claims that ‘Canadian banks are the stongest in the world’, thanks to our wise and woefully underpaid regulators.<\/p>\n

Bloomberg Markets magazine has compiled its own list of the world’s individually strongest banks<\/a>; not the same thing as ‘strongest national system’ admittedly; but on the other hand at least banks were ranked against each other on a basis that at least purports to be consistent. And guess what?<\/p>\n

\"iKxi7WRgT1Rs\"<\/a>
Click for Big<\/i><\/div>\n

How much is are market orders worth? Quite a bit<\/a>!<\/p>\n

Senators led by Carl Levin grilled brokerage and stock-market executives at a hearing over the various incentives that underpin U.S. equity trading, including rebates exchanges use to lure volume, and the payments market-making firms such Citadel LLC and Citigroup Inc. (C) give retail brokers.
…<\/b>
TD Ameritrade Holding Corp. (AMTD), one of the biggest online brokers, last week gave an inkling of the money involved. The Omaha, Nebraska-based firm revealed that it pocketed $236 million in 2013 from firms that paid to execute its customers\u2019 orders.
…<\/b>
Larry Tabb, CEO of Tabb Group LLC, estimates that retail orders that are sent to market-makers and executed away from exchanges account for 15 percent of total U.S. volume. He doesn\u2019t anticipate that the SEC will take any imminent action to limit the practice.
…<\/b>
Under the payment for order flow system, online brokers agree to send their customers\u2019 trades to specific securities firms for execution. These wholesalers include Citadel, KCG Holdings Inc. (KCG) and Citigroup.<\/p>\n

Tabb said among the benefits of selling customer orders are that online brokers don\u2019t need to set up their own trading desks. The payment system also keeps relationships above-board, he said, though the regulator \u201ccould do a better job in terms of forcing greater transparency,\u201d he said.<\/p><\/blockquote>\n

Tabb was mentioned on June 12<\/a>, pushing block trades,<\/p>\n

There was another TD Ameritrade nugget<\/a>:<\/p>\n

One telling moment occurred during the questioning of Steven Quirk, senior vice-president at TD Ameritrade, the retail brokerage partially owned by Toronto-Dominion Bank. Mr. Quirk said that nearly all of the broker\u2019s limit orders \u2013 that is, orders that do not have to be placed immediately \u2013 are routed to the trading venue that pays the highest rebate to receive such traffic. Critics allege that such a practice can result in customers receiving less advantageous pricing.<\/p><\/blockquote>\n

Not so much less advantageous pricing – it’s a limit order – but slower execution (at best) for resting orders on an expensive exchange, as discussed on May 22<\/a> and April 21<\/a>.<\/p>\n

It was a mixed day for the Canadian preferred share market, with PerpetualDiscounts off 8bp, FixedResets up 5bp and DeemedRetractibles gaining 2bp. Volatility was low. 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>\n0.1554 %<\/td>\n2,475.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.45 %<\/td>\n3.70 %<\/td>\n28,485<\/td>\n17.94<\/td>\n1<\/td>\n1.6175 %<\/td>\n3,860.6<\/td>\n<\/tr>\n
Floater<\/td>\n2.96 %<\/td>\n3.09 %<\/td>\n44,733<\/td>\n19.51<\/td>\n4<\/td>\n0.1554 %<\/td>\n2,672.3<\/td>\n<\/tr>\n
OpRet<\/td>\n4.38 %<\/td>\n-7.69 %<\/td>\n25,053<\/td>\n0.08<\/td>\n2<\/td>\n1.9265 %<\/td>\n2,708.4<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.81 %<\/td>\n4.24 %<\/td>\n59,858<\/td>\n4.12<\/td>\n5<\/td>\n0.0159 %<\/td>\n3,113.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n1.9265 %<\/td>\n2,476.6<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.51 %<\/td>\n-1.27 %<\/td>\n81,204<\/td>\n0.08<\/td>\n17<\/td>\n0.1523 %<\/td>\n2,405.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.27 %<\/td>\n5.28 %<\/td>\n117,297<\/td>\n14.95<\/td>\n20<\/td>\n-0.0814 %<\/td>\n2,549.0<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.50 %<\/td>\n3.71 %<\/td>\n211,943<\/td>\n6.77<\/td>\n79<\/td>\n0.0523 %<\/td>\n2,535.6<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.00 %<\/td>\n0.78 %<\/td>\n139,635<\/td>\n0.12<\/td>\n43<\/td>\n0.0158 %<\/td>\n2,532.2<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.66 %<\/td>\n2.39 %<\/td>\n127,987<\/td>\n3.95<\/td>\n6<\/td>\n0.1455 %<\/td>\n2,490.6<\/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
ENB.PR.H<\/td>\nFixedReset<\/td>\n1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-17
\nMaturity Price : 22.66
\nEvaluated at bid price : 23.63
\nBid-YTW : 3.95 %<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixedFloater<\/td>\n1.62 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-17
\nMaturity Price : 21.76
\nEvaluated at bid price : 21.36
\nBid-YTW : 3.70 %<\/td>\n<\/tr>\n
FTS.PR.E<\/td>\nOpRet<\/td>\n3.90 %<\/td>\nNot really all that real. As Assiduous Reader adrian2 pointed out in the comments yesterday<\/a>, yesterday’s price was just another TMX screw up, although I don’t know whether it was a genuine market-maker’s fiasco or merely an after-hours cancellation fiasco.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-17
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.82
\nBid-YTW : -7.69 %<\/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
SLF.PR.G<\/td>\nFixedReset<\/td>\n154,651<\/td>\nRBC crossed 133,100 at 22.20.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.20
\nBid-YTW : 4.47 %<\/td>\n<\/tr>\n
CM.PR.O<\/td>\nFixedReset<\/td>\n126,980<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-17
\nMaturity Price : 23.18
\nEvaluated at bid price : 25.08
\nBid-YTW : 3.78 %<\/td>\n<\/tr>\n
BMO.PR.T<\/td>\nFixedReset<\/td>\n89,360<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-17
\nMaturity Price : 23.17
\nEvaluated at bid price : 25.05
\nBid-YTW : 3.73 %<\/td>\n<\/tr>\n
FTS.PR.G<\/td>\nFixedReset<\/td>\n60,725<\/td>\nTD crossed 60,000 at 24.90.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-17
\nMaturity Price : 23.15
\nEvaluated at bid price : 24.79
\nBid-YTW : 3.69 %<\/td>\n<\/tr>\n
TD.PF.A<\/td>\nFixedReset<\/td>\n55,180<\/td>\nRecent new issue<\/a>
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-17
\nMaturity Price : 23.19
\nEvaluated at bid price : 25.15
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n
RY.PR.H<\/td>\nFixedReset<\/td>\n53,918<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-17
\nMaturity Price : 23.18
\nEvaluated at bid price : 25.09
\nBid-YTW : 3.74 %<\/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
MFC.PR.F<\/td>\nFixedReset<\/td>\nQuote: 22.85 – 23.35
\nSpot Rate : 0.5000
\nAverage : 0.3418<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.85
\nBid-YTW : 4.28 %<\/td>\n<\/tr>\n

CIU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 20.55 – 21.15
\nSpot Rate : 0.6000
\nAverage : 0.4703<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-17
\nMaturity Price : 20.55
\nEvaluated at bid price : 20.55
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n

TD.PR.O<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.50 – 25.74
\nSpot Rate : 0.2400
\nAverage : 0.1517<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-17
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.50
\nBid-YTW : 0.43 %<\/td>\n<\/tr>\n

BMO.PR.L<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.50 – 26.70
\nSpot Rate : 0.2000
\nAverage : 0.1245<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-17
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.50
\nBid-YTW : -23.54 %<\/td>\n<\/tr>\n

IAG.PR.G<\/td>\nFixedReset<\/td>\nQuote: 25.76 – 25.98
\nSpot Rate : 0.2200
\nAverage : 0.1512<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.76
\nBid-YTW : 3.21 %<\/td>\n<\/tr>\n

GWO.PR.Q<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.60 – 24.85
\nSpot Rate : 0.2500
\nAverage : 0.1855<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.60
\nBid-YTW : 5.36 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Good news, folks! When you (or your bank) applies for mortgage insurance now, there will be a large bureaucracy in place to determine whether the house is appropriate for you: The head of Canada Mortgage …<\/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-25585","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/25585","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=25585"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/25585\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}