{"id":25644,"date":"2014-06-24T21:14:02","date_gmt":"2014-06-25T02:14:02","guid":{"rendered":"http:\/\/prefblog.com\/?p=25644"},"modified":"2014-06-24T21:14:02","modified_gmt":"2014-06-25T02:14:02","slug":"june-24-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=25644","title":{"rendered":"June 24, 2014"},"content":{"rendered":"

Looks like we’ve entered the Even Greater Moderation<\/a>:<\/p>\n

Expectations for price swings in the dollar-yen currency pair fell to a record as signs of an uneven U.S. economic recovery fueled bets the Federal Reserve will keep borrowing costs at unprecedented lows.
…<\/b>
Three-month implied volatility in dollar-yen was at 5.795 percent at 6:46 a.m. in London after declining to 5.715 percent, the lowest level since Bloomberg began compiling the data in December 1995.<\/p><\/blockquote>\n

The SEC has demanded a test of small-stock tick-sizes<\/a> to see whether a larger tick-size improves liquidity of these stocks:<\/p>\n

The experiment was sought by exchange operators including Nasdaq OMX Group Inc. (NDAQ) and Intercontinental Exchange Inc. (ICE), which have seen their share of trading fall as private platforms such as dark pools have taken 37 percent of total share volume, according to data compiled by Bloomberg. The test will prevent trading outside the exchanges unless a competing venue or broker offers a significantly better price or size lot to investors, according to an order posted on the SEC\u2019s website.<\/p>\n

Other features of the program, which will last one year, will strictly test the impact of rolling back penny pricing in stocks of smaller-cap companies. Under that experiment, the shares of companies with market values under $5 billion will only be quoted in five-cent increments.<\/p>\n

Supporters of the test say it will encourage market makers that facilitate trading to buy and sell more shares and create conditions that would persuade more companies to go public. The SEC has been considering the experiment for more than a year as some lawmakers in Congress have pushed legislation to force a change.<\/p><\/blockquote>\n

Regrettably, other tests have not been announced – repealing Sarbanes-Oxley for these companies, for instance, or reducing capital requirements for market-makers who are banks, or actually increasing maker-taker exchange pricing for these issues.<\/p>\n

Manulife Financial, proud issuer of MFC.PR.A, MFC.PR.B, MFC.PR.C, MFC.PR.E, MFC.PR.F, MFC.PR.G, MFC.PR.H, MFC.PR.I, MFC.PR.J, MFC.PR.K and MFC.PR.L, has been confirmed at Pfd-2(high) by DBRS<\/a>:<\/p>\n

DBRS has today confirmed the ratings on Manulife Financial Corporation (Manulife or the Company) and its affiliates, including The Manufacturers Life Insurance Company, its primary operating company. The rating on the Senior Unsecured Notes issued by Manulife Finance Holdings Limited has been discontinued due to repayment. All trends are Stable.<\/p>\n

The ratings reflect the Company\u2019s strong position in a number of geographic and product markets, including Canada and the fast-growing Asian market through the Manulife brand, and in the United States through the John Hancock brand. The Company is also well diversified by customer, distribution channel and product line. Risk management policies and procedures are rigourous, giving rise to a high-quality asset portfolio, though legacy issues associated with the Company\u2019s policy liabilities continue to be a potential source of adverse reserve development given the macroeconomic and regulatory environments. While DBRS regards Manulife\u2019s reduction of market-related risks over the past few years as having been critical to maintaining the Company\u2019s high rating, it also notes that with unexceptional financial risk metrics, under DBRS\u2019s methodology it is the Company\u2019s franchise strength and business that provide most of the rating strength.<\/p><\/blockquote>\n

It was a mixed day for the Canadian preferred share market, with PerpatualDiscounts down 19bp, FixedResets up 9bp and DeemedRetractibles gaining 1bp. Volatility was a little more than usual, heavily skewed towards winning FixedResets. Volume was very low.<\/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>\n0.5185 %<\/td>\n2,504.3<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.39 %<\/td>\n3.64 %<\/td>\n28,725<\/td>\n18.03<\/td>\n1<\/td>\n1.0733 %<\/td>\n3,914.8<\/td>\n<\/tr>\n
Floater<\/td>\n2.93 %<\/td>\n3.02 %<\/td>\n45,055<\/td>\n19.66<\/td>\n4<\/td>\n0.5185 %<\/td>\n2,704.0<\/td>\n<\/tr>\n
OpRet<\/td>\n4.37 %<\/td>\n-12.88 %<\/td>\n22,215<\/td>\n0.08<\/td>\n2<\/td>\n0.1557 %<\/td>\n2,715.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.82 %<\/td>\n4.50 %<\/td>\n56,226<\/td>\n4.09<\/td>\n5<\/td>\n0.0080 %<\/td>\n3,106.8<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1557 %<\/td>\n2,483.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.51 %<\/td>\n-1.92 %<\/td>\n82,567<\/td>\n0.08<\/td>\n17<\/td>\n0.0762 %<\/td>\n2,408.5<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.27 %<\/td>\n5.24 %<\/td>\n112,025<\/td>\n15.00<\/td>\n20<\/td>\n-0.1905 %<\/td>\n2,551.3<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.45 %<\/td>\n3.69 %<\/td>\n205,566<\/td>\n6.66<\/td>\n78<\/td>\n0.0896 %<\/td>\n2,546.0<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.98 %<\/td>\n1.23 %<\/td>\n141,528<\/td>\n0.17<\/td>\n43<\/td>\n0.0148 %<\/td>\n2,539.0<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.66 %<\/td>\n2.25 %<\/td>\n111,025<\/td>\n3.87<\/td>\n6<\/td>\n0.1846 %<\/td>\n2,499.8<\/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
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n-1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 21.28
\nEvaluated at bid price : 21.28
\nBid-YTW : 5.61 %<\/td>\n<\/tr>\n
ENB.PR.D<\/td>\nFixedReset<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 23.22
\nEvaluated at bid price : 24.83
\nBid-YTW : 3.94 %<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixedFloater<\/td>\n1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 21.91
\nEvaluated at bid price : 21.66
\nBid-YTW : 3.64 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 17.33
\nEvaluated at bid price : 17.33
\nBid-YTW : 3.02 %<\/td>\n<\/tr>\n
CIU.PR.C<\/td>\nFixedReset<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 21.12
\nEvaluated at bid price : 21.12
\nBid-YTW : 3.65 %<\/td>\n<\/tr>\n
BAM.PR.X<\/td>\nFixedReset<\/td>\n2.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 22.19
\nEvaluated at bid price : 22.61
\nBid-YTW : 3.96 %<\/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
ENB.PF.C<\/td>\nFixedReset<\/td>\n221,485<\/td>\nRBC crossed 50,000 at 25.13; Nesbitt crossed 65,000 at 25.14; TD crossed 80,000 at 25.13.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 23.16
\nEvaluated at bid price : 25.12
\nBid-YTW : 4.19 %<\/td>\n<\/tr>\n
BNS.PR.K<\/td>\nDeemed-Retractible<\/td>\n155,730<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.26
\nBid-YTW : 0.77 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n105,705<\/td>\nDesjardins crossed 99,200 at 23.20.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 22.37
\nEvaluated at bid price : 23.22
\nBid-YTW : 3.80 %<\/td>\n<\/tr>\n
BMO.PR.S<\/td>\nFixedReset<\/td>\n83,525<\/td>\nScotia crossed 70,000 at 25.45.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : 3.76 %<\/td>\n<\/tr>\n
BAM.PF.F<\/td>\nFixedReset<\/td>\n64,615<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.28
\nBid-YTW : 4.34 %<\/td>\n<\/tr>\n
RY.PR.H<\/td>\nFixedReset<\/td>\n40,230<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 23.21
\nEvaluated at bid price : 25.18
\nBid-YTW : 3.74 %<\/td>\n<\/tr>\n
There were 19 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.H<\/td>\nFixedReset<\/td>\nQuote: 26.27 – 26.70
\nSpot Rate : 0.4300
\nAverage : 0.2570<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.27
\nBid-YTW : 2.70 %<\/td>\n<\/tr>\n

ENB.PR.H<\/td>\nFixedReset<\/td>\nQuote: 23.70 – 24.14
\nSpot Rate : 0.4400
\nAverage : 0.2783<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 22.70
\nEvaluated at bid price : 23.70
\nBid-YTW : 3.96 %<\/td>\n<\/tr>\n

CU.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.07 – 22.53
\nSpot Rate : 0.4600
\nAverage : 0.3189<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 21.77
\nEvaluated at bid price : 22.07
\nBid-YTW : 5.13 %<\/td>\n<\/tr>\n

GWO.PR.L<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.59 – 25.94
\nSpot Rate : 0.3500
\nAverage : 0.2355<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-12-31
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.59
\nBid-YTW : 5.18 %<\/td>\n<\/tr>\n

BAM.PR.B<\/td>\nFloater<\/td>\nQuote: 17.10 – 17.43
\nSpot Rate : 0.3300
\nAverage : 0.2163<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 17.10
\nEvaluated at bid price : 17.10
\nBid-YTW : 3.06 %<\/td>\n<\/tr>\n

BAM.PR.K<\/td>\nFloater<\/td>\nQuote: 17.15 – 17.44
\nSpot Rate : 0.2900
\nAverage : 0.1952<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-06-24
\nMaturity Price : 17.15
\nEvaluated at bid price : 17.15
\nBid-YTW : 3.06 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Looks like we’ve entered the Even Greater Moderation: Expectations for price swings in the dollar-yen currency pair fell to a record as signs of an uneven U.S. economic recovery fueled bets the Federal Reserve will …<\/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-25644","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/25644","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=25644"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/25644\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}