{"id":26757,"date":"2014-11-03T20:51:07","date_gmt":"2014-11-04T01:51:07","guid":{"rendered":"http:\/\/prefblog.com\/?p=26757"},"modified":"2014-11-03T20:51:07","modified_gmt":"2014-11-04T01:51:07","slug":"november-3-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=26757","title":{"rendered":"November 3, 2014"},"content":{"rendered":"

Lots of demand for Treasuries<\/a>:<\/p>\n

Even with the end of unprecedented bond purchases from the Federal Reserve, demand for U.S. Treasuries looks as strong as ever.<\/p>\n

Investors submitted bids for $5.54 trillion of government debt at auctions this year, or 3 times the amount sold, data compiled by Bloomberg show. The bid-to-cover ratio is higher than the 2.87 last year, when the Fed purchased more Treasuries than at any time since the central bank began quantitative easing in 2008, and has been exceeded only twice on record.<\/p><\/blockquote>\n

Bill Gross advocates loosening fiscal policy<\/a>, as well as monetary:<\/p>\n

Such is the dilemma facing central bankers (and supposedly fiscal authorities) in 2014 and beyond: How to create inflation. They\u2019ve made a damn fine attempt at it \u2013 have they not? Four trillion dollars in the U.S., two trillion U.S. dollar equivalents in Japan, and a trillion U.S. dollars coming from the ECB\u2019s Draghi in the eurozone. Not working like it used to, the trillions seem to seep through the sandy loam of investment and innovation straight into the cement mixer of the marketplace. Prices go up, but not the right prices. Alibaba\u2019s stock goes from $68 on opening day to $92 in the first minute, but wages simply sit there for years on end. One economy (the financial one) thrives while the other economy (the real one) withers.<\/p>\n

Perhaps sooner rather than later, investors must recognize that modern day inflation, while a necessary condition for survival, is not a sufficient condition for increasing wealth at a rate necessary to satisfy future liabilities associated with education, health care, and a satisfactory retirement. The real economy needs money printing, yes, but money spending more so, and that must come from the fiscal side \u2013 from the dreaded government side \u2013 where deficits are anathema and balanced budgets are increasingly in vogue. Until then, Grant\u2019s deflation remains a growing possibility \u2013 not the kind that creates prosperity but the kind that\u2019s the trouble for prosperity.<\/p><\/blockquote>\n

I can tell you one group that is all in favour of FX trading hysteria<\/a>:<\/p>\n

Legal expense at JPMorgan in the [quarterly] period was $1.01 billion, tied \u201cin large part\u201d to the currency investigations, Chief Financial Officer Marianne Lake said on Oct. 14.<\/p><\/blockquote>\n

Loblaw Companies, proud issuer of L.PR.A, has been confirmed by DBRS as Pfd-3<\/a>:<\/p>\n

The confirmations reflect the closing of the acquisition of Shoppers as well as acceptable operating performance in a difficult competitive environment in the core food retail business. In addition, the rating action reflects DBRS\u2019s expectation that the Company will continue with its deleveraging plan set at the time of the Shoppers acquisition, which should result in credit metrics considered acceptable for the current rating by the end of 2015. Loblaw\u2019s ratings continue to be supported by its strong business profile, featuring industry-leading size, scale and market positions in retail and pharmacy across Canada. The ratings incorporate the intense competition in the food retail industry in Canada and the expected decline in financial leverage in the near to medium term, subsequent to the acquisition of Shoppers.<\/p><\/blockquote>\n

George Weston Limited, proud issuer of WN.PR.A, WN.PR.C, WN.PR.D and WN.PR.E, has been confirmed at Pfd-3 by DBRS<\/a>:<\/p>\n

The confirmations reflect Weston\u2019s stable balance-sheet debt levels despite pressure on the Weston Foods bakery business from higher commodity costs, and the confirmation of the ratings of Loblaw Companies Limited (Loblaw; see separate press release). Weston\u2019s ratings continue to be based on its strong brands, efficient operations and its ownership interest in Loblaw. The ratings also reflect the Weston Foods segment\u2019s exposure to volatile input costs and the mature nature of the bakery industry.
…<\/b>
Weston\u2019s financial profile is expected to remain relatively stable going forward based on the Company\u2019s ownership interest in Loblaw, its cash on hand and its stable balance-sheet debt levels. DBRS believes that Weston will continue to use cash on hand and free cash flow generated to invest in growth and\/or increase returns to shareholders over the longer term. Weston is likely to remain relatively conservative in the medium term particularly while Loblaw\u2019s leverage remains high resulting from the acquisition of Shoppers Drug Mart Corporation. In the medium term, Weston\u2019s ownership interest in Loblaw could return to above the 50% level as Loblaw is likely to use free cash flow to complete share repurchases once Loblaw completes its deleveraging plan. Over the longer-term DBRS notes that a positive rating action at Loblaw would not necessarily result in a corresponding rating action to Weston.<\/p><\/blockquote>\n

The Canadian preferred share market was on fire today, with PerpetualDiscount winning 54bp and both FixedResets and DeemedRetractibles up 18bp. Volatility was suitably high. Volume was 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>\n0.3426 %<\/td>\n2,522.8<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3426 %<\/td>\n3,994.1<\/td>\n<\/tr>\n
Floater<\/td>\n2.99 %<\/td>\n3.11 %<\/td>\n63,496<\/td>\n19.44<\/td>\n4<\/td>\n0.3426 %<\/td>\n2,681.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.02 %<\/td>\n-1.88 %<\/td>\n102,785<\/td>\n0.08<\/td>\n1<\/td>\n0.1965 %<\/td>\n2,748.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.27 %<\/td>\n3.89 %<\/td>\n69,226<\/td>\n3.78<\/td>\n5<\/td>\n0.0922 %<\/td>\n3,168.2<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1965 %<\/td>\n2,513.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.46 %<\/td>\n-3.75 %<\/td>\n69,519<\/td>\n0.08<\/td>\n19<\/td>\n0.2460 %<\/td>\n2,472.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.16 %<\/td>\n5.08 %<\/td>\n101,808<\/td>\n15.26<\/td>\n16<\/td>\n0.5389 %<\/td>\n2,642.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.18 %<\/td>\n3.61 %<\/td>\n167,734<\/td>\n6.46<\/td>\n74<\/td>\n0.1775 %<\/td>\n2,577.0<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.98 %<\/td>\n1.58 %<\/td>\n99,933<\/td>\n0.16<\/td>\n41<\/td>\n0.1830 %<\/td>\n2,590.1<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.55 %<\/td>\n-4.71 %<\/td>\n67,848<\/td>\n0.08<\/td>\n6<\/td>\n0.1110 %<\/td>\n2,554.6<\/td>\n<\/tr>\n<\/table>\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
TRP.PR.B<\/td>\nFixedReset<\/td>\n-1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-03
\nMaturity Price : 18.69
\nEvaluated at bid price : 18.69
\nBid-YTW : 3.86 %<\/td>\n<\/tr>\n
PWF.PR.R<\/td>\nPerpetual-Premium<\/td>\n1.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.16
\nBid-YTW : 4.70 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.75
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n
PWF.PR.L<\/td>\nPerpetual-Discount<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.20
\nBid-YTW : 4.34 %<\/td>\n<\/tr>\n
BAM.PF.C<\/td>\nPerpetual-Discount<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-03
\nMaturity Price : 21.63
\nEvaluated at bid price : 21.96
\nBid-YTW : 5.58 %<\/td>\n<\/tr>\n
PVS.PR.D<\/td>\nSplitShare<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2021-10-08
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.50
\nBid-YTW : 4.99 %<\/td>\n<\/tr>\n
BAM.PF.D<\/td>\nPerpetual-Discount<\/td>\n1.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-03
\nMaturity Price : 21.87
\nEvaluated at bid price : 22.20
\nBid-YTW : 5.57 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nDeemed-Retractible<\/td>\n1.46 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.00
\nBid-YTW : 5.64 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n1.54 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.10
\nBid-YTW : 4.16 %<\/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.P<\/td>\nDeemed-Retractible<\/td>\n115,317<\/td>\nRBC crossed 106,200 at 26.05.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2020-03-31
\nMaturity Price : 25.25
\nEvaluated at bid price : 26.11
\nBid-YTW : 4.76 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset<\/td>\n39,908<\/td>\nNesbitt crossed 34,400 at 21.60.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-03
\nMaturity Price : 21.35
\nEvaluated at bid price : 21.65
\nBid-YTW : 3.63 %<\/td>\n<\/tr>\n
NA.PR.W<\/td>\nFixedReset<\/td>\n38,050<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-03
\nMaturity Price : 23.15
\nEvaluated at bid price : 25.02
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n
ENB.PR.F<\/td>\nFixedReset<\/td>\n32,282<\/td>\nScotia crossed 25,000 at 24.85.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-03
\nMaturity Price : 23.24
\nEvaluated at bid price : 24.85
\nBid-YTW : 4.01 %<\/td>\n<\/tr>\n
TD.PF.A<\/td>\nFixedReset<\/td>\n31,531<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.36
\nBid-YTW : 3.61 %<\/td>\n<\/tr>\n
CM.PR.E<\/td>\nPerpetual-Premium<\/td>\n24,380<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-03
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.24
\nBid-YTW : -5.23 %<\/td>\n<\/tr>\n
There were 21 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
TRP.PR.E<\/td>\nFixedReset<\/td>\nQuote: 25.32 – 26.98
\nSpot Rate : 1.6600
\nAverage : 0.8947<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-03
\nMaturity Price : 23.26
\nEvaluated at bid price : 25.32
\nBid-YTW : 3.80 %<\/td>\n<\/tr>\n

CU.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.45 – 23.00
\nSpot Rate : 0.5500
\nAverage : 0.3262<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-03
\nMaturity Price : 22.15
\nEvaluated at bid price : 22.45
\nBid-YTW : 5.08 %<\/td>\n<\/tr>\n

NEW.PR.D<\/td>\nSplitShare<\/td>\nQuote: 32.53 – 33.25
\nSpot Rate : 0.7200
\nAverage : 0.5820<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-06-26
\nMaturity Price : 32.07
\nEvaluated at bid price : 32.53
\nBid-YTW : 2.61 %<\/td>\n<\/tr>\n

GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.56 – 26.88
\nSpot Rate : 0.3200
\nAverage : 0.2155<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-03-31
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.56
\nBid-YTW : 1.58 %<\/td>\n<\/tr>\n

GWO.PR.N<\/td>\nFixedReset<\/td>\nQuote: 21.51 – 21.86
\nSpot Rate : 0.3500
\nAverage : 0.2490<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.51
\nBid-YTW : 4.75 %<\/td>\n<\/tr>\n

TRP.PR.B<\/td>\nFixedReset<\/td>\nQuote: 18.69 – 18.90
\nSpot Rate : 0.2100
\nAverage : 0.1292<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-03
\nMaturity Price : 18.69
\nEvaluated at bid price : 18.69
\nBid-YTW : 3.86 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Lots of demand for Treasuries: Even with the end of unprecedented bond purchases from the Federal Reserve, demand for U.S. Treasuries looks as strong as ever. Investors submitted bids for $5.54 trillion of government debt …<\/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-26757","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26757","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=26757"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26757\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}