{"id":26778,"date":"2014-11-06T21:17:40","date_gmt":"2014-11-07T02:17:40","guid":{"rendered":"http:\/\/prefblog.com\/?p=26778"},"modified":"2014-11-06T21:17:40","modified_gmt":"2014-11-07T02:17:40","slug":"november-6-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=26778","title":{"rendered":"November 6, 2014"},"content":{"rendered":"

Our political and appointed masters are once again avoiding communication with Canadians<\/a>:<\/p>\n

Lawrence Schembri isn\u2019t the first official to warn how dangerous this could be.<\/p>\n

But his paper, published today, is notable in that it comes from a deputy governor of the Bank of Canada, which only recently again cited the threats from the massive debt loads of Canadian households.<\/p>\n

Mr. Schembri stresses that the system is sound, as long as there\u2019s no \u201csevere\u201d shock that would drive up unemployment, and that the \u201cimbalances\u201d among consumers will probably ease as mortgage rates inevitably rise.<\/p>\n

Nonetheless, he writes in the National Institute Economic Review, things have to change given, among other things, debt-to-income levels that have been at or near record levels in Canada.<\/p><\/blockquote>\n

The Bank of Canada states<\/a> that ordinary Canadians can go fuck themselves:<\/p>\n

Members of the media may obtain a copy of this article by contacting the National Institute of Economic and Social Research Press Office:<\/p><\/blockquote>\n

Yeah, I’ll bet the smart cookies in the press do a really good job of summarizing the article in all its essentials. This business of senior officials hiding their thoughts behind foreign pay walls is a real disgrace.<\/p>\n

While we’re on the topic of autocratic central banks immune from criticism, PBOC has a familiar problem<\/a> – people want to borrow money for inappropriate purposes (as determined by central bank)<\/a>:<\/p>\n

The People\u2019s Bank of China confirmed it pumped 769.5 billion yuan ($126 billion) into the country\u2019s lenders in the last two months through a newly-created Medium-term Lending Facility. The PBOC injected 500 billion yuan in September and another 269.5 billion yuan in October via the facility — all termed at three months with an interest rate of 3.5 percent.<\/p>\n

The announcement, included in the PBOC\u2019s quarterly monetary policy statement, is the first official confirmation of earlier reports on the injections. Goldman Sachs Group Inc. said every 500 billion yuan in funds from the central bank is similar to a 50-basis-point cut in the required reserve ratio.<\/p>\n

\u201cIt shows the central bank is very reluctant to loosen monetary policy, but it has to reduce financing costs for end borrowers,\u201d said Guan Qingyou, chief macro-economic researcher with Minsheng Securities Co. in Beijing. \u201cIt doesn\u2019t mean the new tools can replace traditional tools forever.\u201d<\/p>\n

The operations \u201caffected mid-term interest rates while providing liquidity to guide commercial banks to lower their lending rates and overall social-financing costs,\u201d the central bank said in the report published yesterday. \u201cAs liquidity generated from capital inflows eases, MLF has played a role of covering the liquidity gap and maintaining a neutral and appropriate liquidity situation.\u201d<\/p>\n

The facility is the latest unconventional liquidity tool as the PBOC joins the European Central Bank on a path of easing even as the U.S. begins the shift to a more normal monetary policy. The expansion builds on targeted steps to support growth in Asia\u2019s largest economy, while stopping short of broad-based monetary loosening and fiscal stimulus that could heighten debt risks and the risk of bad loans.<\/p><\/blockquote>\n

It was a mixed day for the Canadian preferred share market, with PerpetualDiscounts gaining 2bp, FixedResets down 21bp and DeemedRetractibles up 12bp. Volatility was high. 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>\n-0.1696 %<\/td>\n2,534.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1696 %<\/td>\n4,012.9<\/td>\n<\/tr>\n
Floater<\/td>\n2.97 %<\/td>\n3.07 %<\/td>\n65,795<\/td>\n19.52<\/td>\n4<\/td>\n-0.1696 %<\/td>\n2,694.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.02 %<\/td>\n-1.48 %<\/td>\n105,291<\/td>\n0.08<\/td>\n1<\/td>\n-0.0392 %<\/td>\n2,748.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.25 %<\/td>\n3.83 %<\/td>\n61,342<\/td>\n3.77<\/td>\n5<\/td>\n-0.1213 %<\/td>\n3,186.8<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0392 %<\/td>\n2,513.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.44 %<\/td>\n-7.13 %<\/td>\n70,622<\/td>\n0.08<\/td>\n19<\/td>\n0.1090 %<\/td>\n2,482.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.13 %<\/td>\n5.03 %<\/td>\n104,450<\/td>\n15.40<\/td>\n16<\/td>\n0.0159 %<\/td>\n2,664.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.18 %<\/td>\n3.62 %<\/td>\n172,625<\/td>\n6.44<\/td>\n74<\/td>\n-0.2132 %<\/td>\n2,578.0<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.97 %<\/td>\n-0.14 %<\/td>\n102,325<\/td>\n0.14<\/td>\n41<\/td>\n0.1200 %<\/td>\n2,598.3<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.55 %<\/td>\n-0.95 %<\/td>\n62,909<\/td>\n0.08<\/td>\n6<\/td>\n-0.0652 %<\/td>\n2,553.8<\/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
ENB.PR.Y<\/td>\nFixedReset<\/td>\n-1.62 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-06
\nMaturity Price : 22.65
\nEvaluated at bid price : 23.70
\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n
PWF.PR.P<\/td>\nFixedReset<\/td>\n-1.54 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-06
\nMaturity Price : 21.87
\nEvaluated at bid price : 22.40
\nBid-YTW : 3.55 %<\/td>\n<\/tr>\n
BAM.PF.B<\/td>\nFixedReset<\/td>\n-1.38 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-06
\nMaturity Price : 23.23
\nEvaluated at bid price : 25.05
\nBid-YTW : 4.09 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n-1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-06
\nMaturity Price : 23.40
\nEvaluated at bid price : 24.74
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-06
\nMaturity Price : 24.61
\nEvaluated at bid price : 24.87
\nBid-YTW : 5.37 %<\/td>\n<\/tr>\n
POW.PR.G<\/td>\nPerpetual-Premium<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-04-15
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.84
\nBid-YTW : 4.14 %<\/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
IFC.PR.C<\/td>\nFixedReset<\/td>\n164,705<\/td>\nRBC crossed 93,200 at 25.56; Nesbitt crossed 50,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.55
\nBid-YTW : 3.25 %<\/td>\n<\/tr>\n
NA.PR.W<\/td>\nFixedReset<\/td>\n156,055<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-06
\nMaturity Price : 23.16
\nEvaluated at bid price : 25.06
\nBid-YTW : 3.70 %<\/td>\n<\/tr>\n
FTS.PR.M<\/td>\nFixedReset<\/td>\n110,945<\/td>\nScotia crossed blocks of 25,100 shares, 16,000 shares, 40,000 and 25,000, all at 25.70.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-12-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.65
\nBid-YTW : 3.67 %<\/td>\n<\/tr>\n
BMO.PR.S<\/td>\nFixedReset<\/td>\n110,782<\/td>\nScotia crossed 100,000 at 25.51.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : 3.53 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n82,400<\/td>\nRBC crossed blocks of 50,000 and 25,100, both at 25.68.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.67
\nBid-YTW : 2.82 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nDeemed-Retractible<\/td>\n70,162<\/td>\nDesjardins crossed 10,000 at 23.00; RBC crossed 44,200 at the same price.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.87
\nBid-YTW : 5.65 %<\/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.L<\/td>\nFixedReset<\/td>\nQuote: 25.08 – 25.40
\nSpot Rate : 0.3200
\nAverage : 0.2094<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.08
\nBid-YTW : 3.84 %<\/td>\n<\/tr>\n

BAM.PR.Z<\/td>\nFixedReset<\/td>\nQuote: 26.30 – 26.66
\nSpot Rate : 0.3600
\nAverage : 0.2499<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.30
\nBid-YTW : 3.23 %<\/td>\n<\/tr>\n

TRP.PR.B<\/td>\nFixedReset<\/td>\nQuote: 18.91 – 19.26
\nSpot Rate : 0.3500
\nAverage : 0.2399<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-06
\nMaturity Price : 18.91
\nEvaluated at bid price : 18.91
\nBid-YTW : 3.81 %<\/td>\n<\/tr>\n

PWF.PR.G<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.50 – 25.98
\nSpot Rate : 0.4800
\nAverage : 0.3755<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-06
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : -16.34 %<\/td>\n<\/tr>\n

GWO.PR.I<\/td>\nDeemed-Retractible<\/td>\nQuote: 23.10 – 23.44
\nSpot Rate : 0.3400
\nAverage : 0.2384<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.10
\nBid-YTW : 5.57 %<\/td>\n<\/tr>\n

PWF.PR.O<\/td>\nPerpetual-Premium<\/td>\nQuote: 26.15 – 26.48
\nSpot Rate : 0.3300
\nAverage : 0.2450<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-06
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.15
\nBid-YTW : -0.33 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Our political and appointed masters are once again avoiding communication with Canadians: Lawrence Schembri isn\u2019t the first official to warn how dangerous this could be. But his paper, published today, is notable in that it …<\/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-26778","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26778","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=26778"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26778\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}