{"id":26809,"date":"2014-11-14T19:45:38","date_gmt":"2014-11-15T00:45:38","guid":{"rendered":"http:\/\/prefblog.com\/?p=26809"},"modified":"2014-11-14T19:45:38","modified_gmt":"2014-11-15T00:45:38","slug":"november-14-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=26809","title":{"rendered":"November 14, 2014"},"content":{"rendered":"

There are some thoughts that Keystone has missed the boat<\/a>:<\/p>\n

Delays of the Keystone XL pipeline are providing little obstacle to Western Canadian oil producers getting their crude to the U.S. Gulf Coast, with shipments set to more than double next year.<\/p>\n

The volume of Canadian crude processed at Gulf Coast refineries could climb to more than 400,000 barrels a day in 2015 from 208,000 in August, according to Jackie Forrest, vice president of Calgary-based ARC Financial Corp. The increase comes as Enbridge Inc.\u2019s Flanagan South and an expanded Seaway pipeline raise their capacity to ship oil by as much as 450,000 barrels a day. Canadian exports to the Gulf rose 83 percent in the past four years.<\/p>\n

The expansion shows Canadians are finding alternative entry points into the U.S. while the Keystone saga drags on. In the latest chapter, a Democratic senator and a Republican representative are seeking votes in their chambers to set the project in motion. The two are squaring off in a runoff election for a Senate seat from Louisiana, a state where support for the project is strong.<\/p>\n

\u201cKeystone is kind of old news,\u201d Sandy Fielden, director of energy analytics at Austin, Texas-based consulting company RBN Energy, said Nov. 12 in an e-mail. \u201cProducers have moved on and are looking for new capacity from other pipelines.\u201d<\/p>\n

TransCanada Corp. (TRP)\u2019s Keystone XL, which would transport Alberta\u2019s heavy oil sands crude to refineries on the Gulf, has been held up for six years, awaiting Obama administration approval.<\/p><\/blockquote>\n

… so, naturally, it’s a big issue<\/a>:<\/p>\n

Republicans, emboldened by big gains in last week\u2019s midterm elections, have chosen to make Keystone XL into the first battle of wills with a lame-duck president.<\/p>\n

And Mr. Obama, so far, isn\u2019t backing down.<\/p><\/blockquote>\n

… because we’ve got other means of transport<\/a>:<\/p>\n

It\u2019s not uncommon to see mile-long trains of tanker cars cutting through the centre of Lac La Biche, carrying tens of thousands of barrels of crude to market, snarling traffic as they go. And it\u2019s not about to stop. Former mayor Aurel Langevin, who ran the town from 2012 to this past spring, estimates that, a year ago, Lac La Biche averaged three oil trains a day. That figure is expected to hit about eight per day, carrying upward of 100 tankers each, in the year ahead.<\/p>\n

This new reality for Lac La Biche, and thousands of other towns across North America, is symptomatic of the critical\u2013and costly\u2013transportation bottleneck that now hangs over the oil sands. The lack of options for transporting Alberta\u2019s heavy crude south, to oil refineries on the U.S. Gulf Coast, means it is sold at a significant discount to the benchmark West Texas Intermediate.<\/p>\n

TransCanada Corp.\u2019s $5.5-billion Keystone XL pipeline was supposed to be a key part of the solution\u2013until it became a symbol for the debate over whether new pipes should be built anywhere in North America.<\/p><\/blockquote>\n

Actively managed US equity funds have done particularly badly vs. their benchmarks this year – various reasons have been put forward<\/a>:<\/p>\n

Here are some of the most-common excuses cited for what Arthur Miller might call \u201cDeath of a Stock Picker”: the Federal Reserve\u2019s spigot of liquidity led to tighter correlations and less dispersion among industry groups that made it difficult to identify potential outperformers. And the boom in exchange-traded funds is also credited with having a similar effect.<\/p>\n

Tom Lee of FundStrat Global Advisors today contributed another handy excuse: blame Apple Inc. Or rather, blame yourself if you didn\u2019t load up on Apple shares. Apple, the largest company in the world, has rallied 41 percent this year, about four times as much as the Standard & Poor\u2019s 500 Index. Last year, the shares were only good for about a fifth of the S&P 500\u2019s 30 percent gain.<\/p>\n

Not owning Apple in 2014 was one of the biggest reasons managers trailed benchmarks this year, according to Lee, accounting for 81.3 basis points of an average 340 basis-point underperformance. Skipping Microsoft Corp., up 33 percent in 2014, was good for another 36.2 basis points in underperformance, according to Lee.<\/p>\n

And while many fund managers are cursing this year\u2019s 18 percent rally in utilities, Lee points out that the group only accounts for 3 percent of the S&P 500 so the absence of the entire industry in a fund would only be good for 25 basis points of underperformance.<\/p><\/blockquote>\n

The ‘higher correlation’ argument needs to be taken with a grain of salt: if we assume every stock in the universe has exactly the same return at all times, then every actively managed fund will underperform by its MER; but by no more than the MER.<\/p>\n

AltaGas Ltd., proud issuer of ALA.PR.A, ALA.PR.E and ALA.PR.G, was confirmed at Pfd-3 by DBRS<\/a>:<\/p>\n

DBRS expects the recent improving trend in the Company\u2019s credit metrics to continue as the full-year benefits from assets placed in service are realized. Cash flow-to-adjusted debt has improved to 11.8% in Q3 2014 (9.6% in 2012) and adjusted debt in capital structure has improved to 51.9% (60.2% in 2012). DBRS expects the Company to finance its capital expenditure program with a prudent mix of equity and debt and maintain credit metrics consistent with its current rating.<\/p><\/blockquote>\n

Wow, DBRS has specified some very precise expectations there!<\/p>\n

It was another mixed day for the Canadian preferred share market, with PerpetualDiscounts up 19bp, FixedResets off 6bp and DeemedRetractibles gaining 13bp. Volatility was average. Volume was very low.<\/p>\n

And now it’s time for my monthly PrefLetter<\/a> weekend!<\/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-1.0131 %<\/td>\n2,525.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-1.0131 %<\/td>\n3,997.5<\/td>\n<\/tr>\n
Floater<\/td>\n2.99 %<\/td>\n3.08 %<\/td>\n64,951<\/td>\n19.48<\/td>\n4<\/td>\n-1.0131 %<\/td>\n2,684.2<\/td>\n<\/tr>\n
OpRet<\/td>\n4.02 %<\/td>\n-0.41 %<\/td>\n97,628<\/td>\n0.08<\/td>\n1<\/td>\n0.0000 %<\/td>\n2,748.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.25 %<\/td>\n4.02 %<\/td>\n55,335<\/td>\n3.75<\/td>\n5<\/td>\n-0.1912 %<\/td>\n3,186.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0000 %<\/td>\n2,513.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.44 %<\/td>\n-5.40 %<\/td>\n64,909<\/td>\n0.08<\/td>\n19<\/td>\n-0.0062 %<\/td>\n2,483.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.15 %<\/td>\n5.04 %<\/td>\n105,071<\/td>\n15.33<\/td>\n16<\/td>\n0.1919 %<\/td>\n2,660.6<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.18 %<\/td>\n3.65 %<\/td>\n176,660<\/td>\n4.55<\/td>\n74<\/td>\n-0.0580 %<\/td>\n2,585.2<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.96 %<\/td>\n-0.37 %<\/td>\n95,921<\/td>\n0.13<\/td>\n41<\/td>\n0.1265 %<\/td>\n2,603.1<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.56 %<\/td>\n-0.48 %<\/td>\n62,377<\/td>\n0.08<\/td>\n6<\/td>\n0.0261 %<\/td>\n2,553.5<\/td>\n<\/tr>\n<\/table>\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.B<\/td>\nFloater<\/td>\n-1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-14
\nMaturity Price : 17.16
\nEvaluated at bid price : 17.16
\nBid-YTW : 3.08 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n-1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-14
\nMaturity Price : 22.26
\nEvaluated at bid price : 22.66
\nBid-YTW : 3.72 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-14
\nMaturity Price : 17.04
\nEvaluated at bid price : 17.04
\nBid-YTW : 3.10 %<\/td>\n<\/tr>\n
GWO.PR.Q<\/td>\nDeemed-Retractible<\/td>\n1.47 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 5.01 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n1.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-14
\nMaturity Price : 20.35
\nEvaluated at bid price : 20.35
\nBid-YTW : 3.70 %<\/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.PR.F<\/td>\nFixedReset<\/td>\n71,196<\/td>\nScotia crossed 65,000 at 24.63.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-14
\nMaturity Price : 23.17
\nEvaluated at bid price : 24.65
\nBid-YTW : 4.00 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n54,649<\/td>\nNesbitt crossed 50,000 at 17.25.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-14
\nMaturity Price : 17.16
\nEvaluated at bid price : 17.16
\nBid-YTW : 3.08 %<\/td>\n<\/tr>\n
TRP.PR.E<\/td>\nFixedReset<\/td>\n52,500<\/td>\nTD crossed 50,000 at 25.50.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-14
\nMaturity Price : 23.32
\nEvaluated at bid price : 25.49
\nBid-YTW : 3.76 %<\/td>\n<\/tr>\n
NA.PR.W<\/td>\nFixedReset<\/td>\n48,224<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-14
\nMaturity Price : 23.20
\nEvaluated at bid price : 25.16
\nBid-YTW : 3.68 %<\/td>\n<\/tr>\n
RY.PR.Z<\/td>\nFixedReset<\/td>\n47,315<\/td>\nNational crossed 29,000 at 25.50.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-05-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.56
\nBid-YTW : 3.45 %<\/td>\n<\/tr>\n
ENB.PF.G<\/td>\nFixedReset<\/td>\n35,800<\/td>\nRBC crossed 10,900 at 25.11.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-14
\nMaturity Price : 23.13
\nEvaluated at bid price : 25.05
\nBid-YTW : 4.14 %<\/td>\n<\/tr>\n
There were 16 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
PWF.PR.A<\/td>\nFloater<\/td>\nQuote: 19.10 – 20.49
\nSpot Rate : 1.3900
\nAverage : 0.8379<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-14
\nMaturity Price : 19.10
\nEvaluated at bid price : 19.10
\nBid-YTW : 2.74 %<\/td>\n<\/tr>\n

NEW.PR.D<\/td>\nSplitShare<\/td>\nQuote: 32.52 – 33.27
\nSpot Rate : 0.7500
\nAverage : 0.6005<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-06-26
\nMaturity Price : 32.07
\nEvaluated at bid price : 32.52
\nBid-YTW : 2.79 %<\/td>\n<\/tr>\n

TD.PR.S<\/td>\nFixedReset<\/td>\nQuote: 25.40 – 25.73
\nSpot Rate : 0.3300
\nAverage : 0.1914<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.40
\nBid-YTW : 2.96 %<\/td>\n<\/tr>\n

FTS.PR.H<\/td>\nFixedReset<\/td>\nQuote: 20.35 – 20.85
\nSpot Rate : 0.5000
\nAverage : 0.3780<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-14
\nMaturity Price : 20.35
\nEvaluated at bid price : 20.35
\nBid-YTW : 3.70 %<\/td>\n<\/tr>\n

ENB.PR.J<\/td>\nFixedReset<\/td>\nQuote: 25.06 – 25.34
\nSpot Rate : 0.2800
\nAverage : 0.1736<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-14
\nMaturity Price : 23.24
\nEvaluated at bid price : 25.06
\nBid-YTW : 4.04 %<\/td>\n<\/tr>\n

RY.PR.L<\/td>\nFixedReset<\/td>\nQuote: 26.41 – 26.95
\nSpot Rate : 0.5400
\nAverage : 0.4467<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.41
\nBid-YTW : 2.84 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

There are some thoughts that Keystone has missed the boat: Delays of the Keystone XL pipeline are providing little obstacle to Western Canadian oil producers getting their crude to the U.S. Gulf Coast, with shipments …<\/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-26809","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26809","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=26809"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26809\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}