{"id":26852,"date":"2014-11-20T20:53:27","date_gmt":"2014-11-21T01:53:27","guid":{"rendered":"http:\/\/prefblog.com\/?p=26852"},"modified":"2014-11-20T20:53:27","modified_gmt":"2014-11-21T01:53:27","slug":"november-20-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=26852","title":{"rendered":"November 20, 2014"},"content":{"rendered":"

I briefly mentioned subsidized gasoline in Saudi Arabia on November 11<\/a>. Here’s a report on subsidized electricity in India<\/a>:<\/p>\n

The villagers of Dharnai in northern India had been living without electricity for more than 30 years when Greenpeace installed a microgrid to supply reliable, low-cost solar power.<\/p>\n

Then, within weeks of the lights flickering on in Dharnai\u2019s mud huts, the government utility hooked up the grid — flooding the community with cheap power that undercut the fledgling solar network. While Greenpeace had come to Dharnai at Bihar\u2019s invitation, the unannounced arrival of the state\u2019s utility threatened to put it out of business.
…<\/b>
It\u2019s a scenario playing out at dozens of ventures across India\u2019s hinterlands. Competition from state utilities, with their erratic yet unbeatably cheap subsidized power, is scuppering efforts to supply clean, modern energy in a country where more people die from inhaling soot produced by indoor fires than from smoking.<\/p><\/blockquote>\n

I mentioned a new round of bank-bashing yesterday<\/a>, in connection with their commodities businesses. Could it be that this is related<\/a>?:<\/p>\n

Congressional scrutiny of Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS)\u2019s commodities businesses is another strain for units that already saw revenue drop by two-thirds from peak years.<\/p>\n

Goldman Sachs produced $1 billion of revenue from its commodities unit and investments in commodity businesses in 2012, down from $3.4 billion in 2009, according to a Senate Permanent Subcommittee on Investigations report released today on banks\u2019 involvement in those markets. Morgan Stanley\u2019s commodity revenue fell for four straight years, from $3 billion in 2008 to $912 million in 2012, according to the report.<\/p><\/blockquote>\n

It’s an ill wind that blows nobody any good<\/a>:<\/p>\n

Six years after Bernard Madoff\u2019s fraud collapsed, the cost of liquidating his defunct investment advisory firm to repay thousands of victims has topped $1 billion, though the con man\u2019s former customers aren\u2019t footing the bill.<\/p>\n

The fees, paid by the industry-backed Securities Investor Protection Corp., which is managing the case, have financed a team of lawyers who this week surpassed $10 billion in recoveries for victims, or almost 60 percent of the principal that vanished after Madoff\u2019s arrest in December 2008.<\/p>\n

Irving Picard, the bankruptcy lawyer who\u2019s leading the effort as trustee for Madoff\u2019s company, included the new fee total in an interim report posted today on his website. A bankruptcy judge in Manhattan regularly approves the fees, sometimes over the objections of victims\u2019 groups.
…<\/b>
\u201cIt\u2019s obscene,\u201d Helen Davis Chaitman, a lawyer representing some victims in the case, said in an e-mail about the fees. Chaitman, who has frequently challenged Picard in courts, said federal prosecutors recovered most of the cash for victims and Picard should pay out more than just principal.<\/p><\/blockquote>\n

It was a good day for the Canadian preferred share market, with PerpetualDiscounts winning 29bp, FixedResets up 16bp and DeemedRetractibles gaining 15bp. 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>\n0.4819 %<\/td>\n2,544.3<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.4819 %<\/td>\n4,028.2<\/td>\n<\/tr>\n
Floater<\/td>\n2.96 %<\/td>\n3.07 %<\/td>\n59,347<\/td>\n19.51<\/td>\n4<\/td>\n0.4819 %<\/td>\n2,704.8<\/td>\n<\/tr>\n
OpRet<\/td>\n4.02 %<\/td>\n-0.05 %<\/td>\n96,991<\/td>\n0.08<\/td>\n1<\/td>\n0.0392 %<\/td>\n2,749.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.28 %<\/td>\n4.15 %<\/td>\n50,639<\/td>\n3.78<\/td>\n5<\/td>\n-0.1977 %<\/td>\n3,184.4<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0392 %<\/td>\n2,514.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.43 %<\/td>\n-9.57 %<\/td>\n66,989<\/td>\n0.09<\/td>\n19<\/td>\n-0.0349 %<\/td>\n2,487.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.11 %<\/td>\n5.00 %<\/td>\n106,883<\/td>\n15.41<\/td>\n16<\/td>\n0.2931 %<\/td>\n2,681.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.16 %<\/td>\n3.52 %<\/td>\n177,016<\/td>\n4.48<\/td>\n74<\/td>\n0.1614 %<\/td>\n2,596.4<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.94 %<\/td>\n-0.99 %<\/td>\n97,129<\/td>\n0.11<\/td>\n40<\/td>\n0.1479 %<\/td>\n2,613.6<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.56 %<\/td>\n-7.47 %<\/td>\n58,385<\/td>\n0.08<\/td>\n6<\/td>\n0.0652 %<\/td>\n2,558.0<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
TD.PR.R<\/td>\nDeemed-Retractible<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-20
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.63
\nBid-YTW : -29.47 %<\/td>\n<\/tr>\n
ENB.PR.H<\/td>\nFixedReset<\/td>\n1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-20
\nMaturity Price : 22.44
\nEvaluated at bid price : 23.14
\nBid-YTW : 3.98 %<\/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
FTS.PR.H<\/td>\nFixedReset<\/td>\n182,489<\/td>\nNesbitt crossed 168,200 at 20.45.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-20
\nMaturity Price : 20.25
\nEvaluated at bid price : 20.25
\nBid-YTW : 3.72 %<\/td>\n<\/tr>\n
ENB.PF.G<\/td>\nFixedReset<\/td>\n126,281<\/td>\nRBC crossed blocks of 74,000 and 38,500 at 25.29.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-20
\nMaturity Price : 23.19
\nEvaluated at bid price : 25.21
\nBid-YTW : 4.11 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n94,425<\/td>\nScotia crossed 20,000 at 21.77.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-20
\nMaturity Price : 21.50
\nEvaluated at bid price : 21.82
\nBid-YTW : 4.00 %<\/td>\n<\/tr>\n
CU.PR.G<\/td>\nPerpetual-Discount<\/td>\n78,606<\/td>\nDesjardins bought blocks of 36,500 and 12,100 from anonymous at 22.53. TD crossed 23,900 at the same price.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-20
\nMaturity Price : 22.19
\nEvaluated at bid price : 22.50
\nBid-YTW : 5.00 %<\/td>\n<\/tr>\n
FTS.PR.M<\/td>\nFixedReset<\/td>\n61,260<\/td>\nNesbitt crossed 50,000 at 25.45.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-12-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.43
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n
NA.PR.S<\/td>\nFixedReset<\/td>\n56,425<\/td>\nTD bought blocks of 10,000 and 15,000 from National, both at 25.65.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-05-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.65
\nBid-YTW : 3.50 %<\/td>\n<\/tr>\n
There were 34 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
CGI.PR.D<\/td>\nSplitShare<\/td>\nQuote: 25.68 – 26.25
\nSpot Rate : 0.5700
\nAverage : 0.4380<\/p>\n

YTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2023-06-14
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.68
\nBid-YTW : 3.49 %<\/td>\n<\/tr>\n

SLF.PR.H<\/td>\nFixedReset<\/td>\nQuote: 25.64 – 25.95
\nSpot Rate : 0.3100
\nAverage : 0.1896<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.64
\nBid-YTW : 2.79 %<\/td>\n<\/tr>\n

TD.PR.S<\/td>\nFixedReset<\/td>\nQuote: 25.68 – 26.08
\nSpot Rate : 0.4000
\nAverage : 0.2919<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.68
\nBid-YTW : 2.66 %<\/td>\n<\/tr>\n

W.PR.J<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.20 – 25.50
\nSpot Rate : 0.3000
\nAverage : 0.2119<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-20
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.20
\nBid-YTW : 2.57 %<\/td>\n<\/tr>\n

PWF.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.46 – 25.69
\nSpot Rate : 0.2300
\nAverage : 0.1422<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-20
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.46
\nBid-YTW : -12.26 %<\/td>\n<\/tr>\n

W.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.11 – 25.36
\nSpot Rate : 0.2500
\nAverage : 0.1653<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-11-20
\nMaturity Price : 24.88
\nEvaluated at bid price : 25.11
\nBid-YTW : 5.54 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

I briefly mentioned subsidized gasoline in Saudi Arabia on November 11. Here’s a report on subsidized electricity in India: The villagers of Dharnai in northern India had been living without electricity for more than 30 …<\/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-26852","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26852","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=26852"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26852\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}