{"id":26959,"date":"2014-12-01T22:09:30","date_gmt":"2014-12-02T03:09:30","guid":{"rendered":"http:\/\/prefblog.com\/?p=26959"},"modified":"2014-12-01T22:09:30","modified_gmt":"2014-12-02T03:09:30","slug":"december-1-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=26959","title":{"rendered":"December 1, 2014"},"content":{"rendered":"

Moody’s downgraded Japan<\/a>:<\/p>\n

Moody\u2019s Investors Service on Monday downgraded Japan\u2019s sovereign debt rating by one notch to A1, citing rising uncertainty over the country\u2019s ability to hit its debt-reduction goal.<\/p>\n

The announcement briefly sent the yen to a seven-year low against the dollar and pushed 10-year Japanese government bond (JGB) futures down by 10 ticks.
…<\/b>
The U.S. rating agency said the outlook was stable.<\/p>\n

Tom Byrne, regional credit officer of Moody\u2019s, said the downgrade was closely linked to [Japanese Prime Minister] Mr. [Shinzo] Abe\u2019s decision to delay next year\u2019s scheduled sales tax hike, which made it more challenging for Japan to achieve its target of reducing the primary budget deficit in fiscal 2020.<\/p>\n

\u201cThere is concern that fiscal policy in its current state will not achieve the long-term fiscal goals,\u201d he said.<\/p>\n

Hours before Moody\u2019s announcement, Mr. Abe had stressed in a televised public debate that Japan remained committed to fiscal reform, and that the Bank of Japan\u2019s ultraloose policy was not aimed at monetizing public debt.<\/p>\n

But Moody\u2019s warned that the BOJ\u2019s efforts to achieve its 2-per-cent inflation target through aggressive money printing may push up bond yields and raise government borrowing costs.<\/p><\/blockquote>\n

Remember that US recovery that would save the world<\/a>?<\/p>\n

U.S. stocks fell for a second day as weaker data on Black Friday sales and China manufacturing overshadowed a rebound in oil and expansion in American factories.<\/p>\n

Retailers in the Standard & Poor\u2019s 500 Index (SPX) fell the most in a month as post-Thanksgiving holiday sales came in below forecasts. Apple Inc. fell as much as 6.4 percent in early trading before paring the loss in half. Chevron Corp. and Exxon Mobil Corp. gained at least 2 percent as crude oil ended a four-day skid.<\/p>\n

The S&P 500 fell 0.7 percent to 2,053.44 at 4 p.m. in New York. The Dow Jones Industrial Average slumped 51.44 points, or 0.3 percent, to 17,776.8. The technology-heavy Nasdaq 100 Index lost 1.2 percent. About 7.6 billion listed shares changed hands in the U.S., 13 percent higher than the three-month daily average.<\/p><\/blockquote>\n

Black Friday, as noted above, was a fizzle<\/a>:<\/p>\n

Spending tumbled an estimated 11 percent over the weekend from a year earlier, the Washington-based National Retail Federation said yesterday. And more than 6 million shoppers who had been expected to hit stores never showed up.<\/p>\n

Consumers were unmoved by retailers\u2019 aggressive discounts and longer Thanksgiving hours, raising concern that signs of recovery in recent months won\u2019t endure. Retailers also were targeted by protesters, who called on consumers to boycott Black Friday to make a statement about police violence. Still, the NRF cast the decline in a positive light, saying it showed shoppers were confident enough to skip the initial rush for discounts.<\/p><\/blockquote>\n

There may be relatively little effect on Canada, though, as Roy Osing reminds us that our main product is mewling sycophancy<\/a>:<\/p>\n

… I was less than impressed with the organization structure he proposed. It was a structure I had \u201clived with\u201d in my previous life and could see the pluses and minuses.<\/p>\n

When asked whether I could support the proposed structure, I asked for time to consider it before declaring my position.<\/p>\n

One of my peers virtually condemned it and with his \u201coutside voice\u201d declared his non-support; he left the company soon thereafter.<\/p>\n

A previous president once told me \u201cRoy, if your boss puts forward what you consider to be a \u2018dumb idea\u2019, you only have two choices: one, support it and try to make it work; or two, leave.\u201d<\/p><\/blockquote>\n

And there’s the usual amount of rate punditry<\/a>:<\/p>\n

Poloz will keep his benchmark overnight rate at 1 percent Dec. 3 according to all 22 economists surveyed by Bloomberg News through Nov. 28, stretching the pause that began with Mark Carney in 2010. That would make it the longest since February 1944 to September 1950, exceeding the October 1950 to January 1955 hiatus.
…<\/b>
While Fed policy makers debate the language they might use to flag potential policy-rate increases, their Canadian counterparts say they remain focused on providing stimulus to bring the world\u2019s 11th-largest economy back to full output over the next two years.<\/p>\n

Canada\u2019s economic growth slowed to a 2.8 percent annualized pace in the third quarter from 3.6 percent the prior three months, Statistics Canada reported Nov. 28. In contrast, U.S. growth came in at 3.9 percent.
…<\/b>
Poloz won\u2019t raise rates until the fourth quarter of next year, according to a Bloomberg economist survey. The quarter-point increase forecast for Canada compares with an estimated Fed move to 1 percent from 0.25 percent over that time.<\/p>\n

The anticipation of rising Fed rates has is already helping keep Canadian bond yields lower than Treasuries. Canada\u2019s five-year bonds had a 1.35 percent yield at 9:25 a.m. Toronto time today, while similar Treasuries yielded 1.46 percent.<\/p><\/blockquote>\n

In honour of Cyber Monday, the Canadian preferred share market was on sale today, with PerpetualDiscounts down 12bp, FixedResets losing 18bp and DeemedRetractibles off 11bp. Volatility was high and comprised almost entirely of losers. Volume was below 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-0.9738 %<\/td>\n2,518.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.9738 %<\/td>\n3,987.3<\/td>\n<\/tr>\n
Floater<\/td>\n2.99 %<\/td>\n3.11 %<\/td>\n62,372<\/td>\n19.39<\/td>\n4<\/td>\n-0.9738 %<\/td>\n2,677.3<\/td>\n<\/tr>\n
OpRet<\/td>\n4.39 %<\/td>\n-12.35 %<\/td>\n25,827<\/td>\n0.08<\/td>\n2<\/td>\n-0.0195 %<\/td>\n2,759.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.28 %<\/td>\n3.90 %<\/td>\n47,274<\/td>\n3.75<\/td>\n5<\/td>\n-0.3161 %<\/td>\n3,188.8<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0195 %<\/td>\n2,523.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.42 %<\/td>\n-8.03 %<\/td>\n71,155<\/td>\n0.09<\/td>\n20<\/td>\n-0.0897 %<\/td>\n2,483.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.12 %<\/td>\n5.06 %<\/td>\n114,040<\/td>\n15.36<\/td>\n15<\/td>\n-0.1241 %<\/td>\n2,678.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.17 %<\/td>\n3.51 %<\/td>\n178,614<\/td>\n8.64<\/td>\n73<\/td>\n-0.1848 %<\/td>\n2,582.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.97 %<\/td>\n-1.78 %<\/td>\n99,350<\/td>\n0.09<\/td>\n40<\/td>\n-0.1064 %<\/td>\n2,614.6<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.53 %<\/td>\n-0.48 %<\/td>\n59,985<\/td>\n0.08<\/td>\n5<\/td>\n-0.0469 %<\/td>\n2,554.6<\/td>\n<\/tr>\n<\/table>\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
HSE.PR.A<\/td>\nFixedReset<\/td>\n-4.13 %<\/td>\nCompletely legitimate and not just another Toronto Stock Exchange screw up, for a change. The closing quote was 21.81-00 and all trades after 2:30 pm were under 22.00, although the VWAP for the day was 22.22. The thumping is probably due to the HSE new issue, FixedReset, 4.50%+313<\/a> announced today.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-12-01
\nMaturity Price : 21.47
\nEvaluated at bid price : 21.81
\nBid-YTW : 3.61 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n-1.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.81
\nBid-YTW : 4.59 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n-1.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-12-01
\nMaturity Price : 21.73
\nEvaluated at bid price : 22.08
\nBid-YTW : 5.46 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n-1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.03
\nBid-YTW : 4.74 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-12-01
\nMaturity Price : 17.02
\nEvaluated at bid price : 17.02
\nBid-YTW : 3.11 %<\/td>\n<\/tr>\n
CGI.PR.D<\/td>\nSplitShare<\/td>\n-1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2023-06-14
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.23
\nBid-YTW : 3.62 %<\/td>\n<\/tr>\n
MFC.PR.G<\/td>\nFixedReset<\/td>\n1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.82
\nBid-YTW : 2.65 %<\/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
TRP.PR.A<\/td>\nFixedReset<\/td>\n172,040<\/td>\nRBC crossed 142,100 at 21.39.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-12-01
\nMaturity Price : 21.32
\nEvaluated at bid price : 21.32
\nBid-YTW : 3.86 %<\/td>\n<\/tr>\n
RY.PR.B<\/td>\nDeemed-Retractible<\/td>\n124,636<\/td>\nNational crossed 120,000 at 25.44.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-31
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.40
\nBid-YTW : -1.48 %<\/td>\n<\/tr>\n
TRP.PR.D<\/td>\nFixedReset<\/td>\n80,232<\/td>\nRBC crossed 65,000 at 25.46.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-12-01
\nMaturity Price : 23.33
\nEvaluated at bid price : 25.39
\nBid-YTW : 3.63 %<\/td>\n<\/tr>\n
ENB.PR.N<\/td>\nFixedReset<\/td>\n57,172<\/td>\nRBC crossed 37,600 at 24.85.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-12-01
\nMaturity Price : 23.13
\nEvaluated at bid price : 24.66
\nBid-YTW : 3.98 %<\/td>\n<\/tr>\n
TD.PF.A<\/td>\nFixedReset<\/td>\n51,001<\/td>\nScotia crossed 41,400 at 25.53.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-12-01
\nMaturity Price : 23.32
\nEvaluated at bid price : 25.50
\nBid-YTW : 3.47 %<\/td>\n<\/tr>\n
PWF.PR.L<\/td>\nPerpetual-Premium<\/td>\n47,395<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.35
\nBid-YTW : 4.03 %<\/td>\n<\/tr>\n
There were 26 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
BAM.PF.G<\/td>\nFixedReset<\/td>\nQuote: 25.80 – 26.30
\nSpot Rate : 0.5000
\nAverage : 0.2987<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2020-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.80
\nBid-YTW : 3.81 %<\/td>\n<\/tr>\n

BAM.PF.F<\/td>\nFixedReset<\/td>\nQuote: 25.71 – 26.15
\nSpot Rate : 0.4400
\nAverage : 0.2765<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.71
\nBid-YTW : 4.05 %<\/td>\n<\/tr>\n

GWO.PR.Q<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.11 – 25.50
\nSpot Rate : 0.3900
\nAverage : 0.2728<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.11
\nBid-YTW : 5.07 %<\/td>\n<\/tr>\n

TD.PR.R<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.32 – 26.79
\nSpot Rate : 0.4700
\nAverage : 0.3614<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-31
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.32
\nBid-YTW : -15.06 %<\/td>\n<\/tr>\n

SLF.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 24.25 – 24.50
\nSpot Rate : 0.2500
\nAverage : 0.1663<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.25
\nBid-YTW : 5.11 %<\/td>\n<\/tr>\n

CU.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.50 – 22.75
\nSpot Rate : 0.2500
\nAverage : 0.1686<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-12-01
\nMaturity Price : 22.19
\nEvaluated at bid price : 22.50
\nBid-YTW : 5.01 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Moody’s downgraded Japan: Moody\u2019s Investors Service on Monday downgraded Japan\u2019s sovereign debt rating by one notch to A1, citing rising uncertainty over the country\u2019s ability to hit its debt-reduction goal. The announcement briefly sent the …<\/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-26959","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26959","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=26959"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26959\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}