{"id":30991,"date":"2015-10-23T23:48:21","date_gmt":"2015-10-24T04:48:21","guid":{"rendered":"http:\/\/prefblog.com\/?p=30991"},"modified":"2015-10-23T23:48:21","modified_gmt":"2015-10-24T04:48:21","slug":"october-23-2015","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=30991","title":{"rendered":"October 23, 2015"},"content":{"rendered":"

David Parkinson of the Globe points out that headline inflation may not be benign for much longer<\/a>:<\/p>\n

Statistics Canada reported Friday that the consumer price index (CPI) slipped 0.2 per cent in September from August, putting the year-over-year CPI inflation rate at 1 per cent, down from 1.3 per cent the previous month, and the lowest rate since June.
…<\/b>
The energy segment of CPI slumped 4.4 per cent in September alone, as the price of gasoline tumbled nearly 8 per cent, reflecting renewed weakness in the oil market. On a year-over-year basis, gasoline is down a remarkable 19 per cent, the main driver in the 11-per-cent decline in the overall energy segment.<\/p>\n

Without energy, the year-over-year inflation rate for the rest of Statscan\u2019s consumer basket is 2.1 per cent. And, indeed, it has hovered at or a little above 2 per cent for more than a year now, even as the oil shock delivered a sustained blow to Canada\u2019s overall economic health. Every major segment outside of transportation \u2013 which contains gasoline costs \u2013 has posted year-over-year inflation well north of the overall CPI reading, with a median reading of 2.5 per cent.<\/p>\n

But here\u2019s the thing: That energy effect, which has sucked the life out of CPI inflation for months now, will disappear within the next few months. It\u2019s all but a statistical certainty. It was last fall that energy prices went into their tailspin, and by January they had bottomed; pretty much from here on in, the year-over-year comparisons in the energy segment are going to look much brighter.<\/p><\/blockquote>\n

In Europe, however, Draghi is more concerned about deflation<\/a>:<\/p>\n

On Thursday in Malta, Draghi said the committees have been given their orders again and that the ECB wanted to be \u201cvigilant,\u201d echoing his predecessor Jean-Claude Trichet\u2019s preferred signal for an imminent policy change. Investors took the hint, sending the euro tumbling and German bond yields to a record low — and economists debating whether policy makers will cut rates, expand QE, do both or even more.
…<\/b>
While Draghi reiterated his belief that the 19-nation currency bloc is not in deflation, or a downward spiral of prices and wages, he made clear he\u2019s ready to act to stem what Executive Board member Peter Praet two weeks ago called a \u201cseeping pessimism\u201d in the euro area.<\/p><\/blockquote>\n

This caused an immediate uptick in my favourite statistice – the value of bonds with negative yields<\/a>:<\/p>\n

With his confirmation that policy makers discussed cutting the region\u2019s deposit rate, Mario Draghi extended the euro area\u2019s negative-yield universe by $190 billion.<\/p>\n

Those comments by the European Central Bank chief on Thursday sparked a rally that left yields on German sovereign securities negative for as long as six years, and pushed Spanish and Italian two-year yields below zero. Across the currency bloc, the value of securities issued by governments at negative yields rose to $1.57 trillion, from $1.38 trillion before Draghi spoke, according to data compiled by Bloomberg. That\u2019s equivalent to about a quarter of the market.
…<\/b>
Germany\u2019s two-year yield was little changed at minus 0.32 percent as of 4:26 p.m. London time, after earlier reaching a record-low minus 0.348 percent. The price of the zero percent security maturing September 2017 was at 100.605 percent of face value.<\/p>\n

French two-year yields dropped to a record minus 0.292 percent on Friday, also below the current level of the deposit rate, which is at minus 0.20 percent. There are about $752 billion of securities in the euro region with yields below that rate, according to data compiled by Bloomberg, making them ineligible for the ECB\u2019s 1.1 trillion-euro ($1.2 trillion) bond-buying plan.<\/p>\n

Italy\u2019s two-year yield dropped to as low as minus 0.014 percent on Friday, while Spain\u2019s fell to as low as minus 0.02 percent.<\/p><\/blockquote>\n

In addition, China cut policy rates again<\/a>:<\/p>\n

China stepped up monetary easing with its sixth interest-rate cut in a year to combat deflationary pressures and a slowing economy, moving ahead of anticipated fresh stimulus by central banks from Europe to Japan and possible tightening in the U.S.<\/p>\n

The one-year lending rate will be cut to 4.35 percent from 4.6 percent effective Saturday the People\u2019s Bank of China said on its website on Friday, while the one-year deposit rate will fall to 1.5 percent from 1.75 percent. Reserve requirements for all banks were lowered by 50 basis points, with an extra 50 basis point reduction for some institutions.
…<\/b>
The need for new growth engines was underscored by data Monday that showed the economy expanded 6.9 percent in the three months through September from a year earlier. While that beat economists\u2019 estimates for 6.8 percent, the expansion benefited from an out-sized contribution from financial services after a surge in share trading from the year-earlier period. That prop is unlikely to endure, raising challenges to Li\u2019s growth goal of about 7 percent this year.<\/p>\n

Meantime, consumer inflation at about half the government\u2019s target and a protracted slump in producer prices added room for additional easing.<\/p><\/blockquote>\n

This news actually weakened Treasuries<\/a>:<\/p>\n

Treasuries fell, with 10-year note yields touching a two-week high, after China\u2019s central bank lowered its benchmark lending rate and reserve requirements for banks in an effort to curb an economic decline.<\/p>\n

U.S. yields rose for a second day as investors see China\u2019s efforts to address its problems as easing turmoil in emerging markets and lessening demand for haven assets.
…<\/b>
The yield on the 10-year Treasury note rose six basis points, or 0.06 percentage point, to 2.09 percent as of 5 p.m. in New York, according to Bloomberg Bond Trader data, after touching its highest since Oct. 8. The price of the 2 percent U.S. security maturing in August 2025 dropped 17\/32, or $5.31 per $1,000 face amount, to 99 7\/32.<\/p>\n

The move by the Chinese central bank helped bolster risk appetite, with stocks rising around the world and U.S. bond market inflation expectations rising to the highest levels in two weeks, forecasting a rate of 1.52 percent during the next 10 years.<\/p><\/blockquote>\n

And, all in all, the Central Bankers reclaimed their position as the Masters of the Universe<\/a>:<\/p>\n

Canadian stocks joined a global equities rally sparked by optimism central-bank stimulus will jumpstart growth.<\/p>\n

The nation\u2019s benchmark index rose to a two-week high, as Valeant Pharmaceuticals International Inc. halted a four-day rout. Canada\u2019s largest lenders contributed the most to gains, while materials producers also advanced.<\/p>\n

Central banks are reasserting dominance over the global financial markets, sparking demand for risk assets, as China\u2019s central bank cut its benchmark lending rate a day after the European Central Bank signaled it will consider bolstering a bond-buying program before the end of the year. Canada\u2019s central bank held rates steady this week.<\/p>\n

The Standard & Poor\u2019s\/TSX Composite Index rose 75.55 points, or 0.5 percent, to 13,953.66 at 4 p.m. in Toronto. The gauge posted a 0.8 percent gain in the week. It\u2019s extended an October rally to 4.9 percent, on pace for the biggest monthly increase since 2011.<\/p><\/blockquote>\n

Brompton Lifeco Split Inc., proud issuer of LCS.PR.A, was confirmed at Pfd-4(high) by DBRS<\/a>:<\/p>\n

Based on the dividend yields of the underlying companies in the Portfolio and after management fees and other expenses have been paid, the dividend coverage ratio stands at 0.6 times.
…<\/b>
The amount of downside protection available to the Preferred Shares as of October 15, 2015 is 34%.<\/p>\n

Since the last review conducted on October 24, 2014, performance of the Company\u2019s preferred shares remains stable. Quarterly Preferred Share distributions have been paid regularly since the inception of the Company in 2007. Other key rating considerations include the credit quality, volatility and diversification of the Portfolio as well as changes in the dividend policies of the underlying companies in the Portfolio.<\/p>\n

Based on the aforementioned considerations and performance metrics, DBRS confirms the Pfd-4 (high) rating of the Preferred Shares issued by Brompton Lifeco Split Corp.<\/p><\/blockquote>\n

There were good solid gains in the Canadian preferred share market today, with PerpetualDiscounts winning 29bp, FixedResets gaining 24bp and DeemedRetractibles up 27bp. As has become normal, however, these figures masked a lot of churn illustrated by a lengthy Performance Highlights table. Volume was average.<\/p>\n

For as long as the FixedReset market is so violently unsettled, I\u2019ll keep publishing updates of the more interesting and meaningful series of FixedResets\u2019 Implied Volatilities. This doesn\u2019t include Enbridge because although Enbridge has a large number of issues outstanding, all of which are quite liquid, the range of Issue Reset Spreads is too small for decent conclusions. The low is 212bp (ENB.PR.H; second-lowest is ENB.PR.D at 237bp) and the high is a mere 268 for ENB.PF.G.<\/p>\n

Remember that all rich \/cheap assessments are:
\n\u00bb based on Implied Volatility Theory only
\n\u00bb are relative only to other FixedResets from the same issuer
\n\u00bb assume constant GOC-5 yield
\n\u00bb assume constant Implied Volatility
\n\u00bb assume constant spread<\/p>\n

Here\u2019s TRP:<\/p>\n

\"impVol_TRP_151023\"<\/a>
Click for Big<\/i><\/div>\n

Implied Volatility increased today with a good fit, but the pattern of fitting errors makes me suspect that the figure is subject to rapid change on small pricing shifts.<\/p>\n

TRP.PR.E, which resets 2019-10-30 at +235, is bid at 18.75 to be $0.45 rich, while TRP.PR.C, resetting 2016-1-30 at +154, is $0.34 cheap at its bid price of 13.37.<\/p>\n

\"impVol_MFC_151023\"<\/a>
Click for Big<\/i><\/div>\n

Implied Volatility declined slightly for the MFC series today.<\/p>\n

Most expensive is MFC.PR.L, resetting at +216bp on 2019-6-19, bid at 19.34 to be 0.42 rich, while MFC.PR.F resetting at +141bp on 2016-6-19, is bid at 14.00 to be 0.64 cheap.<\/p>\n

\"impVol_BAM_151023\"<\/a>
Click for Big<\/i><\/div>\n

The fit on the BAM issues continues to be poor. Implied Volatility remained constant today, but this is a figure that\u2019s very highly dependent on the performance of the high-spread issue BAM.PF.H.<\/p>\n

The cheapest issue relative to its peers is BAM.PR.R, resetting at +230bp on 2016-6-30, bid at 16.75 to be $1.18 cheap. BAM.PF.G, resetting at +284bp on 2020-6-30 is bid at 21.60 and appears to be $0.82 rich.<\/p>\n

\"impVol_FTS_151023\"<\/a>
Click for Big<\/i><\/div>\n

Implied Volatility declined significantly today.<\/p>\n

FTS.PR.K, with a spread of +205bp, and bid at 19.50, looks $0.99 expensive and resets 2019-3-1. FTS.PR.H, with a spread of +145bp and resetting 2020-6-1, is bid at 14.11 and is $0.61 cheap.<\/p>\n

\"pairs_FR_151023\"<\/a>
Click for Big<\/i><\/div>\n

Investment-grade pairs predict an average three-month bill yield over the next five-odd years of -0.87%, with one outlier above 0.00%. The distribution is bimodal, with bank NVCC non-compliant pairs averaging -1.28% and other issues averaging -0.30%. There are three junk outliers above 0.00% and one below -2.00%.<\/p>\n

\"pairs_FF_151023\"<\/a>
Click for Big<\/i><\/div>\n

Shall we just say that this exhibits a high level of confidence in the continued rapacity of Canadian banks?<\/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-0.0301 %<\/td>\n1,739.3<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0301 %<\/td>\n3,041.0<\/td>\n<\/tr>\n
Floater<\/td>\n4.27 %<\/td>\n4.33 %<\/td>\n61,279<\/td>\n16.75<\/td>\n3<\/td>\n-0.0301 %<\/td>\n1,849.0<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2519 %<\/td>\n2,745.3<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.37 %<\/td>\n5.25 %<\/td>\n78,870<\/td>\n2.96<\/td>\n5<\/td>\n-0.2519 %<\/td>\n3,217.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2519 %<\/td>\n2,510.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.87 %<\/td>\n5.83 %<\/td>\n67,092<\/td>\n14.03<\/td>\n5<\/td>\n0.1042 %<\/td>\n2,478.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.66 %<\/td>\n5.71 %<\/td>\n80,137<\/td>\n14.30<\/td>\n33<\/td>\n0.2852 %<\/td>\n2,523.7<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.92 %<\/td>\n4.45 %<\/td>\n204,323<\/td>\n15.82<\/td>\n76<\/td>\n0.2448 %<\/td>\n2,076.0<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.23 %<\/td>\n5.05 %<\/td>\n107,822<\/td>\n5.47<\/td>\n33<\/td>\n0.2658 %<\/td>\n2,554.1<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.50 %<\/td>\n4.04 %<\/td>\n63,840<\/td>\n5.82<\/td>\n9<\/td>\n0.4465 %<\/td>\n2,155.5<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\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
SLF.PR.G<\/td>\nFixedReset<\/td>\n-2.85 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 15.01
\nBid-YTW : 8.66 %<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset<\/td>\n-2.38 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 16.01
\nBid-YTW : 8.94 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n-2.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 14.00
\nBid-YTW : 9.81 %<\/td>\n<\/tr>\n
TRP.PR.G<\/td>\nFixedReset<\/td>\n-1.80 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 21.29
\nEvaluated at bid price : 21.29
\nBid-YTW : 4.52 %<\/td>\n<\/tr>\n
HSE.PR.C<\/td>\nFixedReset<\/td>\n-1.74 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 21.67
\nEvaluated at bid price : 22.00
\nBid-YTW : 4.67 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n-1.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 14.11
\nEvaluated at bid price : 14.11
\nBid-YTW : 4.19 %<\/td>\n<\/tr>\n
BAM.PF.F<\/td>\nFixedReset<\/td>\n-1.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 21.21
\nEvaluated at bid price : 21.21
\nBid-YTW : 4.59 %<\/td>\n<\/tr>\n
BAM.PF.A<\/td>\nFixedReset<\/td>\n-1.58 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 21.16
\nEvaluated at bid price : 21.16
\nBid-YTW : 4.59 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n-1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 13.85
\nBid-YTW : 9.63 %<\/td>\n<\/tr>\n
MFC.PR.G<\/td>\nFixedReset<\/td>\n-1.31 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.86
\nBid-YTW : 5.66 %<\/td>\n<\/tr>\n
BIP.PR.A<\/td>\nFixedReset<\/td>\n-1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 21.32
\nEvaluated at bid price : 21.60
\nBid-YTW : 5.15 %<\/td>\n<\/tr>\n
IAG.PR.G<\/td>\nFixedReset<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.43
\nBid-YTW : 5.89 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 18.03
\nEvaluated at bid price : 18.03
\nBid-YTW : 4.57 %<\/td>\n<\/tr>\n
BNS.PR.O<\/td>\nDeemed-Retractible<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-04-27
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.50
\nBid-YTW : 3.31 %<\/td>\n<\/tr>\n
MFC.PR.H<\/td>\nFixedReset<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.19
\nBid-YTW : 5.14 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n-1.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 13.86
\nEvaluated at bid price : 13.86
\nBid-YTW : 4.77 %<\/td>\n<\/tr>\n
CU.PR.E<\/td>\nPerpetual-Discount<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 21.63
\nEvaluated at bid price : 21.91
\nBid-YTW : 5.67 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nDeemed-Retractible<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.43
\nBid-YTW : 7.28 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nDeemed-Retractible<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.32
\nBid-YTW : 7.35 %<\/td>\n<\/tr>\n
GWO.PR.R<\/td>\nDeemed-Retractible<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.80
\nBid-YTW : 6.76 %<\/td>\n<\/tr>\n
TD.PF.C<\/td>\nFixedReset<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.15
\nEvaluated at bid price : 19.15
\nBid-YTW : 4.23 %<\/td>\n<\/tr>\n
TD.PF.A<\/td>\nFixedReset<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.33
\nEvaluated at bid price : 19.33
\nBid-YTW : 4.21 %<\/td>\n<\/tr>\n
CU.PR.H<\/td>\nPerpetual-Discount<\/td>\n1.24 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 23.30
\nEvaluated at bid price : 23.60
\nBid-YTW : 5.67 %<\/td>\n<\/tr>\n
BNS.PR.R<\/td>\nFixedReset<\/td>\n1.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.63
\nBid-YTW : 3.58 %<\/td>\n<\/tr>\n
BMO.PR.Y<\/td>\nFixedReset<\/td>\n1.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 21.71
\nEvaluated at bid price : 22.09
\nBid-YTW : 4.17 %<\/td>\n<\/tr>\n
CM.PR.O<\/td>\nFixedReset<\/td>\n1.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.73
\nEvaluated at bid price : 19.73
\nBid-YTW : 4.20 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\n1.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.21
\nBid-YTW : 7.00 %<\/td>\n<\/tr>\n
NA.PR.W<\/td>\nFixedReset<\/td>\n1.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.36
\nEvaluated at bid price : 19.36
\nBid-YTW : 4.22 %<\/td>\n<\/tr>\n
CU.PR.G<\/td>\nPerpetual-Discount<\/td>\n1.49 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 20.40
\nEvaluated at bid price : 20.40
\nBid-YTW : 5.61 %<\/td>\n<\/tr>\n
RY.PR.H<\/td>\nFixedReset<\/td>\n1.52 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.38
\nEvaluated at bid price : 19.38
\nBid-YTW : 4.19 %<\/td>\n<\/tr>\n
CM.PR.P<\/td>\nFixedReset<\/td>\n1.53 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.29
\nEvaluated at bid price : 19.29
\nBid-YTW : 4.20 %<\/td>\n<\/tr>\n
TD.PR.T<\/td>\nFloatingReset<\/td>\n1.53 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.54
\nBid-YTW : 3.67 %<\/td>\n<\/tr>\n
BMO.PR.W<\/td>\nFixedReset<\/td>\n1.54 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.14
\nEvaluated at bid price : 19.14
\nBid-YTW : 4.26 %<\/td>\n<\/tr>\n
NA.PR.Q<\/td>\nFixedReset<\/td>\n1.60 %<\/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 : 3.60 %<\/td>\n<\/tr>\n
BAM.PF.C<\/td>\nPerpetual-Discount<\/td>\n1.62 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 20.75
\nEvaluated at bid price : 20.75
\nBid-YTW : 5.91 %<\/td>\n<\/tr>\n
BMO.PR.S<\/td>\nFixedReset<\/td>\n1.63 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.94
\nEvaluated at bid price : 19.94
\nBid-YTW : 4.23 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset<\/td>\n1.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 13.37
\nEvaluated at bid price : 13.37
\nBid-YTW : 4.46 %<\/td>\n<\/tr>\n
RY.PR.Z<\/td>\nFixedReset<\/td>\n1.69 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.30
\nEvaluated at bid price : 19.30
\nBid-YTW : 4.16 %<\/td>\n<\/tr>\n
PWF.PR.S<\/td>\nPerpetual-Discount<\/td>\n1.73 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 21.42
\nEvaluated at bid price : 21.75
\nBid-YTW : 5.53 %<\/td>\n<\/tr>\n
RY.PR.M<\/td>\nFixedReset<\/td>\n1.78 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 20.59
\nEvaluated at bid price : 20.59
\nBid-YTW : 4.24 %<\/td>\n<\/tr>\n
MFC.PR.J<\/td>\nFixedReset<\/td>\n1.84 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.08
\nBid-YTW : 5.90 %<\/td>\n<\/tr>\n
TD.PF.B<\/td>\nFixedReset<\/td>\n1.85 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.30
\nEvaluated at bid price : 19.30
\nBid-YTW : 4.21 %<\/td>\n<\/tr>\n
SLF.PR.J<\/td>\nFloatingReset<\/td>\n2.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 13.80
\nBid-YTW : 9.05 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset<\/td>\n2.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.46
\nBid-YTW : 6.64 %<\/td>\n<\/tr>\n
MFC.PR.L<\/td>\nFixedReset<\/td>\n2.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.34
\nBid-YTW : 6.81 %<\/td>\n<\/tr>\n
FTS.PR.K<\/td>\nFixedReset<\/td>\n2.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.50
\nEvaluated at bid price : 19.50
\nBid-YTW : 4.00 %<\/td>\n<\/tr>\n
FTS.PR.M<\/td>\nFixedReset<\/td>\n2.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 20.76
\nEvaluated at bid price : 20.76
\nBid-YTW : 4.25 %<\/td>\n<\/tr>\n
FTS.PR.G<\/td>\nFixedReset<\/td>\n2.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 18.80
\nEvaluated at bid price : 18.80
\nBid-YTW : 4.18 %<\/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.D<\/td>\nFixedReset<\/td>\n80,078<\/td>\nDesjardins crossed 55,800 at 18.35.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 18.45
\nEvaluated at bid price : 18.45
\nBid-YTW : 4.57 %<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset<\/td>\n59,500<\/td>\nDesjardins crossed 56,300 at 15.85.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 16.01
\nBid-YTW : 8.94 %<\/td>\n<\/tr>\n
NA.PR.W<\/td>\nFixedReset<\/td>\n47,830<\/td>\nDesjardins crossed 40,000 at 19.36.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.36
\nEvaluated at bid price : 19.36
\nBid-YTW : 4.22 %<\/td>\n<\/tr>\n
RY.PR.H<\/td>\nFixedReset<\/td>\n46,509<\/td>\nTD crossed 20,000 at 19.20.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.38
\nEvaluated at bid price : 19.38
\nBid-YTW : 4.19 %<\/td>\n<\/tr>\n
RY.PR.P<\/td>\nPerpetual-Discount<\/td>\n31,180<\/td>\nRBC bought 14,900 from Scotia at 24.59.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 24.15
\nEvaluated at bid price : 24.51
\nBid-YTW : 5.39 %<\/td>\n<\/tr>\n
RY.PR.Z<\/td>\nFixedReset<\/td>\n31,070<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 19.30
\nEvaluated at bid price : 19.30
\nBid-YTW : 4.16 %<\/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
MFC.PR.F<\/td>\nFixedReset<\/td>\nQuote: 14.00 – 14.66
\nSpot Rate : 0.6600
\nAverage : 0.4506<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 14.00
\nBid-YTW : 9.81 %<\/td>\n<\/tr>\n

HSE.PR.A<\/td>\nFixedReset<\/td>\nQuote: 13.86 – 14.45
\nSpot Rate : 0.5900
\nAverage : 0.3905<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 13.86
\nEvaluated at bid price : 13.86
\nBid-YTW : 4.77 %<\/td>\n<\/tr>\n

BAM.PR.X<\/td>\nFixedReset<\/td>\nQuote: 15.25 – 15.91
\nSpot Rate : 0.6600
\nAverage : 0.4791<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 15.25
\nEvaluated at bid price : 15.25
\nBid-YTW : 4.65 %<\/td>\n<\/tr>\n

FTS.PR.J<\/td>\nPerpetual-Discount<\/td>\nQuote: 21.50 – 21.99
\nSpot Rate : 0.4900
\nAverage : 0.3354<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 21.50
\nEvaluated at bid price : 21.50
\nBid-YTW : 5.62 %<\/td>\n<\/tr>\n

FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.00 – 22.54
\nSpot Rate : 0.5400
\nAverage : 0.4379<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 21.75
\nEvaluated at bid price : 22.00
\nBid-YTW : 5.65 %<\/td>\n<\/tr>\n

TD.PF.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.65 – 22.99
\nSpot Rate : 0.3400
\nAverage : 0.2393<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-10-23
\nMaturity Price : 22.36
\nEvaluated at bid price : 22.65
\nBid-YTW : 5.42 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

David Parkinson of the Globe points out that headline inflation may not be benign for much longer: Statistics Canada reported Friday that the consumer price index (CPI) slipped 0.2 per cent in September from August, …<\/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-30991","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/30991","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=30991"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/30991\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}