{"id":32298,"date":"2008-08-06T22:42:04","date_gmt":"2008-08-07T02:42:04","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=2565"},"modified":"2008-08-06T22:42:04","modified_gmt":"2008-08-07T02:42:04","slug":"august-6-2008","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=32298","title":{"rendered":"August 6, 2008"},"content":{"rendered":"

Freddie Mac took a big loss on subprime<\/a>:<\/p>\n

Freddie wrote down the value of subprime and low-quality mortgage securities for the first time, taking a loss of $826 million, adding to signs the company sees tougher times ahead.
…<\/b>
Freddie today reported a second-quarter net loss of $821 million, or $1.63 a share, its fourth straight loss, compared with the 54 cents a share average estimate of nine analysts in a Bloomberg survey.<\/p>\n

The common-share dividend will be reduced to 5 cents or less from 25 cents, the second reduction in nine months. The preferred stock dividend won’t be affected, Freddie said in a statement.<\/p>\n

Syron, 64, said in a statement today he still plans to raise capital after agreeing to sell $5.5 billion in equity.<\/p><\/blockquote>\n

So the common shareholders are seeing their dividends slashed and their equity diluted … while preferred shareholders are not (yet!) affected. It will be most interesting to track these things over the first decade of this century to see just how the risk\/reward ultimately turns out.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n
Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version. In this version, index values are based at 1,000.0 on 2006-6-30<\/strong><\/td>\n<\/tr>\n
Index<\/td>\nMean Current Yield (at bid)<\/td>\nMean YTW<\/td>\nMean Average Trading Value<\/td>\nMean Mod Dur (YTW)<\/td>\nIssues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\n0<\/td>\nN\/A<\/td>\nN\/A<\/td>\n<\/tr>\n
Fixed-Floater<\/td>\n4.67%<\/td>\n4.39%<\/td>\n57,848<\/td>\n16.42<\/td>\n7<\/td>\n+0.2662%<\/td>\n1,093.4<\/td>\n<\/tr>\n
Floater<\/td>\n4.12%<\/td>\n4.15%<\/td>\n54,380<\/td>\n17.07<\/td>\n3<\/td>\n-0.1808%<\/td>\n895.6<\/td>\n<\/tr>\n
Op. Retract<\/td>\n4.99%<\/td>\n4.26%<\/td>\n123,832<\/td>\n2.93<\/td>\n17<\/td>\n+0.1755%<\/td>\n1,042.7<\/td>\n<\/tr>\n
Split-Share<\/td>\n5.35%<\/td>\n6.02%<\/td>\n57,925<\/td>\n4.46<\/td>\n14<\/td>\n+0.1227%<\/td>\n1,034.6<\/td>\n<\/tr>\n
Interest Bearing<\/td>\n6.28%<\/td>\n6.78%<\/td>\n48,099<\/td>\n5.27<\/td>\n2<\/td>\n+0.4657%<\/td>\n1,115.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n6.19%<\/td>\n6.14%<\/td>\n71,655<\/td>\n2.27<\/td>\n1<\/td>\n0.0000%<\/td>\n987.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.22%<\/td>\n6.27%<\/td>\n206,439<\/td>\n13.53<\/td>\n67<\/td>\n+0.4784%<\/td>\n854.1<\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Major Price Changes<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BAM.PR.I<\/td>\nOpRet<\/td>\n-1.1642%<\/td>\nNow with a pre-tax bid-YTW of 6.77% based on a bid of 23.77 and a softMaturity<\/a> 2013-12-30 at 25.00. Compare with BAM.PR.H (6.48% to 2012-3-30), BAM.PR.J (6.59% to 2018-3-30) and BAM.PR.O (7.36% to 2013-6-30).<\/td>\n<\/tr>\n
CM.PR.G<\/td>\nPerpetualDiscount<\/td>\n+1.0116%<\/td>\nNow with a pre-tax bid-YTW of 6.83% based on a bid of 19.97 and a limitMaturity<\/a>.<\/td>\n<\/tr>\n
BNS.PR.K<\/td>\nPerpetualDiscount<\/td>\n+1.0345%<\/td>\nNow with a pre-tax bid-YTW of 5.90% based on a bid of 20.51 and a limitMaturity.<\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nPerpetualDiscount<\/td>\n+1.0638%<\/td>\nNow with a pre-tax bid-YTW of 6.35% based on a bid of 19.00 and a limitMaturity.<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nPerpetualDiscount<\/td>\n+1.0668%<\/td>\nNow with a pre-tax bid-YTW of 6.27% based on a bid of 18.00 and a limitMaturity.<\/td>\n<\/tr>\n
BCE.PR.A<\/td>\nFixFloat<\/td>\n+1.0766%<\/td>\n <\/td>\n<\/tr>\n
BNS.PR.L<\/td>\nPerpetualDiscount<\/td>\n+1.1407%<\/td>\nNow with a pre-tax bid-YTW of 6.10% based on a bid of 18.62 and a limitMaturity.<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nPerpetualDiscount<\/td>\n+1.2235%<\/td>\nNow with a pre-tax bid-YTW of 6.13% based on a bid of 21.51 and a limitMaturity.<\/td>\n<\/tr>\n
FFN.PR.A<\/td>\nSplitShare<\/td>\n+1.3333%<\/td>\nAsset coverage of 1.8+:1 as of July 31 according to the company<\/a>. Now with a pre-tax bid-YTW of 5.53% based on a bid of 9.88 and a hardMaturity<\/a> 2014-12-1 at 10.00.<\/td>\n<\/tr>\n
BNS.PR.M<\/td>\nPerpetualDiscount<\/td>\n+1.4130%<\/td>\nNow with a pre-tax bid-YTW of 6.08% based on a bid of 18.66 and a limitMaturity.<\/td>\n<\/tr>\n
ELF.PR.G<\/td>\nPerpetualDiscount<\/td>\n+1.7544%<\/td>\nNow with a pre-tax bid-YTW of 6.91% based on a bid of 17.40 and a limitMaturity.<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nPerpetualDiscount<\/td>\n+1.8398%<\/td>\nNow with a pre-tax bid-YTW of 6.07% based on a bid of 18.82 and a limitMaturity.<\/td>\n<\/tr>\n
CM.PR.P<\/td>\nPerpetualDiscount<\/td>\n+2.5693%<\/td>\nNow with a pre-tax bid-YTW of 6.82% based on a bid of 20.36 and a limitMaturity.<\/td>\n<\/tr>\n
BAM.PR.J<\/td>\nOpRet<\/td>\n+3.2604%<\/td>\nSee above.<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nPerpetualDiscount<\/td>\n+3.4390%<\/td>\nNow with a pre-tax bid-YTW of 5.94% based on a bid of 19.25 and a limitMaturity.<\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nVolume<\/td>\nNotes<\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nPerpetualDiscount<\/td>\n108,900<\/td>\nNesbitt crossed 59,000 at 19.00, then 40,000 at the same price. Now with a pre-tax bid-YTW of 6.35% based on a bid of 19.00 and a limitMaturity.<\/td>\n<\/tr>\n
BNS.PR.L<\/td>\nPerpetualDiscount<\/td>\n65,540<\/td>\nNesbitt sold three lots to anonymous: 10,000 at 18.50, another 10,000 at the same price, and finally 29,200 at 18.45. Now with a pre-tax bid-YTW of 6.10% based on a bid of 18.62 and a limitMaturity.<\/td>\n<\/tr>\n
BCE.PR.A<\/td>\nFixFloat<\/td>\n62,900<\/td>\nCIBC crossed 36,900 at 24.35, then another 15,000 at the same price.<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nPerpetualDiscount<\/td>\n57,450<\/td>\nNesbitt crossed 50,000 at 20.75. Now with a pre-tax bid-YTW of 5.86% based on a bid of 20.88 and a limitMaturity.<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nPerpetualDiscount<\/td>\n50,385<\/td>\nNesbitt bought 19,600 from anonymous at 18.00. Now with a pre-tax bid-YTW of 6.27% based on a bid of 18.00 and a limitMaturity.<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

There were eightteen other index-included $25-pv-equivalent issues trading over 10,000 shares today.<\/p>\n","protected":false},"excerpt":{"rendered":"

Freddie Mac took a big loss on subprime: Freddie wrote down the value of subprime and low-quality mortgage securities for the first time, taking a loss of $826 million, adding to signs the company sees …<\/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-32298","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/32298","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=32298"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/32298\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}