{"id":33395,"date":"2016-07-22T21:56:22","date_gmt":"2016-07-23T02:56:22","guid":{"rendered":"http:\/\/prefblog.com\/?p=33395"},"modified":"2016-07-22T21:56:22","modified_gmt":"2016-07-23T02:56:22","slug":"july-22-2016","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=33395","title":{"rendered":"July 22, 2016"},"content":{"rendered":"

Jason Zweig of the Wall Street Journal has some good advice for fixed income investors in a piece titled Investors: Do the Hard Thing, Don\u2019t Do the Easy Thing<\/a>:<\/p>\n

The reach for yield is becoming a reckless lunge.<\/p>\n

While high-quality bonds still have their place, too many investors are buying high-risk bonds instead.<\/p>\n

Since June 30, according to TrimTabs Investment Research, a firm in Sausalito, Calif., that tracks how money moves in and out of the financial markets, investors have poured $1.2 billion into exchange-traded funds specializing in bonds from emerging-market countries. So far in July, investors have pumped another $2.8 billion into high-yield ETFs holding so-called junk bonds issued by below-investment-grade companies.<\/p>\n

Put simply, one out of every 14 dollars invested in those two fund categories arrived in the past three weeks.
…<\/b>
The easy thing is to submit to your worst instincts and reach for riskier investments that pay higher income \u2014 for now.<\/p>\n

What is hard is to be patient and ornery. As bonds yield less, save more. Remember that you can get higher yield only by buying longer-term or lower-quality bonds \u2014 which will also raise your risk. With interest payments so low, long-term bonds are particularly vulnerable to an unexpected rise in rates.<\/p><\/blockquote>\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-0.3251 %<\/td>\n1,660.2<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.3251 %<\/td>\n3,032.9<\/td>\n<\/tr>\n
Floater<\/td>\n4.95 %<\/td>\n4.72 %<\/td>\n89,848<\/td>\n16.01<\/td>\n4<\/td>\n-0.3251 %<\/td>\n1,747.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.84 %<\/td>\n-0.17 %<\/td>\n45,000<\/td>\n0.11<\/td>\n1<\/td>\n0.6362 %<\/td>\n2,849.3<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.11 %<\/td>\n5.41 %<\/td>\n98,639<\/td>\n2.31<\/td>\n5<\/td>\n0.1448 %<\/td>\n3,368.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1448 %<\/td>\n2,627.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.47 %<\/td>\n1.62 %<\/td>\n83,037<\/td>\n0.28<\/td>\n12<\/td>\n0.1614 %<\/td>\n2,686.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.22 %<\/td>\n5.14 %<\/td>\n101,921<\/td>\n15.07<\/td>\n26<\/td>\n0.1658 %<\/td>\n2,838.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.00 %<\/td>\n4.34 %<\/td>\n151,499<\/td>\n7.14<\/td>\n88<\/td>\n0.6438 %<\/td>\n2,034.4<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.00 %<\/td>\n3.17 %<\/td>\n125,421<\/td>\n0.09<\/td>\n33<\/td>\n0.1454 %<\/td>\n2,777.0<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.90 %<\/td>\n4.40 %<\/td>\n31,964<\/td>\n5.15<\/td>\n11<\/td>\n0.4780 %<\/td>\n2,145.4<\/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
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
SLF.PR.J<\/td>\nFloatingReset<\/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 : 12.26
\nBid-YTW : 11.42 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 16.05
\nEvaluated at bid price : 16.05
\nBid-YTW : 4.67 %<\/td>\n<\/tr>\n
CM.PR.P<\/td>\nFixedReset<\/td>\n1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 18.72
\nEvaluated at bid price : 18.72
\nBid-YTW : 4.10 %<\/td>\n<\/tr>\n
RY.PR.M<\/td>\nFixedReset<\/td>\n1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 19.97
\nEvaluated at bid price : 19.97
\nBid-YTW : 4.18 %<\/td>\n<\/tr>\n
TD.PF.D<\/td>\nFixedReset<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 20.39
\nEvaluated at bid price : 20.39
\nBid-YTW : 4.27 %<\/td>\n<\/tr>\n
RY.PR.Z<\/td>\nFixedReset<\/td>\n1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 19.05
\nEvaluated at bid price : 19.05
\nBid-YTW : 3.96 %<\/td>\n<\/tr>\n
BNS.PR.E<\/td>\nFixedReset<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.80
\nBid-YTW : 3.83 %<\/td>\n<\/tr>\n
RY.PR.H<\/td>\nFixedReset<\/td>\n1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 18.84
\nEvaluated at bid price : 18.84
\nBid-YTW : 4.06 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset<\/td>\n1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 18.71
\nBid-YTW : 7.58 %<\/td>\n<\/tr>\n
RY.PR.R<\/td>\nFixedReset<\/td>\n1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.78
\nBid-YTW : 3.87 %<\/td>\n<\/tr>\n
BNS.PR.B<\/td>\nFloatingReset<\/td>\n1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.18
\nBid-YTW : 4.40 %<\/td>\n<\/tr>\n
BAM.PF.A<\/td>\nFixedReset<\/td>\n1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 19.59
\nEvaluated at bid price : 19.59
\nBid-YTW : 4.72 %<\/td>\n<\/tr>\n
BAM.PF.F<\/td>\nFixedReset<\/td>\n1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 4.64 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset<\/td>\n1.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 12.67
\nEvaluated at bid price : 12.67
\nBid-YTW : 4.37 %<\/td>\n<\/tr>\n
BAM.PF.B<\/td>\nFixedReset<\/td>\n1.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 18.19
\nEvaluated at bid price : 18.19
\nBid-YTW : 4.76 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n1.44 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 11.97
\nEvaluated at bid price : 11.97
\nBid-YTW : 5.03 %<\/td>\n<\/tr>\n
RY.PR.J<\/td>\nFixedReset<\/td>\n1.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 20.37
\nEvaluated at bid price : 20.37
\nBid-YTW : 4.21 %<\/td>\n<\/tr>\n
BAM.PF.E<\/td>\nFixedReset<\/td>\n1.53 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 19.20
\nEvaluated at bid price : 19.20
\nBid-YTW : 4.54 %<\/td>\n<\/tr>\n
BNS.PR.R<\/td>\nFixedReset<\/td>\n1.54 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.39
\nBid-YTW : 3.63 %<\/td>\n<\/tr>\n
MFC.PR.N<\/td>\nFixedReset<\/td>\n1.55 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 18.96
\nBid-YTW : 7.30 %<\/td>\n<\/tr>\n
PWF.PR.T<\/td>\nFixedReset<\/td>\n1.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 20.16
\nEvaluated at bid price : 20.16
\nBid-YTW : 3.94 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n1.58 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 17.40
\nEvaluated at bid price : 17.40
\nBid-YTW : 4.51 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n1.68 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 13.96
\nEvaluated at bid price : 13.96
\nBid-YTW : 3.95 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n1.69 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 15.05
\nEvaluated at bid price : 15.05
\nBid-YTW : 4.54 %<\/td>\n<\/tr>\n
BAM.PF.G<\/td>\nFixedReset<\/td>\n1.84 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 20.49
\nEvaluated at bid price : 20.49
\nBid-YTW : 4.56 %<\/td>\n<\/tr>\n
MFC.PR.M<\/td>\nFixedReset<\/td>\n1.87 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.09
\nBid-YTW : 7.27 %<\/td>\n<\/tr>\n
TRP.PR.G<\/td>\nFixedReset<\/td>\n2.58 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 19.90
\nEvaluated at bid price : 19.90
\nBid-YTW : 4.66 %<\/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
MFC.PR.J<\/td>\nFixedReset<\/td>\n199,600<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.56
\nBid-YTW : 6.93 %<\/td>\n<\/tr>\n
FTS.PR.K<\/td>\nFixedReset<\/td>\n79,825<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 18.11
\nEvaluated at bid price : 18.11
\nBid-YTW : 4.03 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n68,001<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 14.26
\nBid-YTW : 9.72 %<\/td>\n<\/tr>\n
NA.PR.A<\/td>\nFixedReset<\/td>\n65,811<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-08-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.21
\nBid-YTW : 4.48 %<\/td>\n<\/tr>\n
RY.PR.E<\/td>\nDeemed-Retractible<\/td>\n44,700<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-08-21
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.07
\nBid-YTW : -3.82 %<\/td>\n<\/tr>\n
BNS.PR.Q<\/td>\nFixedReset<\/td>\n40,065<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.93
\nBid-YTW : 3.75 %<\/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
TRP.PR.E<\/td>\nFixedReset<\/td>\nQuote: 18.50 – 18.92
\nSpot Rate : 0.4200
\nAverage : 0.2868<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 18.50
\nEvaluated at bid price : 18.50
\nBid-YTW : 4.36 %<\/td>\n<\/tr>\n

TRP.PR.D<\/td>\nFixedReset<\/td>\nQuote: 17.93 – 18.24
\nSpot Rate : 0.3100
\nAverage : 0.2080<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 17.93
\nEvaluated at bid price : 17.93
\nBid-YTW : 4.44 %<\/td>\n<\/tr>\n

RY.PR.W<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.80 – 25.06
\nSpot Rate : 0.2600
\nAverage : 0.1647<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 24.55
\nEvaluated at bid price : 24.80
\nBid-YTW : 4.93 %<\/td>\n<\/tr>\n

PWF.PR.T<\/td>\nFixedReset<\/td>\nQuote: 20.16 – 20.54
\nSpot Rate : 0.3800
\nAverage : 0.2936<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 20.16
\nEvaluated at bid price : 20.16
\nBid-YTW : 3.94 %<\/td>\n<\/tr>\n

FTS.PR.H<\/td>\nFixedReset<\/td>\nQuote: 13.96 – 14.34
\nSpot Rate : 0.3800
\nAverage : 0.2977<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-07-22
\nMaturity Price : 13.96
\nEvaluated at bid price : 13.96
\nBid-YTW : 3.95 %<\/td>\n<\/tr>\n

NA.PR.X<\/td>\nFixedReset<\/td>\nQuote: 26.50 – 26.69
\nSpot Rate : 0.1900
\nAverage : 0.1214<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-05-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.50
\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Jason Zweig of the Wall Street Journal has some good advice for fixed income investors in a piece titled Investors: Do the Hard Thing, Don\u2019t Do the Easy Thing: The reach for yield is becoming …<\/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-33395","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33395","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=33395"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33395\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}