{"id":33631,"date":"2016-09-13T01:39:20","date_gmt":"2016-09-13T06:39:20","guid":{"rendered":"http:\/\/prefblog.com\/?p=33631"},"modified":"2016-09-13T01:39:20","modified_gmt":"2016-09-13T06:39:20","slug":"september-12-2016","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=33631","title":{"rendered":"September 12, 2016"},"content":{"rendered":"

Fed policy? Here’s the dovish view<\/a>:<\/p>\n

Federal Reserve Governor Lael Brainard counseled continued prudence in tightening monetary policy, even as she said the economy is making gradual progress toward achieving the central bank\u2019s goals.<\/p>\n

\u201cThe case to tighten policy preemptively is less compelling\u201d in an environment where declining unemployment has been slow to spur faster inflation, Brainard said Monday, according to the text of her prepared remarks in Chicago. She made no reference to a specific meeting of the policy-setting Federal Open Market Committee.
…<\/b>
In Monday\u2019s speech, Brainard highlighted five major reasons for caution: inflation is less responsive to labor-market improvement than in the past, labor-market slack seems to persist, financial transmission from foreign markets is strong and poses a risk, and the interest rate where policy moves from easy to tight is lower than in the past — and is likely to stay there for some time. Her final point is that monetary policy is less able to respond to negative shocks than to a quick pickup in demand.<\/p>\n

Despite that cautious view, Brainard also pointed to recent developments that show the economy is moving toward achieving the Fed\u2019s goals of maximum employment and 2 percent inflation. She said the job market is making progress and getting closer to full employment and the Fed has \u201cseen signs of progress on our inflation mandate.\u201d<\/p><\/blockquote>\n

And a hawkish view<\/a>:<\/p>\n

Federal Reserve Bank of Atlanta President Dennis Lockhart repeated his call for a \u201cserious discussion\u201d about raising interest rates at the U.S. central bank\u2019s meeting later this month, even after some recent disappointing economic indicators.<\/p>\n

\u201cNotwithstanding a few recent weak monthly reports — from the Institute for Supply Management, for example — I am satisfied at this point that conditions warrant that serious discussion,\u201d Lockhart said Monday in Atlanta.
…<\/b>
\u201cAfter relatively weak growth over the first half of the year, I expect a stronger second half,\u201d Lockhart said to the National Association for Business Economics, citing the bank\u2019s estimate. Third-quarter growth was tracking at 3.3 percent on Friday, according to the Atlanta Fed\u2019s tracking estimate.<\/p>\n

The economy is \u201cmaking progress\u201d toward full employment, Lockhart said, though progress in moving inflation toward the 2 percent goal may have stalled.<\/p>\n

\u201cThe inflation data overall have not been suggesting disinflation or deflation, but the flat trend line is enough below target that, in my opinion, the shortfall cannot be considered immaterial,\u201d he said. \u201cI find this to be an awkward state of affairs.\u201d<\/p><\/blockquote>\n

And a market view<\/a>:<\/p>\n

U.S. stocks rebounded after the biggest rout since June wiped about $500 billion from the value of equities, the dollar fell and Treasuries erased losses as the Federal Reserve\u2019s Lael Brainard remained dovish in her approach to tighter monetary policy. Emerging-market assets slumped.<\/p>\n

The S&P 500 Index jumped the most in two months after sinking 2.5 percent Friday, holding gains after Brainard urged \u201cprudence\u201d in removing accommodation. The dollar fell for the first time in four sessions as the odds for a rate hike next week slid to 22 percent. Ten-year Treasuries remained little changed, with yields near 1.68 percent. Shares in Europe and Asia, which were closed Friday when the selloff began, dropped Monday. Emerging-market equities tumbled 2 percent, while oil rebounded past $46 a barrel.<\/p><\/blockquote>\n

In a sign of the times, rent control may be coming to the San Francisco bay area<\/a>:<\/p>\n

The concept of rent control, once found mostly in large cities, is spreading to the Bay Area\u2019s suburbs, even though virtually every economist thinks it\u2019s a bad idea.<\/p>\n

Six Bay Area cities have measures on the November ballot that would protect existing tenants from the stratospheric rent increases that are a result of job growth far outstripping housing creation.
…<\/b>
A 2012 survey<\/a> by the University of Chicago\u2019s Booth School of Business asked respected economists if they agreed that rent-control ordinances in cities such as New York and San Francisco have improved the quantity and quality of affordable rental housing over the past three decades. Eighty-one percent disagreed, 2 percent agreed and 9 percent were uncertain or had no opinion.<\/p>\n

In 2013, Peter Tatian of the Urban Institute reviewed academic research on rent control<\/a> and found \u201cvery little evidence that rent control is a good policy.\u201d The strongest finding of one comprehensive survey was that \u201ctenants in noncontrolled units pay higher rents than they would without the presence of rent control; one reason being that landlords need to make up the difference for lower rents in controlled units.\u201d
…<\/b>
In a report issued in February<\/a>, California\u2019s Legislative Analyst\u2019s Office warned that rent control could encourage property owners to cut back on maintenance and repairs. \u201cOver time, this can result in a decline in the overall quality of a community\u2019s housing stock,\u201d it said.<\/p><\/blockquote>\n

There’s a certain amount of agitation<\/a> in Vancouver for more rent control:<\/p>\n

Since 2002, British Columbia has had a two-tiered system where fixed-term renters get no protection, while those who rent month-to-month do. The legislation restricts landlords with monthly renters to a set annual increase. This year, the cap is 2.5 per cent.<\/p>\n

Yet landlords who have the benefit of long-term tenants get the added bonus of being able to set whatever price they want when the term is up. It can lead to gouging, particularly now when the vacancy rate in Vancouver is virtually zero.<\/p>\n

It means that renters are left with a lousy choice: Take a short-term rental and risk being asked to leave with only 30 days\u2019 notice or sign a lease and risk having the rent skyrocket at the end of the term.<\/p><\/blockquote>\n

In Toronto, of course, rent control was introduced in the ’80s by Bill Davis (under election pressure from the NDP) and construction of rental apartment buildings basically halted. There have been a few buildings lately, but it’s my understanding that these developments only make sense if you can get a package of land from the city on sweetheart terms.<\/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>\n0.3594 %<\/td>\n1,680.1<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3594 %<\/td>\n3,069.1<\/td>\n<\/tr>\n
Floater<\/td>\n4.89 %<\/td>\n4.67 %<\/td>\n88,614<\/td>\n16.00<\/td>\n4<\/td>\n0.3594 %<\/td>\n1,768.8<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1904 %<\/td>\n2,878.1<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.06 %<\/td>\n4.68 %<\/td>\n76,054<\/td>\n2.20<\/td>\n5<\/td>\n-0.1904 %<\/td>\n3,437.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1904 %<\/td>\n2,681.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.50 %<\/td>\n4.61 %<\/td>\n69,354<\/td>\n1.99<\/td>\n12<\/td>\n0.0130 %<\/td>\n2,675.5<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.13 %<\/td>\n5.17 %<\/td>\n99,053<\/td>\n14.91<\/td>\n26<\/td>\n-0.3426 %<\/td>\n2,896.6<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.00 %<\/td>\n4.48 %<\/td>\n149,903<\/td>\n6.96<\/td>\n91<\/td>\n-0.1558 %<\/td>\n2,030.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.02 %<\/td>\n4.84 %<\/td>\n118,742<\/td>\n3.23<\/td>\n32<\/td>\n-0.2526 %<\/td>\n2,796.9<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.82 %<\/td>\n4.01 %<\/td>\n27,894<\/td>\n5.02<\/td>\n12<\/td>\n-0.0393 %<\/td>\n2,204.0<\/td>\n<\/tr>\n<\/table>\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
GWO.PR.N<\/td>\nFixedReset<\/td>\n-1.75 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 14.01
\nBid-YTW : 9.98 %<\/td>\n<\/tr>\n
CCS.PR.C<\/td>\nDeemed-Retractible<\/td>\n-1.75 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.17
\nBid-YTW : 5.50 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n-1.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 13.31
\nBid-YTW : 10.79 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nDeemed-Retractible<\/td>\n-1.23 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.45
\nBid-YTW : 6.07 %<\/td>\n<\/tr>\n
BAM.PF.A<\/td>\nFixedReset<\/td>\n-1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-12
\nMaturity Price : 19.17
\nEvaluated at bid price : 19.17
\nBid-YTW : 4.94 %<\/td>\n<\/tr>\n
FTS.PR.J<\/td>\nPerpetual-Discount<\/td>\n-1.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-12
\nMaturity Price : 23.27
\nEvaluated at bid price : 23.71
\nBid-YTW : 5.02 %<\/td>\n<\/tr>\n
SLF.PR.J<\/td>\nFloatingReset<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 12.74
\nBid-YTW : 11.04 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n1.48 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-12
\nMaturity Price : 13.75
\nEvaluated at bid price : 13.75
\nBid-YTW : 4.07 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset<\/td>\n2.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 18.29
\nBid-YTW : 7.93 %<\/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
TD.PF.H<\/td>\nFixedReset<\/td>\n627,315<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.48
\nBid-YTW : 4.50 %<\/td>\n<\/tr>\n
TD.PF.G<\/td>\nFixedReset<\/td>\n126,300<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.77
\nBid-YTW : 3.98 %<\/td>\n<\/tr>\n
TRP.PR.J<\/td>\nFixedReset<\/td>\n96,400<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-05-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.36
\nBid-YTW : 4.29 %<\/td>\n<\/tr>\n
W.PR.M<\/td>\nFixedReset<\/td>\n88,047<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-10-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 4.83 %<\/td>\n<\/tr>\n
CM.PR.P<\/td>\nFixedReset<\/td>\n78,030<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-12
\nMaturity Price : 18.30
\nEvaluated at bid price : 18.30
\nBid-YTW : 4.30 %<\/td>\n<\/tr>\n
NA.PR.A<\/td>\nFixedReset<\/td>\n70,808<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-08-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.32
\nBid-YTW : 4.53 %<\/td>\n<\/tr>\n
There were 30 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
SLF.PR.I<\/td>\nFixedReset<\/td>\nQuote: 18.29 – 19.16
\nSpot Rate : 0.8700
\nAverage : 0.5486<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 18.29
\nBid-YTW : 7.93 %<\/td>\n<\/tr>\n

GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.01 – 26.52
\nSpot Rate : 0.5100
\nAverage : 0.3865<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-10-12
\nMaturity Price : 25.75
\nEvaluated at bid price : 26.01
\nBid-YTW : -9.74 %<\/td>\n<\/tr>\n

GWO.PR.N<\/td>\nFixedReset<\/td>\nQuote: 14.01 – 14.39
\nSpot Rate : 0.3800
\nAverage : 0.2629<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 14.01
\nBid-YTW : 9.98 %<\/td>\n<\/tr>\n

RY.PR.W<\/td>\nPerpetual-Discount<\/td>\nQuote: 25.01 – 25.23
\nSpot Rate : 0.2200
\nAverage : 0.1292<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-12
\nMaturity Price : 24.69
\nEvaluated at bid price : 25.01
\nBid-YTW : 4.92 %<\/td>\n<\/tr>\n

W.PR.K<\/td>\nFixedReset<\/td>\nQuote: 25.62 – 25.92
\nSpot Rate : 0.3000
\nAverage : 0.2119<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-01-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.62
\nBid-YTW : 4.86 %<\/td>\n<\/tr>\n

GWO.PR.I<\/td>\nDeemed-Retractible<\/td>\nQuote: 22.45 – 22.77
\nSpot Rate : 0.3200
\nAverage : 0.2377<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.45
\nBid-YTW : 6.07 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Fed policy? Here’s the dovish view: Federal Reserve Governor Lael Brainard counseled continued prudence in tightening monetary policy, even as she said the economy is making gradual progress toward achieving the central bank\u2019s goals. \u201cThe …<\/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-33631","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33631","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=33631"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33631\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}