{"id":33697,"date":"2016-09-26T23:07:49","date_gmt":"2016-09-27T04:07:49","guid":{"rendered":"http:\/\/prefblog.com\/?p=33697"},"modified":"2016-09-26T23:07:49","modified_gmt":"2016-09-27T04:07:49","slug":"september-26-2016","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=33697","title":{"rendered":"September 26, 2016"},"content":{"rendered":"

Mark Gilbert of Bloomberg writes about his experience playing a game published by the Fed<\/a>:<\/p>\n

The San Francisco branch of the Federal Reserve has a game<\/a> on its website that lets you play at being Chair of the Federal Reserve. After tinkering with it, I’ve come to some conclusions: Modeling the economy is a mug’s game, short-term interest rates are a poor tool for steering the economy, and I should never be given the job of running a central bank.<\/p>\n

The website sets out the objectives:<\/p>\n

Your job is to set monetary policy to achieve full employment and low price inflation. Your term will last four years (16 quarters). Keep unemployment close to its natural rate of 5 percent. Keep inflation near the Fed’s 2 percent inflation target. Pay attention to the headlines for information about the economy.<\/p><\/blockquote>\n<\/blockquote>\n

Here’s how I did:<\/p>\n

\"ChairtheFedGame_160926\"<\/a>
Click for Big<\/i><\/div>\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-0.1783 %<\/td>\n1,695.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1783 %<\/td>\n3,098.0<\/td>\n<\/tr>\n
Floater<\/td>\n4.88 %<\/td>\n4.62 %<\/td>\n87,257<\/td>\n16.20<\/td>\n4<\/td>\n-0.1783 %<\/td>\n1,785.4<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0000 %<\/td>\n2,880.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.05 %<\/td>\n4.67 %<\/td>\n80,091<\/td>\n2.16<\/td>\n5<\/td>\n0.0000 %<\/td>\n3,440.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0000 %<\/td>\n2,684.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.50 %<\/td>\n4.65 %<\/td>\n62,963<\/td>\n1.95<\/td>\n12<\/td>\n0.0098 %<\/td>\n2,686.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.13 %<\/td>\n5.13 %<\/td>\n87,257<\/td>\n15.00<\/td>\n26<\/td>\n0.0934 %<\/td>\n2,908.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.98 %<\/td>\n4.27 %<\/td>\n148,525<\/td>\n6.98<\/td>\n92<\/td>\n0.1106 %<\/td>\n2,045.3<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.02 %<\/td>\n4.77 %<\/td>\n112,122<\/td>\n1.21<\/td>\n32<\/td>\n0.0789 %<\/td>\n2,799.3<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.86 %<\/td>\n4.47 %<\/td>\n32,969<\/td>\n4.97<\/td>\n12<\/td>\n-0.1054 %<\/td>\n2,191.3<\/td>\n<\/tr>\n<\/table>\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
TRP.PR.G<\/td>\nFixedReset<\/td>\n-1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-26
\nMaturity Price : 20.26
\nEvaluated at bid price : 20.26
\nBid-YTW : 4.48 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-26
\nMaturity Price : 15.38
\nEvaluated at bid price : 15.38
\nBid-YTW : 4.81 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset<\/td>\n1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-26
\nMaturity Price : 13.38
\nEvaluated at bid price : 13.38
\nBid-YTW : 4.08 %<\/td>\n<\/tr>\n
NA.PR.Q<\/td>\nFixedReset<\/td>\n1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.90
\nBid-YTW : 4.22 %<\/td>\n<\/tr>\n
BMO.PR.Q<\/td>\nFixedReset<\/td>\n1.46 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.15
\nBid-YTW : 6.16 %<\/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
BNS.PR.H<\/td>\nFixedReset<\/td>\n233,115<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-01-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.51
\nBid-YTW : 4.47 %<\/td>\n<\/tr>\n
MFC.PR.G<\/td>\nFixedReset<\/td>\n65,768<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.76
\nBid-YTW : 6.87 %<\/td>\n<\/tr>\n
CM.PR.Q<\/td>\nFixedReset<\/td>\n43,100<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-26
\nMaturity Price : 20.02
\nEvaluated at bid price : 20.02
\nBid-YTW : 4.27 %<\/td>\n<\/tr>\n
TRP.PR.E<\/td>\nFixedReset<\/td>\n40,516<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-26
\nMaturity Price : 18.73
\nEvaluated at bid price : 18.73
\nBid-YTW : 4.27 %<\/td>\n<\/tr>\n
TRP.PR.J<\/td>\nFixedReset<\/td>\n37,100<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-05-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.59
\nBid-YTW : 4.11 %<\/td>\n<\/tr>\n
BNS.PR.O<\/td>\nDeemed-Retractible<\/td>\n36,560<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-10-26
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.61
\nBid-YTW : -1.26 %<\/td>\n<\/tr>\n
There were 29 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
IFC.PR.A<\/td>\nFixedReset<\/td>\nQuote: 15.34 – 15.63
\nSpot Rate : 0.2900
\nAverage : 0.1960<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 15.34
\nBid-YTW : 9.55 %<\/td>\n<\/tr>\n

RY.PR.M<\/td>\nFixedReset<\/td>\nQuote: 20.00 – 20.26
\nSpot Rate : 0.2600
\nAverage : 0.1800<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-26
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n

HSE.PR.A<\/td>\nFixedReset<\/td>\nQuote: 11.88 – 12.14
\nSpot Rate : 0.2600
\nAverage : 0.1946<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-26
\nMaturity Price : 11.88
\nEvaluated at bid price : 11.88
\nBid-YTW : 4.94 %<\/td>\n<\/tr>\n

POW.PR.G<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.64 – 25.84
\nSpot Rate : 0.2000
\nAverage : 0.1348<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.64
\nBid-YTW : 4.93 %<\/td>\n<\/tr>\n

VNR.PR.A<\/td>\nFixedReset<\/td>\nQuote: 18.36 – 18.70
\nSpot Rate : 0.3400
\nAverage : 0.2801<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-26
\nMaturity Price : 18.36
\nEvaluated at bid price : 18.36
\nBid-YTW : 4.79 %<\/td>\n<\/tr>\n

HSE.PR.C<\/td>\nFixedReset<\/td>\nQuote: 19.15 – 19.42
\nSpot Rate : 0.2700
\nAverage : 0.2122<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-09-26
\nMaturity Price : 19.15
\nEvaluated at bid price : 19.15
\nBid-YTW : 5.07 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Mark Gilbert of Bloomberg writes about his experience playing a game published by the Fed: The San Francisco branch of the Federal Reserve has a game on its website that lets you play at being …<\/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-33697","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33697","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=33697"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33697\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}