{"id":33743,"date":"2016-10-07T01:24:56","date_gmt":"2016-10-07T06:24:56","guid":{"rendered":"http:\/\/prefblog.com\/?p=33743"},"modified":"2016-10-07T01:24:56","modified_gmt":"2016-10-07T06:24:56","slug":"october-6-2016","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=33743","title":{"rendered":"October 6, 2016"},"content":{"rendered":"

In a completely surprising, totally unexpected move, the fiercely independent Bank of Canada is endorsing their boss’ latest move<\/a>:<\/p>\n

The Bank of Canada is endorsing the Trudeau government\u2019s efforts to cool the country\u2019s debt-fuelled housing market.<\/p>\n

\u201cOver time, the measures announced by the federal government \u2026 will help mitigate risks to the financial system posed by household imbalances,\u201d senior deputy-governor Carolyn Wilkins said in remarks prepared for a speech Thursday in Trois-Rivi\u00e8res.<\/p>\n

Even with the economy still struggling to gain traction, the central bank has set a high bar for cutting its key interest rate at its next scheduled rate-setting announcement Oct. 19.<\/p>\n

\u201cWe are mindful that low interest rates can lead to a buildup in financial vulnerabilities,\u201d Ms. Wilkins pointed out.<\/p>\n

She added that the bank is continuing to monitor high household-debt levels and the housing market \u201cvery closely.\u201d<\/p><\/blockquote>\n

The other shoe is dropping on the fiduciary responsibility experiment<\/a>:<\/p>\n

Merrill Lynch will no longer give retirement savers the option of paying a commission for trades, a wholesale exit from the traditional Wall Street sales model in accounts that stand to be affected by new conflict-of-interest rules on retirement accounts.<\/p>\n

The Bank of America Corp. brokerage unit told its more than 14,000 brokers on Thursday that after April 10, when the new rules take effect, investors who want a retirement account at Merrill will need to pay a fee based on a percentage of their assets, instead of having the option of being charged for each transaction made in their account.<\/p>\n

The announced move, coming six months since the unveiling of the Obama administration\u2019s fiduciary rule requiring brokers to put the interests of retirement savers ahead of their own, is roiling firms across the investing world as they look to comply and even capitalize on the changes.
…<\/b>
Merrill clients with individual retirement accounts that charge commissions will have to choose whether to roll that over to a fee-based account, which may be more costly for investors who trade little, or move their assets to Bank of America\u2019s online brokerage, Merrill Edge, according to representatives at the firm. The latter option would offer investors access to a self-directed brokerage account or a generally cheaper fee-based option, as well as a soon-to-launch roboadvisory product, known as Merrill Edge Guided Investing.
…<\/b>
Morningstar said fee-based accounts can yield as much as 60% more revenue than those that charge commissions.<\/p>\n

Brokers say the fees are justified because they have to provide a higher level of service by spending more time understanding a client\u2019s full financial situation.<\/p><\/blockquote>\n

As far as that last claim is concerned, I will wait to see whether the average assets per broker drops as expected! It is regrettable that the story makes no mention about what happens with solicitation fees and new issue commissions; it is even more regrettable that those puffing themselves up as Portfolio Managers are not required to post their composite performance numbers.<\/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-0.5738 %<\/td>\n1,713.1<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.5738 %<\/td>\n3,129.4<\/td>\n<\/tr>\n
Floater<\/td>\n4.36 %<\/td>\n4.53 %<\/td>\n39,912<\/td>\n16.40<\/td>\n4<\/td>\n-0.5738 %<\/td>\n1,803.5<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0066 %<\/td>\n2,894.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.84 %<\/td>\n4.69 %<\/td>\n69,812<\/td>\n2.13<\/td>\n6<\/td>\n-0.0066 %<\/td>\n3,456.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0066 %<\/td>\n2,697.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.36 %<\/td>\n4.06 %<\/td>\n68,269<\/td>\n0.23<\/td>\n23<\/td>\n0.0753 %<\/td>\n2,691.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.12 %<\/td>\n5.10 %<\/td>\n97,274<\/td>\n15.35<\/td>\n15<\/td>\n-0.1241 %<\/td>\n2,910.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.97 %<\/td>\n4.30 %<\/td>\n147,405<\/td>\n6.94<\/td>\n92<\/td>\n0.0767 %<\/td>\n2,046.2<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.03 %<\/td>\n4.22 %<\/td>\n114,198<\/td>\n0.47<\/td>\n32<\/td>\n-0.1273 %<\/td>\n2,796.7<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.99 %<\/td>\n4.29 %<\/td>\n40,251<\/td>\n4.98<\/td>\n12<\/td>\n0.3221 %<\/td>\n2,223.0<\/td>\n<\/tr>\n<\/table>\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
BAM.PR.B<\/td>\nFloater<\/td>\n-1.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-10-06
\nMaturity Price : 10.46
\nEvaluated at bid price : 10.46
\nBid-YTW : 4.55 %<\/td>\n<\/tr>\n
GWO.PR.R<\/td>\nDeemed-Retractible<\/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 : 23.37
\nBid-YTW : 5.85 %<\/td>\n<\/tr>\n
BIP.PR.A<\/td>\nFixedReset<\/td>\n-1.29 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-10-06
\nMaturity Price : 20.65
\nEvaluated at bid price : 20.65
\nBid-YTW : 5.17 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-10-06
\nMaturity Price : 15.31
\nEvaluated at bid price : 15.31
\nBid-YTW : 4.88 %<\/td>\n<\/tr>\n
TRP.PR.H<\/td>\nFloatingReset<\/td>\n1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-10-06
\nMaturity Price : 10.60
\nEvaluated at bid price : 10.60
\nBid-YTW : 4.27 %<\/td>\n<\/tr>\n
NA.PR.S<\/td>\nFixedReset<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-10-06
\nMaturity Price : 18.70
\nEvaluated at bid price : 18.70
\nBid-YTW : 4.21 %<\/td>\n<\/tr>\n
BNS.PR.D<\/td>\nFloatingReset<\/td>\n1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.58
\nBid-YTW : 6.31 %<\/td>\n<\/tr>\n
SLF.PR.J<\/td>\nFloatingReset<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 13.15
\nBid-YTW : 10.69 %<\/td>\n<\/tr>\n
FTS.PR.G<\/td>\nFixedReset<\/td>\n1.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-10-06
\nMaturity Price : 17.70
\nEvaluated at bid price : 17.70
\nBid-YTW : 4.07 %<\/td>\n<\/tr>\n
FTS.PR.K<\/td>\nFixedReset<\/td>\n1.72 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-10-06
\nMaturity Price : 17.74
\nEvaluated at bid price : 17.74
\nBid-YTW : 4.03 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n2.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-10-06
\nMaturity Price : 14.05
\nEvaluated at bid price : 14.05
\nBid-YTW : 3.85 %<\/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>\n462,196<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : 4.30 %<\/td>\n<\/tr>\n
RY.PR.Q<\/td>\nFixedReset<\/td>\n165,907<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-05-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.68
\nBid-YTW : 4.07 %<\/td>\n<\/tr>\n
RY.PR.R<\/td>\nFixedReset<\/td>\n136,647<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.76
\nBid-YTW : 4.07 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n116,870<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-10-06
\nMaturity Price : 10.46
\nEvaluated at bid price : 10.46
\nBid-YTW : 4.55 %<\/td>\n<\/tr>\n
TD.PF.G<\/td>\nFixedReset<\/td>\n101,765<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.53
\nBid-YTW : 3.95 %<\/td>\n<\/tr>\n
GWO.PR.L<\/td>\nDeemed-Retractible<\/td>\n91,900<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-12-31
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.46
\nBid-YTW : 5.01 %<\/td>\n<\/tr>\n
There were 32 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
GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.71 – 26.24
\nSpot Rate : 0.5300
\nAverage : 0.3479<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-03-31
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.71
\nBid-YTW : 4.22 %<\/td>\n<\/tr>\n

GWO.PR.R<\/td>\nDeemed-Retractible<\/td>\nQuote: 23.37 – 23.77
\nSpot Rate : 0.4000
\nAverage : 0.2382<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.37
\nBid-YTW : 5.85 %<\/td>\n<\/tr>\n

PWF.PR.S<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.46 – 23.77
\nSpot Rate : 0.3100
\nAverage : 0.1919<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-10-06
\nMaturity Price : 23.08
\nEvaluated at bid price : 23.46
\nBid-YTW : 5.10 %<\/td>\n<\/tr>\n

CU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 18.31 – 18.58
\nSpot Rate : 0.2700
\nAverage : 0.1648<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-10-06
\nMaturity Price : 18.31
\nEvaluated at bid price : 18.31
\nBid-YTW : 4.20 %<\/td>\n<\/tr>\n

RY.PR.L<\/td>\nFixedReset<\/td>\nQuote: 25.19 – 25.40
\nSpot Rate : 0.2100
\nAverage : 0.1258<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.19
\nBid-YTW : 3.69 %<\/td>\n<\/tr>\n

SLF.PR.J<\/td>\nFloatingReset<\/td>\nQuote: 13.15 – 13.49
\nSpot Rate : 0.3400
\nAverage : 0.2586<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 13.15
\nBid-YTW : 10.69 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

In a completely surprising, totally unexpected move, the fiercely independent Bank of Canada is endorsing their boss’ latest move: The Bank of Canada is endorsing the Trudeau government\u2019s efforts to cool the country\u2019s debt-fuelled housing …<\/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-33743","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33743","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=33743"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33743\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}