{"id":40188,"date":"2020-01-30T07:27:28","date_gmt":"2020-01-30T12:27:28","guid":{"rendered":"http:\/\/prefblog.com\/?p=40188"},"modified":"2020-01-30T07:27:28","modified_gmt":"2020-01-30T12:27:28","slug":"january-29-2020","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=40188","title":{"rendered":"January 29, 2020"},"content":{"rendered":"

The FOMC Statement<\/a> was today:<\/p>\n

Information received since the Federal Open Market Committee met in December indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending has been rising at a moderate pace, business fixed investment and exports remain weak. On a 12\u2011month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed.<\/p>\n

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee decided to maintain the target range for the federal funds rate at 1\u20111\/2 to 1-3\/4 percent. The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee’s symmetric 2 percent objective. The Committee will continue to monitor the implications of incoming information for the economic outlook, including global developments and muted inflation pressures, as it assesses the appropriate path of the target range for the federal funds rate.<\/p>\n

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.<\/p>\n

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Loretta J. Mester; and Randal K. Quarles.<\/p><\/blockquote>\n

Pundit chatter was muted.<\/p>\n

The Canada five-year yield<\/a> continued to drop on the week, closing at 1.34%, down 13bp from last week’s value<\/a>.<\/p>\n

PerpetualDiscounts now yield 5.31%, equivalent to 6.90% interest at the standard equivalency factor of 1.3x. Long corporates<\/a> now yield 3.26%, so the pre-tax interest-equivalent spread (in this context, the \u201cSeniority Spread\u201d) has widened slightly (and perhaps spuriously) to 365bp from the 360bp reported January 22<\/a>.<\/p>\n\n\n\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-0.0211 %<\/td>\n2,093.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0211 %<\/td>\n3,841.8<\/td>\n<\/tr>\n
Floater<\/td>\n5.84 %<\/td>\n6.02 %<\/td>\n48,228<\/td>\n13.84<\/td>\n4<\/td>\n-0.0211 %<\/td>\n2,214.0<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0585 %<\/td>\n3,461.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.75 %<\/td>\n4.18 %<\/td>\n36,056<\/td>\n3.71<\/td>\n6<\/td>\n0.0585 %<\/td>\n4,134.2<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0585 %<\/td>\n3,225.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.58 %<\/td>\n0.53 %<\/td>\n59,277<\/td>\n0.09<\/td>\n11<\/td>\n0.0610 %<\/td>\n3,062.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.23 %<\/td>\n5.31 %<\/td>\n70,484<\/td>\n14.91<\/td>\n24<\/td>\n0.1483 %<\/td>\n3,323.7<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n5.46 %<\/td>\n5.35 %<\/td>\n198,836<\/td>\n14.85<\/td>\n64<\/td>\n0.2510 %<\/td>\n2,189.1<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.13 %<\/td>\n5.24 %<\/td>\n68,336<\/td>\n14.94<\/td>\n27<\/td>\n0.1833 %<\/td>\n3,259.4<\/td>\n<\/tr>\n
FloatingReset<\/td>\n6.01 %<\/td>\n5.93 %<\/td>\n70,091<\/td>\n14.00<\/td>\n3<\/td>\n-0.0244 %<\/td>\n2,537.6<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n5.08 %<\/td>\n3.55 %<\/td>\n135,581<\/td>\n1.48<\/td>\n22<\/td>\n0.1420 %<\/td>\n2,656.4<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n1.94 %<\/td>\n3.58 %<\/td>\n71,810<\/td>\n1.95<\/td>\n3<\/td>\n0.0954 %<\/td>\n2,740.0<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.32 %<\/td>\n5.33 %<\/td>\n124,556<\/td>\n14.80<\/td>\n22<\/td>\n0.0024 %<\/td>\n2,203.9<\/td>\n<\/tr>\n<\/table>\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.T<\/td>\nFixedReset Disc<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 16.05
\nEvaluated at bid price : 16.05
\nBid-YTW : 5.71 %<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nDeemed-Retractible<\/td>\n1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 24.56
\nEvaluated at bid price : 24.81
\nBid-YTW : 5.29 %<\/td>\n<\/tr>\n
HSE.PR.G<\/td>\nFixedReset Disc<\/td>\n1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 18.73
\nEvaluated at bid price : 18.73
\nBid-YTW : 6.56 %<\/td>\n<\/tr>\n
RY.PR.J<\/td>\nFixedReset Disc<\/td>\n1.40 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 19.57
\nEvaluated at bid price : 19.57
\nBid-YTW : 5.21 %<\/td>\n<\/tr>\n
TRP.PR.B<\/td>\nFixedReset Disc<\/td>\n1.61 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 11.35
\nEvaluated at bid price : 11.35
\nBid-YTW : 5.80 %<\/td>\n<\/tr>\n
PWF.PR.P<\/td>\nFixedReset Disc<\/td>\n1.73 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 13.55
\nEvaluated at bid price : 13.55
\nBid-YTW : 5.38 %<\/td>\n<\/tr>\n
PWF.PR.T<\/td>\nFixedReset Disc<\/td>\n1.74 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 18.10
\nEvaluated at bid price : 18.10
\nBid-YTW : 5.31 %<\/td>\n<\/tr>\n
BAM.PF.B<\/td>\nFixedReset Disc<\/td>\n1.94 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 18.95
\nEvaluated at bid price : 18.95
\nBid-YTW : 5.44 %<\/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
PWF.PR.L<\/td>\nPerpetual-Discount<\/td>\n231,900<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 23.34
\nEvaluated at bid price : 23.63
\nBid-YTW : 5.41 %<\/td>\n<\/tr>\n
BMO.PR.Q<\/td>\nFixedReset Bank Non<\/td>\n200,299<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.23
\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset Bank Non<\/td>\n187,000<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.42
\nBid-YTW : 3.58 %<\/td>\n<\/tr>\n
TD.PF.G<\/td>\nFixedReset Prem<\/td>\n82,400<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.74
\nBid-YTW : 3.05 %<\/td>\n<\/tr>\n
SLF.PR.H<\/td>\nFixedReset Ins Non<\/td>\n50,800<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 16.47
\nEvaluated at bid price : 16.47
\nBid-YTW : 5.28 %<\/td>\n<\/tr>\n
IFC.PR.C<\/td>\nFixedReset Ins Non<\/td>\n49,000<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 18.39
\nEvaluated at bid price : 18.39
\nBid-YTW : 5.40 %<\/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
RY.PR.M<\/td>\nFixedReset Disc<\/td>\nQuote: 19.00 – 19.37
\nSpot Rate : 0.3700
\nAverage : 0.2321<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 19.00
\nEvaluated at bid price : 19.00
\nBid-YTW : 5.19 %<\/td>\n<\/tr>\n

HSE.PR.E<\/td>\nFixedReset Disc<\/td>\nQuote: 18.71 – 19.34
\nSpot Rate : 0.6300
\nAverage : 0.4944<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 18.71
\nEvaluated at bid price : 18.71
\nBid-YTW : 6.64 %<\/td>\n<\/tr>\n

HSE.PR.A<\/td>\nFixedReset Disc<\/td>\nQuote: 11.45 – 11.78
\nSpot Rate : 0.3300
\nAverage : 0.2117<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 11.45
\nEvaluated at bid price : 11.45
\nBid-YTW : 6.67 %<\/td>\n<\/tr>\n

BMO.PR.C<\/td>\nFixedReset Disc<\/td>\nQuote: 22.69 – 23.00
\nSpot Rate : 0.3100
\nAverage : 0.2061<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 22.32
\nEvaluated at bid price : 22.69
\nBid-YTW : 5.18 %<\/td>\n<\/tr>\n

PWF.PR.T<\/td>\nFixedReset Disc<\/td>\nQuote: 18.10 – 18.57
\nSpot Rate : 0.4700
\nAverage : 0.3711<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 18.10
\nEvaluated at bid price : 18.10
\nBid-YTW : 5.31 %<\/td>\n<\/tr>\n

MFC.PR.Q<\/td>\nFixedReset Ins Non<\/td>\nQuote: 19.43 – 19.75
\nSpot Rate : 0.3200
\nAverage : 0.2231<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-01-29
\nMaturity Price : 19.43
\nEvaluated at bid price : 19.43
\nBid-YTW : 5.27 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The FOMC Statement was today: Information received since the Federal Open Market Committee met in December indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job …<\/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-40188","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/40188","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=40188"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/40188\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}