{"id":41391,"date":"2020-09-23T21:09:37","date_gmt":"2020-09-24T02:09:37","guid":{"rendered":"http:\/\/prefblog.com\/?p=41391"},"modified":"2020-09-23T21:09:37","modified_gmt":"2020-09-24T02:09:37","slug":"september-23-2020","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=41391","title":{"rendered":"September 23, 2020"},"content":{"rendered":"

The Crown Speech<\/a> was today:<\/p>\n

As is common with most Throne Speeches, no dollar figures were announced alongside the promises of new spending. The speech notes that financial details will be released later this year in a fiscal update.
…<\/b>
\u201cClimate action will be a cornerstone of our plan to support and create a million jobs across the country,\u201d the speech states. \u201cThis is where the world is going. Global consumers and investors are demanding and rewarding climate action. \u2026 We can create good jobs today and a globally competitive economy not just next year, but in 2030, 2040, and beyond.\u201d<\/p>\n

Wednesday\u2019s speech does signal plans to raise tax revenue, stating that the government will \u201cidentify additional ways to tax extreme wealth inequality.\u201d It says this will include limiting the stock-option deduction \u201cfor wealthy individuals at large, established corporations, and addressing corporate tax avoidance by digital giants.\u201d
…<\/b>
\u201cWeb giants are taking Canadians’ money while imposing their own priorities. Things must change, and will change,” it states. \u201cThe government will act to ensure their revenue is shared more fairly with our creators and media, and will also require them to contribute to the creation, production and distribution of our stories, on screen, in lyrics, in music and in writing.\u201d
…<\/b>
In recent weeks, several economists and policy experts have expressed concern that the federal government has not outlined a plan for dealing with the rapidly expanding federal debt resulting from this year\u2019s emergency spending.<\/p>\n

Wednesday\u2019s Throne Speech pushed back at those concerns.<\/p>\n

\u201cThis is not the time for austerity,\u201d it states. \u201cThis COVID-19 emergency has had huge costs. But Canada would have had a deeper recession and a bigger long-term deficit if the government had done less.\u201d The speech says the government will \u201cdo whatever it takes, using whatever fiscal firepower is needed to support people and businesses during the pandemic.\u201d<\/p>\n

It states that this borrowed spending can be managed by locking in the current historically low interest rates.<\/p>\n

\u201cThis government will preserve Canada\u2019s fiscal advantage and continue to be guided by values of sustainability and prudence,\u201d it states.<\/p><\/blockquote>\n

The big problem is that there’s still no plan to pay back the current tidal wave of spending. With respect to ‘taxing the web giants’, I don’t see how this is such a big problem for things like advertising: simple legislation could be introduced such that if Company X is not taxable in Canada, then payments to Company X are not tax deductible by the Canadian paying company. This made a big difference in magazine publishing in days gone by and would be relatively easy to administer to boot. There would still be exceptions to look at – companies like Netflix, that sell services directly – but this would be a much more sharply focussed pool of companies than presently.<\/p>\n

The ‘million jobs’ pledge seems to be attracting a lot of attention, but it’s worthwhile pointing out that a million new jobs created tomorrow will only take us back to employment levels of a year ago<\/a>.<\/p>\n

PerpetualDiscounts now yield 5.30%, equivalent to 6.89% interest at the standard equivalency factor of 1.3x. Long corporates<\/a> now yield 2.85%, so the pre-tax interest-equivalent spread (in this context, the \u201cSeniority Spread\u201d) has widened slightly (and perhaps spuriously) to 405bp from the 400bp reported September 16<\/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-0.6847 %<\/td>\n1,631.3<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.6847 %<\/td>\n2,993.4<\/td>\n<\/tr>\n
Floater<\/td>\n5.22 %<\/td>\n5.23 %<\/td>\n56,810<\/td>\n15.12<\/td>\n3<\/td>\n-0.6847 %<\/td>\n1,725.1<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1355 %<\/td>\n3,536.1<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.81 %<\/td>\n4.60 %<\/td>\n41,145<\/td>\n3.63<\/td>\n7<\/td>\n-0.1355 %<\/td>\n4,222.8<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1355 %<\/td>\n3,294.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.36 %<\/td>\n4.91 %<\/td>\n77,351<\/td>\n2.69<\/td>\n17<\/td>\n0.0332 %<\/td>\n3,123.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.23 %<\/td>\n5.30 %<\/td>\n92,271<\/td>\n14.90<\/td>\n17<\/td>\n0.1404 %<\/td>\n3,510.0<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n5.50 %<\/td>\n4.26 %<\/td>\n124,103<\/td>\n16.30<\/td>\n68<\/td>\n-0.5057 %<\/td>\n2,077.6<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.02 %<\/td>\n4.89 %<\/td>\n114,097<\/td>\n15.21<\/td>\n27<\/td>\n0.0607 %<\/td>\n3,454.4<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.87 %<\/td>\n2.95 %<\/td>\n46,917<\/td>\n1.33<\/td>\n3<\/td>\n-0.4719 %<\/td>\n1,785.6<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n5.26 %<\/td>\n4.46 %<\/td>\n250,859<\/td>\n0.86<\/td>\n11<\/td>\n-0.0108 %<\/td>\n2,617.5<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n1.95 %<\/td>\n2.40 %<\/td>\n121,135<\/td>\n1.33<\/td>\n2<\/td>\n0.0807 %<\/td>\n2,840.0<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.72 %<\/td>\n4.42 %<\/td>\n82,574<\/td>\n16.21<\/td>\n22<\/td>\n0.2004 %<\/td>\n2,113.1<\/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
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
TRP.PR.G<\/td>\nFixedReset Disc<\/td>\n-7.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 14.26
\nEvaluated at bid price : 14.26
\nBid-YTW : 5.87 %<\/td>\n<\/tr>\n
TD.PF.E<\/td>\nFixedReset Disc<\/td>\n-4.60 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 19.70
\nEvaluated at bid price : 19.70
\nBid-YTW : 4.14 %<\/td>\n<\/tr>\n
TD.PF.I<\/td>\nFixedReset Disc<\/td>\n-3.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 21.41
\nEvaluated at bid price : 21.41
\nBid-YTW : 4.13 %<\/td>\n<\/tr>\n
RY.PR.P<\/td>\nPerpetual-Premium<\/td>\n-2.68 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 24.56
\nEvaluated at bid price : 25.06
\nBid-YTW : 5.27 %<\/td>\n<\/tr>\n
BIP.PR.D<\/td>\nFixedReset Disc<\/td>\n-2.63 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 21.74
\nEvaluated at bid price : 22.20
\nBid-YTW : 5.64 %<\/td>\n<\/tr>\n
BAM.PF.A<\/td>\nFixedReset Disc<\/td>\n-2.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 16.80
\nEvaluated at bid price : 16.80
\nBid-YTW : 5.33 %<\/td>\n<\/tr>\n
BIP.PR.E<\/td>\nFixedReset Disc<\/td>\n-1.60 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 21.50
\nEvaluated at bid price : 21.50
\nBid-YTW : 5.85 %<\/td>\n<\/tr>\n
SLF.PR.J<\/td>\nFloatingReset<\/td>\n-1.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 9.46
\nEvaluated at bid price : 9.46
\nBid-YTW : 4.10 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset Disc<\/td>\n-1.54 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 16.00
\nEvaluated at bid price : 16.00
\nBid-YTW : 4.43 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset Ins Non<\/td>\n-1.52 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 16.25
\nEvaluated at bid price : 16.25
\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n
BAM.PF.J<\/td>\nFixedReset Disc<\/td>\n-1.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 22.57
\nEvaluated at bid price : 23.05
\nBid-YTW : 5.15 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset Disc<\/td>\n-1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 8.79
\nEvaluated at bid price : 8.79
\nBid-YTW : 5.49 %<\/td>\n<\/tr>\n
BMO.PR.C<\/td>\nFixedReset Disc<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 22.87
\nEvaluated at bid price : 23.26
\nBid-YTW : 4.04 %<\/td>\n<\/tr>\n
BAM.PR.Z<\/td>\nFixedReset Disc<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 16.51
\nEvaluated at bid price : 16.51
\nBid-YTW : 5.34 %<\/td>\n<\/tr>\n
IAF.PR.I<\/td>\nFixedReset Ins Non<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 19.80
\nEvaluated at bid price : 19.80
\nBid-YTW : 4.24 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset Ins Non<\/td>\n3.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 10.02
\nEvaluated at bid price : 10.02
\nBid-YTW : 4.16 %<\/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
BMO.PR.C<\/td>\nFixedReset Disc<\/td>\n62,736<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 22.87
\nEvaluated at bid price : 23.26
\nBid-YTW : 4.04 %<\/td>\n<\/tr>\n
PWF.PR.L<\/td>\nPerpetual-Discount<\/td>\n60,219<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 24.29
\nEvaluated at bid price : 24.60
\nBid-YTW : 5.25 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset Ins Non<\/td>\n53,861<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 18.41
\nEvaluated at bid price : 18.41
\nBid-YTW : 4.28 %<\/td>\n<\/tr>\n
TD.PF.H<\/td>\nFixedReset Prem<\/td>\n29,795<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 23.96
\nEvaluated at bid price : 25.21
\nBid-YTW : 4.44 %<\/td>\n<\/tr>\n
TD.PF.E<\/td>\nFixedReset Disc<\/td>\n25,786<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 19.70
\nEvaluated at bid price : 19.70
\nBid-YTW : 4.14 %<\/td>\n<\/tr>\n
CM.PR.O<\/td>\nFixedReset Disc<\/td>\n24,657<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 17.26
\nEvaluated at bid price : 17.26
\nBid-YTW : 4.26 %<\/td>\n<\/tr>\n
There were 21 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.C<\/td>\nFixedReset Ins Non<\/td>\nQuote: 16.45 – 23.99
\nSpot Rate : 7.5400
\nAverage : 5.8953<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 16.45
\nEvaluated at bid price : 16.45
\nBid-YTW : 4.62 %<\/td>\n<\/tr>\n

IAF.PR.G<\/td>\nFixedReset Ins Non<\/td>\nQuote: 18.27 – 20.00
\nSpot Rate : 1.7300
\nAverage : 1.0061<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 18.27
\nEvaluated at bid price : 18.27
\nBid-YTW : 4.47 %<\/td>\n<\/tr>\n

MFC.PR.Q<\/td>\nFixedReset Ins Non<\/td>\nQuote: 17.82 – 19.27
\nSpot Rate : 1.4500
\nAverage : 0.8570<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 17.82
\nEvaluated at bid price : 17.82
\nBid-YTW : 4.46 %<\/td>\n<\/tr>\n

TRP.PR.G<\/td>\nFixedReset Disc<\/td>\nQuote: 14.26 – 15.40
\nSpot Rate : 1.1400
\nAverage : 0.6590<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 14.26
\nEvaluated at bid price : 14.26
\nBid-YTW : 5.87 %<\/td>\n<\/tr>\n

RY.PR.P<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.06 – 25.99
\nSpot Rate : 0.9300
\nAverage : 0.5344<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 24.56
\nEvaluated at bid price : 25.06
\nBid-YTW : 5.27 %<\/td>\n<\/tr>\n

TD.PF.I<\/td>\nFixedReset Disc<\/td>\nQuote: 21.41 – 22.40
\nSpot Rate : 0.9900
\nAverage : 0.6064<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2050-09-23
\nMaturity Price : 21.41
\nEvaluated at bid price : 21.41
\nBid-YTW : 4.13 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The Crown Speech was today: As is common with most Throne Speeches, no dollar figures were announced alongside the promises of new spending. The speech notes that financial details will be released later this year …<\/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-41391","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/41391","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=41391"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/41391\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}