{"id":41798,"date":"2021-01-04T18:51:43","date_gmt":"2021-01-04T23:51:43","guid":{"rendered":"http:\/\/prefblog.com\/?p=41798"},"modified":"2021-01-04T18:51:43","modified_gmt":"2021-01-04T23:51:43","slug":"january-4-2021","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=41798","title":{"rendered":"January 4, 2021"},"content":{"rendered":"

Incidents like this give preferred shares a bad name<\/a>:<\/p>\n

Last summer, 27 individuals from 12 families filed two separate multi-plaintiff court cases against Yujie (Jared) Liu, a financial adviser and portfolio manager with BMO Nesbitt Burns Inc. The group is asking for $50-million in damages for losses they allege they suffered as a result of Mr. Liu\u2019s negligence in managing their investment accounts.
…<\/b>
Last year, the group of clients filed two lawsuits alleging that during 2017 and half of 2018, Mr. Liu recommended a new investment strategy that would provide \u201creasonable\u201d investment returns that was \u201crisk-free\u201d to their principle. The groups\u2019 statements of claim say many of them had low-risk investment objectives and chose Mr. Liu because he could speak Mandarin and they were not proficient in English.<\/p>\n

The claims say that instead, investors were placed in a high-risk strategy that involved short-selling bonds \u2013 particularly Canadian government bonds \u2013 to purchase long positions in preferred shares, many of which had rates that were variable or that reset based on interest rate movement. Some clients were advised to begin trading on margin \u2013 investing with borrowed money \u2013 in order to purchase more preferred shares.<\/p>\n

The value of some clients\u2019 investments declined between 50 per cent and 80 per cent, with losses ranging from $600,000 to $16-million, the claims say.<\/p><\/blockquote>\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-0.2135 %<\/td>\n1,884.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2135 %<\/td>\n3,458.7<\/td>\n<\/tr>\n
Floater<\/td>\n4.59 %<\/td>\n4.61 %<\/td>\n47,047<\/td>\n16.24<\/td>\n3<\/td>\n-0.2135 %<\/td>\n1,993.2<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1075 %<\/td>\n3,624.3<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.71 %<\/td>\n4.35 %<\/td>\n38,759<\/td>\n3.78<\/td>\n8<\/td>\n-0.1075 %<\/td>\n4,328.2<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1075 %<\/td>\n3,377.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.34 %<\/td>\n-1.38 %<\/td>\n65,806<\/td>\n0.08<\/td>\n18<\/td>\n0.1761 %<\/td>\n3,216.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.00 %<\/td>\n5.06 %<\/td>\n70,449<\/td>\n15.39<\/td>\n13<\/td>\n0.0443 %<\/td>\n3,687.1<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n5.01 %<\/td>\n3.86 %<\/td>\n134,198<\/td>\n17.33<\/td>\n57<\/td>\n0.0275 %<\/td>\n2,336.5<\/td>\n<\/tr>\n
Insurance Straight<\/td>\n5.05 %<\/td>\n4.83 %<\/td>\n87,057<\/td>\n15.34<\/td>\n22<\/td>\n-0.1250 %<\/td>\n3,556.7<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.55 %<\/td>\n0.74 %<\/td>\n35,655<\/td>\n0.16<\/td>\n3<\/td>\n0.1372 %<\/td>\n1,859.5<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n5.14 %<\/td>\n3.02 %<\/td>\n207,792<\/td>\n0.80<\/td>\n20<\/td>\n0.0217 %<\/td>\n2,683.4<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n1.94 %<\/td>\n1.79 %<\/td>\n158,671<\/td>\n1.06<\/td>\n2<\/td>\n-0.2018 %<\/td>\n2,877.4<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.00 %<\/td>\n3.81 %<\/td>\n88,834<\/td>\n17.33<\/td>\n22<\/td>\n0.2317 %<\/td>\n2,437.8<\/td>\n<\/tr>\n<\/table>\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.B<\/td>\nFixedReset Disc<\/td>\n-1.79 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 9.33
\nEvaluated at bid price : 9.33
\nBid-YTW : 4.52 %<\/td>\n<\/tr>\n
BIP.PR.D<\/td>\nFixedReset Disc<\/td>\n-1.44 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 23.53
\nEvaluated at bid price : 24.00
\nBid-YTW : 5.22 %<\/td>\n<\/tr>\n
TRP.PR.D<\/td>\nFixedReset Disc<\/td>\n-1.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 14.90
\nEvaluated at bid price : 14.90
\nBid-YTW : 5.00 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset Disc<\/td>\n-1.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 18.20
\nEvaluated at bid price : 18.20
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n-1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 9.36
\nEvaluated at bid price : 9.36
\nBid-YTW : 4.61 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset Disc<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 15.00
\nEvaluated at bid price : 15.00
\nBid-YTW : 4.61 %<\/td>\n<\/tr>\n
MFC.PR.J<\/td>\nFixedReset Ins Non<\/td>\n1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 20.85
\nEvaluated at bid price : 20.85
\nBid-YTW : 3.85 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset Ins Non<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 11.24
\nEvaluated at bid price : 11.24
\nBid-YTW : 3.81 %<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset Ins Non<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 15.61
\nEvaluated at bid price : 15.61
\nBid-YTW : 3.59 %<\/td>\n<\/tr>\n
NA.PR.G<\/td>\nFixedReset Disc<\/td>\n1.23 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 22.45
\nEvaluated at bid price : 23.00
\nBid-YTW : 3.72 %<\/td>\n<\/tr>\n
SLF.PR.H<\/td>\nFixedReset Ins Non<\/td>\n1.23 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 18.06
\nEvaluated at bid price : 18.06
\nBid-YTW : 3.57 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 9.33
\nEvaluated at bid price : 9.33
\nBid-YTW : 4.62 %<\/td>\n<\/tr>\n
CM.PR.Q<\/td>\nFixedReset Disc<\/td>\n1.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 21.05
\nEvaluated at bid price : 21.05
\nBid-YTW : 3.77 %<\/td>\n<\/tr>\n
TD.PF.D<\/td>\nFixedReset Disc<\/td>\n1.81 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 22.00
\nEvaluated at bid price : 22.51
\nBid-YTW : 3.54 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset Ins Non<\/td>\n2.89 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 19.20
\nEvaluated at bid price : 19.20
\nBid-YTW : 3.74 %<\/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
CM.PR.R<\/td>\nFixedReset Disc<\/td>\n118,300<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 23.94
\nEvaluated at bid price : 24.30
\nBid-YTW : 3.91 %<\/td>\n<\/tr>\n
IFC.PR.I<\/td>\nPerpetual-Premium<\/td>\n96,082<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2029-03-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 4.85 %<\/td>\n<\/tr>\n
BMO.PR.C<\/td>\nFixedReset Disc<\/td>\n81,904<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 24.19
\nEvaluated at bid price : 24.55
\nBid-YTW : 3.86 %<\/td>\n<\/tr>\n
RY.PR.J<\/td>\nFixedReset Disc<\/td>\n64,800<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 21.75
\nEvaluated at bid price : 22.12
\nBid-YTW : 3.56 %<\/td>\n<\/tr>\n
MFC.PR.G<\/td>\nFixedReset Ins Non<\/td>\n41,400<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 21.81
\nEvaluated at bid price : 22.30
\nBid-YTW : 3.70 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset Ins Non<\/td>\n28,895<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 11.75
\nEvaluated at bid price : 11.75
\nBid-YTW : 3.86 %<\/td>\n<\/tr>\n
There were 11 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
CU.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.66 – 26.66
\nSpot Rate : 1.0000
\nAverage : 0.6081<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2023-09-01
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.66
\nBid-YTW : 4.77 %<\/td>\n<\/tr>\n

BAM.PF.D<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.21 – 25.00
\nSpot Rate : 0.7900
\nAverage : 0.4935<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 23.69
\nEvaluated at bid price : 24.21
\nBid-YTW : 5.06 %<\/td>\n<\/tr>\n

BAM.PF.H<\/td>\nFixedReset Prem<\/td>\nQuote: 25.35 – 25.98
\nSpot Rate : 0.6300
\nAverage : 0.3820<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2025-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.35
\nBid-YTW : 4.72 %<\/td>\n<\/tr>\n

IAF.PR.B<\/td>\nInsurance Straight<\/td>\nQuote: 24.10 – 24.80
\nSpot Rate : 0.7000
\nAverage : 0.4716<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 23.85
\nEvaluated at bid price : 24.10
\nBid-YTW : 4.79 %<\/td>\n<\/tr>\n

CU.PR.D<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.87 – 25.50
\nSpot Rate : 0.6300
\nAverage : 0.4413<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2051-01-04
\nMaturity Price : 24.62
\nEvaluated at bid price : 24.87
\nBid-YTW : 4.97 %<\/td>\n<\/tr>\n

BAM.PF.I<\/td>\nFixedReset Prem<\/td>\nQuote: 25.10 – 25.56
\nSpot Rate : 0.4600
\nAverage : 0.2897<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-03-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.10
\nBid-YTW : 4.53 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Incidents like this give preferred shares a bad name: Last summer, 27 individuals from 12 families filed two separate multi-plaintiff court cases against Yujie (Jared) Liu, a financial adviser and portfolio manager with BMO Nesbitt …<\/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-41798","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/41798","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=41798"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/41798\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}