{"id":4275,"date":"2008-12-03T00:21:12","date_gmt":"2008-12-03T04:21:12","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=4275"},"modified":"2008-12-03T00:21:12","modified_gmt":"2008-12-03T04:21:12","slug":"december-2-2008","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=4275","title":{"rendered":"December 2, 2008"},"content":{"rendered":"

Bloomberg reports<\/a>:<\/p>\n

The U.S. Securities and Exchange Commission may act to curb conflicts of interest at credit-rating companies while delaying a mortgage-bond ranking proposal faulted by underwriters, two people familiar with the matter said.<\/p>\n

SEC commissioners plan to bar employees who assess debt from discussing compensation with the bankers selling the bonds, said the people, who declined to be identified before a vote in Washington tomorrow. Commissioners also may limit gifts from underwriters and restrict debt analysts from offering advice on structuring securities to win top grades.<\/p><\/blockquote>\n

Well, it sure sounds tough doesn’t it? The whole point is to ensure that there are enough rules to ensure that everybody is guilty of something. Then when things go wrong, you have your choice of scapegoat … that’s what regulation’s all about. However, some good might come out of the process:<\/p>\n

The SEC sought to encourage unsolicited rankings by proposing another rule in June that would have forced credit- rating companies to publish the data that goes into their assessments. As a result, competitors could have graded bonds even if they weren\u2019t paid by debt underwriters.<\/p>\n

New York-based Moody\u2019s in a July 28 letter to the SEC said the proposal would trigger lawsuits and encourage banks to take their business to the credit-rating company that asked for \u201cthe least amount of information.\u201d<\/p>\n

SEC commissioners will seek a second round of public comment on the proposal instead of adopting it at tomorrow\u2019s 10 a.m. Washington time meeting, the people said.<\/p><\/blockquote>\n

The ratings agencies’ exemption from Regulation FD must be repealed. It’s the only way … I’ve written an essay on the topic<\/a>. Unfortunately, however, addressing this issue would involve the authorities admitting that the current system works pretty well and the agencies do a pretty good job … subject to all the caveats that apply in assessment of any forecasting ability.<\/p>\n

Since the regulators’ myth-du-jour is that the credit crunch was caused by Evil Credit Agency exploitation of Innocent Portfolio Managers (rarely, if ever, criticized; presumably because they already have regulations coming out their ying-yang) it will be inconvenient to acknowledge reality. Fortunately, this bothers neither regulators nor politicians.<\/p>\n

A good solid day for PerpetualDiscounts, up nearly 1% in a sloppy market. Another two weeks of good returns like this and we’ll make up for November!<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n
Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version. In this version, index values are based at 1,000.0 on 2006-6-30.
The Fixed-Reset<\/i> index was added effective 2008-9-5 at that day’s closing value of 1,119.4 for the Fixed-Floater<\/i> index.<\/strong><\/td>\n<\/tr>\n
Index<\/td>\nMean Current Yield (at bid)<\/td>\nMean YTW<\/td>\nMean Average Trading Value<\/td>\nMean Mod Dur (YTW)<\/td>\nIssues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\n0<\/td>\nN\/A<\/td>\nN\/A<\/td>\n<\/tr>\n
Fixed-Floater<\/td>\n6.89%<\/td>\n7.23%<\/td>\n78,980<\/td>\n13.40<\/td>\n6<\/td>\n-1.5584%<\/td>\n764.2<\/td>\n<\/tr>\n
Floater<\/td>\n9.92%<\/td>\n10.22%<\/td>\n57,925<\/td>\n9.02<\/td>\n2<\/td>\n+0.9081%<\/td>\n357.0<\/td>\n<\/tr>\n
Op. Retract<\/td>\n5.52%<\/td>\n7.00%<\/td>\n137,155<\/td>\n4.18<\/td>\n15<\/td>\n+0.1794%<\/td>\n977.5<\/td>\n<\/tr>\n
Split-Share<\/td>\n7.41%<\/td>\n15.05%<\/td>\n64,770<\/td>\n3.92<\/td>\n14<\/td>\n+1.0165%<\/td>\n825.1<\/td>\n<\/tr>\n
Interest Bearing<\/td>\n9.37%<\/td>\n19.71%<\/td>\n58,012<\/td>\n2.89<\/td>\n3<\/td>\n+0.0790%<\/td>\n780.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n7.94%<\/td>\n8.06%<\/td>\n193,760<\/td>\n11.38<\/td>\n71<\/td>\n+0.9365%<\/td>\n695.8<\/td>\n<\/tr>\n
Fixed-Reset<\/td>\n6.15%<\/td>\n5.60%<\/td>\n1,102,580<\/td>\n14.18<\/td>\n15<\/td>\n-0.1895%<\/td>\n972.0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Major Price Changes<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BAM.PR.H<\/td>\nOpRet<\/td>\n-7.3171%<\/td>\nNow with a pre-tax bid-YTW of 15.82% based on a bid of 19.00 and a softMaturity<\/a> 2012-3-30 at 25.00. Closing quote of 19.00-25, 19×18. Day’s range of 18.50-20.50 (!).<\/td>\n<\/tr>\n
ENB.PR.A<\/td>\nPerpetualDiscount<\/td>\n-4.7619%<\/td>\nNow with a pre-tax bid-YTW of 6.94% based on a bid of 20.00 and a limitMaturity<\/a>. Closing quote 20.00-30, 8×5. Day’s range of 19.86-30.<\/td>\n<\/tr>\n
BCE.PR.G<\/td>\nFixFloat<\/td>\n-4.1765%<\/td>\n <\/td>\n<\/tr>\n
FBS.PR.B<\/td>\nSplitShare<\/td>\n-4.1278%<\/td>\nAsset coverage of 1.1+:1 as of November 27 according to TD Securities<\/a>. Now with a pre-tax bid-YTW of 16.97% based on a bid of 7.20 and a hardMaturity 2011-12-15 at 10.00. Closing quote of 7.20-48, 1×1. Day’s range of 7.10-75.<\/td>\n<\/tr>\n
BMO.PR.K<\/td>\nPerpetualDiscount<\/td>\n-3.7805%<\/td>\nNow with a pre-tax bid-YTW of 8.42% based on a bid of 15.78 and a limitMaturity<\/a>. Closing quote 15.78-25, 6×10. Day’s range of 15.77-17.00.<\/td>\n<\/tr>\n
BMO.PR.M<\/td>\nFixedReset<\/td>\n-3.7559%<\/td>\n <\/td>\n<\/tr>\n
FFN.PR.A<\/td>\nSplitShare<\/td>\n-3.4722%<\/td>\nAsset coverage of 1.4+:1 as of November 14 according to the company<\/a>. Now with a pre-tax bid-YTW of 17.73% based on a bid of 5.56 and a hardMaturity 2014-12-1 at 10.00. Closing quote of 5.56-75, 3×8. Day’s range of 5.49-77.<\/td>\n<\/tr>\n
BMO.PR.H<\/td>\nPerpetualDiscount<\/td>\n-3.2825%<\/td>\nNow with a pre-tax bid-YTW of 8.12% based on a bid of 16.50 and a limitMaturity<\/a>. Closing quote 16.50-97, 11×3. Day’s range of 16.50-18.17.<\/td>\n<\/tr>\n
POW.PR.A<\/td>\nPerpetualDiscount<\/td>\n+3.0675%<\/td>\nNow with a pre-tax bid-YTW of 8.52% based on a bid of 16.80 and a limitMaturity<\/a>. Closing quote 16.80-99, 2×1. Day’s range of 16.69-01.<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nPerpetualDiscount<\/td>\n+3.1250%<\/td>\nNow with a pre-tax bid-YTW of 8.41% based on a bid of 15.51 and a limitMaturity<\/a>. Closing quote 15.51-87, 3×1. Day’s range of 15.36-11.<\/td>\n<\/tr>\n
NA.PR.M<\/td>\nPerpetualDiscount<\/td>\n+3.1915%<\/td>\nNow with a pre-tax bid-YTW of 7.84% based on a bid of 19.40 and a limitMaturity<\/a>. Closing quote 19.40-95, 23×5. Day’s range of 19.00-40.<\/td>\n<\/tr>\n
PWF.PR.L<\/td>\nPerpetualDiscount<\/td>\n+3.3333%<\/td>\nNow with a pre-tax bid-YTW of 8.38% based on a bid of 15.50 and a limitMaturity<\/a>. Closing quote 15.50-94, 10X10. Day’s range of 15.10-94.<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nPerpetualDiscount<\/td>\n+3.5897%<\/td>\nNow with a pre-tax bid-YTW of 7.93% based on a bid of 16.16 and a limitMaturity<\/a>. Closing quote 16.16-50, 7×3. Day’s range of 16.00-47.<\/td>\n<\/tr>\n
LBS.PR.A<\/td>\nSplitShare<\/td>\n+3.6309%<\/td>\nAsset coverage of 1.4+:1 as of October 17, according to Brompton Group<\/a>. Now with a pre-tax bid-YTW of 14.66% based on a bid of 6.85 and a hardMaturity 2013-11-29 at 10.00. Closing quote of 6.85-22, 35×1. Day’s range of 6.61-99.<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nPerpetualDiscount<\/td>\n+3.7064%<\/td>\nNow with a pre-tax bid-YTW of 8.09% based on a bid of 14.27 and a limitMaturity<\/a>. Closing quote 14.27-98, 1×2. Day’s range of 14.00-93.<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n+3.7143%<\/td>\n <\/td>\n<\/tr>\n
CM.PR.K<\/td>\nFixedReset<\/td>\n+3.7500%<\/td>\n <\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nPerpetualDiscount<\/td>\n+4.1606%<\/td>\nNow with a pre-tax bid-YTW of 7.82% based on a bid of 14.27 and a limitMaturity<\/a>. Closing quote 14.27-08, 12×2. Day’s range of 14.00-15.50.<\/td>\n<\/tr>\n
RY.PR.G<\/td>\nPerpetualDiscount<\/td>\n+4.1801%<\/td>\nNow with a pre-tax bid-YTW of 7.02% based on a bid of 16.20 and a limitMaturity<\/a>. Closing quote 16.20-44, 1×5. Day’s range of 15.50-40.<\/td>\n<\/tr>\n
DFN.PR.A<\/td>\nSplitShare<\/td>\n+4.7880%<\/td>\nAsset coverage of 1.9-:1 as of November 14 according to the company<\/a>. Now with a pre-tax bid-YTW of 10.73% based on a bid of 7.66 and a hardMaturity 2014-12-1 at 10.00. Closing quote of 7.66-89, 5×2. Day’s range of 7.16-00.<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nPerpetualDiscount<\/td>\n+5.4737%<\/td>\nNow with a pre-tax bid-YTW of 7.53% based on a bid of 15.03 and a limitMaturity<\/a>. Closing quote 15.03-44, 3X9. Day’s range of 14.30-10.<\/td>\n<\/tr>\n
GWO.PR.H<\/td>\nPerpetualDiscount<\/td>\n+5.7082%<\/td>\nNow with a pre-tax bid-YTW of 8.11% based on a bid of 15.00 and a limitMaturity<\/a>. Closing quote 15.00-16.25 (!), 4X7. Day’s range of 14.19-15.45.<\/td>\n<\/tr>\n
LFE.PR.A<\/td>\nSplitShare<\/td>\n+6.2591%<\/td>\nAsset coverage of 1.6-:1 as of November 14 according to the company<\/a>. Now with a pre-tax bid-YTW of 14.50% based on a bid of 7.30 and a hardMaturity<\/a> 2012-12-1 at 10.00. Closing quote of 7.30-69, 113×3. Day’s range of 7.30-50.<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetualDiscount<\/td>\n+6.7887%<\/td>\nNow with a pre-tax bid-YTW of 9.70% based on a bid of 14.00 and a limitMaturity<\/a>. Closing quote 14.00-45, 3×3. Day’s range of 13.55-00.<\/td>\n<\/tr>\n
BAM.PR.J<\/td>\nOpRet<\/td>\n+9.6296%<\/td>\nNow with a pre-tax bid-YTW of 13.49% based on a bid of 14.80 and a softMaturity<\/a> 2018-3-30 at 25.00. Closing quote of 14.80-99, 5×6. Day’s range of 13.90-14.99.<\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nVolume<\/td>\nNotes<\/td>\n<\/tr>\n
BMO.PR.J<\/td>\nPerpetualDiscount<\/td>\n637,525<\/td>\nRBC bougth 54,300 from Nesbitt at 14.26; then Nesbitt crossed 527,900 at 14.25. Now with a pre-tax bid-YTW of 7.93% based on a bid of 14.35 and a limitMaturity.<\/td>\n<\/tr>\n
CM.PR.J<\/td>\nPerpetualDiscount<\/td>\n627,500<\/td>\nTD crossed 577,700 at 12.75 … and they had to take the bid down half a buck to do it! Now with a pre-tax bid-YTW of 8.67% based on a bid of 13.23 and a limitMaturity.<\/td>\n<\/tr>\n
PWF.PR.K<\/td>\nPerpetualDiscount<\/td>\n76,075<\/td>\nRBC crossed 50,000 at 14.70. Now with a pre-tax bid-YTW of 8.63% based on a bid of 14.60 and a limitMaturity.<\/td>\n<\/tr>\n
GWO.PR.H<\/td>\nPerpetualDiscount<\/td>\n75.519<\/td>\nNesbitt crossed 50,000 at 14.60. Now with a pre-tax bid-YTW of 8.11% based on a bid of 15.00 and a limitMaturity.<\/td>\n<\/tr>\n
PWF.PR.M<\/td>\nFixedReset<\/td>\n71,210<\/td>\nDesjardins crossed 38,700 at 23.80; Scotia bought 25,800 from Anonymous at 24.00. Recent new issue<\/a>.<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

There were fifty-seven index-included $25-pv-equivalent issues trading over 10,000 shares today<\/p>\n","protected":false},"excerpt":{"rendered":"

Bloomberg reports: The U.S. Securities and Exchange Commission may act to curb conflicts of interest at credit-rating companies while delaying a mortgage-bond ranking proposal faulted by underwriters, two people familiar with the matter said. SEC …<\/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-4275","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/4275","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=4275"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/4275\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}