{"id":44161,"date":"2022-09-20T21:19:11","date_gmt":"2022-09-21T02:19:11","guid":{"rendered":"https:\/\/prefblog.com\/?p=44161"},"modified":"2022-09-20T21:19:11","modified_gmt":"2022-09-21T02:19:11","slug":"september-20-2022","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=44161","title":{"rendered":"September 20, 2022"},"content":{"rendered":"

Today’s Canada inflation release<\/a> didn’t cause any problems:<\/p>\n

Canada\u2019s annual inflation rate slowed to 7.0 per cent in August largely driven by the price of gasoline falling, but the cost of groceries continues to climb.<\/p>\n

In its latest monthly consumer price index (CPI) report, Statistics Canada said grocery prices rose at the fastest rate since 1981, with prices up 10.8 per cent compared with a year ago.
\n…<\/b>
\nStatistics Canada said the 0.3 per cent decline in the CPI from July to August is the largest monthly decline since the early months of the pandemic.<\/p>\n

The federal agency said transportation and shelter prices drove the deceleration in consumer prices.<\/p>\n

Gas prices were up 22.1 per cent in August compared with a year ago, but down 18.8 per cent since June.<\/p>\n

The Bank of Canada will be paying close attention to its preferred measures of core inflation, which tend to be less volatile and help the bank see through temporary changes in the consumer price index. Those measures all point to a slowdown in annual inflation in August as well.<\/p><\/blockquote>\n

The FDIC published a paper by Matthew D. Peppe and Haluk Unal titled Do Municipalities Pay More to Issue Unrated Bonds? <\/a>:<\/p>\n

Approximately 34% of local municipal bond issues were issued without ratings during 1998 to 2017. We study the circumstances that affect the decision to obtain a rating and whether unrated bonds, controlling for observable risk factors, are more expensive to issue than rated bonds. Results show that issuers are less likely to obtain ratings for smaller issues, negotiated offerings, and bonds with high proxies for risk such as coming from areas with low personal income. We estimate the effect of forgoing a rating on offering yields using a doubly-robust Inverse Probability Weighted Regression Adjustment that controls for confounding that arises from risk and other characteristics affecting both the choice to obtain a rating and the yield. We separately analyze revenue bonds, general obligation bonds, bank qualified, and not bank qualified bonds and find ratings decrease offering yields by 47, 49, 60, and 42 basis points respectively. The higher offering yields cost municipalities $22.5B in higher interest expense during our sample period. We find the choice of issuers to forgo ratings despite the substantial potential savings appears to be influenced by the dual underwriters who also work as advisors to the issuer. These underwriters benefit from not obtaining a rating because it lowers the price investors are willing to pay from the bond, but also lowers the price the underwriter must pay the issuer and thus increases the underwriter\u2019s profit.<\/p><\/blockquote>\n

Gotta love that last line in the abstract!<\/p>\n

Enbridge has issued some sub-debt<\/a> – USD, 50-year term – I haven’t investigated further details.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref\u2122 Preferred Indices
\nThese values reflect the December 2008 revision of the HIMIPref\u2122 Indices<\/strong>
\nValues are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
\nCurrent
\nYield
\n(at bid)<\/td>\n		Median
\nYTW<\/td>\n		Median
\nAverage
\nTrading
\nValue<\/td>\n		Median
\nMod Dur
\n(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>\n0.2694 %<\/td>\n2,503.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2694 %<\/td>\n4,801.7<\/td>\n<\/tr>\n
Floater<\/td>\n7.32 %<\/td>\n7.34 %<\/td>\n51,172<\/td>\n12.14<\/td>\n2<\/td>\n0.2694 %<\/td>\n2,767.3<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.9505 %<\/td>\n3,408.4<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.00 %<\/td>\n6.12 %<\/td>\n30,180<\/td>\n3.14<\/td>\n7<\/td>\n-0.9505 %<\/td>\n4,070.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.9505 %<\/td>\n3,175.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1430 %<\/td>\n2,774.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.14 %<\/td>\n6.30 %<\/td>\n63,024<\/td>\n13.42<\/td>\n33<\/td>\n-0.1430 %<\/td>\n3,025.3<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n4.86 %<\/td>\n6.69 %<\/td>\n94,804<\/td>\n13.19<\/td>\n54<\/td>\n-0.1501 %<\/td>\n2,441.3<\/td>\n<\/tr>\n
Insurance Straight<\/td>\n6.19 %<\/td>\n6.23 %<\/td>\n74,989<\/td>\n13.59<\/td>\n19<\/td>\n-0.2436 %<\/td>\n2,906.7<\/td>\n<\/tr>\n
FloatingReset<\/td>\n8.16 %<\/td>\n8.39 %<\/td>\n37,562<\/td>\n11.01<\/td>\n2<\/td>\n0.1870 %<\/td>\n2,608.7<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n5.13 %<\/td>\n5.44 %<\/td>\n109,463<\/td>\n1.75<\/td>\n9<\/td>\n-0.0044 %<\/td>\n2,572.8<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1501 %<\/td>\n2,495.5<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.13 %<\/td>\n7.06 %<\/td>\n63,495<\/td>\n12.97<\/td>\n13<\/td>\n-0.1511 %<\/td>\n2,512.1<\/td>\n<\/tr>\n<\/tbody>\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
RS.PR.A<\/td>\nSplitShare<\/td>\n-5.70 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-12-31
\nMaturity Price : 10.00
\nEvaluated at bid price : 9.10
\nBid-YTW : 8.87 %<\/td>\n<\/tr>\n
TD.PF.D<\/td>\nFixedReset Disc<\/td>\n-3.96 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 20.60
\nEvaluated at bid price : 20.60
\nBid-YTW : 6.91 %<\/td>\n<\/tr>\n
GWO.PR.Y<\/td>\nInsurance Straight<\/td>\n-2.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 17.91
\nEvaluated at bid price : 17.91
\nBid-YTW : 6.32 %<\/td>\n<\/tr>\n
BMO.PR.W<\/td>\nFixedReset Disc<\/td>\n-1.83 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 20.44
\nEvaluated at bid price : 20.44
\nBid-YTW : 6.63 %<\/td>\n<\/tr>\n
PWF.PR.P<\/td>\nFixedReset Disc<\/td>\n-1.71 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 13.81
\nEvaluated at bid price : 13.81
\nBid-YTW : 7.85 %<\/td>\n<\/tr>\n
NA.PR.W<\/td>\nFixedReset Disc<\/td>\n-1.70 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 20.20
\nEvaluated at bid price : 20.20
\nBid-YTW : 6.72 %<\/td>\n<\/tr>\n
BIP.PR.F<\/td>\nFixedReset Disc<\/td>\n-1.38 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 21.50
\nEvaluated at bid price : 21.50
\nBid-YTW : 7.24 %<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nInsurance Straight<\/td>\n-1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 20.52
\nEvaluated at bid price : 20.52
\nBid-YTW : 6.37 %<\/td>\n<\/tr>\n
IFC.PR.K<\/td>\nPerpetual-Discount<\/td>\n-1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 21.50
\nEvaluated at bid price : 21.50
\nBid-YTW : 6.14 %<\/td>\n<\/tr>\n
GWO.PR.H<\/td>\nInsurance Straight<\/td>\n-1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 19.23
\nEvaluated at bid price : 19.23
\nBid-YTW : 6.34 %<\/td>\n<\/tr>\n
CU.PR.E<\/td>\nPerpetual-Discount<\/td>\n-1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 20.02
\nEvaluated at bid price : 20.02
\nBid-YTW : 6.19 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset Ins Non<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 14.30
\nEvaluated at bid price : 14.30
\nBid-YTW : 7.36 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 19.28
\nEvaluated at bid price : 19.28
\nBid-YTW : 6.19 %<\/td>\n<\/tr>\n
GWO.PR.T<\/td>\nInsurance Straight<\/td>\n1.42 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 20.70
\nEvaluated at bid price : 20.70
\nBid-YTW : 6.26 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset Disc<\/td>\n5.63 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 15.00
\nEvaluated at bid price : 15.00
\nBid-YTW : 8.34 %<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
\nTraded<\/td>\n		Notes<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset Disc<\/td>\n164,180<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 21.47
\nEvaluated at bid price : 21.75
\nBid-YTW : 6.51 %<\/td>\n<\/tr>\n
POW.PR.C<\/td>\nPerpetual-Discount<\/td>\n55,785<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 23.09
\nEvaluated at bid price : 23.35
\nBid-YTW : 6.33 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nInsurance Straight<\/td>\n50,216<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 18.55
\nEvaluated at bid price : 18.55
\nBid-YTW : 6.03 %<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset Ins Non<\/td>\n24,905<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 17.83
\nEvaluated at bid price : 17.83
\nBid-YTW : 7.15 %<\/td>\n<\/tr>\n
FTS.PR.K<\/td>\nFixedReset Disc<\/td>\n16,430<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 17.92
\nEvaluated at bid price : 17.92
\nBid-YTW : 7.47 %<\/td>\n<\/tr>\n
BAM.PR.Z<\/td>\nFixedReset Disc<\/td>\n12,607<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 21.63
\nEvaluated at bid price : 22.00
\nBid-YTW : 7.19 %<\/td>\n<\/tr>\n
There were 5 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\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.I<\/td>\nPerpetual-Discount<\/td>\nQuote: 21.90 – 24.10
\nSpot Rate : 2.2000
\nAverage : 1.5646<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 21.61
\nEvaluated at bid price : 21.90
\nBid-YTW : 6.18 %<\/td>\n<\/tr>\n

TD.PF.D<\/td>\nFixedReset Disc<\/td>\nQuote: 20.60 – 22.29
\nSpot Rate : 1.6900
\nAverage : 1.1598<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 20.60
\nEvaluated at bid price : 20.60
\nBid-YTW : 6.91 %<\/td>\n<\/tr>\n

GWO.PR.Y<\/td>\nInsurance Straight<\/td>\nQuote: 17.91 – 18.80
\nSpot Rate : 0.8900
\nAverage : 0.5857<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 17.91
\nEvaluated at bid price : 17.91
\nBid-YTW : 6.32 %<\/td>\n<\/tr>\n

TRP.PR.F<\/td>\nFloatingReset<\/td>\nQuote: 16.50 – 17.68
\nSpot Rate : 1.1800
\nAverage : 0.8892<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 16.50
\nEvaluated at bid price : 16.50
\nBid-YTW : 8.39 %<\/td>\n<\/tr>\n

RS.PR.A<\/td>\nSplitShare<\/td>\nQuote: 9.10 – 10.14
\nSpot Rate : 1.0400
\nAverage : 0.7734<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-12-31
\nMaturity Price : 10.00
\nEvaluated at bid price : 9.10
\nBid-YTW : 8.87 %<\/td>\n<\/tr>\n

BMO.PR.W<\/td>\nFixedReset Disc<\/td>\nQuote: 20.44 – 21.25
\nSpot Rate : 0.8100
\nAverage : 0.6254<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-09-20
\nMaturity Price : 20.44
\nEvaluated at bid price : 20.44
\nBid-YTW : 6.63 %<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Today’s Canada inflation release didn’t cause any problems: Canada\u2019s annual inflation rate slowed to 7.0 per cent in August largely driven by the price of gasoline falling, but the cost of groceries continues to climb. …<\/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-44161","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/44161","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=44161"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/44161\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}