{"id":44482,"date":"2022-12-07T22:46:02","date_gmt":"2022-12-08T03:46:02","guid":{"rendered":"https:\/\/prefblog.com\/?p=44482"},"modified":"2022-12-07T22:46:02","modified_gmt":"2022-12-08T03:46:02","slug":"december-7-2022","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=44482","title":{"rendered":"December 7, 2022"},"content":{"rendered":"

The markets took the Bank of Canada rate hike<\/a> in stride:<\/p>\n

Canada\u2019s main stock index edged lower on Wednesday to its lowest closing level in nearly three weeks as a drop in oil prices weighed on energy shares and the Bank of Canada raised interest rates to the highest level in almost 15 years.<\/p>\n

The S&P\/TSX composite index ended down 16.95 points, or 0.1%, at 19,973.22, its fourth straight day of declines and its lowest closing level since Nov. 17.<\/p>\n

U.S. benchmark S&P 500 also dipped as investors weighed potential recession fears linked to the pace of the Federal Reserve\u2019s monetary policy tightening.
\n…<\/b>
\nMoney market participants see a 91% chance that the Fed will increase its key benchmark rate by 50 basis points in December to 4.25%-4.50%, with rates peaking in May 2023 at 4.93%.<\/p><\/blockquote>\n

PerpetualDiscounts now yield 6.57%, equivalent to 8.54% interest at the standard equivalency factor of 1.3x. Long corporates<\/a> yielded 5.02% on 2022-11-30 and since then the closing price has changed from 15.13 to 15.70, an increase of 377bp in price, with a Duration of 12.37 (BMO doesn’t specify whether this is Macaulay or Modified Duration; I will assume Modified) which implies a decline in yield of about 30bp since 11\/30 to 4.72%, so the pre-tax interest-equivalent spread (in this context, the \u201cSeniority Spread\u201d) has widened dramatically to 380bp from the 345bp reported November 30<\/a>.<\/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>\n1.0706 %<\/td>\n2,449.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n1.0706 %<\/td>\n4,698.5<\/td>\n<\/tr>\n
Floater<\/td>\n8.17 %<\/td>\n8.38 %<\/td>\n60,931<\/td>\n10.86<\/td>\n2<\/td>\n1.0706 %<\/td>\n2,707.8<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1789 %<\/td>\n3,291.1<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.17 %<\/td>\n7.45 %<\/td>\n51,531<\/td>\n2.77<\/td>\n8<\/td>\n-0.1789 %<\/td>\n3,930.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1789 %<\/td>\n3,066.6<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0753 %<\/td>\n2,651.0<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.43 %<\/td>\n6.57 %<\/td>\n98,443<\/td>\n13.07<\/td>\n34<\/td>\n0.0753 %<\/td>\n2,890.7<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n5.45 %<\/td>\n7.36 %<\/td>\n93,335<\/td>\n12.25<\/td>\n63<\/td>\n0.1231 %<\/td>\n2,210.5<\/td>\n<\/tr>\n
Insurance Straight<\/td>\n6.44 %<\/td>\n6.51 %<\/td>\n105,487<\/td>\n13.24<\/td>\n18<\/td>\n-0.1705 %<\/td>\n2,794.5<\/td>\n<\/tr>\n
FloatingReset<\/td>\n9.29 %<\/td>\n9.63 %<\/td>\n44,289<\/td>\n9.91<\/td>\n2<\/td>\n0.3223 %<\/td>\n2,526.7<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n6.38 %<\/td>\n6.11 %<\/td>\n404,738<\/td>\n4.19<\/td>\n1<\/td>\n0.2756 %<\/td>\n2,370.5<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1231 %<\/td>\n2,259.6<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.45 %<\/td>\n7.47 %<\/td>\n47,588<\/td>\n12.39<\/td>\n14<\/td>\n-0.4583 %<\/td>\n2,303.5<\/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\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
RY.PR.M<\/td>\nFixedReset Disc<\/td>\n-2.96 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 18.00
\nEvaluated at bid price : 18.00
\nBid-YTW : 7.23 %<\/td>\n<\/tr>\n
MFC.PR.L<\/td>\nFixedReset Ins Non<\/td>\n-2.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 16.25
\nEvaluated at bid price : 16.25
\nBid-YTW : 7.87 %<\/td>\n<\/tr>\n
BIP.PR.F<\/td>\nFixedReset Disc<\/td>\n-2.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 18.86
\nEvaluated at bid price : 18.86
\nBid-YTW : 7.90 %<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nInsurance Straight<\/td>\n-1.90 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 18.10
\nEvaluated at bid price : 18.10
\nBid-YTW : 6.23 %<\/td>\n<\/tr>\n
IAF.PR.I<\/td>\nFixedReset Ins Non<\/td>\n-1.75 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 21.56
\nEvaluated at bid price : 21.91
\nBid-YTW : 6.64 %<\/td>\n<\/tr>\n
BIP.PR.A<\/td>\nFixedReset Disc<\/td>\n-1.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 16.40
\nEvaluated at bid price : 16.40
\nBid-YTW : 9.35 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset Disc<\/td>\n-1.40 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 14.06
\nEvaluated at bid price : 14.06
\nBid-YTW : 8.51 %<\/td>\n<\/tr>\n
RY.PR.O<\/td>\nPerpetual-Discount<\/td>\n-1.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 21.25
\nEvaluated at bid price : 21.25
\nBid-YTW : 5.82 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset Ins Non<\/td>\n-1.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 12.69
\nEvaluated at bid price : 12.69
\nBid-YTW : 7.56 %<\/td>\n<\/tr>\n
MFC.PR.J<\/td>\nFixedReset Ins Non<\/td>\n-1.24 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 19.95
\nEvaluated at bid price : 19.95
\nBid-YTW : 7.16 %<\/td>\n<\/tr>\n
PWF.PF.A<\/td>\nPerpetual-Discount<\/td>\n-1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 17.79
\nEvaluated at bid price : 17.79
\nBid-YTW : 6.42 %<\/td>\n<\/tr>\n
IFC.PR.C<\/td>\nFixedReset Disc<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 17.32
\nEvaluated at bid price : 17.32
\nBid-YTW : 7.56 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset Ins Non<\/td>\n-1.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 12.86
\nEvaluated at bid price : 12.86
\nBid-YTW : 7.74 %<\/td>\n<\/tr>\n
POW.PR.B<\/td>\nPerpetual-Discount<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 20.43
\nEvaluated at bid price : 20.43
\nBid-YTW : 6.67 %<\/td>\n<\/tr>\n
RY.PR.J<\/td>\nFixedReset Disc<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 18.80
\nEvaluated at bid price : 18.80
\nBid-YTW : 7.23 %<\/td>\n<\/tr>\n
PWF.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 20.15
\nEvaluated at bid price : 20.15
\nBid-YTW : 6.62 %<\/td>\n<\/tr>\n
TD.PF.E<\/td>\nFixedReset Disc<\/td>\n1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 19.30
\nEvaluated at bid price : 19.30
\nBid-YTW : 7.11 %<\/td>\n<\/tr>\n
CCS.PR.C<\/td>\nInsurance Straight<\/td>\n1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 19.29
\nEvaluated at bid price : 19.29
\nBid-YTW : 6.50 %<\/td>\n<\/tr>\n
BAM.PF.A<\/td>\nFixedReset Disc<\/td>\n1.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 19.76
\nEvaluated at bid price : 19.76
\nBid-YTW : 7.67 %<\/td>\n<\/tr>\n
TD.PF.D<\/td>\nFixedReset Disc<\/td>\n1.64 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 19.25
\nEvaluated at bid price : 19.25
\nBid-YTW : 7.09 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n1.76 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 12.74
\nEvaluated at bid price : 12.74
\nBid-YTW : 8.39 %<\/td>\n<\/tr>\n
RY.PR.N<\/td>\nPerpetual-Discount<\/td>\n1.90 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 21.50
\nEvaluated at bid price : 21.50
\nBid-YTW : 5.75 %<\/td>\n<\/tr>\n
PWF.PR.T<\/td>\nFixedReset Disc<\/td>\n2.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 18.42
\nEvaluated at bid price : 18.42
\nBid-YTW : 7.38 %<\/td>\n<\/tr>\n
BAM.PF.G<\/td>\nFixedReset Disc<\/td>\n2.83 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 16.35
\nEvaluated at bid price : 16.35
\nBid-YTW : 8.43 %<\/td>\n<\/tr>\n
BAM.PF.I<\/td>\nFixedReset Disc<\/td>\n3.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 22.20
\nEvaluated at bid price : 22.80
\nBid-YTW : 7.21 %<\/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.H<\/td>\nPerpetual-Discount<\/td>\n52,500<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 20.09
\nEvaluated at bid price : 20.09
\nBid-YTW : 6.60 %<\/td>\n<\/tr>\n
TD.PF.C<\/td>\nFixedReset Disc<\/td>\n50,804<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 17.42
\nEvaluated at bid price : 17.42
\nBid-YTW : 7.44 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nInsurance Straight<\/td>\n42,477<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 18.55
\nEvaluated at bid price : 18.55
\nBid-YTW : 6.30 %<\/td>\n<\/tr>\n
GWO.PR.R<\/td>\nInsurance Straight<\/td>\n33,348<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 18.45
\nEvaluated at bid price : 18.45
\nBid-YTW : 6.53 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset Ins Non<\/td>\n32,033<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 17.70
\nEvaluated at bid price : 17.70
\nBid-YTW : 7.47 %<\/td>\n<\/tr>\n
GWO.PR.H<\/td>\nInsurance Straight<\/td>\n31,092<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 18.68
\nEvaluated at bid price : 18.68
\nBid-YTW : 6.51 %<\/td>\n<\/tr>\n
There were 44 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
IAF.PR.I<\/td>\nFixedReset Ins Non<\/td>\nQuote: 21.91 – 22.97
\nSpot Rate : 1.0600
\nAverage : 0.6165<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 21.56
\nEvaluated at bid price : 21.91
\nBid-YTW : 6.64 %<\/td>\n<\/tr>\n

PWF.PR.K<\/td>\nPerpetual-Discount<\/td>\nQuote: 19.00 – 20.30
\nSpot Rate : 1.3000
\nAverage : 0.8677<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 19.00
\nEvaluated at bid price : 19.00
\nBid-YTW : 6.62 %<\/td>\n<\/tr>\n

GWO.PR.M<\/td>\nInsurance Straight<\/td>\nQuote: 22.35 – 23.60
\nSpot Rate : 1.2500
\nAverage : 0.8939<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 22.06
\nEvaluated at bid price : 22.35
\nBid-YTW : 6.49 %<\/td>\n<\/tr>\n

NA.PR.W<\/td>\nFixedReset Disc<\/td>\nQuote: 16.74 – 17.74
\nSpot Rate : 1.0000
\nAverage : 0.6641<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 16.74
\nEvaluated at bid price : 16.74
\nBid-YTW : 7.71 %<\/td>\n<\/tr>\n

PWF.PF.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 17.79 – 18.90
\nSpot Rate : 1.1100
\nAverage : 0.7868<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 17.79
\nEvaluated at bid price : 17.79
\nBid-YTW : 6.42 %<\/td>\n<\/tr>\n

TD.PF.J<\/td>\nFixedReset Disc<\/td>\nQuote: 21.01 – 21.84
\nSpot Rate : 0.8300
\nAverage : 0.5178<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2052-12-07
\nMaturity Price : 21.01
\nEvaluated at bid price : 21.01
\nBid-YTW : 6.95 %<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The markets took the Bank of Canada rate hike in stride: Canada\u2019s main stock index edged lower on Wednesday to its lowest closing level in nearly three weeks as a drop in oil prices weighed …<\/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-44482","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/44482","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=44482"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/44482\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}