{"id":44776,"date":"2023-02-08T20:57:09","date_gmt":"2023-02-09T01:57:09","guid":{"rendered":"https:\/\/prefblog.com\/?p=44776"},"modified":"2023-02-08T20:57:09","modified_gmt":"2023-02-09T01:57:09","slug":"february-8-2023","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=44776","title":{"rendered":"February 8, 2023"},"content":{"rendered":"

The BoC published its minutes<\/a>:<\/p>\n

Until Wednesday, the Bank of Canada stood apart from peer central banks in not publishing some form of rate-decision meeting minutes. In a paper published last month, the bank\u2019s own staff ranked it last among nine peer central banks for the depth and breadth of information released after rate announcements.<\/p>\n

The bank had long maintained that its consensus form of decision-making made meeting minutes unnecessary. Governing council members don\u2019t formally vote on monetary policy decisions, rather they offer opinions to the governor who has final decision-making authority. That is in contrast to the U.S. Federal Reserve, where monetary policy is decided based on votes by members of the Federal Open Market Committee.<\/p>\n

Ultimately, the Bank of Canada changed its mind after a review of its transparency practices by the International Monetary Fund last year. The summary published Wednesday is considerably less detailed than Fed meeting minutes.<\/p>\n

The document mostly reiterated comments made by Mr. Macklem in recent speeches and news conferences.<\/p><\/blockquote>\n

PerpetualDiscounts now yield 6.03%, equivalent to 7.84% interest at the standard equivalency factor of 1.3x. Long corporates<\/a> yielded 4.89% on 2023-1-27 and since then the closing price has changed from 15.49 to 15.34, a decline of 97bp in price, with a Duration of 12.35 (BMO doesn’t specify whether this is Macaulay or Modified Duration; I will assume Modified) which implies an increase in yield of about 8bp since 1\/27 to 4.97%, so the pre-tax interest-equivalent spread (in this context, the \u201cSeniority Spread\u201d) has narrowed slightly (and perhaps spuriously) to about 285bp from the 290bp reported February 1<\/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>\n0.0000 %<\/td>\n2,571.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0000 %<\/td>\n4,932.6<\/td>\n<\/tr>\n
Floater<\/td>\n8.76 %<\/td>\n8.93 %<\/td>\n53,701<\/td>\n10.40<\/td>\n2<\/td>\n0.0000 %<\/td>\n2,842.7<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2397 %<\/td>\n3,429.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.90 %<\/td>\n6.45 %<\/td>\n57,274<\/td>\n2.78<\/td>\n7<\/td>\n0.2397 %<\/td>\n4,095.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2397 %<\/td>\n3,195.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1563 %<\/td>\n2,862.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.96 %<\/td>\n6.03 %<\/td>\n77,410<\/td>\n13.85<\/td>\n37<\/td>\n0.1563 %<\/td>\n3,121.9<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n5.30 %<\/td>\n7.20 %<\/td>\n87,755<\/td>\n12.47<\/td>\n59<\/td>\n0.5545 %<\/td>\n2,299.1<\/td>\n<\/tr>\n
Insurance Straight<\/td>\n5.83 %<\/td>\n5.98 %<\/td>\n89,566<\/td>\n13.86<\/td>\n20<\/td>\n-0.0448 %<\/td>\n3,082.3<\/td>\n<\/tr>\n
FloatingReset<\/td>\n9.72 %<\/td>\n10.24 %<\/td>\n37,363<\/td>\n9.29<\/td>\n2<\/td>\n0.0000 %<\/td>\n2,573.8<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n6.33 %<\/td>\n6.27 %<\/td>\n195,596<\/td>\n4.05<\/td>\n2<\/td>\n-0.0590 %<\/td>\n2,396.6<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.5545 %<\/td>\n2,350.2<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.34 %<\/td>\n7.11 %<\/td>\n51,760<\/td>\n12.56<\/td>\n14<\/td>\n0.6189 %<\/td>\n2,417.3<\/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\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nInsurance Straight<\/td>\n-7.81 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 18.53
\nEvaluated at bid price : 18.53
\nBid-YTW : 6.18 %<\/td>\n<\/tr>\n
CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\n-2.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 19.10
\nEvaluated at bid price : 19.10
\nBid-YTW : 6.04 %<\/td>\n<\/tr>\n
BIP.PR.F<\/td>\nFixedReset Disc<\/td>\n-1.89 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 20.80
\nEvaluated at bid price : 20.80
\nBid-YTW : 7.41 %<\/td>\n<\/tr>\n
NA.PR.G<\/td>\nFixedReset Disc<\/td>\n-1.75 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 21.57
\nEvaluated at bid price : 21.93
\nBid-YTW : 6.79 %<\/td>\n<\/tr>\n
PWF.PR.L<\/td>\nPerpetual-Discount<\/td>\n-1.66 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 20.70
\nEvaluated at bid price : 20.70
\nBid-YTW : 6.22 %<\/td>\n<\/tr>\n
TD.PF.J<\/td>\nFixedReset Disc<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 22.16
\nEvaluated at bid price : 22.81
\nBid-YTW : 6.50 %<\/td>\n<\/tr>\n
BIP.PR.A<\/td>\nFixedReset Disc<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 18.78
\nEvaluated at bid price : 18.78
\nBid-YTW : 8.48 %<\/td>\n<\/tr>\n
BN.PF.C<\/td>\nPerpetual-Discount<\/td>\n1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 19.71
\nEvaluated at bid price : 19.71
\nBid-YTW : 6.25 %<\/td>\n<\/tr>\n
BIP.PR.B<\/td>\nFixedReset Disc<\/td>\n1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2025-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.00
\nBid-YTW : 7.34 %<\/td>\n<\/tr>\n
MFC.PR.Q<\/td>\nFixedReset Ins Non<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 20.55
\nEvaluated at bid price : 20.55
\nBid-YTW : 7.11 %<\/td>\n<\/tr>\n
BMO.PR.W<\/td>\nFixedReset Disc<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 18.20
\nEvaluated at bid price : 18.20
\nBid-YTW : 7.23 %<\/td>\n<\/tr>\n
TRP.PR.B<\/td>\nFixedReset Disc<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 11.82
\nEvaluated at bid price : 11.82
\nBid-YTW : 8.54 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset Disc<\/td>\n1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 20.70
\nEvaluated at bid price : 20.70
\nBid-YTW : 6.66 %<\/td>\n<\/tr>\n
TD.PF.A<\/td>\nFixedReset Disc<\/td>\n1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 18.01
\nEvaluated at bid price : 18.01
\nBid-YTW : 7.35 %<\/td>\n<\/tr>\n
TRP.PR.D<\/td>\nFixedReset Disc<\/td>\n1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 16.55
\nEvaluated at bid price : 16.55
\nBid-YTW : 8.31 %<\/td>\n<\/tr>\n
IFC.PR.F<\/td>\nInsurance Straight<\/td>\n1.31 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 22.17
\nEvaluated at bid price : 22.44
\nBid-YTW : 5.98 %<\/td>\n<\/tr>\n
IFC.PR.K<\/td>\nPerpetual-Discount<\/td>\n1.31 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 22.06
\nEvaluated at bid price : 22.35
\nBid-YTW : 5.95 %<\/td>\n<\/tr>\n
PWF.PF.A<\/td>\nPerpetual-Discount<\/td>\n1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 19.52
\nEvaluated at bid price : 19.52
\nBid-YTW : 5.81 %<\/td>\n<\/tr>\n
MFC.PR.L<\/td>\nFixedReset Ins Non<\/td>\n1.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 17.54
\nEvaluated at bid price : 17.54
\nBid-YTW : 7.57 %<\/td>\n<\/tr>\n
BN.PF.A<\/td>\nFixedReset Disc<\/td>\n1.43 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 20.55
\nEvaluated at bid price : 20.55
\nBid-YTW : 7.50 %<\/td>\n<\/tr>\n
PVS.PR.K<\/td>\nSplitShare<\/td>\n1.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2029-05-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.85
\nBid-YTW : 6.31 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset Ins Non<\/td>\n1.85 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 12.69
\nEvaluated at bid price : 12.69
\nBid-YTW : 7.86 %<\/td>\n<\/tr>\n
TD.PF.D<\/td>\nFixedReset Disc<\/td>\n2.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 6.99 %<\/td>\n<\/tr>\n
BN.PR.R<\/td>\nFixedReset Disc<\/td>\n2.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 15.34
\nEvaluated at bid price : 15.34
\nBid-YTW : 8.19 %<\/td>\n<\/tr>\n
BN.PR.X<\/td>\nFixedReset Disc<\/td>\n2.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 16.79
\nEvaluated at bid price : 16.79
\nBid-YTW : 7.40 %<\/td>\n<\/tr>\n
BN.PR.T<\/td>\nFixedReset Disc<\/td>\n2.57 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 15.95
\nEvaluated at bid price : 15.95
\nBid-YTW : 8.01 %<\/td>\n<\/tr>\n
IFC.PR.G<\/td>\nFixedReset Ins Non<\/td>\n2.93 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 21.10
\nEvaluated at bid price : 21.10
\nBid-YTW : 6.91 %<\/td>\n<\/tr>\n
BN.PF.G<\/td>\nFixedReset Disc<\/td>\n3.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 16.95
\nEvaluated at bid price : 16.95
\nBid-YTW : 8.32 %<\/td>\n<\/tr>\n
RY.PR.J<\/td>\nFixedReset Disc<\/td>\n4.55 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 6.95 %<\/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
TD.PF.M<\/td>\nFixedReset Disc<\/td>\n89,573<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2024-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.60
\nBid-YTW : 6.38 %<\/td>\n<\/tr>\n
MFC.PR.M<\/td>\nFixedReset Ins Non<\/td>\n50,626<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 17.95
\nEvaluated at bid price : 17.95
\nBid-YTW : 7.56 %<\/td>\n<\/tr>\n
TD.PF.A<\/td>\nFixedReset Disc<\/td>\n49,761<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 18.01
\nEvaluated at bid price : 18.01
\nBid-YTW : 7.35 %<\/td>\n<\/tr>\n
TD.PF.L<\/td>\nFixedReset Disc<\/td>\n35,565<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 23.58
\nEvaluated at bid price : 24.05
\nBid-YTW : 6.67 %<\/td>\n<\/tr>\n
RY.PR.M<\/td>\nFixedReset Disc<\/td>\n33,910<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 18.87
\nEvaluated at bid price : 18.87
\nBid-YTW : 7.06 %<\/td>\n<\/tr>\n
MFC.PR.N<\/td>\nFixedReset Ins Non<\/td>\n33,075<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 17.45
\nEvaluated at bid price : 17.45
\nBid-YTW : 7.63 %<\/td>\n<\/tr>\n
There were 15 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
MFC.PR.C<\/td>\nInsurance Straight<\/td>\nQuote: 18.53 – 20.39
\nSpot Rate : 1.8600
\nAverage : 1.1488<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 18.53
\nEvaluated at bid price : 18.53
\nBid-YTW : 6.18 %<\/td>\n<\/tr>\n

BN.PR.X<\/td>\nFixedReset Disc<\/td>\nQuote: 16.79 – 18.60
\nSpot Rate : 1.8100
\nAverage : 1.1312<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 16.79
\nEvaluated at bid price : 16.79
\nBid-YTW : 7.40 %<\/td>\n<\/tr>\n

BN.PF.B<\/td>\nFixedReset Disc<\/td>\nQuote: 17.69 – 18.80
\nSpot Rate : 1.1100
\nAverage : 0.7041<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 17.69
\nEvaluated at bid price : 17.69
\nBid-YTW : 8.23 %<\/td>\n<\/tr>\n

CU.PR.D<\/td>\nPerpetual-Discount<\/td>\nQuote: 20.19 – 21.59
\nSpot Rate : 1.4000
\nAverage : 1.0497<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 20.19
\nEvaluated at bid price : 20.19
\nBid-YTW : 6.09 %<\/td>\n<\/tr>\n

BN.PF.F<\/td>\nFixedReset Disc<\/td>\nQuote: 17.95 – 18.80
\nSpot Rate : 0.8500
\nAverage : 0.5393<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 17.95
\nEvaluated at bid price : 17.95
\nBid-YTW : 8.25 %<\/td>\n<\/tr>\n

PWF.PR.L<\/td>\nPerpetual-Discount<\/td>\nQuote: 20.70 – 22.03
\nSpot Rate : 1.3300
\nAverage : 1.0301<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-02-08
\nMaturity Price : 20.70
\nEvaluated at bid price : 20.70
\nBid-YTW : 6.22 %<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The BoC published its minutes: Until Wednesday, the Bank of Canada stood apart from peer central banks in not publishing some form of rate-decision meeting minutes. In a paper published last month, the bank\u2019s own …<\/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-44776","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/44776","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=44776"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/44776\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}