{"id":44865,"date":"2023-02-22T20:13:13","date_gmt":"2023-02-23T01:13:13","guid":{"rendered":"https:\/\/prefblog.com\/?p=44865"},"modified":"2023-02-22T20:13:13","modified_gmt":"2023-02-23T01:13:13","slug":"february-22-2023","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=44865","title":{"rendered":"February 22, 2023"},"content":{"rendered":"<p>The BoC has published a paper by Martin Kuncl and Dmitry Matveev titled <a href=\"https:\/\/www.bankofcanada.ca\/wp-content\/uploads\/2023\/02\/sdp2023-5.pdf\">The Canadian Neutral Rate of Interest through the Lens of an Overlapping-Generations Model<\/a>:<\/p>\n<blockquote><p>The neutral rate of interest is an important concept and communication tool for central banks. We develop a small open economy model with overlapping generations to study the determinants of the neutral real rate of interest in a small open economy. The model captures domestic factors such as population aging, declining productivity, rising government debt and inequality. Foreign factors are captured by changes in the global neutral real rate. We use the model to evaluate secular dynamics of the neutral rate in Canada from 1980 to 2018. We find that changes in both foreign and domestic factors resulted in a protracted decline in the neutral rate.<br \/>\n<b>&#8230;<\/b><br \/>\nThe biggest domestic contributors to the neutral rate change were the two demographic factors. Firstly, higher domestic savings due to longer longevity contributed -83 bps and -34 bps to the R\u2217 change in the high- and the low-elasticity case, respectively. Secondly, the reduction in TLI [Trend Labour Input] growth that implies lower investment and borrowing of young households contributed by -75 bps and -34 bps to the R\u2217 change in the high- and low-elasticity case, respectively.<\/p><\/blockquote>\n<div align=\"center\"><a href=\"https:\/\/prefblog.com\/wp-content\/uploads\/2023\/02\/domesticFactors.jpg\"><img decoding=\"async\" src=\"https:\/\/prefblog.com\/wp-content\/uploads\/2023\/02\/domesticFactors.jpg\" width=\"400\"><\/a><\/div>\n<div align=\"center\"><a href=\"https:\/\/prefblog.com\/wp-content\/uploads\/2023\/02\/neutralRealRate.jpg\"><img decoding=\"async\" src=\"https:\/\/prefblog.com\/wp-content\/uploads\/2023\/02\/neutralRealRate.jpg\" width=\"400\"><\/a><\/div>\n<p>The New York Fed updated its <a href=\"https:\/\/www.newyorkfed.org\/research\/policy\/cmdi#\/interactive\">Corporate Bond Market Distress Index (CMDI)<\/a>:<\/p>\n<blockquote>\n<ul>\n<li>Corporate bond market functioning appears healthy, with the overall market-level CMDI remaining stable around its historical 30th percentile.<\/li>\n<li>Market functioning in the investment-grade segment remained below its historical 75th percentile in February.<\/li>\n<\/ul>\n<\/blockquote>\n<p>PerpetualDiscounts now yield 6.25%, equivalent to 8.12% interest at the standard equivalency factor of 1.3x. <a href=\"https:\/\/www.bmogam.com\/ca-en\/advisors\/investment-solutions\/etf\/bmo-long-corporate-bond-index-etf-zlc\/\">Long corporates<\/a> yielded 5.06% on 2023-2-10 and since then the closing price has changed from 15.03 to 14.69, a decline of 226bp in price, with a Duration of 12.32 (BMO doesn&#8217;t specify whether this is Macaulay or Modified Duration; I will assume Modified) which implies an increase in yield of about 18bp since 2\/10 to 5.24%, so the pre-tax interest-equivalent spread (in this context, the \u201cSeniority Spread\u201d) has widened to about 290bp from the 270bp  reported <a href=\"https:\/\/prefblog.com\/?p=44825\">February 15<\/a>.<\/p>\n<table border=\"1\">\n<tbody>\n<tr>\n<td colspan=\"8\"><strong>HIMIPref\u2122 Preferred Indices<br \/>\nThese values reflect the December 2008 revision of the HIMIPref\u2122 Indices<\/strong><br \/>\nValues are provisional and are finalized monthly<\/td>\n<\/tr>\n<tr>\n<td>Index<\/td>\n<td>Mean<br \/>\nCurrent<br \/>\nYield<br \/>\n(at bid)<\/td>\n<td>Median<br \/>\nYTW<\/td>\n<td>Median<br \/>\nAverage<br \/>\nTrading<br \/>\nValue<\/td>\n<td>Median<br \/>\nMod Dur<br \/>\n(YTW)<\/td>\n<td>Issues<\/td>\n<td>Day&#8217;s Perf.<\/td>\n<td>Index Value<\/td>\n<\/tr>\n<tr>\n<td>Ratchet<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>0.0000 %<\/td>\n<td>2,575.6<\/td>\n<\/tr>\n<tr>\n<td>FixedFloater<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>0.0000 %<\/td>\n<td>4,940.0<\/td>\n<\/tr>\n<tr>\n<td>Floater<\/td>\n<td>8.75 %<\/td>\n<td>8.93 %<\/td>\n<td>61,385<\/td>\n<td>10.36<\/td>\n<td>2<\/td>\n<td>0.0000 %<\/td>\n<td>2,846.9<\/td>\n<\/tr>\n<tr>\n<td>OpRet<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>0.1336 %<\/td>\n<td>3,381.4<\/td>\n<\/tr>\n<tr>\n<td>SplitShare<\/td>\n<td>4.97 %<\/td>\n<td>6.59 %<\/td>\n<td>56,565<\/td>\n<td>2.78<\/td>\n<td>7<\/td>\n<td>0.1336 %<\/td>\n<td>4,038.2<\/td>\n<\/tr>\n<tr>\n<td>Interest-Bearing<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>0.1336 %<\/td>\n<td>3,150.7<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Premium<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>-0.2447 %<\/td>\n<td>2,776.8<\/td>\n<\/tr>\n<tr>\n<td>Perpetual-Discount<\/td>\n<td>6.14 %<\/td>\n<td>6.25 %<\/td>\n<td>72,419<\/td>\n<td>13.52<\/td>\n<td>37<\/td>\n<td>-0.2447 %<\/td>\n<td>3,028.0<\/td>\n<\/tr>\n<tr>\n<td>FixedReset Disc<\/td>\n<td>5.38 %<\/td>\n<td>7.69 %<\/td>\n<td>87,965<\/td>\n<td>11.84<\/td>\n<td>59<\/td>\n<td>-0.6460 %<\/td>\n<td>2,267.1<\/td>\n<\/tr>\n<tr>\n<td>Insurance Straight<\/td>\n<td>6.02 %<\/td>\n<td>6.17 %<\/td>\n<td>91,226<\/td>\n<td>13.59<\/td>\n<td>20<\/td>\n<td>-0.0024 %<\/td>\n<td>2,981.3<\/td>\n<\/tr>\n<tr>\n<td>FloatingReset<\/td>\n<td>9.77 %<\/td>\n<td>10.17 %<\/td>\n<td>39,937<\/td>\n<td>9.31<\/td>\n<td>2<\/td>\n<td>-0.2162 %<\/td>\n<td>2,622.5<\/td>\n<\/tr>\n<tr>\n<td>FixedReset Prem<\/td>\n<td>6.40 %<\/td>\n<td>6.36 %<\/td>\n<td>203,977<\/td>\n<td>4.01<\/td>\n<td>2<\/td>\n<td>0.4998 %<\/td>\n<td>2,370.2<\/td>\n<\/tr>\n<tr>\n<td>FixedReset Bank Non<\/td>\n<td>0.00 %<\/td>\n<td>0.00 %<\/td>\n<td>0<\/td>\n<td>0.00<\/td>\n<td>0<\/td>\n<td>-0.6460 %<\/td>\n<td>2,317.4<\/td>\n<\/tr>\n<tr>\n<td>FixedReset Ins Non<\/td>\n<td>5.24 %<\/td>\n<td>7.29 %<\/td>\n<td>46,593<\/td>\n<td>12.15<\/td>\n<td>14<\/td>\n<td>-0.3064 %<\/td>\n<td>2,464.9<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table border=\"1\">\n<tbody>\n<tr>\n<td colspan=\"4\"><strong>Performance Highlights<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Index<\/td>\n<td>Change<\/td>\n<td>Notes<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.C<\/td>\n<td>FixedReset Disc<\/td>\n<td>-24.28 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 14.00<br \/>\nEvaluated at bid price : 14.00<br \/>\nBid-YTW : 9.90 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.E<\/td>\n<td>Perpetual-Discount<\/td>\n<td>-5.49 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 19.10<br \/>\nEvaluated at bid price : 19.10<br \/>\nBid-YTW : 6.45 %<\/td>\n<\/tr>\n<tr>\n<td>CIU.PR.A<\/td>\n<td>Perpetual-Discount<\/td>\n<td>-4.56 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 17.99<br \/>\nEvaluated at bid price : 17.99<br \/>\nBid-YTW : 6.43 %<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.G<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>-3.48 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 21.38<br \/>\nEvaluated at bid price : 21.38<br \/>\nBid-YTW : 7.29 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.D<\/td>\n<td>Perpetual-Discount<\/td>\n<td>-3.17 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 19.56<br \/>\nEvaluated at bid price : 19.56<br \/>\nBid-YTW : 6.30 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.J<\/td>\n<td>FixedReset Disc<\/td>\n<td>-2.65 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 19.13<br \/>\nEvaluated at bid price : 19.13<br \/>\nBid-YTW : 7.69 %<\/td>\n<\/tr>\n<tr>\n<td>BN.PR.M<\/td>\n<td>Perpetual-Discount<\/td>\n<td>-2.26 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 18.62<br \/>\nEvaluated at bid price : 18.62<br \/>\nBid-YTW : 6.50 %<\/td>\n<\/tr>\n<tr>\n<td>BIP.PR.F<\/td>\n<td>FixedReset Disc<\/td>\n<td>-1.81 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 21.11<br \/>\nEvaluated at bid price : 21.11<br \/>\nBid-YTW : 7.76 %<\/td>\n<\/tr>\n<tr>\n<td>BMO.PR.Y<\/td>\n<td>FixedReset Disc<\/td>\n<td>-1.57 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 18.84<br \/>\nEvaluated at bid price : 18.84<br \/>\nBid-YTW : 7.66 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.F<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>-1.42 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 13.21<br \/>\nEvaluated at bid price : 13.21<br \/>\nBid-YTW : 8.38 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.K<\/td>\n<td>Perpetual-Discount<\/td>\n<td>-1.41 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 20.21<br \/>\nEvaluated at bid price : 20.21<br \/>\nBid-YTW : 6.20 %<\/td>\n<\/tr>\n<tr>\n<td>CM.PR.P<\/td>\n<td>FixedReset Disc<\/td>\n<td>-1.40 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 17.65<br \/>\nEvaluated at bid price : 17.65<br \/>\nBid-YTW : 7.94 %<\/td>\n<\/tr>\n<tr>\n<td>GWO.PR.T<\/td>\n<td>Insurance Straight<\/td>\n<td>-1.36 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 21.01<br \/>\nEvaluated at bid price : 21.01<br \/>\nBid-YTW : 6.24 %<\/td>\n<\/tr>\n<tr>\n<td>BN.PF.H<\/td>\n<td>FixedReset Disc<\/td>\n<td>-1.25 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Call<br \/>\nMaturity Date\t: 2025-12-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 23.61<br \/>\nBid-YTW : 7.53 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.I<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>-1.23 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 22.45<br \/>\nEvaluated at bid price : 23.26<br \/>\nBid-YTW : 6.89 %<\/td>\n<\/tr>\n<tr>\n<td>POW.PR.D<\/td>\n<td>Perpetual-Discount<\/td>\n<td>-1.21 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 20.35<br \/>\nEvaluated at bid price : 20.35<br \/>\nBid-YTW : 6.24 %<\/td>\n<\/tr>\n<tr>\n<td>NA.PR.W<\/td>\n<td>FixedReset Disc<\/td>\n<td>-1.13 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 17.55<br \/>\nEvaluated at bid price : 17.55<br \/>\nBid-YTW : 8.00 %<\/td>\n<\/tr>\n<tr>\n<td>SLF.PR.H<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>-1.13 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 15.82<br \/>\nEvaluated at bid price : 15.82<br \/>\nBid-YTW : 8.09 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PF.A<\/td>\n<td>Perpetual-Discount<\/td>\n<td>-1.08 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 18.35<br \/>\nEvaluated at bid price : 18.35<br \/>\nBid-YTW : 6.21 %<\/td>\n<\/tr>\n<tr>\n<td>SLF.PR.J<\/td>\n<td>FloatingReset<\/td>\n<td>-1.07 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 15.71<br \/>\nEvaluated at bid price : 15.71<br \/>\nBid-YTW : 9.90 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.E<\/td>\n<td>FixedReset Disc<\/td>\n<td>-1.01 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 19.58<br \/>\nEvaluated at bid price : 19.58<br \/>\nBid-YTW : 7.57 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.B<\/td>\n<td>Insurance Straight<\/td>\n<td>1.06 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 19.96<br \/>\nEvaluated at bid price : 19.96<br \/>\nBid-YTW : 5.94 %<\/td>\n<\/tr>\n<tr>\n<td>PVS.PR.K<\/td>\n<td>SplitShare<\/td>\n<td>1.12 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Hard Maturity<br \/>\nMaturity Date\t: 2029-05-31<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 22.60<br \/>\nBid-YTW : 6.33 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.C<\/td>\n<td>FixedReset Disc<\/td>\n<td>1.20 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 17.77<br \/>\nEvaluated at bid price : 17.77<br \/>\nBid-YTW : 7.93 %<\/td>\n<\/tr>\n<tr>\n<td>EIT.PR.A<\/td>\n<td>SplitShare<\/td>\n<td>1.34 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Soft Maturity<br \/>\nMaturity Date\t: 2024-03-14<br \/>\nMaturity Price  : 25.00<br \/>\nEvaluated at bid price : 24.58<br \/>\nBid-YTW : 6.22 %<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.K<\/td>\n<td>Perpetual-Discount<\/td>\n<td>1.40 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 21.51<br \/>\nEvaluated at bid price : 21.80<br \/>\nBid-YTW : 6.11 %<\/td>\n<\/tr>\n<tr>\n<td>PWF.PR.L<\/td>\n<td>Perpetual-Discount<\/td>\n<td>1.40 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 21.00<br \/>\nEvaluated at bid price : 21.00<br \/>\nBid-YTW : 6.15 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.K<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>1.54 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 19.80<br \/>\nEvaluated at bid price : 19.80<br \/>\nBid-YTW : 7.43 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.N<\/td>\n<td>Perpetual-Discount<\/td>\n<td>1.96 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 21.90<br \/>\nEvaluated at bid price : 22.40<br \/>\nBid-YTW : 5.48 %<\/td>\n<\/tr>\n<tr>\n<td>BN.PR.X<\/td>\n<td>FixedReset Disc<\/td>\n<td>1.98 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 16.50<br \/>\nEvaluated at bid price : 16.50<br \/>\nBid-YTW : 7.96 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.H<\/td>\n<td>Perpetual-Discount<\/td>\n<td>6.37 %<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 21.88<br \/>\nEvaluated at bid price : 21.88<br \/>\nBid-YTW : 6.03 %<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table border=\"1\">\n<tbody>\n<tr>\n<td colspan=\"4\"><strong>Volume Highlights<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Index<\/td>\n<td>Shares<br \/>\nTraded<\/td>\n<td>Notes<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.G<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>43,158<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 21.38<br \/>\nEvaluated at bid price : 21.38<br \/>\nBid-YTW : 7.29 %<\/td>\n<\/tr>\n<tr>\n<td>NA.PR.G<\/td>\n<td>FixedReset Disc<\/td>\n<td>35,750<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 21.72<br \/>\nEvaluated at bid price : 22.15<br \/>\nBid-YTW : 7.16 %<\/td>\n<\/tr>\n<tr>\n<td>BMO.PR.E<\/td>\n<td>FixedReset Disc<\/td>\n<td>30,970<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 21.27<br \/>\nEvaluated at bid price : 21.27<br \/>\nBid-YTW : 7.35 %<\/td>\n<\/tr>\n<tr>\n<td>TD.PF.K<\/td>\n<td>FixedReset Disc<\/td>\n<td>30,630<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 21.00<br \/>\nEvaluated at bid price : 21.00<br \/>\nBid-YTW : 7.38 %<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.A<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>29,075<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 18.57<br \/>\nEvaluated at bid price : 18.57<br \/>\nBid-YTW : 7.08 %<\/td>\n<\/tr>\n<tr>\n<td>MFC.PR.F<\/td>\n<td>FixedReset Ins Non<\/td>\n<td>28,200<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 13.21<br \/>\nEvaluated at bid price : 13.21<br \/>\nBid-YTW : 8.38 %<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">There were 11 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table border=\"1\">\n<tbody>\n<tr>\n<td colspan=\"3\"><strong>Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>Index<\/td>\n<td>Quote Data and Yield Notes<\/td>\n<\/tr>\n<tr>\n<td>IFC.PR.C<\/td>\n<td>FixedReset Disc<\/td>\n<td>Quote: 14.00 &#8211; 18.67<br \/>\nSpot Rate  :  4.6700<br \/>\nAverage  :  2.5182<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 14.00<br \/>\nEvaluated at bid price : 14.00<br \/>\nBid-YTW : 9.90 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.J<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 19.60 &#8211; 23.50<br \/>\nSpot Rate  :  3.9000<br \/>\nAverage  :  2.2493<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 19.60<br \/>\nEvaluated at bid price : 19.60<br \/>\nBid-YTW : 6.10 %<\/td>\n<\/tr>\n<tr>\n<td>CIU.PR.A<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 17.99 &#8211; 19.36<br \/>\nSpot Rate  :  1.3700<br \/>\nAverage  :  0.8637<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 17.99<br \/>\nEvaluated at bid price : 17.99<br \/>\nBid-YTW : 6.43 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.E<\/td>\n<td>Perpetual-Discount<\/td>\n<td>Quote: 19.10 &#8211; 20.35<br \/>\nSpot Rate  :  1.2500<br \/>\nAverage  :  0.8108<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 19.10<br \/>\nEvaluated at bid price : 19.10<br \/>\nBid-YTW : 6.45 %<\/td>\n<\/tr>\n<tr>\n<td>RY.PR.J<\/td>\n<td>FixedReset Disc<\/td>\n<td>Quote: 19.13 &#8211; 20.05<br \/>\nSpot Rate  :  0.9200<br \/>\nAverage  :  0.5992<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 19.13<br \/>\nEvaluated at bid price : 19.13<br \/>\nBid-YTW : 7.69 %<\/td>\n<\/tr>\n<tr>\n<td>CU.PR.C<\/td>\n<td>FixedReset Disc<\/td>\n<td>Quote: 19.70 &#8211; 20.75<br \/>\nSpot Rate  :  1.0500<br \/>\nAverage  :  0.7650<\/p>\n<p>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2053-02-22<br \/>\nMaturity Price  : 19.70<br \/>\nEvaluated at bid price : 19.70<br \/>\nBid-YTW : 7.36 %<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>The BoC has published a paper by Martin Kuncl and Dmitry Matveev titled The Canadian Neutral Rate of Interest through the Lens of an Overlapping-Generations Model: The neutral rate of interest is an important concept &hellip;<\/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-44865","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/44865","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=44865"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/44865\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}