{"id":44948,"date":"2023-03-09T20:19:32","date_gmt":"2023-03-10T01:19:32","guid":{"rendered":"https:\/\/prefblog.com\/?p=44948"},"modified":"2023-03-09T20:19:32","modified_gmt":"2023-03-10T01:19:32","slug":"march-9-2023","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=44948","title":{"rendered":"March 9, 2023"},"content":{"rendered":"

Banks don’t compete on price. They do, however, compete by regulation<\/a>:<\/p>\n

The federal banking watchdog has launched a formal review of cash exchange-traded funds, one of Canada\u2019s most popular retail investments, amid a Bay Street spat that stems from surging demand for them.<\/p>\n

The Office of the Superintendent of Financial Institutions, which regulates banks, launched its review in the fall and is studying any liquidity concerns posed by these ETFs, according to three financial industry sources. The Globe and Mail is not identifying the sources because they were not authorized to speak publicly about the matter.
\n…<\/b>
\nThis access has rankled some banks, according to the sources, because ETFs that offer premium rates to retail clients are likely to lure away customers from banks, hitting that sector\u2019s profits.
\n…<\/b>
\nRoyal Bank of Canada RY-T -0.63%decrease
\ndoes not provide funding for any cash ETFs, and Toronto-Dominion Bank TD-T -1.45%decrease
\nhas only minimal exposure. Both banks have blocked access to these funds on their online retail investing platforms.<\/p><\/blockquote>\n

BoC Senior Deputy Governor Carolyn Rogers reminds us that the policy rate ‘pause’ may be temporary<\/a>:<\/p>\n

\u201cIf we continue to see the above-average wage growth that we\u2019ve been seeing in Canada without stronger growth in productivity, it will be difficult to bring inflation all the way down to 2 per cent,\u201d Ms. Rogers said in a speech to the Manitoba Chambers of Commerce.<\/p>\n

The central bank\u2019s decision to hold its overnight rate at 4.5 per cent on Wednesday marked a turning point after eight consecutive rate hikes. However, Ms. Rogers emphasized that this is a \u201cconditional pause,\u201d and that the bank could restart its rate-hike campaign if inflation and economic growth don\u2019t slow as quickly expected.<\/p>\n

\u201cWe\u2019ll need to see more evidence to fully assess whether monetary policy is restrictive enough to return inflation to 2 per cent,\u201d she said.<\/p><\/blockquote>\n

Markets were unkind to banks today<\/a>:<\/p>\n

Wall Street\u2019s three major stock indexes closed lower on Thursday, with bank stocks creating the biggest drag while investors also worried that Friday\u2019s jobs report could spur more aggressive interest rate hikes from the Federal Reserve. The Canadian benchmark stock index also fell and closed at its lowest level in nearly two months.<\/p>\n

The S&P 500\u2032s bank index finished down 6.6% after hitting its lowest level since mid-October. Investors fled the sector after tech-industry lender SVB Financial Group launched a share sale to shore up its balance sheet due to declining deposits from startups struggling for funding.<\/p><\/blockquote>\n

This is due, apparently, to problems at a techno-bank<\/a>:<\/p>\n

The S&P 500 bank index was down 4.6% on Thursday as investors grew wary of the entire sector after SVB Financial Group’s share sale announcement and crypto bank Silvergate’s decision to wind down operations.<\/p>\n

Shares in SVB, whose operating segments include Silicon Valley Bank, led declines, with a drop of 43.8% to $150.62 after it announced the $1.75 billion share sale late on Wednesday as it battles cash burn due to declining deposits from startups struggling with a venture capital funding drought.<\/p>\n

The second biggest decliner in the S&P 500 index was another San Francisco-based bank, First Republic, which was off 14.1% after hitting its lowest level since October 2020. Also Zion Bancorp, down 8.2%.<\/p>\n

The SPDR S&P regional banking ETF was down 6.0% after hitting its lowest point since January 2021.<\/p><\/blockquote>\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>\n-0.5732 %<\/td>\n2,500.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.5732 %<\/td>\n4,796.2<\/td>\n<\/tr>\n
Floater<\/td>\n9.01 %<\/td>\n9.27 %<\/td>\n49,593<\/td>\n10.02<\/td>\n2<\/td>\n-0.5732 %<\/td>\n2,764.1<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2390 %<\/td>\n3,337.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.04 %<\/td>\n6.90 %<\/td>\n51,231<\/td>\n2.73<\/td>\n7<\/td>\n-0.2390 %<\/td>\n3,986.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2390 %<\/td>\n3,110.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3277 %<\/td>\n2,750.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.20 %<\/td>\n6.35 %<\/td>\n67,877<\/td>\n13.35<\/td>\n35<\/td>\n0.3277 %<\/td>\n2,999.7<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n5.50 %<\/td>\n7.87 %<\/td>\n88,888<\/td>\n11.72<\/td>\n61<\/td>\n-0.3334 %<\/td>\n2,235.3<\/td>\n<\/tr>\n
Insurance Straight<\/td>\n6.22 %<\/td>\n6.22 %<\/td>\n86,140<\/td>\n13.62<\/td>\n20<\/td>\n-0.7790 %<\/td>\n2,886.5<\/td>\n<\/tr>\n
FloatingReset<\/td>\n9.83 %<\/td>\n10.11 %<\/td>\n35,802<\/td>\n9.53<\/td>\n2<\/td>\n0.2208 %<\/td>\n2,578.6<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n6.56 %<\/td>\n6.42 %<\/td>\n214,108<\/td>\n3.96<\/td>\n2<\/td>\n0.1182 %<\/td>\n2,359.0<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.3334 %<\/td>\n2,284.9<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.34 %<\/td>\n7.44 %<\/td>\n72,054<\/td>\n12.02<\/td>\n13<\/td>\n-0.0456 %<\/td>\n2,431.5<\/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
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
GWO.PR.L<\/td>\nInsurance Straight<\/td>\n-18.89 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 18.25
\nEvaluated at bid price : 18.25
\nBid-YTW : 7.77 %<\/td>\n<\/tr>\n
BN.PF.A<\/td>\nFixedReset Disc<\/td>\n-4.47 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 20.30
\nEvaluated at bid price : 20.30
\nBid-YTW : 8.13 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset Ins Non<\/td>\n-3.47 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 12.50
\nEvaluated at bid price : 12.50
\nBid-YTW : 8.52 %<\/td>\n<\/tr>\n
TD.PF.B<\/td>\nFixedReset Disc<\/td>\n-2.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 17.30
\nEvaluated at bid price : 17.30
\nBid-YTW : 8.29 %<\/td>\n<\/tr>\n
BIP.PR.E<\/td>\nFixedReset Disc<\/td>\n-2.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 21.57
\nEvaluated at bid price : 21.91
\nBid-YTW : 7.53 %<\/td>\n<\/tr>\n
BN.PF.F<\/td>\nFixedReset Disc<\/td>\n-1.79 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 17.04
\nEvaluated at bid price : 17.04
\nBid-YTW : 9.25 %<\/td>\n<\/tr>\n
CM.PR.T<\/td>\nFixedReset Disc<\/td>\n-1.61 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 23.25
\nEvaluated at bid price : 23.76
\nBid-YTW : 7.19 %<\/td>\n<\/tr>\n
BN.PF.H<\/td>\nFixedReset Disc<\/td>\n-1.48 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 22.61
\nEvaluated at bid price : 23.25
\nBid-YTW : 7.89 %<\/td>\n<\/tr>\n
TRP.PR.B<\/td>\nFixedReset Disc<\/td>\n-1.24 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 11.18
\nEvaluated at bid price : 11.18
\nBid-YTW : 9.64 %<\/td>\n<\/tr>\n
PVS.PR.J<\/td>\nSplitShare<\/td>\n-1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2028-02-29
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.80
\nBid-YTW : 7.58 %<\/td>\n<\/tr>\n
MIC.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 20.44
\nEvaluated at bid price : 20.44
\nBid-YTW : 6.76 %<\/td>\n<\/tr>\n
BN.PR.K<\/td>\nFloater<\/td>\n-1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 13.02
\nEvaluated at bid price : 13.02
\nBid-YTW : 9.27 %<\/td>\n<\/tr>\n
PVS.PR.H<\/td>\nSplitShare<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2027-02-28
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.56
\nBid-YTW : 7.64 %<\/td>\n<\/tr>\n
BIK.PR.A<\/td>\nFixedReset Disc<\/td>\n-1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 23.26
\nEvaluated at bid price : 23.80
\nBid-YTW : 7.83 %<\/td>\n<\/tr>\n
GWO.PR.M<\/td>\nInsurance Straight<\/td>\n1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 22.93
\nEvaluated at bid price : 23.20
\nBid-YTW : 6.26 %<\/td>\n<\/tr>\n
PWF.PR.H<\/td>\nPerpetual-Discount<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 22.66
\nEvaluated at bid price : 22.90
\nBid-YTW : 6.36 %<\/td>\n<\/tr>\n
PWF.PF.A<\/td>\nPerpetual-Discount<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 18.48
\nEvaluated at bid price : 18.48
\nBid-YTW : 6.18 %<\/td>\n<\/tr>\n
PWF.PR.Z<\/td>\nPerpetual-Discount<\/td>\n1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 20.60
\nEvaluated at bid price : 20.60
\nBid-YTW : 6.35 %<\/td>\n<\/tr>\n
GWO.PR.S<\/td>\nInsurance Straight<\/td>\n1.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 20.83
\nEvaluated at bid price : 20.83
\nBid-YTW : 6.32 %<\/td>\n<\/tr>\n
BIP.PR.F<\/td>\nFixedReset Disc<\/td>\n1.62 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 19.50
\nEvaluated at bid price : 19.50
\nBid-YTW : 8.30 %<\/td>\n<\/tr>\n
IFC.PR.K<\/td>\nPerpetual-Discount<\/td>\n1.64 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 21.47
\nEvaluated at bid price : 21.75
\nBid-YTW : 6.15 %<\/td>\n<\/tr>\n
MFC.PR.M<\/td>\nFixedReset Ins Non<\/td>\n1.66 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 17.74
\nEvaluated at bid price : 17.74
\nBid-YTW : 8.06 %<\/td>\n<\/tr>\n
TRP.PR.E<\/td>\nFixedReset Disc<\/td>\n1.96 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 15.60
\nEvaluated at bid price : 15.60
\nBid-YTW : 9.24 %<\/td>\n<\/tr>\n
CU.PR.H<\/td>\nPerpetual-Discount<\/td>\n4.52 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 21.50
\nEvaluated at bid price : 21.50
\nBid-YTW : 6.16 %<\/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
MFC.PR.J<\/td>\nFixedReset Ins Non<\/td>\n154,800<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 21.87
\nEvaluated at bid price : 22.34
\nBid-YTW : 6.96 %<\/td>\n<\/tr>\n
CU.PR.J<\/td>\nPerpetual-Discount<\/td>\n142,200<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 19.07
\nEvaluated at bid price : 19.07
\nBid-YTW : 6.28 %<\/td>\n<\/tr>\n
IAF.PR.I<\/td>\nFixedReset Ins Non<\/td>\n76,600<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2023-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.93
\nBid-YTW : 4.70 %<\/td>\n<\/tr>\n
BMO.PR.W<\/td>\nFixedReset Disc<\/td>\n60,600<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 17.42
\nEvaluated at bid price : 17.42
\nBid-YTW : 8.10 %<\/td>\n<\/tr>\n
CU.PR.G<\/td>\nPerpetual-Discount<\/td>\n51,400<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 18.51
\nEvaluated at bid price : 18.51
\nBid-YTW : 6.13 %<\/td>\n<\/tr>\n
CM.PR.O<\/td>\nFixedReset Disc<\/td>\n46,460<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 18.16
\nEvaluated at bid price : 18.16
\nBid-YTW : 7.92 %<\/td>\n<\/tr>\n
There were 6 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
GWO.PR.L<\/td>\nInsurance Straight<\/td>\nQuote: 18.25 – 22.79
\nSpot Rate : 4.5400
\nAverage : 2.4810<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 18.25
\nEvaluated at bid price : 18.25
\nBid-YTW : 7.77 %<\/td>\n<\/tr>\n

BN.PF.A<\/td>\nFixedReset Disc<\/td>\nQuote: 20.30 – 23.00
\nSpot Rate : 2.7000
\nAverage : 1.7509<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 20.30
\nEvaluated at bid price : 20.30
\nBid-YTW : 8.13 %<\/td>\n<\/tr>\n

BIP.PR.E<\/td>\nFixedReset Disc<\/td>\nQuote: 21.91 – 23.00
\nSpot Rate : 1.0900
\nAverage : 0.6515<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 21.57
\nEvaluated at bid price : 21.91
\nBid-YTW : 7.53 %<\/td>\n<\/tr>\n

BN.PF.H<\/td>\nFixedReset Disc<\/td>\nQuote: 23.25 – 24.00
\nSpot Rate : 0.7500
\nAverage : 0.4848<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 22.61
\nEvaluated at bid price : 23.25
\nBid-YTW : 7.89 %<\/td>\n<\/tr>\n

BIP.PR.F<\/td>\nFixedReset Disc<\/td>\nQuote: 19.50 – 21.94
\nSpot Rate : 2.4400
\nAverage : 2.1758<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 19.50
\nEvaluated at bid price : 19.50
\nBid-YTW : 8.30 %<\/td>\n<\/tr>\n

SLF.PR.J<\/td>\nFloatingReset<\/td>\nQuote: 15.61 – 16.23
\nSpot Rate : 0.6200
\nAverage : 0.4438<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-03-09
\nMaturity Price : 15.61
\nEvaluated at bid price : 15.61
\nBid-YTW : 9.64 %<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Banks don’t compete on price. They do, however, compete by regulation: The federal banking watchdog has launched a formal review of cash exchange-traded funds, one of Canada\u2019s most popular retail investments, amid a Bay Street …<\/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-44948","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/44948","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=44948"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/44948\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}