{"id":4716,"date":"2008-12-31T23:59:51","date_gmt":"2009-01-01T03:59:51","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=4716"},"modified":"2008-12-31T23:59:51","modified_gmt":"2009-01-01T03:59:51","slug":"december-31-2008","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=4716","title":{"rendered":"December 31, 2008"},"content":{"rendered":"

Well, holy-smokes-and-a-half, that’s all I can say! Preferreds continued to rocket upwards on normal-for-non-tax-loss-selling-season volume. PerpetualDiscounts were at their lowest on December 22; in the five trading days since they they are up 14.29%, with yield coming in from 8.40% to 7.37%. A little over a point! Maybe I’ll stretch a point, and make that holy-smokes-and-three-quarters.<\/p>\n

I’ll bet some shops took a week off in the middle of portfolio rebalancing since nothing would be happening – that’ll teach them to whimper about their precious work-life balance!<\/p>\n

That was sufficient to bring the monthly return on the PerpetualDiscount subindex to +11.45%, the best month in my records. Unfortunately, I now have to throw out all those abject client letters I was drafting, since I can now point out that preferreds really do go up sometimes and really are different from equities. Thank you Santa!<\/p>\n

How about a bond comparison? Long corporates<\/a> were up 1.64% on the month and down 11.70% on the year (PerpetualDiscounts were down 17.11% on the year), with the bonds continuing to yield 7.50%, or maybe a shade under. The PerpetualDiscount yield of 7.37% at the close today equates to 10.32% at the standard 1.4x equivalency factor, so the spread is still an impressive 282bp.<\/p>\n

And so goes another year! Happy New Year, everybody, and good riddance to the old one!<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n
Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version. In this version, index values are based at 1,000.0 on 2006-6-30.
The Fixed-Reset<\/i> index was added effective 2008-9-5 at that day’s closing value of 1,119.4 for the Fixed-Floater<\/i> index.<\/strong><\/td>\n<\/tr>\n
Index<\/td>\nMean Current Yield (at bid)<\/td>\nMean YTW<\/td>\nMean Average Trading Value<\/td>\nMean Mod Dur (YTW)<\/td>\nIssues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\n0<\/td>\nN\/A<\/td>\nN\/A<\/td>\n<\/tr>\n
Fixed-Floater<\/td>\n7.92%<\/td>\n7.94%<\/td>\n137,402<\/td>\n12.81<\/td>\n7<\/td>\n+3.0001%<\/td>\n674.9<\/td>\n<\/tr>\n
Floater<\/td>\n6.78%<\/td>\n6.82%<\/td>\n92,609<\/td>\n12.76<\/td>\n2<\/td>\n+8.6411%<\/td>\n480.8<\/td>\n<\/tr>\n
Op. Retract<\/td>\n5.43%<\/td>\n6.14%<\/td>\n166,476<\/td>\n3.49<\/td>\n14<\/td>\n+0.0941%<\/td>\n1,005.5<\/td>\n<\/tr>\n
Split-Share<\/td>\n6.32%<\/td>\n10.57%<\/td>\n91,689<\/td>\n3.95<\/td>\n15<\/td>\n+1.6133%<\/td>\n984.3<\/td>\n<\/tr>\n
Interest Bearing<\/td>\n9.12%<\/td>\n17.04%<\/td>\n57,778<\/td>\n2.85<\/td>\n3<\/td>\n+3.2056%<\/td>\n824.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n7.27%<\/td>\n7.37%<\/td>\n245,157<\/td>\n12.14<\/td>\n71<\/td>\n+2.9405%<\/td>\n769.3<\/td>\n<\/tr>\n
Fixed-Reset<\/td>\n5.93%<\/td>\n4.94%<\/td>\n979,322<\/td>\n15.00<\/td>\n18<\/td>\n+0.5939%<\/td>\n1,021.3<\/td>\n<\/tr>\n<\/table>\n<\/div>\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\n\n
Major Price Changes<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetualDiscount<\/td>\n+4.0816%<\/td>\nNow with a pre-tax bid-YTW of 11.82% based on a bid of 10.20 and a limitMaturity<\/a>. Closing quote 10.20-35, 1×1. Day’s range of 10.01-30.<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nPerpetualDiscount<\/td>\n+4.1509%<\/td>\nNow with a pre-tax bid-YTW of 7.62% based on a bid of 16.56 and a limitMaturity<\/a>. Closing quote 16.56-91, 39×23. Day’s range of 16.21-94.<\/td>\n<\/tr>\n
HSB.PR.C<\/td>\nPerpetualDiscount<\/td>\n+4.2296%<\/td>\nNow with a pre-tax bid-YTW of 7.46% based on a bid of 16.51 and a limitMaturity<\/a>. Closing quote 17.25-73, 1×3. Day’s range of 17.35-80.<\/td>\n<\/tr>\n
BMO.PR.L<\/td>\nPerpetualDiscount<\/td>\n+4.3617%<\/td>\nNow with a pre-tax bid-YTW of 7.52% based on a bid of 19.62 and a limitMaturity<\/a>. Closing quote 19.62-50, 3×1. Day’s range of 19.40-25.<\/td>\n<\/tr>\n
NA.PR.N<\/td>\nFixedReset<\/td>\n+4.3821%<\/td>\n <\/td>\n<\/tr>\n
TD.PR.P<\/td>\nPerpetualDiscount<\/td>\n+4.4421%<\/td>\nNow with a pre-tax bid-YTW of 6.78% based on a bid of 19.75 and a limitMaturity<\/a>. Closing quote 19.75-07, 5×1. Day’s range of 20.00-07.<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nPerpetualDiscount<\/td>\n+4.4983%<\/td>\nNow with a pre-tax bid-YTW of 7.24% based on a bid of 18.12 and a limitMaturity<\/a>. Closing quote 18.12-46, 1×1. Day’s range of 17.63-25.<\/td>\n<\/tr>\n
CM.PR.I<\/td>\nPerpetualDiscount<\/td>\n+4.5541%<\/td>\nNow with a pre-tax bid-YTW of 7.13% based on a bid of 16.53 and a limitMaturity<\/a>. Closing quote 16.53-59, 1×6. Day’s range of 16.40-69.<\/td>\n<\/tr>\n
W.PR.H<\/td>\nPerpetualDiscount<\/td>\n+4.5934%<\/td>\nNow with a pre-tax bid-YTW of 8.22% based on a bid of 16.85 and a limitMaturity<\/a>. Closing quote 16.85-24, 5×8. Day’s range of 16.45-85.<\/td>\n<\/tr>\n
CU.PR.B<\/td>\nPerpetualDiscount<\/td>\n+4.6125%<\/td>\nNow with a pre-tax bid-YTW of 6.91% based on a bid of 22.00 and a limitMaturity<\/a>. Closing quote 22.00-45, 5×3. Day’s range of 21.50-00.<\/td>\n<\/tr>\n
BMO.PR.J<\/td>\nPerpetualDiscount<\/td>\n+4.6224%<\/td>\nNow with a pre-tax bid-YTW of 7.12% based on a bid of 16.07 and a limitMaturity<\/a>. Closing quote 16.03-20, 3×10. Day’s range of 15.96-25.<\/td>\n<\/tr>\n
BNS.PR.M<\/td>\nPerpetualDiscount<\/td>\n+4.7297%<\/td>\nNow with a pre-tax bid-YTW of 6.74% based on a bid of 17.05 and a limitMaturity<\/a>. Closing quote 17.05-40, 10×19. Day’s range of 16.81-40.<\/td>\n<\/tr>\n
BSD.PR.A<\/td>\nInterestBearing (until midnight)<\/td>\n+4.8346%<\/td>\nAsset coverage of 0.8-:1 as of December 24 according to Brookfield Funds<\/a>. Now with a (dubious) pre-tax bid-YTW of 25.66% based on a bid of 4.12 and a (dubious) hardMaturity<\/a> 2015-3-31 at 10.00. Closing quote of 4.12-37, 4×4. Day’s range of 3.99-23.<\/td>\n<\/tr>\n
PWF.PR.K<\/td>\nPerpetualDiscount<\/td>\n+4.9581%<\/td>\nNow with a pre-tax bid-YTW of 7.77% based on a bid of 16.30 and a limitMaturity<\/a>. Closing quote 16.30-84, 1×10. Day’s range of 16.20-90.<\/td>\n<\/tr>\n
CM.PR.P<\/td>\nPerpetualDiscount<\/td>\n+5.0200%<\/td>\nNow with a pre-tax bid-YTW of 7.49% based on a bid of 16.30 and a limitMaturity<\/a>. Closing quote 18.41-69, 3×5. Day’s range of 17.12-18.50.<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nPerpetualDiscount<\/td>\n+5.0694%<\/td>\nNow with a pre-tax bid-YTW of 7.51% based on a bid of 15.13 and a limitMaturity<\/a>. Closing quote 15.13-25, 5×4. Day’s range of 14.75-65.<\/td>\n<\/tr>\n
POW.PR.C<\/td>\nPerpetualDiscount<\/td>\n+5.1364%<\/td>\nNow with a pre-tax bid-YTW of 7.42% based on a bid of 19.65 and a limitMaturity<\/a>. Closing quote 19.65-80, 1×4. Day’s range of 19.60-20.75.<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n+5.2326%<\/td>\n <\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nPerpetualDiscount<\/td>\n+5.3352%<\/td>\nNow with a pre-tax bid-YTW of 7.29% based on a bid of 15.40 and a limitMaturity<\/a>. Closing quote 15.40-77, 7×2. Day’s range of 14.99-79.<\/td>\n<\/tr>\n
BMO.PR.K<\/td>\nPerpetualDiscount<\/td>\n+5.4701%<\/td>\nNow with a pre-tax bid-YTW of 7.21% based on a bid of 18.51 and a limitMaturity<\/a>. Closing quote 18.51-84, 3×10. Day’s range of 18.46-89.<\/td>\n<\/tr>\n
BCE.PR.A<\/td>\nFixFloat<\/td>\n+5.6069%<\/td>\n <\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nPerpetualDiscount<\/td>\n+5.8521%<\/td>\nNow with a pre-tax bid-YTW of 7.28% based on a bid of 16.46 and a limitMaturity<\/a>. Closing quote 16.46-69, 1×9. Day’s range of 15.75-16.75.<\/td>\n<\/tr>\n
ELF.PR.G<\/td>\nPerpetualDiscount<\/td>\n+5.8824%<\/td>\nNow with a pre-tax bid-YTW of 8.74% based on a bid of 13.68 and a limitMaturity<\/a>. Closing quote 13.68-00, 5×4. No trades.<\/td>\n<\/tr>\n
CM.PR.G<\/td>\nPerpetualDiscount<\/td>\n+5.9469%<\/td>\nNow with a pre-tax bid-YTW of 7.38% based on a bid of 18.35 and a limitMaturity<\/a>. Closing quote 18.35-39, 6×29. Day’s range of 17.70-39.<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetualDiscount<\/td>\n+6.2245%<\/td>\nNow with a pre-tax bid-YTW of 11.57% based on a bid of 10.41 and a limitMaturity<\/a>. Closing quote 10.41-42, 7×3. Day’s range of 10.17-44.<\/td>\n<\/tr>\n
BCE.PR.F<\/td>\nFixFloat<\/td>\n+6.3830%<\/td>\n <\/td>\n<\/tr>\n
SBC.PR.A<\/td>\nSplitShare<\/td>\n+6.6584%<\/td>\nAsset coverage of 1.3+:1 as of December 24 according to Brompton<\/a>. Now with a pre-tax bid-YTW of 9.46% based on a bid of 8.65 and a hardMaturity 2012-11-30 at 10.00. Closing quote of 8.65-24, 10×3. No Trades.<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetualDiscount<\/td>\n+7.0130%<\/td>\nNow with a pre-tax bid-YTW of 7.63% based on a bid of 16.48 and a limitMaturity<\/a>. Closing quote 16.48-54, 1×1. Day’s range of 16.03-60.<\/td>\n<\/tr>\n
FIG.PR.A<\/td>\nInterestBearing<\/td>\n+7.5768%<\/td>\nAsset coverage of 1.1-:1 based on Capital Unit NAV of 1.31<\/a> as of December 30 and 0.71 Capital Units per Preferred. Now with a pre-tax bid-YTW of 14.87% based on a bid of 6.70 and a hardMaturity 2014-12-31 at 10.00. Closing quote of 6.70-24, 5×7. Day’s range of 6.47-25.<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nPerpetualDiscount<\/td>\n+7.5768%<\/td>\nNow with a pre-tax bid-YTW of 7.37% based on a bid of 15.76and a limitMaturity<\/a>. Closing quote 15.76-56, 1×4. Day’s range of 15.51-68.<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n+12.0647%<\/td>\n <\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nVolume<\/td>\nNotes<\/td>\n<\/tr>\n
CM.PR.I<\/td>\nPerpetualDiscount<\/td>\n38,175<\/td>\nNow with a pre-tax bid-YTW of 7.13% based on a bid of 16.53 and a limitMaturity.<\/td>\n<\/tr>\n
CM.PR.H<\/td>\nPerpetualDiscount<\/td>\n36,149<\/td>\nNow with a pre-tax bid-YTW of 7.30% based on a bid of 16.48 and a limitMaturity.<\/td>\n<\/tr>\n
BCE.PR.I<\/td>\nFixFloat<\/td>\n35,062<\/td>\n <\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n25,400<\/td>\nNow with a pre-tax bid-YTW of 19.54% based on a bid of 8.75 and a hardMaturity 2019-1-10 at 25.00.<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nPerpetualDiscount<\/td>\n21,275<\/td>\nNow with a pre-tax bid-YTW of 7.51% based on a bid of 15.13 and a limitMaturity.<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

There were twenty other index-included $25-pv-equivalent issues trading over 10,000 shares today.<\/p>\n","protected":false},"excerpt":{"rendered":"

Well, holy-smokes-and-a-half, that’s all I can say! Preferreds continued to rocket upwards on normal-for-non-tax-loss-selling-season volume. PerpetualDiscounts were at their lowest on December 22; in the five trading days since they they are up 14.29%, with …<\/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-4716","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/4716","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=4716"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/4716\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}