{"id":48288,"date":"2017-03-15T10:33:00","date_gmt":"2017-03-15T14:33:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48288"},"modified":"2025-07-16T10:35:16","modified_gmt":"2025-07-16T14:35:16","slug":"march-15-2017","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48288","title":{"rendered":"March 15, 2017"},"content":{"rendered":"

Today’s big news was the FOMC release<\/a>:<\/p>\n

In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 3\/4 to 1 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.<\/p>\n

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation.<\/p>\n<\/blockquote>\n

However, Yellen was dovish<\/a> after the meeting:<\/p>\n

Speaking to reporters after the Fed\u2019s quarter percentage-point move on Wednesday, Yellen said the central bank was willing to tolerate inflation temporarily overshooting its 2 percent goal and that it intended to keep its policy accommodative for \u201csome time.\u201d<\/p>\n

\u201cThe simple message is the economy\u2019s doing well. We have confidence in the robustness of the economy and its resilience to shocks,\u201d she said.<\/p>\n

As a result, the Fed is sticking with its policy of gradually raising interest rates, Yellen said. In their first forecasts in three months, Fed policy makers penciled in two more quarter-point rate increases this year and three in 2018, unchanged from their projections in December.<\/p>\n

Today\u2019s decision \u201cdoes not represent a reassessment of the economic outlook or of the appropriate course for monetary policy,\u201d the Fed chief said.
…<\/b>
Asked about the potential for a fiscal boost, Yellen made clear the Fed is still waiting for more concrete policy plans to emerge from the Trump administration before adapting monetary policy in reaction.<\/p>\n

\u201cThere is great uncertainty about the timing, the size and the character of policy changes that may be put in place,\u201d Yellen said. \u201cI don\u2019t think that\u2019s a decision or set of decisions that we need to make until we know more about what policy changes will go into effect.”<\/p>\n<\/blockquote>\n

It’s clear that markets were expecting exciting hawkishness<\/a>:<\/p>\n

The yield on 10-year Treasury notes held at 2.49 percent after tumbling 11 basis points on Wednesday.<\/p>\n<\/blockquote>\n

PerpetualDiscounts now yield 5.21%, equivalent to 6.77% interest at the standard conversion factor of 1.3x. Long corporates<\/a> now yield about 4.15%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 260bp, significantly narrower than the 270bp reported March 8<\/a>.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(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>\n0.5272 %<\/td>\n2,148.8<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.5272 %<\/td>\n3,943.0<\/td>\n<\/tr>\n
Floater<\/td>\n3.54 %<\/td>\n3.67 %<\/td>\n47,993<\/td>\n18.16<\/td>\n4<\/td>\n0.5272 %<\/td>\n2,272.4<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1632 %<\/td>\n3,019.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.93 %<\/td>\n3.78 %<\/td>\n60,667<\/td>\n0.72<\/td>\n6<\/td>\n0.1632 %<\/td>\n3,606.2<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1632 %<\/td>\n2,813.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.35 %<\/td>\n2.96 %<\/td>\n68,151<\/td>\n0.09<\/td>\n20<\/td>\n0.1095 %<\/td>\n2,744.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.16 %<\/td>\n5.21 %<\/td>\n95,544<\/td>\n15.07<\/td>\n16<\/td>\n-0.0846 %<\/td>\n2,923.3<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.40 %<\/td>\n4.17 %<\/td>\n242,698<\/td>\n6.70<\/td>\n94<\/td>\n0.1171 %<\/td>\n2,349.7<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.04 %<\/td>\n1.42 %<\/td>\n139,247<\/td>\n0.20<\/td>\n31<\/td>\n0.1322 %<\/td>\n2,859.2<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.48 %<\/td>\n3.25 %<\/td>\n50,862<\/td>\n4.60<\/td>\n9<\/td>\n0.0743 %<\/td>\n2,493.9<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-03-15
\nMaturity Price : 12.85
\nEvaluated at bid price : 12.85
\nBid-YTW : 3.67 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n2.29 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 16.05
\nBid-YTW : 8.74 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
BNS.PR.B<\/td>\nFloatingReset<\/td>\n104,189<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.71
\nBid-YTW : 3.31 %<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n101,815<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-03-15
\nMaturity Price : 24.15
\nEvaluated at bid price : 24.40
\nBid-YTW : 5.20 %<\/td>\n<\/tr>\n
TD.PR.Z<\/td>\nFloatingReset<\/td>\n101,614<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.67
\nBid-YTW : 3.32 %<\/td>\n<\/tr>\n
PWF.PR.R<\/td>\nPerpetual-Premium<\/td>\n100,500<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.55
\nBid-YTW : 5.11 %<\/td>\n<\/tr>\n
BMO.PR.T<\/td>\nFixedReset<\/td>\n82,021<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-03-15
\nMaturity Price : 22.19
\nEvaluated at bid price : 22.52
\nBid-YTW : 3.96 %<\/td>\n<\/tr>\n
PWF.PR.L<\/td>\nPerpetual-Discount<\/td>\n80,844<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-03-15
\nMaturity Price : 24.22
\nEvaluated at bid price : 24.51
\nBid-YTW : 5.26 %<\/td>\n<\/tr>\n
There were 51 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\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
BMO.PR.B<\/td>\nFixedReset<\/td>\nQuote: 26.18 – 26.60
\nSpot Rate : 0.4200
\nAverage : 0.2554<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-02-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.18
\nBid-YTW : 3.87 %<\/td>\n<\/tr>\n

MFC.PR.R<\/td>\nFixedReset<\/td>\nQuote: 25.60 – 25.90
\nSpot Rate : 0.3000
\nAverage : 0.1891<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : 4.32 %<\/td>\n<\/tr>\n

TD.PR.Z<\/td>\nFloatingReset<\/td>\nQuote: 23.67 – 23.91
\nSpot Rate : 0.2400
\nAverage : 0.1583<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.67
\nBid-YTW : 3.32 %<\/td>\n<\/tr>\n

TRP.PR.D<\/td>\nFixedReset<\/td>\nQuote: 22.16 – 22.38
\nSpot Rate : 0.2200
\nAverage : 0.1403<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-03-15
\nMaturity Price : 21.70
\nEvaluated at bid price : 22.16
\nBid-YTW : 4.18 %<\/td>\n<\/tr>\n

NA.PR.A<\/td>\nFixedReset<\/td>\nQuote: 26.45 – 26.62
\nSpot Rate : 0.1700
\nAverage : 0.1136<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-08-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.45
\nBid-YTW : 4.09 %<\/td>\n<\/tr>\n

BAM.PF.G<\/td>\nFixedReset<\/td>\nQuote: 23.87 – 24.10
\nSpot Rate : 0.2300
\nAverage : 0.1744<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-03-15
\nMaturity Price : 22.87
\nEvaluated at bid price : 23.87
\nBid-YTW : 4.32 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Today’s big news was the FOMC release: In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 3\/4 to 1 …<\/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-48288","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48288","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=48288"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48288\/revisions"}],"predecessor-version":[{"id":48289,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48288\/revisions\/48289"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}