{"id":48534,"date":"2017-06-14T21:15:00","date_gmt":"2017-06-15T01:15:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48534"},"modified":"2025-07-21T21:16:35","modified_gmt":"2025-07-22T01:16:35","slug":"june-14-2017","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48534","title":{"rendered":"June 14, 2017"},"content":{"rendered":"

As expected, the FOMC hiked the US policy rate<\/a>:<\/p>\n

Information received since the Federal Open Market Committee met in May indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year. Job gains have moderated but have been solid, on average, since the beginning of the year, and the unemployment rate has declined. Household spending has picked up in recent months, and business fixed investment has continued to expand. On a 12-month basis, inflation has declined recently and, like the measure excluding food and energy prices, is running somewhat below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.
…<\/b>
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 1 to 1-1\/4 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<\/blockquote>\n

The US market took it all in stride<\/a>:<\/p>\n

Treasuries rose, the dollar trimmed losses and U.S. stocks turned lower after Yellen suggested weak readings on inflation won\u2019t persist amid a tightening labor market.<\/p>\n<\/blockquote>\n

And, in fact, the Canada five-year<\/a> reversed itself today, closing with a yield of 1.10%, down 5bp on the day.<\/p>\n

PerpetualDiscounts now yield 5.10%, equivalent to 6.63% interest at the standard equivalency factor of 1.3x. Long corporates<\/a> now yield a little over 3.7%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 290bp, a narrowing from the 300bp reported June 7<\/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>\n0.4144 %<\/td>\n2,167.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.4144 %<\/td>\n3,976.3<\/td>\n<\/tr>\n
Floater<\/td>\n3.66 %<\/td>\n3.65 %<\/td>\n80,052<\/td>\n18.20<\/td>\n3<\/td>\n0.4144 %<\/td>\n2,291.6<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0785 %<\/td>\n3,053.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.71 %<\/td>\n4.33 %<\/td>\n69,912<\/td>\n1.51<\/td>\n5<\/td>\n-0.0785 %<\/td>\n3,647.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0785 %<\/td>\n2,845.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.28 %<\/td>\n3.38 %<\/td>\n72,370<\/td>\n0.09<\/td>\n25<\/td>\n-0.1418 %<\/td>\n2,795.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.10 %<\/td>\n5.10 %<\/td>\n93,387<\/td>\n15.24<\/td>\n12<\/td>\n-0.3709 %<\/td>\n3,005.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.44 %<\/td>\n3.99 %<\/td>\n200,150<\/td>\n6.56<\/td>\n96<\/td>\n-0.4906 %<\/td>\n2,337.7<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.98 %<\/td>\n5.02 %<\/td>\n118,645<\/td>\n6.25<\/td>\n30<\/td>\n-0.2540 %<\/td>\n2,902.8<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.48 %<\/td>\n3.00 %<\/td>\n55,806<\/td>\n4.38<\/td>\n10<\/td>\n-0.2860 %<\/td>\n2,554.1<\/td>\n<\/tr>\n<\/table>\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
TRP.PR.G<\/td>\nFixedReset<\/td>\n-2.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 22.64
\nEvaluated at bid price : 23.44
\nBid-YTW : 4.13 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n-1.69 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 15.70
\nEvaluated at bid price : 15.70
\nBid-YTW : 4.20 %<\/td>\n<\/tr>\n
TRP.PR.B<\/td>\nFixedReset<\/td>\n-1.69 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 14.55
\nEvaluated at bid price : 14.55
\nBid-YTW : 3.83 %<\/td>\n<\/tr>\n
MFC.PR.M<\/td>\nFixedReset<\/td>\n-1.60 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.94
\nBid-YTW : 6.25 %<\/td>\n<\/tr>\n
MFC.PR.L<\/td>\nFixedReset<\/td>\n-1.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.34
\nBid-YTW : 6.50 %<\/td>\n<\/tr>\n
W.PR.K<\/td>\nFixedReset<\/td>\n-1.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-01-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.12
\nBid-YTW : 4.18 %<\/td>\n<\/tr>\n
CU.PR.I<\/td>\nFixedReset<\/td>\n-1.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2020-12-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.30
\nBid-YTW : 2.97 %<\/td>\n<\/tr>\n
MFC.PR.N<\/td>\nFixedReset<\/td>\n-1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.01
\nBid-YTW : 6.14 %<\/td>\n<\/tr>\n
MFC.PR.G<\/td>\nFixedReset<\/td>\n-1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.49
\nBid-YTW : 4.85 %<\/td>\n<\/tr>\n
VNR.PR.A<\/td>\nFixedReset<\/td>\n-1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 21.04
\nEvaluated at bid price : 21.04
\nBid-YTW : 4.56 %<\/td>\n<\/tr>\n
MFC.PR.O<\/td>\nFixedReset<\/td>\n-1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-06-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.64
\nBid-YTW : 3.83 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.48
\nBid-YTW : 6.33 %<\/td>\n<\/tr>\n
BIP.PR.B<\/td>\nFixedReset<\/td>\n-1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2020-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.81
\nBid-YTW : 4.46 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset<\/td>\n-1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 15.76
\nEvaluated at bid price : 15.76
\nBid-YTW : 3.94 %<\/td>\n<\/tr>\n
BMO.PR.S<\/td>\nFixedReset<\/td>\n-1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 21.45
\nEvaluated at bid price : 21.79
\nBid-YTW : 3.85 %<\/td>\n<\/tr>\n
BAM.PF.D<\/td>\nPerpetual-Discount<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 22.94
\nEvaluated at bid price : 23.33
\nBid-YTW : 5.25 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 16.25
\nBid-YTW : 8.56 %<\/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
NA.PR.C<\/td>\nFixedReset<\/td>\n143,066<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 23.09
\nEvaluated at bid price : 24.86
\nBid-YTW : 4.34 %<\/td>\n<\/tr>\n
CM.PR.R<\/td>\nFixedReset<\/td>\n113,051<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 23.17
\nEvaluated at bid price : 25.04
\nBid-YTW : 4.26 %<\/td>\n<\/tr>\n
RY.PR.Z<\/td>\nFixedReset<\/td>\n68,881<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 21.50
\nEvaluated at bid price : 21.50
\nBid-YTW : 3.81 %<\/td>\n<\/tr>\n
BAM.PF.A<\/td>\nFixedReset<\/td>\n60,908<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 22.28
\nEvaluated at bid price : 22.69
\nBid-YTW : 4.28 %<\/td>\n<\/tr>\n
RY.PR.E<\/td>\nDeemed-Retractible<\/td>\n56,816<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-07-14
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.28
\nBid-YTW : -5.85 %<\/td>\n<\/tr>\n
NA.PR.S<\/td>\nFixedReset<\/td>\n42,550<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 21.52
\nEvaluated at bid price : 21.52
\nBid-YTW : 4.03 %<\/td>\n<\/tr>\n
There were 43 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
BAM.PF.D<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.33 – 23.76
\nSpot Rate : 0.4300
\nAverage : 0.2828<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 22.94
\nEvaluated at bid price : 23.33
\nBid-YTW : 5.25 %<\/td>\n<\/tr>\n

CU.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.56 – 22.89
\nSpot Rate : 0.3300
\nAverage : 0.1970<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-06-14
\nMaturity Price : 22.28
\nEvaluated at bid price : 22.56
\nBid-YTW : 5.01 %<\/td>\n<\/tr>\n

RY.PR.O<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.43 – 25.74
\nSpot Rate : 0.3100
\nAverage : 0.1984<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2024-11-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.43
\nBid-YTW : 4.70 %<\/td>\n<\/tr>\n

GWO.PR.R<\/td>\nDeemed-Retractible<\/td>\nQuote: 23.90 – 24.20
\nSpot Rate : 0.3000
\nAverage : 0.2055<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.90
\nBid-YTW : 5.51 %<\/td>\n<\/tr>\n

MFC.PR.J<\/td>\nFixedReset<\/td>\nQuote: 22.55 – 22.78
\nSpot Rate : 0.2300
\nAverage : 0.1365<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.55
\nBid-YTW : 5.20 %<\/td>\n<\/tr>\n

MFC.PR.L<\/td>\nFixedReset<\/td>\nQuote: 20.34 – 20.59
\nSpot Rate : 0.2500
\nAverage : 0.1594<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.34
\nBid-YTW : 6.50 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

As expected, the FOMC hiked the US policy rate: Information received since the Federal Open Market Committee met in May indicates that the labor market has continued to strengthen and that economic activity has been …<\/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-48534","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48534","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=48534"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48534\/revisions"}],"predecessor-version":[{"id":48535,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48534\/revisions\/48535"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}