{"id":48659,"date":"2017-08-16T21:48:00","date_gmt":"2017-08-17T01:48:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48659"},"modified":"2025-07-23T21:49:38","modified_gmt":"2025-07-24T01:49:38","slug":"august-16-2017","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48659","title":{"rendered":"August 16, 2017"},"content":{"rendered":"

The WSJ has a nice piece titled The Wage Paradox Explained<\/a>:<\/p>\n

\n

So why haven\u2019t wages risen faster amid an increase in hiring and unfilled jobs? One answer is that wages have actually been growing at a faster clip\u2014around 4% to 5%\u2014at least for full-time workers with steady jobs. But new full-time workers who are generally paid less than the retirees they replace are dragging down the average wage increase.<\/p>\n

Researchers at the San Francisco Fed this week updated their 2016 paper that disaggregated the wages of full-time workers with steady employment from recent entrants\u2014that is, new workers or those returning to full-time work. Their earlier analysis showed that average wage growth had slowed less than expected during the recession while staying relatively flat during the recovery.<\/p>\n

That\u2019s because workers who lost jobs during the recession were generally lower skilled and lower paid, so average weekly wages didn\u2019t fall significantly. However, many of those workers have since been rehired at below-average wages, which has depressed the aggregate. <\/p>\n

In prior expansions, wage growth has been driven mostly by continuously full-time employed workers, and the researchers find that\u2019s still the case. Wage growth for these workers is now close to the pre-recession 2007 peak. But there are now many more workers who have been on the labor-force sidelines who are moving to full-time employment, thus creating a drag on wages.<\/p>\n<\/blockquote>\n

Unfortunately, the San Francisco Fed’s website<\/a> seems to have collywobbles at the moment so I can’t access the paper.<\/p>\n

PerpetualDiscounts now yield 5.34%, equivalent to 6.94% interest at the standard equivalency factor of 1.3x. Long corporates<\/a> now yield about 3.90%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 305bp, the same as reported on August 9<\/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>\n0.4718 %<\/td>\n2,380.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.4718 %<\/td>\n4,368.1<\/td>\n<\/tr>\n
Floater<\/td>\n3.64 %<\/td>\n3.67 %<\/td>\n117,797<\/td>\n18.10<\/td>\n3<\/td>\n0.4718 %<\/td>\n2,517.4<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2038 %<\/td>\n3,053.7<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.71 %<\/td>\n4.61 %<\/td>\n53,013<\/td>\n3.73<\/td>\n5<\/td>\n-0.2038 %<\/td>\n3,646.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2038 %<\/td>\n2,845.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.41 %<\/td>\n4.86 %<\/td>\n63,679<\/td>\n6.10<\/td>\n17<\/td>\n0.0722 %<\/td>\n2,774.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.33 %<\/td>\n5.34 %<\/td>\n67,208<\/td>\n14.85<\/td>\n20<\/td>\n0.2272 %<\/td>\n2,916.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.40 %<\/td>\n4.43 %<\/td>\n154,936<\/td>\n6.33<\/td>\n98<\/td>\n-0.0345 %<\/td>\n2,366.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.07 %<\/td>\n5.49 %<\/td>\n114,669<\/td>\n6.06<\/td>\n30<\/td>\n0.2318 %<\/td>\n2,862.8<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.63 %<\/td>\n3.12 %<\/td>\n42,320<\/td>\n4.22<\/td>\n9<\/td>\n0.0664 %<\/td>\n2,613.8<\/td>\n<\/tr>\n<\/table>\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
ELF.PR.G<\/td>\nPerpetual-Discount<\/td>\n-1.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-08-16
\nMaturity Price : 22.07
\nEvaluated at bid price : 22.30
\nBid-YTW : 5.38 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset<\/td>\n-1.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.21
\nBid-YTW : 6.42 %<\/td>\n<\/tr>\n
PVS.PR.E<\/td>\nSplitShare<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.11
\nBid-YTW : 4.79 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 17.29
\nBid-YTW : 8.33 %<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-08-16
\nMaturity Price : 14.21
\nEvaluated at bid price : 14.21
\nBid-YTW : 3.67 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\n1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.51
\nBid-YTW : 6.52 %<\/td>\n<\/tr>\n
TRP.PR.E<\/td>\nFixedReset<\/td>\n1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-08-16
\nMaturity Price : 21.48
\nEvaluated at bid price : 21.84
\nBid-YTW : 4.43 %<\/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
TD.PR.Z<\/td>\nFloatingReset<\/td>\n109,700<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.44
\nBid-YTW : 2.82 %<\/td>\n<\/tr>\n
TD.PF.H<\/td>\nFixedReset<\/td>\n56,410<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.08
\nBid-YTW : 3.80 %<\/td>\n<\/tr>\n
TD.PR.T<\/td>\nFloatingReset<\/td>\n54,718<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.47
\nBid-YTW : 2.72 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n51,700<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-08-16
\nMaturity Price : 21.37
\nEvaluated at bid price : 21.64
\nBid-YTW : 5.56 %<\/td>\n<\/tr>\n
NA.PR.C<\/td>\nFixedReset<\/td>\n45,161<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-11-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.07
\nBid-YTW : 4.58 %<\/td>\n<\/tr>\n
RY.PR.L<\/td>\nFixedReset<\/td>\n41,700<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.18
\nBid-YTW : 3.72 %<\/td>\n<\/tr>\n
There were 7 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
ELF.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.30 – 22.95
\nSpot Rate : 0.6500
\nAverage : 0.4301<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-08-16
\nMaturity Price : 22.07
\nEvaluated at bid price : 22.30
\nBid-YTW : 5.38 %<\/td>\n<\/tr>\n

MFC.PR.J<\/td>\nFixedReset<\/td>\nQuote: 23.40 – 23.81
\nSpot Rate : 0.4100
\nAverage : 0.2470<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.40
\nBid-YTW : 5.24 %<\/td>\n<\/tr>\n

CU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 21.36 – 21.79
\nSpot Rate : 0.4300
\nAverage : 0.2848<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-08-16
\nMaturity Price : 21.36
\nEvaluated at bid price : 21.36
\nBid-YTW : 4.53 %<\/td>\n<\/tr>\n

BAM.PR.R<\/td>\nFixedReset<\/td>\nQuote: 19.43 – 19.90
\nSpot Rate : 0.4700
\nAverage : 0.3724<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-08-16
\nMaturity Price : 19.43
\nEvaluated at bid price : 19.43
\nBid-YTW : 4.70 %<\/td>\n<\/tr>\n

NA.PR.X<\/td>\nFixedReset<\/td>\nQuote: 26.45 – 26.68
\nSpot Rate : 0.2300
\nAverage : 0.1385<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-05-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.45
\nBid-YTW : 3.94 %<\/td>\n<\/tr>\n

TRP.PR.K<\/td>\nFixedReset<\/td>\nQuote: 25.75 – 25.99
\nSpot Rate : 0.2400
\nAverage : 0.1543<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-05-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.75
\nBid-YTW : 4.18 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The WSJ has a nice piece titled The Wage Paradox Explained: So why haven\u2019t wages risen faster amid an increase in hiring and unfilled jobs? One answer is that wages have actually been growing at …<\/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-48659","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48659","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=48659"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48659\/revisions"}],"predecessor-version":[{"id":48660,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48659\/revisions\/48660"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}