{"id":48845,"date":"2017-10-31T10:59:00","date_gmt":"2017-10-31T14:59:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48845"},"modified":"2025-07-28T11:00:16","modified_gmt":"2025-07-28T15:00:16","slug":"october-31-2017","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48845","title":{"rendered":"October 31, 2017"},"content":{"rendered":"

Just in time for Hallowe’en comes a scary surprise<\/a>:<\/p>\n

\n

The nation\u2019s gross domestic product unexpectedly contracted in August, Statistics Canada reported Wednesday, after a flat reading in July.
…<\/b>
If the economy fails to expand in September, third-quarter annualized growth would be on pace for a sub-2 percent increase, after a gain of 4.5 percent in the second quarter. The Bank of Canada projects growth of 1.8 percent in the third quarter. Economists surveyed by Bloomberg News forecast an average 2.1 percent expansion in the second half.<\/p>\n

The nation\u2019s currency dropped as much as 0.6 percent to C$1.2915 against the U.S. dollar after Tuesday\u2019s report, which may fuel concern the Bank of Canada\u2019s caution about raising interest rates will only deepen.<\/p>\n<\/blockquote>\n

On the other hand, the most recent BoC governor worthy of respect thinks policy should tighten anyway<\/a>:<\/p>\n

\n

David Dodge, who led the Canadian central bank between 2001 and 2008, thinks Poloz should focus more on the long-neglected issue of financial stability and take the opportunity to raise rates now that the economy is running more or less at potential. Poloz kept his benchmark rate at 1 percent last week and indicated he\u2019s in no rush to tighten, given that he still sees signs of wage and inflation slack.<\/p>\n

Keeping borrowing costs low will only encourage households and businesses to keep adding debt, risks that should factor in more to the central bank\u2019s decision making, Dodge said in a telephone interview.<\/p>\n

\u201cWhile I understand why they want to be cautious, and I think that\u2019s quite correct, the fact that they are not moving to deal with what is a problem in financial markets arising from this very long period of very low interest rates I think is a mistake,\u201d Dodge said.<\/p>\n

Interest rates could rise by a full percentage point and still remain well below the 3 percent the Bank of Canada estimates is \u201cneutral\u201d for the economy — neither stimulative or contractionary.<\/p>\n

\u201cIt\u2019s not like the bank is being unreasonable,\u201d said Dodge. \u201cTheir\u2019s would be more or less the mainstream view, whereas I put a little bit more emphasis\u201d on financial system distortions. \u201cI\u2019ve lived through earlier periods,\u201d he said, in reference to the financial crisis.<\/p>\n<\/blockquote>\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>\n0.1016 %<\/td>\n2,415.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1016 %<\/td>\n4,433.1<\/td>\n<\/tr>\n
Floater<\/td>\n3.79 %<\/td>\n3.96 %<\/td>\n31,016<\/td>\n17.49<\/td>\n4<\/td>\n0.1016 %<\/td>\n2,554.8<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0658 %<\/td>\n3,078.5<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.74 %<\/td>\n4.67 %<\/td>\n64,516<\/td>\n4.33<\/td>\n6<\/td>\n0.0658 %<\/td>\n3,676.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0658 %<\/td>\n2,868.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.35 %<\/td>\n-4.32 %<\/td>\n67,766<\/td>\n0.09<\/td>\n17<\/td>\n0.0468 %<\/td>\n2,832.0<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.26 %<\/td>\n5.24 %<\/td>\n67,644<\/td>\n15.03<\/td>\n19<\/td>\n0.1290 %<\/td>\n2,994.3<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.24 %<\/td>\n4.15 %<\/td>\n147,093<\/td>\n6.15<\/td>\n99<\/td>\n0.2518 %<\/td>\n2,482.1<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.04 %<\/td>\n5.38 %<\/td>\n100,506<\/td>\n5.97<\/td>\n30<\/td>\n0.2174 %<\/td>\n2,925.5<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.74 %<\/td>\n2.79 %<\/td>\n48,052<\/td>\n4.02<\/td>\n8<\/td>\n0.0975 %<\/td>\n2,677.4<\/td>\n<\/tr>\n<\/table>\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
HSE.PR.E<\/td>\nFixedReset<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2020-03-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.90
\nBid-YTW : 4.88 %<\/td>\n<\/tr>\n
CM.PR.O<\/td>\nFixedReset<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-10-31
\nMaturity Price : 23.37
\nEvaluated at bid price : 23.75
\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n
MFC.PR.H<\/td>\nFixedReset<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.20
\nBid-YTW : 4.72 %<\/td>\n<\/tr>\n
GWO.PR.Q<\/td>\nDeemed-Retractible<\/td>\n1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.75
\nBid-YTW : 5.43 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n1.42 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-10-31
\nMaturity Price : 17.80
\nEvaluated at bid price : 17.80
\nBid-YTW : 4.50 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n1.60 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 18.42
\nBid-YTW : 7.35 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n1.70 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-10-31
\nMaturity Price : 20.36
\nEvaluated at bid price : 20.36
\nBid-YTW : 4.36 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n1.83 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-10-31
\nMaturity Price : 21.80
\nEvaluated at bid price : 22.20
\nBid-YTW : 4.40 %<\/td>\n<\/tr>\n
TD.PF.D<\/td>\nFixedReset<\/td>\n2.92 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-10-31
\nMaturity Price : 23.17
\nEvaluated at bid price : 24.35
\nBid-YTW : 4.36 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nDeemed-Retractible<\/td>\n3.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.20
\nBid-YTW : 6.60 %<\/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
SLF.PR.J<\/td>\nFloatingReset<\/td>\n187,540<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 17.65
\nBid-YTW : 7.70 %<\/td>\n<\/tr>\n
BNS.PR.H<\/td>\nFixedReset<\/td>\n131,900<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-01-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.16
\nBid-YTW : 3.69 %<\/td>\n<\/tr>\n
NA.PR.C<\/td>\nFixedReset<\/td>\n131,210<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-11-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.37
\nBid-YTW : 4.11 %<\/td>\n<\/tr>\n
TRP.PR.K<\/td>\nFixedReset<\/td>\n114,486<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-05-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.15
\nBid-YTW : 4.01 %<\/td>\n<\/tr>\n
TD.PF.D<\/td>\nFixedReset<\/td>\n104,519<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-10-31
\nMaturity Price : 23.17
\nEvaluated at bid price : 24.35
\nBid-YTW : 4.36 %<\/td>\n<\/tr>\n
RY.PR.J<\/td>\nFixedReset<\/td>\n81,404<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-10-31
\nMaturity Price : 23.27
\nEvaluated at bid price : 24.50
\nBid-YTW : 4.28 %<\/td>\n<\/tr>\n
There were 28 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
PWF.PR.A<\/td>\nFloater<\/td>\nQuote: 16.40 – 16.99
\nSpot Rate : 0.5900
\nAverage : 0.4085<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-10-31
\nMaturity Price : 16.40
\nEvaluated at bid price : 16.40
\nBid-YTW : 3.41 %<\/td>\n<\/tr>\n

PVS.PR.B<\/td>\nSplitShare<\/td>\nQuote: 25.15 – 25.51
\nSpot Rate : 0.3600
\nAverage : 0.2121<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.15
\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n

BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\nQuote: 21.78 – 22.19
\nSpot Rate : 0.4100
\nAverage : 0.2834<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-10-31
\nMaturity Price : 21.52
\nEvaluated at bid price : 21.78
\nBid-YTW : 5.51 %<\/td>\n<\/tr>\n

BNS.PR.B<\/td>\nFloatingReset<\/td>\nQuote: 24.66 – 24.99
\nSpot Rate : 0.3300
\nAverage : 0.2069<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.66
\nBid-YTW : 2.79 %<\/td>\n<\/tr>\n

CU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 22.20 – 22.70
\nSpot Rate : 0.5000
\nAverage : 0.3824<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-10-31
\nMaturity Price : 21.80
\nEvaluated at bid price : 22.20
\nBid-YTW : 4.40 %<\/td>\n<\/tr>\n

MFC.PR.M<\/td>\nFixedReset<\/td>\nQuote: 23.36 – 23.76
\nSpot Rate : 0.4000
\nAverage : 0.2854<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.36
\nBid-YTW : 5.16 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Just in time for Hallowe’en comes a scary surprise: The nation\u2019s gross domestic product unexpectedly contracted in August, Statistics Canada reported Wednesday, after a flat reading in July.…If the economy fails to expand in September, …<\/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-48845","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48845","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=48845"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48845\/revisions"}],"predecessor-version":[{"id":48846,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48845\/revisions\/48846"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}