{"id":50776,"date":"2019-09-11T22:02:00","date_gmt":"2019-09-12T02:02:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=50776"},"modified":"2025-11-17T22:04:13","modified_gmt":"2025-11-18T03:04:13","slug":"september-11-2019","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=50776","title":{"rendered":"September 11, 2019"},"content":{"rendered":"

It appears that anybody who doesn’t like the idea of negative interest rates is an enemy of the people<\/a>:<\/p>\n

\n

U.S. President Donald Trump on Wednesday called on the \u201cboneheads\u201d at the Federal Reserve to push interest rates down into negative territory, a move reluctantly used by other world central banks to battle weak economic growth that risks punishing savers and banks\u2019 earnings in the process.<\/p>\n

Trump, in a pair of Twitter posts, said negative rates would save the government money on its debt, which including Social Security accounts has reached a record $22 trillion on Trump\u2019s watch.

\u201cIt is only the na\u00efvet\u00e9 of (Fed Chairman) Jay Powell and the Federal Reserve that doesn\u2019t allow us to do what other countries are already doing,\u201d added Trump, who has repeatedly noted that rates are negative in Germany, Europe\u2019s trading powerhouse.<\/p>\n<\/blockquote>\n

Pew Research has a nice page on the US federal debt<\/a>:<\/p>\n

\n

Net interest payments on the debt are estimated to total $393.5 billion this fiscal year, or 8.7% of all federal outlays. (The government projects it will pay out a total of $593.1 billion in interest in fiscal 2019, which ends Sept. 30, but that includes interest credited to Social Security and other government trust funds.) By comparison, debt service was more than 15% of federal outlays in the mid-1990s. The share has fallen partly because lower rates have held down interest payments, but also because outlays have risen substantially, up about 29% over the past decade.<\/p>\n<\/blockquote>\n

\"usfederaldebt_190911\"<\/a>
Click for Big<\/i><\/div>\n

Rent control has come to California! I started reading the article prepared to hate the idea, but they’ve actually done a reasonable job<\/a>:<\/p>\n

\n

California lawmakers approved a statewide rent cap on Wednesday covering millions of tenants, the biggest step yet in a surge of initiatives to address an affordable-housing crunch nationwide.<\/p>\n

The bill limits annual rent increases to 5 percent after inflation and offers new barriers to eviction, providing a bit of housing security in a state with the nation\u2019s highest housing prices and a swelling homeless population.
…<\/b>
In February, Oregon lawmakers became the first to pass statewide rent control, limiting increases to 7 percent annually plus inflation.
…<\/b>
Economists from both the left and the right have a well-established aversion<\/a> to rent control, arguing that such policies ignore the message of rising prices, which is to build more housing. Studies in San Francisco<\/a> and elsewhere show that price caps often prompt landlords to abandon the rental business by converting their units to owner-occupied homes. And since rent controls typically have no income threshold, they have been faulted for benefiting high-income tenants.
…<\/b>
But many of the same studies show that rent-control policies have been effective at shielding tenants from evictions and sudden rent increases, particularly the lower-income and older tenants who are at a high risk of becoming homeless.<\/p>\n<\/blockquote>\n

Allowing increases in excess of inflation gives comfort to landlords that they will, eventually, be able to charge the tenant the market rate, while protecting the tenant from ludicrous increases. Avoiding the dislocation inherent in the face of extortionate increases and allowing tenants to plan is a public good that is worth money, even though it is assigned zero value in the disapproving studies.<\/p>\n

PerpetualDiscounts now yield 5.63%, equivalent to 7.32% interest at the standard equivalency factor of 1.3x. Long corporates<\/a> now yield 3.17%, so the pre-tax interest-equivalent spread (in this context, the \u201cSeniority Spread\u201d) has remains at 415bp (where it was on September 4<\/a>, close to the post-Credit Crunch record of 420bp set August 28<\/a>. The latter value is second only to the 445bp recorded November 26, 2008<\/a>, a day on which <\/p>\n

\n

The TXPR index was down 5.94% on the BCE news<\/a>.<\/p>\n<\/blockquote>\n\n\n\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>\n-0.1335 %<\/td>\n1,938.2<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1335 %<\/td>\n3,556.5<\/td>\n<\/tr>\n
Floater<\/td>\n6.16 %<\/td>\n6.33 %<\/td>\n52,661<\/td>\n13.31<\/td>\n4<\/td>\n-0.1335 %<\/td>\n2,049.6<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0395 %<\/td>\n3,381.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.66 %<\/td>\n4.51 %<\/td>\n63,395<\/td>\n4.04<\/td>\n7<\/td>\n0.0395 %<\/td>\n4,038.4<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0395 %<\/td>\n3,150.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.61 %<\/td>\n-18.19 %<\/td>\n60,474<\/td>\n0.09<\/td>\n6<\/td>\n0.0716 %<\/td>\n2,983.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.46 %<\/td>\n5.63 %<\/td>\n65,354<\/td>\n14.40<\/td>\n28<\/td>\n0.0763 %<\/td>\n3,129.8<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n5.52 %<\/td>\n5.39 %<\/td>\n175,023<\/td>\n14.54<\/td>\n73<\/td>\n-0.0759 %<\/td>\n2,073.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.28 %<\/td>\n5.95 %<\/td>\n76,944<\/td>\n7.90<\/td>\n27<\/td>\n0.1838 %<\/td>\n3,116.8<\/td>\n<\/tr>\n
FloatingReset<\/td>\n4.49 %<\/td>\n6.63 %<\/td>\n60,331<\/td>\n8.04<\/td>\n3<\/td>\n0.1378 %<\/td>\n2,353.5<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n5.25 %<\/td>\n3.95 %<\/td>\n132,524<\/td>\n1.62<\/td>\n14<\/td>\n-0.0279 %<\/td>\n2,579.3<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n1.97 %<\/td>\n4.20 %<\/td>\n89,740<\/td>\n2.31<\/td>\n3<\/td>\n0.1251 %<\/td>\n2,663.6<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.46 %<\/td>\n7.90 %<\/td>\n102,074<\/td>\n7.95<\/td>\n21<\/td>\n-0.0885 %<\/td>\n2,111.2<\/td>\n<\/tr>\n<\/table>\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 Disc<\/td>\n-3.59 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 17.21
\nEvaluated at bid price : 17.21
\nBid-YTW : 6.28 %<\/td>\n<\/tr>\n
NA.PR.C<\/td>\nFixedReset Disc<\/td>\n-1.65 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 20.90
\nEvaluated at bid price : 20.90
\nBid-YTW : 5.72 %<\/td>\n<\/tr>\n
MFC.PR.H<\/td>\nFixedReset Ins Non<\/td>\n-1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.45
\nBid-YTW : 6.95 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset Disc<\/td>\n-1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 11.80
\nEvaluated at bid price : 11.80
\nBid-YTW : 6.12 %<\/td>\n<\/tr>\n
BMO.PR.E<\/td>\nFixedReset Disc<\/td>\n-1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 20.16
\nEvaluated at bid price : 20.16
\nBid-YTW : 5.30 %<\/td>\n<\/tr>\n
CM.PR.Q<\/td>\nFixedReset Disc<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 18.50
\nEvaluated at bid price : 18.50
\nBid-YTW : 5.64 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset Disc<\/td>\n1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 14.76
\nEvaluated at bid price : 14.76
\nBid-YTW : 6.20 %<\/td>\n<\/tr>\n
HSE.PR.C<\/td>\nFixedReset Disc<\/td>\n1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 16.39
\nEvaluated at bid price : 16.39
\nBid-YTW : 6.88 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 11.15
\nEvaluated at bid price : 11.15
\nBid-YTW : 6.33 %<\/td>\n<\/tr>\n
BIP.PR.A<\/td>\nFixedReset Disc<\/td>\n1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 18.01
\nEvaluated at bid price : 18.01
\nBid-YTW : 6.84 %<\/td>\n<\/tr>\n
BAM.PR.X<\/td>\nFixedReset Disc<\/td>\n2.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 13.06
\nEvaluated at bid price : 13.06
\nBid-YTW : 6.03 %<\/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
TRP.PR.K<\/td>\nFixedReset Disc<\/td>\n271,158<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-05-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.08
\nBid-YTW : 4.86 %<\/td>\n<\/tr>\n
TRP.PR.E<\/td>\nFixedReset Disc<\/td>\n190,743<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 15.51
\nEvaluated at bid price : 15.51
\nBid-YTW : 6.08 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset Disc<\/td>\n100,400<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 15.00
\nEvaluated at bid price : 15.00
\nBid-YTW : 6.19 %<\/td>\n<\/tr>\n
BAM.PF.H<\/td>\nFixedReset Prem<\/td>\n81,120<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2020-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.38
\nBid-YTW : 4.60 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset Disc<\/td>\n77,660<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 14.76
\nEvaluated at bid price : 14.76
\nBid-YTW : 6.20 %<\/td>\n<\/tr>\n
MFC.PR.N<\/td>\nFixedReset Ins Non<\/td>\n52,377<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 15.84
\nBid-YTW : 9.26 %<\/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
TRP.PR.G<\/td>\nFixedReset Disc<\/td>\nQuote: 17.21 – 17.80
\nSpot Rate : 0.5900
\nAverage : 0.3981<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 17.21
\nEvaluated at bid price : 17.21
\nBid-YTW : 6.28 %<\/td>\n<\/tr>\n

IFC.PR.E<\/td>\nDeemed-Retractible<\/td>\nQuote: 23.90 – 24.23
\nSpot Rate : 0.3300
\nAverage : 0.2136<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.90
\nBid-YTW : 5.95 %<\/td>\n<\/tr>\n

W.PR.K<\/td>\nFixedReset Prem<\/td>\nQuote: 25.31 – 25.82
\nSpot Rate : 0.5100
\nAverage : 0.4031<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-01-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.31
\nBid-YTW : 4.95 %<\/td>\n<\/tr>\n

BAM.PF.J<\/td>\nFixedReset Disc<\/td>\nQuote: 23.70 – 24.00
\nSpot Rate : 0.3000
\nAverage : 0.1960<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-09-11
\nMaturity Price : 22.79
\nEvaluated at bid price : 23.70
\nBid-YTW : 5.05 %<\/td>\n<\/tr>\n

SLF.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 21.96 – 22.35
\nSpot Rate : 0.3900
\nAverage : 0.3009<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.96
\nBid-YTW : 6.43 %<\/td>\n<\/tr>\n

SLF.PR.A<\/td>\nDeemed-Retractible<\/td>\nQuote: 21.72 – 22.00
\nSpot Rate : 0.2800
\nAverage : 0.2164<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.72
\nBid-YTW : 6.51 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

It appears that anybody who doesn’t like the idea of negative interest rates is an enemy of the people: U.S. President Donald Trump on Wednesday called on the \u201cboneheads\u201d at the Federal Reserve to push …<\/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-50776","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50776","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=50776"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50776\/revisions"}],"predecessor-version":[{"id":50777,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50776\/revisions\/50777"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}