{"id":5345,"date":"2009-02-04T22:25:49","date_gmt":"2009-02-05T02:25:49","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=5345"},"modified":"2009-02-04T22:25:49","modified_gmt":"2009-02-05T02:25:49","slug":"february-4-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=5345","title":{"rendered":"February 4, 2009"},"content":{"rendered":"

It seems that PrefBlog is persuading the world that Bad Bank = Bad Idea<\/a>:<\/p>\n

The Obama administration, aiming to overhaul the $700 billion financial-rescue program, is refocusing on an effort to guarantee illiquid assets against losses without taking them off banks\u2019 balance sheets.<\/p>\n

Treasury Secretary Timothy Geithner is skeptical of setting up a so-called bad bank to hold the toxic securities, an option that still may form part of the final package, people familiar with the matter said. Senator Charles Schumer yesterday said debt guarantees are becoming \u201ca favorite choice\u201d of options because a bad bank would be too costly.<\/p><\/blockquote>\n

Across the curve<\/i> is skeptical<\/a>:<\/p>\n

The process of repairing the banking system (read the nursery rhyme Humpty Dumpty) is proving to be a challenge for the Obama Administration. News reports indicate that the bad bank idea is losing followers and that the Administration seems to be turning to idea of massive guarantees of the flotsam and jetsam in bank portfolios. As one commentator noted, that has not worked out so well for the stock price of Citibank and B of A.<\/p><\/blockquote>\n

PerpetualDiscounts were off slightly today on good volume and now yield 6.98% – the equivalent of 9.77% interest at the standard equivalency factor of 1.4x. Long Corporates<\/a> remain fairly steady at 7.6%, so the Pre-Tax Interest-Equivalent Spread has widened slightly to +217bp.<\/p>\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>\n5.37 %<\/td>\n3.87 %<\/td>\n24,931<\/td>\n17.61<\/td>\n2<\/td>\n-0.3316 %<\/td>\n856.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n7.26 %<\/td>\n6.93 %<\/td>\n66,917<\/td>\n13.93<\/td>\n7<\/td>\n0.5253 %<\/td>\n1,382.8<\/td>\n<\/tr>\n
Floater<\/td>\n5.39 %<\/td>\n4.46 %<\/td>\n30,777<\/td>\n16.48<\/td>\n4<\/td>\n0.2058 %<\/td>\n974.2<\/td>\n<\/tr>\n
OpRet<\/td>\n5.30 %<\/td>\n4.80 %<\/td>\n159,681<\/td>\n4.02<\/td>\n15<\/td>\n0.0110 %<\/td>\n2,026.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.22 %<\/td>\n8.85 %<\/td>\n72,465<\/td>\n4.09<\/td>\n15<\/td>\n-0.0016 %<\/td>\n1,791.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n7.08 %<\/td>\n8.10 %<\/td>\n35,747<\/td>\n0.87<\/td>\n2<\/td>\n-0.1154 %<\/td>\n1,998.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0920 %<\/td>\n1,556.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.91 %<\/td>\n6.98 %<\/td>\n215,135<\/td>\n12.64<\/td>\n71<\/td>\n-0.0920 %<\/td>\n1,433.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n6.14 %<\/td>\n5.87 %<\/td>\n713,258<\/td>\n13.80<\/td>\n27<\/td>\n0.0074 %<\/td>\n1,792.5<\/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\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
BNA.PR.B<\/td>\nSplitShare<\/td>\n-4.42 %<\/td>\nAsset coverage of 1.8+:1 as of December 31 according to the company<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2016-03-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.32
\nBid-YTW : 8.74 %<\/td>\n<\/tr>\n
BNS.PR.N<\/td>\nPerpetual-Discount<\/td>\n-2.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 19.43
\nEvaluated at bid price : 19.43
\nBid-YTW : 6.82 %<\/td>\n<\/tr>\n
PWF.PR.G<\/td>\nPerpetual-Discount<\/td>\n-2.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 21.03
\nEvaluated at bid price : 21.03
\nBid-YTW : 7.08 %<\/td>\n<\/tr>\n
PWF.PR.E<\/td>\nPerpetual-Discount<\/td>\n-2.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 19.51
\nEvaluated at bid price : 19.51
\nBid-YTW : 7.12 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n-1.81 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 7.61
\nEvaluated at bid price : 7.61
\nBid-YTW : 7.01 %<\/td>\n<\/tr>\n
TD.PR.S<\/td>\nFixedReset<\/td>\n-1.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 21.70
\nEvaluated at bid price : 21.75
\nBid-YTW : 4.62 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n-1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 21.81
\nEvaluated at bid price : 21.85
\nBid-YTW : 4.91 %<\/td>\n<\/tr>\n
GWO.PR.H<\/td>\nPerpetual-Discount<\/td>\n-1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 16.64
\nEvaluated at bid price : 16.64
\nBid-YTW : 7.41 %<\/td>\n<\/tr>\n
POW.PR.C<\/td>\nPerpetual-Discount<\/td>\n-1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 21.04
\nEvaluated at bid price : 21.04
\nBid-YTW : 6.98 %<\/td>\n<\/tr>\n
POW.PR.B<\/td>\nPerpetual-Discount<\/td>\n-1.23 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 19.21
\nEvaluated at bid price : 19.21
\nBid-YTW : 7.06 %<\/td>\n<\/tr>\n
NA.PR.L<\/td>\nPerpetual-Discount<\/td>\n-1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 17.45
\nEvaluated at bid price : 17.45
\nBid-YTW : 7.00 %<\/td>\n<\/tr>\n
POW.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 20.85
\nEvaluated at bid price : 20.85
\nBid-YTW : 6.80 %<\/td>\n<\/tr>\n
WFS.PR.A<\/td>\nSplitShare<\/td>\n-1.15 %<\/td>\nAsset coverage of 1.1+:1 as of January 31 according to Mulvihill<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2011-06-30
\nMaturity Price : 10.00
\nEvaluated at bid price : 8.56
\nBid-YTW : 12.74 %<\/td>\n<\/tr>\n
CM.PR.K<\/td>\nFixedReset<\/td>\n-1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 21.44
\nEvaluated at bid price : 21.75
\nBid-YTW : 5.32 %<\/td>\n<\/tr>\n
PWF.PR.A<\/td>\nFloater<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 11.86
\nEvaluated at bid price : 11.86
\nBid-YTW : 4.43 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nPerpetual-Discount<\/td>\n1.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 15.38
\nEvaluated at bid price : 15.38
\nBid-YTW : 7.36 %<\/td>\n<\/tr>\n
CU.PR.B<\/td>\nPerpetual-Discount<\/td>\n1.65 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 22.56
\nEvaluated at bid price : 22.76
\nBid-YTW : 6.60 %<\/td>\n<\/tr>\n
CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\n1.74 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 16.50
\nEvaluated at bid price : 16.50
\nBid-YTW : 6.99 %<\/td>\n<\/tr>\n
DF.PR.A<\/td>\nSplitShare<\/td>\n1.89 %<\/td>\nAsset coverage of 1.4-:1 as of January 30 according to the company<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2014-12-01
\nMaturity Price : 10.00
\nEvaluated at bid price : 9.18
\nBid-YTW : 7.06 %<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n1.90 %<\/td>\nAsset coverage of 1.8+:1 as of December 31 according to the company<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 11.82
\nBid-YTW : 14.91 %<\/td>\n<\/tr>\n
TD.PR.A<\/td>\nFixedReset<\/td>\n2.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 22.21
\nEvaluated at bid price : 22.25
\nBid-YTW : 4.86 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nPerpetual-Discount<\/td>\n2.40 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 16.66
\nEvaluated at bid price : 16.66
\nBid-YTW : 7.02 %<\/td>\n<\/tr>\n
NA.PR.N<\/td>\nFixedReset<\/td>\n2.60 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 22.80
\nEvaluated at bid price : 22.86
\nBid-YTW : 4.87 %<\/td>\n<\/tr>\n
BAM.PR.O<\/td>\nOpRet<\/td>\n2.77 %<\/td>\nYTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2013-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.69
\nBid-YTW : 11.50 %<\/td>\n<\/tr>\n
BCE.PR.R<\/td>\nFixedFloater<\/td>\n2.82 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 25.00
\nEvaluated at bid price : 15.70
\nBid-YTW : 6.82 %<\/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
CM.PR.L<\/td>\nFixedReset<\/td>\n432,749<\/td>\nNew issue settled today<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.90
\nBid-YTW : 6.65 %<\/td>\n<\/tr>\n
TD.PR.G<\/td>\nFixedReset<\/td>\n153,349<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 24.76
\nEvaluated at bid price : 24.81
\nBid-YTW : 6.50 %<\/td>\n<\/tr>\n
RY.PR.R<\/td>\nFixedReset<\/td>\n151,650<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.90
\nBid-YTW : 6.42 %<\/td>\n<\/tr>\n
BNS.PR.X<\/td>\nFixedReset<\/td>\n78,157<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.84
\nBid-YTW : 6.48 %<\/td>\n<\/tr>\n
RY.PR.H<\/td>\nPerpetual-Discount<\/td>\n60,183<\/td>\nRBC crossed 52,300 at 21.25.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-04
\nMaturity Price : 21.02
\nEvaluated at bid price : 21.02
\nBid-YTW : 6.75 %<\/td>\n<\/tr>\n
GWO.PR.X<\/td>\nOpRet<\/td>\n59,850<\/td>\nNesbitt crossed 50,000 at 25.05.
\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2013-09-29
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 4.94 %<\/td>\n<\/tr>\n
There were 32 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

It seems that PrefBlog is persuading the world that Bad Bank = Bad Idea: The Obama administration, aiming to overhaul the $700 billion financial-rescue program, is refocusing on an effort to guarantee illiquid assets against …<\/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-5345","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/5345","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=5345"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/5345\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}