{"id":5464,"date":"2009-02-12T20:38:08","date_gmt":"2009-02-13T00:38:08","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=5464"},"modified":"2009-02-12T20:38:08","modified_gmt":"2009-02-13T00:38:08","slug":"february-13-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=5464","title":{"rendered":"February 13, 2009"},"content":{"rendered":"

The Fed has, apparently, been taking its responsibilities seriously. I have often observed that the Fed is doing exactly what Central Banks are supposed to do: make credit available at punitive rates against good collateral. As most recently discussed on February 10<\/a>, many commentators, including Across the Curve<\/i> and Econbrowser<\/i>, have expressed the fear that the Fed is crossing the line from monetary policy into fiscal policy – which I agree would be a Bad Thing. Virtually everybody agrees that the discount window should not be used to prop up insolvent banks<\/a>. There’s another bill being talked up<\/a> that will allow retroactive confiscation of bonuses. Remember January 22<\/a>, when I suggested bonus-eligible employess discount deferred bonuses by 50%? Better make it 80%. And keep a reserve against all cash received.<\/p>\n

So, it was with great pleasure that I read<\/a>:<\/p>\n

Hartford Financial Services Group Inc., the insurer that lost $2.75 billion last year, dropped 7.8 percent in New York trading after being ousted from the federal program that buys short-term debt.<\/p>\n

The insurer, which was excluded after its credit ratings were downgraded, will have to repay the $375 million in commercial paper \u201cfrom existing sources of liquidity,\u201d the company said in its annual report today. \u201cFuture deterioration of our capital position at a time when we are unable to access the commercial paper markets due to prevailing market conditions could have a material adverse effect on our liquidity.\u201d <\/p><\/blockquote>\n

The exclusion of a somewhat shaky company from the liquidity provisions of the Commercial Paper Funding Facility<\/a> is a good sign. Bloomberg has noted<\/a> continued slow shrinking in the Fed’s balance sheet, but cautions that TALF (discussed February 10<\/a>) will probably expand it again.<\/p>\n

Dealbreaker<\/i> passes along<\/a> a note that<\/a> the “Derivatives Markets Transparency and Accountability Act of 2009” otherwise known as the “Protect America from BONUSES while being kind to Small Furry Animals Act” (at least, that’s what it’s known as here). has been introduced. Let’s just hope it’s ordinary grandstanding.<\/p>\n

Volume in the pref market picked up a little today, but there’s little discernable trend or volatility in prices. To an extent this is good for traders, as swaps can be legged (er … that means you can sell one to buy another, without fussing too much about simultaneity) with a lower chance that the market will move $2 against you before you blink.<\/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>\n5.28 %<\/td>\n3.74 %<\/td>\n23,378<\/td>\n17.86<\/td>\n2<\/td>\n-0.1018 %<\/td>\n860.8<\/td>\n<\/tr>\n
FixedFloater<\/td>\n7.29 %<\/td>\n6.91 %<\/td>\n69,897<\/td>\n14.01<\/td>\n7<\/td>\n-0.8401 %<\/td>\n1,376.7<\/td>\n<\/tr>\n
Floater<\/td>\n5.20 %<\/td>\n4.21 %<\/td>\n29,035<\/td>\n16.95<\/td>\n4<\/td>\n0.1488 %<\/td>\n1,009.7<\/td>\n<\/tr>\n
OpRet<\/td>\n5.23 %<\/td>\n4.72 %<\/td>\n141,198<\/td>\n4.00<\/td>\n15<\/td>\n0.1568 %<\/td>\n2,054.3<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.23 %<\/td>\n9.12 %<\/td>\n67,899<\/td>\n4.07<\/td>\n15<\/td>\n0.0032 %<\/td>\n1,788.4<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n7.09 %<\/td>\n8.19 %<\/td>\n32,386<\/td>\n0.84<\/td>\n2<\/td>\n0.5239 %<\/td>\n1,994.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1059 %<\/td>\n1,563.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.88 %<\/td>\n6.98 %<\/td>\n197,346<\/td>\n12.59<\/td>\n71<\/td>\n-0.1059 %<\/td>\n1,440.1<\/td>\n<\/tr>\n
FixedReset<\/td>\n6.07 %<\/td>\n5.70 %<\/td>\n628,448<\/td>\n13.99<\/td>\n27<\/td>\n0.1305 %<\/td>\n1,813.4<\/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\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BCE.PR.Z<\/td>\nFixedFloater<\/td>\n-3.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 25.00
\nEvaluated at bid price : 15.26
\nBid-YTW : 7.01 %<\/td>\n<\/tr>\n
BAM.PR.O<\/td>\nOpRet<\/td>\n-1.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2013-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.55
\nBid-YTW : 10.40 %<\/td>\n<\/tr>\n
BCE.PR.G<\/td>\nFixedFloater<\/td>\n-1.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 25.00
\nEvaluated at bid price : 14.75
\nBid-YTW : 7.20 %<\/td>\n<\/tr>\n
NA.PR.N<\/td>\nFixedReset<\/td>\n-1.58 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 22.39
\nEvaluated at bid price : 22.45
\nBid-YTW : 4.83 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.53 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 15.41
\nEvaluated at bid price : 15.41
\nBid-YTW : 8.75 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nPerpetual-Discount<\/td>\n-1.47 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 16.70
\nEvaluated at bid price : 16.70
\nBid-YTW : 6.88 %<\/td>\n<\/tr>\n
WFS.PR.A<\/td>\nSplitShare<\/td>\n-1.40 %<\/td>\nAsset coverage of 1.1+:1 as of February 5 according to Mulvihill<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2011-06-30
\nMaturity Price : 10.00
\nEvaluated at bid price : 8.45
\nBid-YTW : 13.49 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n-1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 7.61
\nEvaluated at bid price : 7.61
\nBid-YTW : 7.02 %<\/td>\n<\/tr>\n
SBN.PR.A<\/td>\nSplitShare<\/td>\n-1.27 %<\/td>\nAsset coverage of 1.6+:1 as of February 5 according to Mulvihill<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2014-12-01
\nMaturity Price : 10.00
\nEvaluated at bid price : 9.33
\nBid-YTW : 6.69 %<\/td>\n<\/tr>\n
FTN.PR.A<\/td>\nSplitShare<\/td>\n-1.25 %<\/td>\nAsset coverage of 1.2+:1 as of January 30 according to the company<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2015-12-01
\nMaturity Price : 10.00
\nEvaluated at bid price : 7.91
\nBid-YTW : 9.63 %<\/td>\n<\/tr>\n
POW.PR.B<\/td>\nPerpetual-Discount<\/td>\n-1.24 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 19.17
\nEvaluated at bid price : 19.17
\nBid-YTW : 7.08 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nPerpetual-Discount<\/td>\n-1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 17.50
\nEvaluated at bid price : 17.50
\nBid-YTW : 6.78 %<\/td>\n<\/tr>\n
BAM.PR.J<\/td>\nOpRet<\/td>\n-1.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2018-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 18.51
\nBid-YTW : 9.97 %<\/td>\n<\/tr>\n
FFN.PR.A<\/td>\nSplitShare<\/td>\n-1.10 %<\/td>\nAsset coverage of 1.1-: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 : 7.18
\nBid-YTW : 12.35 %<\/td>\n<\/tr>\n
LFE.PR.A<\/td>\nSplitShare<\/td>\n-1.10 %<\/td>\nAsset coverage of 1.3+:1 as of January 30 according to the company<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2012-12-01
\nMaturity Price : 10.00
\nEvaluated at bid price : 9.00
\nBid-YTW : 8.49 %<\/td>\n<\/tr>\n
BNS.PR.O<\/td>\nPerpetual-Discount<\/td>\n-1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 21.32
\nEvaluated at bid price : 21.32
\nBid-YTW : 6.64 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nPerpetual-Discount<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 15.40
\nEvaluated at bid price : 15.40
\nBid-YTW : 7.36 %<\/td>\n<\/tr>\n
NA.PR.L<\/td>\nPerpetual-Discount<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 17.58
\nEvaluated at bid price : 17.58
\nBid-YTW : 6.96 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 16.66
\nEvaluated at bid price : 16.66
\nBid-YTW : 7.03 %<\/td>\n<\/tr>\n
BAM.PR.H<\/td>\nOpRet<\/td>\n1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2012-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.00
\nBid-YTW : 9.06 %<\/td>\n<\/tr>\n
GWO.PR.H<\/td>\nPerpetual-Discount<\/td>\n1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 16.85
\nEvaluated at bid price : 16.85
\nBid-YTW : 7.33 %<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n1.16 %<\/td>\nAsset coverage of 1.9-:1 as of January 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 : 12.16
\nBid-YTW : 14.52 %<\/td>\n<\/tr>\n
CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\n1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 16.76
\nEvaluated at bid price : 16.76
\nBid-YTW : 6.89 %<\/td>\n<\/tr>\n
LBS.PR.A<\/td>\nSplitShare<\/td>\n1.86 %<\/td>\nAsset coverage of 1.3+:1 as of February 5 according to the company<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2013-11-29
\nMaturity Price : 10.00
\nEvaluated at bid price : 8.20
\nBid-YTW : 10.28 %<\/td>\n<\/tr>\n
PWF.PR.A<\/td>\nFloater<\/td>\n2.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 12.50
\nEvaluated at bid price : 12.50
\nBid-YTW : 4.20 %<\/td>\n<\/tr>\n
BNA.PR.B<\/td>\nSplitShare<\/td>\n2.68 %<\/td>\nAsset coverage of 1.9-:1 as of January 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 : 21.11
\nBid-YTW : 8.09 %<\/td>\n<\/tr>\n
RY.PR.F<\/td>\nPerpetual-Discount<\/td>\n2.77 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 17.80
\nEvaluated at bid price : 17.80
\nBid-YTW : 6.29 %<\/td>\n<\/tr>\n
BAM.PR.I<\/td>\nOpRet<\/td>\n2.88 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2013-12-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.17
\nBid-YTW : 8.62 %<\/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.G<\/td>\nFixedReset<\/td>\n237,557<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.25
\nBid-YTW : 6.13 %<\/td>\n<\/tr>\n
RY.PR.R<\/td>\nFixedReset<\/td>\n100,242<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.25
\nBid-YTW : 6.12 %<\/td>\n<\/tr>\n
CM.PR.L<\/td>\nFixedReset<\/td>\n74,320<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.16
\nBid-YTW : 6.44 %<\/td>\n<\/tr>\n
TD.PR.R<\/td>\nPerpetual-Discount<\/td>\n72,877<\/td>\nRBC crossed 63,500 at 20.90.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 20.77
\nEvaluated at bid price : 20.77
\nBid-YTW : 6.82 %<\/td>\n<\/tr>\n
BNS.PR.X<\/td>\nFixedReset<\/td>\n68,125<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.19
\nBid-YTW : 6.18 %<\/td>\n<\/tr>\n
BNS.PR.T<\/td>\nFixedReset<\/td>\n52,745<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-02-12
\nMaturity Price : 25.20
\nEvaluated at bid price : 25.25
\nBid-YTW : 6.13 %<\/td>\n<\/tr>\n
There were 33 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The Fed has, apparently, been taking its responsibilities seriously. I have often observed that the Fed is doing exactly what Central Banks are supposed to do: make credit available at punitive rates against good collateral. …<\/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-5464","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/5464","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=5464"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/5464\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}