{"id":5934,"date":"2009-03-18T18:56:59","date_gmt":"2009-03-18T22:56:59","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=5934"},"modified":"2009-03-18T18:56:59","modified_gmt":"2009-03-18T22:56:59","slug":"march-18-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=5934","title":{"rendered":"March 18, 2009"},"content":{"rendered":"

AIG bonuses are all over the news; I haven’t commented on them (specifically) due to the total absence of facts. But some people like to talk about it. Econbrowser<\/i>‘s James Hamilton labels them<\/a> “outrageous” and “one of the very factors that caused our current problems” without, as far as I can tell, having any more idea about what is going on than I do.<\/p>\n

I have no idea what the functions of these exectuives are, what decisions they made, and how much responsibility they should take for decisions made by their boss’ boss’ boss.<\/p>\n

There’s a bit more news today<\/a>:<\/p>\n

The head of battered insurance giant AIG told Congress on Wednesday that “we’ve heard the American people loudly and clearly” in their rage over executive bonuses and appealed to employees to voluntarily return at least half of the money.<\/p><\/blockquote>\n

Voluntarily, eh?<\/p>\n

This is a very simple problem to solve, if you feel the game is worth the candle (Matthew, 16:26). All you need to do is threaten each executive with an army of accountants and lawyers, going over everything they’ve ever done in the course of their employment looking for an undotted “i” or an uncrossed “t”. Anything that’s found becomes fodder for just-cause dismissal, lawsuits, regulatory action and\/or criminal charges.<\/p>\n

Easy. All it takes is a total absence of business ethics.<\/p>\n

Another day of solid across-the-board gains, on decent volume. PerpetualDiscounts now yield 7.41%, equivalent to 10.37% interest at the standard equivalency factor of 1.4x. Long Corporates<\/a> still yield 7.5% (bor-ring!) so the pre-tax interest-equivalent spread has come in a bit to a “mere” 287bp.<\/p>\n

Also of interest was the fact that Five-Year Canadas came in 18bp<\/b> today<\/a> and now yield 1.55%; this is presumably an arbitrage-thing against Treasuries on the back of the Fed quantitative easing<\/a>. And rate resets went up anyway. I guess investors are discounting the current turmoil as transient … or something.<\/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>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n1.1202 %<\/td>\n816.3<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n1.1202 %<\/td>\n1,320.1<\/td>\n<\/tr>\n
Floater<\/td>\n4.85 %<\/td>\n5.97 %<\/td>\n57,879<\/td>\n13.97<\/td>\n3<\/td>\n1.1202 %<\/td>\n1,019.8<\/td>\n<\/tr>\n
OpRet<\/td>\n5.26 %<\/td>\n4.88 %<\/td>\n129,652<\/td>\n3.90<\/td>\n15<\/td>\n0.4829 %<\/td>\n2,057.4<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.90 %<\/td>\n9.73 %<\/td>\n53,468<\/td>\n4.80<\/td>\n6<\/td>\n0.6213 %<\/td>\n1,609.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n6.18 %<\/td>\n11.44 %<\/td>\n33,870<\/td>\n0.75<\/td>\n1<\/td>\n-0.5123 %<\/td>\n1,900.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2868 %<\/td>\n1,485.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n7.27 %<\/td>\n7.41 %<\/td>\n154,510<\/td>\n12.04<\/td>\n71<\/td>\n0.2868 %<\/td>\n1,368.3<\/td>\n<\/tr>\n
FixedReset<\/td>\n6.17 %<\/td>\n5.84 %<\/td>\n618,569<\/td>\n13.74<\/td>\n30<\/td>\n0.2139 %<\/td>\n1,792.8<\/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\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
SBN.PR.A<\/td>\nSplitShare<\/td>\n-2.06 %<\/td>\nAsset coverage of 1.6-:1 as of March 12 according to Mulvihill<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2014-12-01
\nMaturity Price : 10.00
\nEvaluated at bid price : 8.10
\nBid-YTW : 9.73 %<\/td>\n<\/tr>\n
POW.PR.B<\/td>\nPerpetual-Discount<\/td>\n-2.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 17.30
\nEvaluated at bid price : 17.30
\nBid-YTW : 7.92 %<\/td>\n<\/tr>\n
HSB.PR.C<\/td>\nPerpetual-Discount<\/td>\n-1.76 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 17.30
\nEvaluated at bid price : 17.30
\nBid-YTW : 7.41 %<\/td>\n<\/tr>\n
CU.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.52 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 20.80
\nEvaluated at bid price : 20.80
\nBid-YTW : 7.06 %<\/td>\n<\/tr>\n
PWF.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.44 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 17.06
\nEvaluated at bid price : 17.06
\nBid-YTW : 7.85 %<\/td>\n<\/tr>\n
BNS.PR.O<\/td>\nPerpetual-Discount<\/td>\n-1.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 20.95
\nEvaluated at bid price : 20.95
\nBid-YTW : 6.81 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nPerpetual-Discount<\/td>\n-1.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 14.03
\nEvaluated at bid price : 14.03
\nBid-YTW : 7.98 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n-1.23 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 22.47
\nEvaluated at bid price : 22.51
\nBid-YTW : 4.45 %<\/td>\n<\/tr>\n
BMO.PR.J<\/td>\nPerpetual-Discount<\/td>\n-1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 16.27
\nEvaluated at bid price : 16.27
\nBid-YTW : 7.01 %<\/td>\n<\/tr>\n
MFC.PR.A<\/td>\nOpRet<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2015-12-18
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.26
\nBid-YTW : 4.64 %<\/td>\n<\/tr>\n
RY.PR.C<\/td>\nPerpetual-Discount<\/td>\n1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 17.03
\nEvaluated at bid price : 17.03
\nBid-YTW : 6.85 %<\/td>\n<\/tr>\n
RY.PR.A<\/td>\nPerpetual-Discount<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 16.72
\nEvaluated at bid price : 16.72
\nBid-YTW : 6.75 %<\/td>\n<\/tr>\n
BNA.PR.A<\/td>\nSplitShare<\/td>\n1.10 %<\/td>\nAsset coverage of 1.7-:1 as of February 28 according to the company<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2010-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.05
\nBid-YTW : 12.19 %<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nPerpetual-Discount<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 18.37
\nEvaluated at bid price : 18.37
\nBid-YTW : 6.72 %<\/td>\n<\/tr>\n
BMO.PR.H<\/td>\nPerpetual-Discount<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 20.25
\nEvaluated at bid price : 20.25
\nBid-YTW : 6.63 %<\/td>\n<\/tr>\n
PWF.PR.G<\/td>\nPerpetual-Discount<\/td>\n1.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 19.00
\nEvaluated at bid price : 19.00
\nBid-YTW : 7.93 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nPerpetual-Discount<\/td>\n1.29 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 14.11
\nEvaluated at bid price : 14.11
\nBid-YTW : 7.94 %<\/td>\n<\/tr>\n
SLF.PR.E<\/td>\nPerpetual-Discount<\/td>\n1.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 14.21
\nEvaluated at bid price : 14.21
\nBid-YTW : 7.97 %<\/td>\n<\/tr>\n
BAM.PR.H<\/td>\nOpRet<\/td>\n1.52 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2012-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.35
\nBid-YTW : 8.23 %<\/td>\n<\/tr>\n
BAM.PR.O<\/td>\nOpRet<\/td>\n1.72 %<\/td>\nYTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2013-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.75
\nBid-YTW : 9.98 %<\/td>\n<\/tr>\n
DFN.PR.A<\/td>\nSplitShare<\/td>\n1.73 %<\/td>\nAsset coverage of 1.5+:1 as of March 13 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 : 8.25
\nBid-YTW : 9.41 %<\/td>\n<\/tr>\n
PWF.PR.I<\/td>\nPerpetual-Discount<\/td>\n1.74 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 19.90
\nEvaluated at bid price : 19.90
\nBid-YTW : 7.69 %<\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nPerpetual-Discount<\/td>\n1.78 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 14.86
\nEvaluated at bid price : 14.86
\nBid-YTW : 8.04 %<\/td>\n<\/tr>\n
CM.PR.E<\/td>\nPerpetual-Discount<\/td>\n1.78 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 18.86
\nEvaluated at bid price : 18.86
\nBid-YTW : 7.58 %<\/td>\n<\/tr>\n
CM.PR.G<\/td>\nPerpetual-Discount<\/td>\n1.78 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 18.25
\nEvaluated at bid price : 18.25
\nBid-YTW : 7.55 %<\/td>\n<\/tr>\n
PWF.PR.J<\/td>\nOpRet<\/td>\n1.83 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2013-07-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 4.88 %<\/td>\n<\/tr>\n
CM.PR.D<\/td>\nPerpetual-Discount<\/td>\n2.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 19.81
\nEvaluated at bid price : 19.81
\nBid-YTW : 7.40 %<\/td>\n<\/tr>\n
SLF.PR.B<\/td>\nPerpetual-Discount<\/td>\n2.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 15.31
\nEvaluated at bid price : 15.31
\nBid-YTW : 7.89 %<\/td>\n<\/tr>\n
TD.PR.C<\/td>\nFixedReset<\/td>\n2.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 24.29
\nEvaluated at bid price : 24.34
\nBid-YTW : 4.93 %<\/td>\n<\/tr>\n
BAM.PR.J<\/td>\nOpRet<\/td>\n2.58 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2018-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 17.86
\nBid-YTW : 10.38 %<\/td>\n<\/tr>\n
GWO.PR.H<\/td>\nPerpetual-Discount<\/td>\n2.60 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 15.39
\nEvaluated at bid price : 15.39
\nBid-YTW : 7.93 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nPerpetual-Discount<\/td>\n2.75 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 14.93
\nEvaluated at bid price : 14.93
\nBid-YTW : 7.60 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n3.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 7.35
\nEvaluated at bid price : 7.35
\nBid-YTW : 5.97 %<\/td>\n<\/tr>\n
GWO.PR.J<\/td>\nFixedReset<\/td>\n3.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 23.95
\nEvaluated at bid price : 23.99
\nBid-YTW : 5.32 %<\/td>\n<\/tr>\n
LFE.PR.A<\/td>\nSplitShare<\/td>\n3.65 %<\/td>\nAsset coverage of 1.1-:1 as of March 13 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 : 7.10
\nBid-YTW : 16.16 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nPerpetual-Discount<\/td>\n4.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 14.63
\nEvaluated at bid price : 14.63
\nBid-YTW : 7.74 %<\/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.E<\/td>\nFixedReset<\/td>\n128,070<\/td>\nTD crossed 100,000 at 25.60.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.56
\nBid-YTW : 6.03 %<\/td>\n<\/tr>\n
TD.PR.I<\/td>\nFixedReset<\/td>\n88,075<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.05
\nBid-YTW : 6.01 %<\/td>\n<\/tr>\n
BNS.PR.L<\/td>\nPerpetual-Discount<\/td>\n67,496<\/td>\nNesbitt crossed 54,000 at 16.81.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 16.81
\nEvaluated at bid price : 16.81
\nBid-YTW : 6.82 %<\/td>\n<\/tr>\n
RY.PR.T<\/td>\nFixedReset<\/td>\n61,433<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 23.16
\nEvaluated at bid price : 25.08
\nBid-YTW : 5.84 %<\/td>\n<\/tr>\n
MFC.PR.D<\/td>\nFixedReset<\/td>\n54,134<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 24.11
\nEvaluated at bid price : 24.15
\nBid-YTW : 6.65 %<\/td>\n<\/tr>\n
BNS.PR.T<\/td>\nFixedReset<\/td>\n48,850<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-03-18
\nMaturity Price : 25.12
\nEvaluated at bid price : 25.17
\nBid-YTW : 6.02 %<\/td>\n<\/tr>\n
There were 28 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

AIG bonuses are all over the news; I haven’t commented on them (specifically) due to the total absence of facts. But some people like to talk about it. Econbrowser‘s James Hamilton labels them “outrageous” and …<\/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-5934","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/5934","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=5934"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/5934\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}