{"id":6162,"date":"2009-04-08T19:11:45","date_gmt":"2009-04-08T23:11:45","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=6162"},"modified":"2009-04-08T19:11:45","modified_gmt":"2009-04-08T23:11:45","slug":"april-8-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=6162","title":{"rendered":"April 8, 2009"},"content":{"rendered":"

The SEC has announced that facts don’t matter any more<\/a>:<\/p>\n

The U.S. Securities and Exchange Commission will weigh multiple rules to dictate when traders can bet shares will fall, after lawmakers and business groups said short-sellers fueled the financial crisis by targeting banks.
…<\/b>
[SEC Chairman Mary] Schapiro said the SEC isn\u2019t aware of any \u201cempirical evidence\u201d that shows the elimination of the uptick rule contributed to falling U.S. stock prices. Still, \u201cmany members of the public have come to associate short-selling with that volatility and with a loss of investor confidence,\u201d she said.<\/p><\/blockquote>\n

… but it might simply be some more political grandstanding:<\/p>\n

SEC Commissioner Kathleen Casey, a Republican, questioned whether the agency was pushing forward \u201cmerely in a political exercise.\u201d If the SEC fails to justify its actions, the agency risked having any rule challenged and shot down by a federal court, she said.<\/p>\n

\u201cEmpirical evidence must guide regulatory decisions,\u201d said Casey, who said she supported soliciting public comment on the proposals. \u201cIf the commission forgets this principle, the D.C. Circuit stands ready to provide a reminder.\u201d<\/p><\/blockquote>\n

Another day of good solid gains for preferreds, with PerpetualDiscounts gaining 0.35%, just a hairsbreadth better than Fixed Resets. The former asset class now has pre-tax bid-YTW of 7.06%, equivalent to 9.88% interest after application of the standard 1.4x conversion factor. Long corporates<\/a> remain as near as dammit to 7.5%, so the pre-tax Interest Equivalent spread is now 238bp.<\/p>\n

Volume was good today, dominated by the recent FixedReset issues; MFC.PR.D’s volume is picking up. It’s hard to tell what to think about this issue – the issue size was bumped and the underwriters exercised their greenshoe, but the issue has been trading sub-par since its issue<\/a> with less volume than one might expect from an issue of this size. Could it be that the underwriters took a basketful into inventory?<\/p>\n

For the first time in a while, we close a day without any new Fixed-Reset issues being marketted. It is, I suspect, a rather interesting conundrum; the banks – and insurers! – could probably use some more capital with a 5-year call; but market yields now suggest that a new issue should carry a coupon of less than the recent new issues. Who wants to be the first to try selling an issue with a reduced coupon? As far as I can readily recall, it would be a first for the sector.<\/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>\n-1.6970 %<\/td>\n904.3<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-1.6970 %<\/td>\n1,462.4<\/td>\n<\/tr>\n
Floater<\/td>\n5.39 %<\/td>\n5.31 %<\/td>\n68,842<\/td>\n15.01<\/td>\n2<\/td>\n-1.6970 %<\/td>\n1,129.7<\/td>\n<\/tr>\n
OpRet<\/td>\n5.19 %<\/td>\n4.79 %<\/td>\n132,960<\/td>\n3.89<\/td>\n15<\/td>\n0.3200 %<\/td>\n2,095.1<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.87 %<\/td>\n11.92 %<\/td>\n46,231<\/td>\n5.67<\/td>\n3<\/td>\n0.6228 %<\/td>\n1,681.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n6.12 %<\/td>\n8.78 %<\/td>\n28,951<\/td>\n0.71<\/td>\n1<\/td>\n1.0309 %<\/td>\n1,947.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3575 %<\/td>\n1,571.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.94 %<\/td>\n7.06 %<\/td>\n149,733<\/td>\n12.48<\/td>\n71<\/td>\n0.3575 %<\/td>\n1,447.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n6.05 %<\/td>\n5.57 %<\/td>\n685,645<\/td>\n13.42<\/td>\n35<\/td>\n0.3160 %<\/td>\n1,862.5<\/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
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n-1.86 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 7.91
\nEvaluated at bid price : 7.91
\nBid-YTW : 5.58 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.79 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 14.79
\nEvaluated at bid price : 14.79
\nBid-YTW : 7.86 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n-1.54 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 8.31
\nEvaluated at bid price : 8.31
\nBid-YTW : 5.31 %<\/td>\n<\/tr>\n
STW.PR.A<\/td>\nInterest-Bearing<\/td>\n1.03 %<\/td>\nAsset coverage of 1.5-:1 as of April 2, based on Capital Unit NAV of 2.47<\/a>. and 1.99 Capital Units per Preferred<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2009-12-31
\nMaturity Price : 10.00
\nEvaluated at bid price : 9.80
\nBid-YTW : 8.78 %<\/td>\n<\/tr>\n
W.PR.H<\/td>\nPerpetual-Discount<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 19.50
\nEvaluated at bid price : 19.50
\nBid-YTW : 7.10 %<\/td>\n<\/tr>\n
CM.PR.I<\/td>\nPerpetual-Discount<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 16.54
\nEvaluated at bid price : 16.54
\nBid-YTW : 7.13 %<\/td>\n<\/tr>\n
CL.PR.B<\/td>\nPerpetual-Discount<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 21.85
\nEvaluated at bid price : 21.85
\nBid-YTW : 7.23 %<\/td>\n<\/tr>\n
BNS.PR.Q<\/td>\nFixedReset<\/td>\n1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 22.11
\nEvaluated at bid price : 22.16
\nBid-YTW : 4.28 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 13.57
\nEvaluated at bid price : 13.57
\nBid-YTW : 8.86 %<\/td>\n<\/tr>\n
BNS.PR.N<\/td>\nPerpetual-Discount<\/td>\n1.24 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 19.61
\nEvaluated at bid price : 19.61
\nBid-YTW : 6.72 %<\/td>\n<\/tr>\n
TD.PR.Y<\/td>\nFixedReset<\/td>\n1.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 22.10
\nEvaluated at bid price : 22.15
\nBid-YTW : 4.31 %<\/td>\n<\/tr>\n
MFC.PR.A<\/td>\nOpRet<\/td>\n1.48 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2015-12-18
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.62
\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n
IAG.PR.C<\/td>\nFixedReset<\/td>\n1.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 22.46
\nEvaluated at bid price : 22.50
\nBid-YTW : 6.06 %<\/td>\n<\/tr>\n
CU.PR.A<\/td>\nPerpetual-Discount<\/td>\n2.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 22.13
\nEvaluated at bid price : 22.52
\nBid-YTW : 6.52 %<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nPerpetual-Discount<\/td>\n2.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 18.50
\nEvaluated at bid price : 18.50
\nBid-YTW : 7.10 %<\/td>\n<\/tr>\n
BAM.PR.J<\/td>\nOpRet<\/td>\n2.55 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2018-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.30
\nBid-YTW : 9.28 %<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n2.77 %<\/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: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 12.25
\nBid-YTW : 14.38 %<\/td>\n<\/tr>\n
PWF.PR.L<\/td>\nPerpetual-Discount<\/td>\n2.77 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 17.79
\nEvaluated at bid price : 17.79
\nBid-YTW : 7.20 %<\/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
HSB.PR.E<\/td>\nFixedReset<\/td>\n615,420<\/td>\nNew issue settled today<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.20
\nBid-YTW : 6.51 %<\/td>\n<\/tr>\n
TD.PR.K<\/td>\nFixedReset<\/td>\n305,543<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.28
\nBid-YTW : 6.06 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n230,033<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-23
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.38
\nBid-YTW : 5.99 %<\/td>\n<\/tr>\n
BMO.PR.O<\/td>\nFixedReset<\/td>\n126,170<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : 6.07 %<\/td>\n<\/tr>\n
RY.PR.T<\/td>\nFixedReset<\/td>\n123,295<\/td>\nRecent new issue<\/a> (but only just barely “recent”).
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 23.29
\nEvaluated at bid price : 25.50
\nBid-YTW : 5.77 %<\/td>\n<\/tr>\n
MFC.PR.D<\/td>\nFixedReset<\/td>\n75,889<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-08
\nMaturity Price : 24.96
\nEvaluated at bid price : 25.01
\nBid-YTW : 6.48 %<\/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":"

The SEC has announced that facts don’t matter any more: The U.S. Securities and Exchange Commission will weigh multiple rules to dictate when traders can bet shares will fall, after lawmakers and business groups said …<\/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-6162","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/6162","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=6162"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/6162\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}