{"id":6173,"date":"2009-04-09T18:49:55","date_gmt":"2009-04-09T22:49:55","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=6173"},"modified":"2009-04-09T18:49:55","modified_gmt":"2009-04-09T22:49:55","slug":"april-9-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=6173","title":{"rendered":"April 9, 2009"},"content":{"rendered":"

If Dealbreaker<\/i> is anything to go by – and I think it is – the latest plan to stimulate an artificial market for highly illiquid and distressed securities will go the way of all the others<\/a>:<\/p>\n

Is it not enough that we are already providing what are effectively failed institutions unbearably low cost capital while the likes of Berkshire Hathaway must wallow in high rates?<\/p>\n

It is more than despicable that, now that the PPIP looks like it may be an abject failure even before bids have hit the screens, we should see the attempt to throw the problem onto the “dumb money” of the retail investor, while collecting fees, we might add.<\/p><\/blockquote>\n

Dealbreaker<\/i> also brings to my attention<\/a> an adulatory piece on Bernanke’s management style<\/a>. Bernanke amazes me. There he was, an academic with experience on the board of the Fed, quietly doing his research on the Depression … normally he could look forward to a life of rewarding work and the the respect of a few dozen of his colleagues who knew and understood what he was talking about. Suddenly, he’s in the hotseat, doing the job he’s been training to do all his life, knowing that every decision he makes will be fodder for academia for the next hundred years … lucky man! And we’re lucky to have him.<\/p>\n

Another strong day on the market with increasing volume, particularly among the Fixed-Resets. PerpetualDiscounts are now up 4.26% on the month, while FixedResets are up 2.40%. Average Trading Volume of the former continues its gradual decline<\/a>, but I see no reason to panic as yet<\/a>. Who knows, maybe some people simply gave up trading for Lent!<\/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>\n0.8015 %<\/td>\n911.5<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.8015 %<\/td>\n1,474.1<\/td>\n<\/tr>\n
Floater<\/td>\n5.35 %<\/td>\n5.31 %<\/td>\n67,900<\/td>\n15.01<\/td>\n2<\/td>\n0.8015 %<\/td>\n1,138.7<\/td>\n<\/tr>\n
OpRet<\/td>\n5.17 %<\/td>\n4.70 %<\/td>\n143,609<\/td>\n3.89<\/td>\n15<\/td>\n0.4171 %<\/td>\n2,103.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.83 %<\/td>\n11.72 %<\/td>\n46,430<\/td>\n5.66<\/td>\n3<\/td>\n0.5836 %<\/td>\n1,691.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n6.11 %<\/td>\n8.52 %<\/td>\n29,038<\/td>\n0.70<\/td>\n1<\/td>\n0.2041 %<\/td>\n1,951.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.5891 %<\/td>\n1,581.0<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.90 %<\/td>\n7.02 %<\/td>\n148,852<\/td>\n12.61<\/td>\n71<\/td>\n0.5891 %<\/td>\n1,456.1<\/td>\n<\/tr>\n
FixedReset<\/td>\n6.03 %<\/td>\n5.58 %<\/td>\n677,712<\/td>\n13.43<\/td>\n35<\/td>\n0.3419 %<\/td>\n1,868.9<\/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
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BMO.PR.H<\/td>\nPerpetual-Discount<\/td>\n-1.59 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 19.75
\nEvaluated at bid price : 19.75
\nBid-YTW : 6.83 %<\/td>\n<\/tr>\n
TCA.PR.Y<\/td>\nPerpetual-Discount<\/td>\n-1.46 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 44.57
\nEvaluated at bid price : 46.02
\nBid-YTW : 6.06 %<\/td>\n<\/tr>\n
POW.PR.C<\/td>\nPerpetual-Discount<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 19.63
\nEvaluated at bid price : 19.63
\nBid-YTW : 7.45 %<\/td>\n<\/tr>\n
HSB.PR.C<\/td>\nPerpetual-Discount<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 18.00
\nEvaluated at bid price : 18.00
\nBid-YTW : 7.16 %<\/td>\n<\/tr>\n
CM.PR.I<\/td>\nPerpetual-Discount<\/td>\n1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 16.71
\nEvaluated at bid price : 16.71
\nBid-YTW : 7.06 %<\/td>\n<\/tr>\n
TD.PR.A<\/td>\nFixedReset<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 22.82
\nEvaluated at bid price : 22.86
\nBid-YTW : 4.41 %<\/td>\n<\/tr>\n
SLF.PR.B<\/td>\nPerpetual-Discount<\/td>\n1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 16.83
\nEvaluated at bid price : 16.83
\nBid-YTW : 7.21 %<\/td>\n<\/tr>\n
TD.PR.C<\/td>\nFixedReset<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 24.49
\nEvaluated at bid price : 24.54
\nBid-YTW : 4.87 %<\/td>\n<\/tr>\n
IAG.PR.C<\/td>\nFixedReset<\/td>\n1.29 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 22.74
\nEvaluated at bid price : 22.79
\nBid-YTW : 5.99 %<\/td>\n<\/tr>\n
TD.PR.S<\/td>\nFixedReset<\/td>\n1.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 22.24
\nEvaluated at bid price : 22.31
\nBid-YTW : 4.16 %<\/td>\n<\/tr>\n
CM.PR.D<\/td>\nPerpetual-Discount<\/td>\n1.38 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 20.55
\nEvaluated at bid price : 20.55
\nBid-YTW : 7.02 %<\/td>\n<\/tr>\n
CIU.PR.B<\/td>\nFixedReset<\/td>\n1.44 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.79
\nBid-YTW : 5.21 %<\/td>\n<\/tr>\n
NA.PR.L<\/td>\nPerpetual-Discount<\/td>\n1.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 17.61
\nEvaluated at bid price : 17.61
\nBid-YTW : 6.89 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n1.52 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 23.31
\nEvaluated at bid price : 23.35
\nBid-YTW : 4.34 %<\/td>\n<\/tr>\n
CM.PR.A<\/td>\nOpRet<\/td>\n1.57 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2009-05-09
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.92
\nBid-YTW : -17.52 %<\/td>\n<\/tr>\n
RY.PR.A<\/td>\nPerpetual-Discount<\/td>\n1.57 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 18.06
\nEvaluated at bid price : 18.06
\nBid-YTW : 6.27 %<\/td>\n<\/tr>\n
TD.PR.Y<\/td>\nFixedReset<\/td>\n1.58 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 22.44
\nEvaluated at bid price : 22.50
\nBid-YTW : 4.25 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n1.64 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 8.04
\nEvaluated at bid price : 8.04
\nBid-YTW : 5.49 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.72 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 15.40
\nEvaluated at bid price : 15.40
\nBid-YTW : 8.68 %<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\n1.76 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 13.85
\nEvaluated at bid price : 13.85
\nBid-YTW : 8.68 %<\/td>\n<\/tr>\n
CM.PR.H<\/td>\nPerpetual-Discount<\/td>\n1.89 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 17.24
\nEvaluated at bid price : 17.24
\nBid-YTW : 6.99 %<\/td>\n<\/tr>\n
RY.PR.W<\/td>\nPerpetual-Discount<\/td>\n1.91 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 19.19
\nEvaluated at bid price : 19.19
\nBid-YTW : 6.50 %<\/td>\n<\/tr>\n
PWF.PR.G<\/td>\nPerpetual-Discount<\/td>\n1.95 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 20.95
\nEvaluated at bid price : 20.95
\nBid-YTW : 7.07 %<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n2.12 %<\/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 : 12.51
\nBid-YTW : 14.07 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nPerpetual-Discount<\/td>\n2.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 16.20
\nEvaluated at bid price : 16.20
\nBid-YTW : 7.04 %<\/td>\n<\/tr>\n
W.PR.J<\/td>\nPerpetual-Discount<\/td>\n2.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 20.45
\nEvaluated at bid price : 20.45
\nBid-YTW : 6.90 %<\/td>\n<\/tr>\n
NA.PR.M<\/td>\nPerpetual-Discount<\/td>\n2.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 21.91
\nEvaluated at bid price : 22.00
\nBid-YTW : 6.82 %<\/td>\n<\/tr>\n
POW.PR.B<\/td>\nPerpetual-Discount<\/td>\n2.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 18.71
\nEvaluated at bid price : 18.71
\nBid-YTW : 7.20 %<\/td>\n<\/tr>\n
PWF.PR.F<\/td>\nPerpetual-Discount<\/td>\n2.49 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 18.95
\nEvaluated at bid price : 18.95
\nBid-YTW : 6.95 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nPerpetual-Discount<\/td>\n2.77 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 15.20
\nEvaluated at bid price : 15.20
\nBid-YTW : 7.65 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nPerpetual-Discount<\/td>\n2.81 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 16.81
\nEvaluated at bid price : 16.81
\nBid-YTW : 7.01 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n3.61 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 14.06
\nEvaluated at bid price : 14.06
\nBid-YTW : 8.55 %<\/td>\n<\/tr>\n
BAM.PR.J<\/td>\nOpRet<\/td>\n3.73 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2018-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.02
\nBid-YTW : 8.72 %<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n4.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 17.85
\nEvaluated at bid price : 17.85
\nBid-YTW : 7.06 %<\/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>\n129,912<\/td>\nRecent new issue<\/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
MFC.PR.D<\/td>\nFixedReset<\/td>\n104,139<\/td>\nTD bought 19,800 from National Bank at 25.10.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.05
\nBid-YTW : 6.47 %<\/td>\n<\/tr>\n
GWO.PR.J<\/td>\nFixedReset<\/td>\n95,400<\/td>\nTD crossed 75,000 at 24.95.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-09
\nMaturity Price : 24.96
\nEvaluated at bid price : 25.01
\nBid-YTW : 5.15 %<\/td>\n<\/tr>\n
TD.PR.K<\/td>\nFixedReset<\/td>\n93,535<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.36
\nBid-YTW : 5.99 %<\/td>\n<\/tr>\n
BNS.PR.X<\/td>\nFixedReset<\/td>\n88,800<\/td>\nRBC crossed 20,000 at 25.72, then another 10,000 at the same price. National crossed 10,000 at 25.70.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.53
\nBid-YTW : 5.74 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n82,370<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-23
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.41
\nBid-YTW : 5.96 %<\/td>\n<\/tr>\n
There were 35 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

If Dealbreaker is anything to go by – and I think it is – the latest plan to stimulate an artificial market for highly illiquid and distressed securities will go the way of all the …<\/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-6173","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/6173","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=6173"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/6173\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}