{"id":6335,"date":"2009-04-28T20:23:36","date_gmt":"2009-04-29T00:23:36","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=6335"},"modified":"2009-04-28T20:23:36","modified_gmt":"2009-04-29T00:23:36","slug":"april-28-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=6335","title":{"rendered":"April 28, 2009"},"content":{"rendered":"

CalPERS has announced<\/a>:<\/p>\n

it is voting against the re-election of all 18 Bank of America directors, including Chief Executive Officer and Chairman Ken Lewis.<\/p>\n

CalPERS contends that Lewis and other directors failed to disclose information to shareowners in connection with Bank of America\u2019s merger with Merrill Lynch. The pension fund also believes that the undisclosed payment of billions of dollars in bonuses to Merrill Lynch executives \u2013 before completion of the merger – warrants a vote against all directors.<\/p>\n

\u201cThe entire board failed in its duties to shareowners and should be removed,\u201d said CalPERS Board President Rob Feckner. He noted the poor condition of the company, the failure by directors to disclose the extent of Merrill Lynch\u2019s losses prior to consummation of the merger, the payment of billions of dollars to Merrill executives in bonuses for failure, and the failure of the board to act in the best interests of shareowners in overseeing management.<\/p><\/blockquote>\n

Mr. Lewis’ travails, publicized by Andrew Cuomo, were discussed on PrefBlog on April 24<\/a>.<\/p>\n

One wonders whether the CalPERS decision is genuine or another machination of the Obama Administration which – as far as I can tell – is looking to blame US economic problems on Evil Bankers. The response is warranted enough, but the emphasis on bonuses detracts from the credibility of the release.<\/p>\n

The bonus issue for investment managers surfaced in Parliament last week, according to the Globe & Mail<\/a>:<\/p>\n

Senior officers of the [Public Sector Pension Investment] board fielded numerous questions from MPs at the Commons finance committee about whether they would receive bonuses \u2013 answering only that it will be up to their board of directors to decide.<\/p>\n

But MPs warned the board’s managers that taking bonuses for the 2008-09 fiscal year could not be justified.<\/p>\n

\u201cAnyone in this country running something called an investment board that lost billions of dollars last year that even thinks of paying themselves a bonus needs their head [examined],\u201d NDP finance critic Tom Mulcair told John Valentini, the investment board’s chief operating officer. \u201cI’d like you to give that message to your board of directors.<\/p>\n

\u201cWe would find it properly scandalous if in the light of what happened last year, that in addition to your considerable salaries, you decide to vote yourself bonuses.\u201d<\/p>\n

Liberal MP John McKay echoed the sentiment, telling the board’s managers that they should be eschewing bonuses when Canadian taxpayers are suffering.<\/p>\n

\u201cIt would be inappropriate for your organization to be awarding themselves significant bonuses in light of not only your performance \u2026 but also the market conditions,\u201d said Mr. McKay, a former parliamentary secretary to the finance minister under the last Liberal government. \u201cCanadians have taken a pretty major haircut in the market in the last while.\u201d<\/p><\/blockquote>\n

The quoted statements are so ignorant that I do not believe they were honestly made. The implication is that investment managers’ bonuses should be determined by the performance of the market, rather than by performance relative to a benchmark; and that a manager should get a bonus for deliviering +10% returns in a +20% market, but not receive one for a -10% return in a -20% market.<\/p>\n

The politicians know this as well as I do. But sleazebag gutter politics gets their names in the paper, which is all that counts, right?<\/p>\n

Good volume in the pref market today; PerpetualDiscounts managed to eke out a gain and FixedResets outperformed.<\/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-0.5158 %<\/td>\n967.8<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.5158 %<\/td>\n1,565.2<\/td>\n<\/tr>\n
Floater<\/td>\n4.54 %<\/td>\n4.57 %<\/td>\n74,332<\/td>\n16.28<\/td>\n2<\/td>\n-0.5158 %<\/td>\n1,209.1<\/td>\n<\/tr>\n
OpRet<\/td>\n5.10 %<\/td>\n4.30 %<\/td>\n136,779<\/td>\n2.64<\/td>\n15<\/td>\n0.1474 %<\/td>\n2,133.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.62 %<\/td>\n8.50 %<\/td>\n46,752<\/td>\n5.61<\/td>\n3<\/td>\n0.4620 %<\/td>\n1,745.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n6.03 %<\/td>\n7.14 %<\/td>\n27,441<\/td>\n0.65<\/td>\n1<\/td>\n1.0152 %<\/td>\n1,977.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0688 %<\/td>\n1,638.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.67 %<\/td>\n6.80 %<\/td>\n142,181<\/td>\n12.84<\/td>\n71<\/td>\n0.0688 %<\/td>\n1,508.7<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.87 %<\/td>\n5.15 %<\/td>\n623,668<\/td>\n4.54<\/td>\n35<\/td>\n0.1776 %<\/td>\n1,923.3<\/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
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
HSB.PR.C<\/td>\nPerpetual-Discount<\/td>\n-2.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 18.16
\nEvaluated at bid price : 18.16
\nBid-YTW : 7.13 %<\/td>\n<\/tr>\n
CM.PR.H<\/td>\nPerpetual-Discount<\/td>\n-2.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 17.38
\nEvaluated at bid price : 17.38
\nBid-YTW : 6.96 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n-1.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 14.21
\nEvaluated at bid price : 14.21
\nBid-YTW : 8.50 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nPerpetual-Discount<\/td>\n-1.29 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 17.62
\nEvaluated at bid price : 17.62
\nBid-YTW : 7.20 %<\/td>\n<\/tr>\n
SLF.PR.B<\/td>\nPerpetual-Discount<\/td>\n-1.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 17.03
\nEvaluated at bid price : 17.03
\nBid-YTW : 7.15 %<\/td>\n<\/tr>\n
BAM.PR.I<\/td>\nOpRet<\/td>\n-1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2013-12-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.76
\nBid-YTW : 6.91 %<\/td>\n<\/tr>\n
CM.PR.J<\/td>\nPerpetual-Discount<\/td>\n-1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 16.55
\nEvaluated at bid price : 16.55
\nBid-YTW : 6.85 %<\/td>\n<\/tr>\n
STW.PR.A<\/td>\nInterest-Bearing<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2009-12-31
\nMaturity Price : 10.00
\nEvaluated at bid price : 9.95
\nBid-YTW : 7.14 %<\/td>\n<\/tr>\n
RY.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 17.85
\nEvaluated at bid price : 17.85
\nBid-YTW : 6.25 %<\/td>\n<\/tr>\n
SLF.PR.A<\/td>\nPerpetual-Discount<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 16.83
\nEvaluated at bid price : 16.83
\nBid-YTW : 7.16 %<\/td>\n<\/tr>\n
BNS.PR.T<\/td>\nFixedReset<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.75
\nBid-YTW : 4.70 %<\/td>\n<\/tr>\n
ENB.PR.A<\/td>\nPerpetual-Discount<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 24.22
\nEvaluated at bid price : 24.51
\nBid-YTW : 5.70 %<\/td>\n<\/tr>\n
NA.PR.L<\/td>\nPerpetual-Discount<\/td>\n1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 18.05
\nEvaluated at bid price : 18.05
\nBid-YTW : 6.75 %<\/td>\n<\/tr>\n
RY.PR.W<\/td>\nPerpetual-Discount<\/td>\n1.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 19.58
\nEvaluated at bid price : 19.58
\nBid-YTW : 6.27 %<\/td>\n<\/tr>\n
TD.PR.Y<\/td>\nFixedReset<\/td>\n1.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 23.64
\nEvaluated at bid price : 23.70
\nBid-YTW : 4.04 %<\/td>\n<\/tr>\n
RY.PR.H<\/td>\nPerpetual-Discount<\/td>\n1.69 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 23.24
\nEvaluated at bid price : 23.40
\nBid-YTW : 6.04 %<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n2.10 %<\/td>\nAsset coverage of 1.7+:1 as of March 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 : 13.10
\nBid-YTW : 13.47 %<\/td>\n<\/tr>\n
CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\n2.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 17.88
\nEvaluated at bid price : 17.88
\nBid-YTW : 6.56 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nPerpetual-Discount<\/td>\n3.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 16.50
\nEvaluated at bid price : 16.50
\nBid-YTW : 7.07 %<\/td>\n<\/tr>\n
BAM.PR.J<\/td>\nOpRet<\/td>\n3.45 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2018-03-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.00
\nBid-YTW : 8.07 %<\/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
RY.PR.T<\/td>\nFixedReset<\/td>\n85,557<\/td>\nRBC crossed 25,000 at 26.10.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-23
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.07
\nBid-YTW : 5.53 %<\/td>\n<\/tr>\n
TD.PR.K<\/td>\nFixedReset<\/td>\n84,820<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.02
\nBid-YTW : 5.48 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n80,155<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-23
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.15
\nBid-YTW : 5.39 %<\/td>\n<\/tr>\n
HSB.PR.E<\/td>\nFixedReset<\/td>\n39,995<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.76
\nBid-YTW : 6.08 %<\/td>\n<\/tr>\n
RY.PR.D<\/td>\nPerpetual-Discount<\/td>\n37,591<\/td>\nRBC crossed 20,000 at 17.75.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-04-28
\nMaturity Price : 17.76
\nEvaluated at bid price : 17.76
\nBid-YTW : 6.35 %<\/td>\n<\/tr>\n
BMO.PR.N<\/td>\nFixedReset<\/td>\n34,405<\/td>\nScotia bought 18,000 from Nesbitt at 27.00. It’s been a long time since I saw a 27-handle (on prices, I mean … seen WAY too many on yields!)
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-27
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.80
\nBid-YTW : 5.38 %<\/td>\n<\/tr>\n
There were 37 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

CalPERS has announced: it is voting against the re-election of all 18 Bank of America directors, including Chief Executive Officer and Chairman Ken Lewis. CalPERS contends that Lewis and other directors failed to disclose information …<\/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-6335","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/6335","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=6335"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/6335\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}