{"id":7698,"date":"2009-08-29T00:25:02","date_gmt":"2009-08-29T04:25:02","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=7698"},"modified":"2009-08-29T00:25:02","modified_gmt":"2009-08-29T04:25:02","slug":"august-28-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=7698","title":{"rendered":"August 28, 2009"},"content":{"rendered":"

Credit markets are recovering on the back of credit markets<\/a>:<\/p>\n

Banks are increasing lending to buyers of high-yield company loans and mortgage bonds at what may be the fastest pace since the credit-market debacle began in 2007.<\/p>\n

Credit Suisse Group AG and Scotia Capital, a unit of Canada\u2019s third-largest bank, said they\u2019re offering credit to investors who want to purchase loans. SunTrust Banks Inc., which left the business last year, is \u201creaching out to clients\u201d to provide financing, said Michael McCoy, a spokesman for the Atlanta-based bank. JPMorgan Chase & Co. and Citigroup Inc. are doing the same for loans and mortgage-backed securities, said people familiar with the situation.<\/p><\/blockquote>\n

Spend-Every-Penny announced his plan to profit from a stronger CAD<\/a>:<\/p>\n

The Honourable [Spend-Every-Penny], Minister of Finance, today announced that the Government of Canada plans to issue a US-dollar-denominated global bond in the near future, subject to market conditions. This will be the Government’s first foreign currency global bond issue in more than a decade.<\/p>\n

The US-dollar bond issue will provide funds to supplement Canada’s foreign exchange reserves and to meet foreign currency requirements to support current and anticipated lending by the International Monetary Fund.<\/p>\n

Canada holds its foreign exchange reserves in the Exchange Fund Account (EFA). EFA assets provide foreign currency liquidity and support the promotion of orderly conditions for the Canadian dollar in foreign exchange markets. Funds for the EFA can be raised through cross-currency swaps of Canadian-dollar borrowings, foreign-currency-denominated debt issues and outright purchases of foreign currency. In recent years, the Government has relied primarily on cross-currency swaps to finance the EFA. The global bond issue will prudently diversify the Government\u2019s sources of foreign currency financing.<\/p><\/blockquote>\n

I have nothing against diversification of financing, but the timing of this issue is a little odd, given all the weeping and wailing over CAD strength.<\/p>\n

Volume slowed down a little today, but the market continued its winning ways, with PerpetualDiscounts up 20bp, leading FixedResets which finished up 6bp.<\/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-0.1186 %<\/td>\n1,463.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.75 %<\/td>\n4.02 %<\/td>\n60,162<\/td>\n18.56<\/td>\n1<\/td>\n-0.2636 %<\/td>\n2,671.8<\/td>\n<\/tr>\n
Floater<\/td>\n3.12 %<\/td>\n3.14 %<\/td>\n71,865<\/td>\n19.32<\/td>\n2<\/td>\n-0.1186 %<\/td>\n1,827.7<\/td>\n<\/tr>\n
OpRet<\/td>\n4.86 %<\/td>\n-7.98 %<\/td>\n136,818<\/td>\n0.09<\/td>\n15<\/td>\n0.1328 %<\/td>\n2,277.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.65 %<\/td>\n-5.09 %<\/td>\n99,061<\/td>\n0.08<\/td>\n3<\/td>\n0.0974 %<\/td>\n2,064.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1328 %<\/td>\n2,082.3<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.73 %<\/td>\n5.43 %<\/td>\n70,532<\/td>\n2.60<\/td>\n4<\/td>\n-0.4737 %<\/td>\n1,877.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.67 %<\/td>\n5.65 %<\/td>\n187,691<\/td>\n14.34<\/td>\n67<\/td>\n0.1991 %<\/td>\n1,814.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.49 %<\/td>\n4.05 %<\/td>\n485,869<\/td>\n4.11<\/td>\n40<\/td>\n0.0590 %<\/td>\n2,107.1<\/td>\n<\/tr>\n<\/table>\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
RY.PR.C<\/td>\nPerpetual-Discount<\/td>\n-1.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-28
\nMaturity Price : 21.05
\nEvaluated at bid price : 21.05
\nBid-YTW : 5.51 %<\/td>\n<\/tr>\n
PWF.PR.K<\/td>\nPerpetual-Discount<\/td>\n-1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-28
\nMaturity Price : 21.60
\nEvaluated at bid price : 21.60
\nBid-YTW : 5.80 %<\/td>\n<\/tr>\n
CU.PR.A<\/td>\nPerpetual-Premium<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-03-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.13
\nBid-YTW : 5.60 %<\/td>\n<\/tr>\n
GWO.PR.J<\/td>\nFixedReset<\/td>\n-1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.10
\nBid-YTW : 4.17 %<\/td>\n<\/tr>\n
POW.PR.B<\/td>\nPerpetual-Discount<\/td>\n1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-28
\nMaturity Price : 22.74
\nEvaluated at bid price : 23.00
\nBid-YTW : 5.89 %<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nPerpetual-Discount<\/td>\n1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-28
\nMaturity Price : 23.16
\nEvaluated at bid price : 23.38
\nBid-YTW : 5.65 %<\/td>\n<\/tr>\n
GWO.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-10-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.83
\nBid-YTW : 5.11 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nPerpetual-Discount<\/td>\n1.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-28
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 5.64 %<\/td>\n<\/tr>\n
CM.PR.K<\/td>\nFixedReset<\/td>\n1.65 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.43
\nBid-YTW : 4.16 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nPerpetual-Discount<\/td>\n2.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-28
\nMaturity Price : 20.01
\nEvaluated at bid price : 20.01
\nBid-YTW : 5.75 %<\/td>\n<\/tr>\n
BMO.PR.H<\/td>\nPerpetual-Discount<\/td>\n2.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-28
\nMaturity Price : 23.01
\nEvaluated at bid price : 24.25
\nBid-YTW : 5.43 %<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n2.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-28
\nMaturity Price : 22.13
\nEvaluated at bid price : 22.26
\nBid-YTW : 5.69 %<\/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
BAM.PR.B<\/td>\nFloater<\/td>\n101,792<\/td>\nNesbitt crossed 50,100 at 12.70 and bought 15,900 from TD at 12.65.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-28
\nMaturity Price : 12.62
\nEvaluated at bid price : 12.62
\nBid-YTW : 3.15 %<\/td>\n<\/tr>\n
BNS.PR.T<\/td>\nFixedReset<\/td>\n41,348<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.63
\nBid-YTW : 3.97 %<\/td>\n<\/tr>\n
BMO.PR.O<\/td>\nFixedReset<\/td>\n40,225<\/td>\nRBC crossed 29,500 at 27.80.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.75
\nBid-YTW : 4.05 %<\/td>\n<\/tr>\n
HSB.PR.C<\/td>\nPerpetual-Discount<\/td>\n29,171<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-28
\nMaturity Price : 22.64
\nEvaluated at bid price : 22.81
\nBid-YTW : 5.68 %<\/td>\n<\/tr>\n
BNS.PR.O<\/td>\nPerpetual-Discount<\/td>\n24,910<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-28
\nMaturity Price : 24.78
\nEvaluated at bid price : 25.00
\nBid-YTW : 5.66 %<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\n24,841<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-28
\nMaturity Price : 18.58
\nEvaluated at bid price : 18.58
\nBid-YTW : 6.52 %<\/td>\n<\/tr>\n
There were 27 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Credit markets are recovering on the back of credit markets: Banks are increasing lending to buyers of high-yield company loans and mortgage bonds at what may be the fastest pace since the credit-market debacle began …<\/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-7698","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/7698","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=7698"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/7698\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}