{"id":7723,"date":"2009-08-31T19:41:14","date_gmt":"2009-08-31T23:41:14","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=7723"},"modified":"2009-08-31T19:41:14","modified_gmt":"2009-08-31T23:41:14","slug":"august-31-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=7723","title":{"rendered":"August 31, 2009"},"content":{"rendered":"

Spend-Every-Penny has declared<\/a>:<\/p>\n

As the United States and other countries debate giving more authority to central banks and other regulatory agencies, [Spend-Every-Penny] Sunday said he is sticking with his current approach to systemic oversight, which brings together the heads of the Bank of Canada, the federal banking regulator and other key authorities on a regular basis to compare notes. The decision means a previously obscure grouping of senior officials \u2013 the Financial Institutions Supervisory Committee \u2013 will be thrust into the spotlight as Canada’s answer to the pledge the federal government and its allies in the Group of 20 made to correct regulatory failings that contributed to the financial crisis.<\/p>\n

[Spend-Every-Penny] made clear that even though unelected public servants will play crucial roles, responsibility for ensuring that Canada stays out of financial trouble rests with him.<\/p><\/blockquote>\n

There’s a very good chance that there won’t be another major banking crisis before he retires, so it’s a pretty safe way to appear tough and authoritative. In most countries, however, the idea that the politicians are ultimately responsible for the performance of their appointees is generally understood. I can’t find a public copy of the speech anywhere, by the way. I hope Spend-Every-Penny won’t be so shy when something bad happens … but I won’t bet on it.<\/p>\n

I see that Toronto, well known for its inability to license a souvlaki cart in less than three years<\/a> is attempting to create a bigger sink-hole than the one on Finch Avenue<\/a> by bidding to host the Pan-Am games<\/a>. Send in the clowns!<\/p>\n

I noted on March 23<\/a> that Liddy, the last CEO of AIG, demonstrated his lack of qualification for the office by throwing his people to the wolves during the bonus controversy. The new guy, Benmosche, is much better<\/a>:<\/p>\n

Benmosche criticized Cuomo and lawmakers during a town-hall style meeting this month for life insurance workers in Houston. Cuomo subpoenaed AIG in March during a national furor about $165 million in retention bonuses sent after the firm\u2019s bailout and said those who returned the cash wouldn\u2019t have their names published. That month, some employees received death threats and protesters visited the Connecticut homes of two AIG executives.<\/p>\n

\u201cWhat he did is so unbelievably wrong,\u201d Benmosche said during the Aug. 11 remarks, according to a record obtained by Bloomberg. \u201cHe doesn\u2019t deserve to be in government, and he surely shouldn\u2019t be the attorney general of the state of New York. What he did is criminal. You don\u2019t create lynch mobs to go out to people\u2019s homes and do the things he did.\u201d<\/p><\/blockquote>\n

Speaking of bonuses<\/a>…:<\/p>\n

U.S. Securities and Exchange Commission Chairman Mary Schapiro, in a letter to brokerage chiefs, warned that burgeoning recruitment bonuses may push employees to engage in improper sales and trades.<\/p>\n

Large, up-front bonuses and enhanced commissions may lead brokers \u201cto believe they must sell securities at a sufficiently high level to justify special arrangements,\u201d she wrote today. \u201cThose pressures may in turn create incentives to engage in conduct that may violate obligations to investors.\u201d<\/p>\n

Brokers may be motivated to make excessive trades to generate fees, a process known as churning, Schapiro said. They might recommend products that don\u2019t suit their clients\u2019 objectives or generate fees with transactions that aren\u2019t in their customers\u2019 interest, Schapiro said.<\/p><\/blockquote>\n

Warning! Increased political scrutiny may lead regulators to believe they must make gratuitously precious statements about activities that are already illegal.<\/p>\n

Volume ticked upward today, but the market ended a very good month on a sour note, with PerpetualDiscounts losing 13bp and FixedResets down 14bp. The latter may be related to the BPO new issue<\/a>.<\/p>\n

PerpetualDiscounts closed with a pre-tax bid-YTW of 5.66%, equivalent to 7.92% interest at the standard equivalency factor of 1.4x. Long Corporates<\/a> closed the month with a yield of about 5.95% (after generating +2.83% total return in August), implying that the pre-tax interest-equivalent spread remains at about 200bp.<\/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-0.3957 %<\/td>\n1,457.2<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.72 %<\/td>\n4.00 %<\/td>\n60,880<\/td>\n18.60<\/td>\n1<\/td>\n0.4757 %<\/td>\n2,684.5<\/td>\n<\/tr>\n
Floater<\/td>\n3.13 %<\/td>\n3.16 %<\/td>\n174,664<\/td>\n19.27<\/td>\n2<\/td>\n-0.3957 %<\/td>\n1,820.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.86 %<\/td>\n-10.56 %<\/td>\n132,541<\/td>\n0.09<\/td>\n15<\/td>\n0.1285 %<\/td>\n2,280.1<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.67 %<\/td>\n3.97 %<\/td>\n98,723<\/td>\n0.08<\/td>\n3<\/td>\n-0.3891 %<\/td>\n2,056.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1285 %<\/td>\n2,085.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.69 %<\/td>\n5.10 %<\/td>\n69,784<\/td>\n2.60<\/td>\n4<\/td>\n0.5453 %<\/td>\n1,888.0<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.68 %<\/td>\n5.66 %<\/td>\n188,811<\/td>\n14.31<\/td>\n67<\/td>\n-0.1288 %<\/td>\n1,812.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.50 %<\/td>\n4.00 %<\/td>\n483,272<\/td>\n4.12<\/td>\n40<\/td>\n-0.1369 %<\/td>\n2,104.2<\/td>\n<\/tr>\n<\/table>\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.P<\/td>\nFixedReset<\/td>\n-3.83 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.40
\nBid-YTW : 6.16 %<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n-2.74 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-31
\nMaturity Price : 21.37
\nEvaluated at bid price : 21.65
\nBid-YTW : 5.85 %<\/td>\n<\/tr>\n
BAM.PR.I<\/td>\nOpRet<\/td>\n-2.63 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2013-12-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.56
\nBid-YTW : 5.19 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nPerpetual-Discount<\/td>\n-1.94 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-31
\nMaturity Price : 20.27
\nEvaluated at bid price : 20.27
\nBid-YTW : 5.76 %<\/td>\n<\/tr>\n
NA.PR.L<\/td>\nPerpetual-Discount<\/td>\n-1.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-31
\nMaturity Price : 21.31
\nEvaluated at bid price : 21.31
\nBid-YTW : 5.75 %<\/td>\n<\/tr>\n
CIU.PR.B<\/td>\nFixedReset<\/td>\n-1.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.71
\nBid-YTW : 4.26 %<\/td>\n<\/tr>\n
GWO.PR.E<\/td>\nOpRet<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2009-09-30
\nMaturity Price : 25.50
\nEvaluated at bid price : 26.21
\nBid-YTW : -30.79 %<\/td>\n<\/tr>\n
BNS.PR.O<\/td>\nPerpetual-Discount<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-05-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.30
\nBid-YTW : 5.53 %<\/td>\n<\/tr>\n
CM.PR.R<\/td>\nOpRet<\/td>\n1.79 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2009-09-30
\nMaturity Price : 25.60
\nEvaluated at bid price : 26.78
\nBid-YTW : -40.35 %<\/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.P<\/td>\nFixedReset<\/td>\n44,640<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.40
\nBid-YTW : 6.16 %<\/td>\n<\/tr>\n
BMO.PR.L<\/td>\nPerpetual-Premium<\/td>\n43,803<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.15
\nBid-YTW : 5.76 %<\/td>\n<\/tr>\n
CM.PR.I<\/td>\nPerpetual-Discount<\/td>\n30,940<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-31
\nMaturity Price : 20.70
\nEvaluated at bid price : 20.70
\nBid-YTW : 5.75 %<\/td>\n<\/tr>\n
RY.PR.Y<\/td>\nFixedReset<\/td>\n26,300<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-12-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.50
\nBid-YTW : 4.07 %<\/td>\n<\/tr>\n
BNS.PR.X<\/td>\nFixedReset<\/td>\n23,568<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.82
\nBid-YTW : 3.82 %<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\n23,507<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-31
\nMaturity Price : 18.53
\nEvaluated at bid price : 18.53
\nBid-YTW : 6.54 %<\/td>\n<\/tr>\n
There were 44 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Spend-Every-Penny has declared: As the United States and other countries debate giving more authority to central banks and other regulatory agencies, [Spend-Every-Penny] Sunday said he is sticking with his current approach to systemic oversight, which …<\/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-7723","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/7723","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=7723"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/7723\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}