{"id":8187,"date":"2009-10-06T18:47:41","date_gmt":"2009-10-06T22:47:41","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=8187"},"modified":"2009-10-06T18:47:41","modified_gmt":"2009-10-06T22:47:41","slug":"october-6-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=8187","title":{"rendered":"October 6, 2009"},"content":{"rendered":"

Australia has hiked the overnight right<\/a>:<\/p>\n

Reserve Bank Governor Glenn Stevens increased the overnight cash rate target to 3.25 percent from 3 percent in Sydney today. Only one of 20 economists surveyed by Bloomberg News forecast today\u2019s move. The rest predicted no change.<\/p>\n

The local currency jumped as Australia became the first Group of 20 nation to raise borrowing costs since the start of the global financial crisis more than a year ago. Rising job vacancies, retail sales and house prices, plus surging business and consumer confidence support Stevens\u2019 view that the \u201cbasis for such a low interest rate setting has now passed.\u201d<\/p><\/blockquote>\n

BIS has reported Bernanke’s most recent testimony<\/a>. Not much new, but I was disappointed to see:<\/p>\n

The current financial crisis has clearly demonstrated that risks to the financial system can arise not only in the banking sector, but also from the activities of other financial firms \u2013 such as investment banks or insurance companies \u2013 that traditionally have not been subject to the type of regulation and consolidated supervision applicable to bank holding companies. To close this important gap in our regulatory structure, legislative action is needed that would subject all systemically important financial institutions to the same framework for consolidated prudential supervision that currently applies to bank holding companies. Such action would prevent financial firms that do not own a bank, but that nonetheless pose risks to the overall financial system because of the size, risks, or interconnectedness of their financial activities, from avoiding comprehensive supervisory oversight.<\/p><\/blockquote>\n

Supervision should be narrowly focussed on banks, with an additional layer of less onerous restrictions on brokers. Interconnectedness is not a problem, as long as deals are adequately collateralized, either explicitly by the party ‘outside the wall’ of regulation, or by the bank inside the wall via capital charges.<\/p>\n

To pretend that everything that moves can be regulated adequately will be incredibly expensive, stifling and, ultimately, ineffective.<\/p>\n

Yet another poor day for preferreds, with PerpetualDiscounts down 33bp, although FixedResets gained 2bp. The declines were led by IAG.PR.A, possibly due to the new IAG straight 6% announced today<\/a>. This issue now yields more than the new issue as well as having a more symetric risk\/reward profile. The sellers will have to earn their 3%!<\/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-0.5269 %<\/td>\n1,495.2<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.77 %<\/td>\n4.01 %<\/td>\n47,110<\/td>\n18.57<\/td>\n1<\/td>\n0.0531 %<\/td>\n2,660.5<\/td>\n<\/tr>\n
Floater<\/td>\n2.61 %<\/td>\n3.00 %<\/td>\n101,739<\/td>\n19.74<\/td>\n3<\/td>\n-0.5269 %<\/td>\n1,867.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.90 %<\/td>\n-5.75 %<\/td>\n125,338<\/td>\n0.09<\/td>\n15<\/td>\n0.0080 %<\/td>\n2,279.0<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.41 %<\/td>\n6.61 %<\/td>\n687,817<\/td>\n3.99<\/td>\n2<\/td>\n-0.2205 %<\/td>\n2,063.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0080 %<\/td>\n2,083.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.83 %<\/td>\n5.84 %<\/td>\n150,016<\/td>\n13.86<\/td>\n11<\/td>\n-0.0434 %<\/td>\n1,866.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.83 %<\/td>\n5.87 %<\/td>\n210,822<\/td>\n14.10<\/td>\n61<\/td>\n-0.3284 %<\/td>\n1,773.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.50 %<\/td>\n4.07 %<\/td>\n441,148<\/td>\n4.07<\/td>\n41<\/td>\n0.0223 %<\/td>\n2,108.8<\/td>\n<\/tr>\n<\/table>\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
IAG.PR.A<\/td>\nPerpetual-Discount<\/td>\n-2.59 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-06
\nMaturity Price : 19.15
\nEvaluated at bid price : 19.15
\nBid-YTW : 6.06 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.87 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-06
\nMaturity Price : 19.96
\nEvaluated at bid price : 19.96
\nBid-YTW : 6.68 %<\/td>\n<\/tr>\n
ELF.PR.G<\/td>\nPerpetual-Discount<\/td>\n-1.53 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-06
\nMaturity Price : 18.02
\nEvaluated at bid price : 18.02
\nBid-YTW : 6.63 %<\/td>\n<\/tr>\n
IAG.PR.C<\/td>\nFixedReset<\/td>\n-1.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 5.22 %<\/td>\n<\/tr>\n
TRI.PR.B<\/td>\nFloater<\/td>\n-1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-06
\nMaturity Price : 19.00
\nEvaluated at bid price : 19.00
\nBid-YTW : 2.08 %<\/td>\n<\/tr>\n
CM.PR.E<\/td>\nPerpetual-Discount<\/td>\n-1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-06
\nMaturity Price : 23.44
\nEvaluated at bid price : 23.71
\nBid-YTW : 5.90 %<\/td>\n<\/tr>\n
BMO.PR.J<\/td>\nPerpetual-Discount<\/td>\n-1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-06
\nMaturity Price : 20.33
\nEvaluated at bid price : 20.33
\nBid-YTW : 5.62 %<\/td>\n<\/tr>\n
TD.PR.S<\/td>\nFixedReset<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-06
\nMaturity Price : 23.49
\nEvaluated at bid price : 25.75
\nBid-YTW : 4.00 %<\/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
TRP.PR.A<\/td>\nFixedReset<\/td>\n123,443<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2020-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.22
\nBid-YTW : 4.44 %<\/td>\n<\/tr>\n
CM.PR.J<\/td>\nPerpetual-Discount<\/td>\n120,075<\/td>\nRBC crossed 97,400 at 19.11.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-06
\nMaturity Price : 19.08
\nEvaluated at bid price : 19.08
\nBid-YTW : 5.91 %<\/td>\n<\/tr>\n
TD.PR.G<\/td>\nFixedReset<\/td>\n99,547<\/td>\nNesbitt crossed blocks of 24,300 and 50,700 shares at 27.40 each.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.50
\nBid-YTW : 3.84 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nPerpetual-Discount<\/td>\n64,807<\/td>\nScotia crossed 25,000 at 18.60, then sold 20,000 to RBC at 18.63.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-06
\nMaturity Price : 18.65
\nEvaluated at bid price : 18.65
\nBid-YTW : 6.02 %<\/td>\n<\/tr>\n
BNS.PR.T<\/td>\nFixedReset<\/td>\n61,946<\/td>\nNational crossed 20,000 at 27.55.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.55
\nBid-YTW : 3.79 %<\/td>\n<\/tr>\n
BMO.PR.O<\/td>\nFixedReset<\/td>\n52,555<\/td>\nNesbitt crossed 40,000 at 28.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.96
\nBid-YTW : 3.96 %<\/td>\n<\/tr>\n
There were 50 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Australia has hiked the overnight right: Reserve Bank Governor Glenn Stevens increased the overnight cash rate target to 3.25 percent from 3 percent in Sydney today. Only one of 20 economists surveyed by Bloomberg News …<\/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-8187","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/8187","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=8187"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/8187\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}