{"id":8304,"date":"2009-10-16T19:16:58","date_gmt":"2009-10-16T23:16:58","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=8304"},"modified":"2009-10-16T19:16:58","modified_gmt":"2009-10-16T23:16:58","slug":"october-16-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=8304","title":{"rendered":"October 16, 2009"},"content":{"rendered":"

The New York Times considers the sale of Philbro to be a public policy success<\/a>:<\/p>\n

Bankers will surely say \u201cwe told you so.\u201d Citigroup\u2019s sale of its profitable energy trading unit Phibro is exactly the kind of unintended consequence that the nation\u2019s financiers warned us would happen when the Obama administration set out to limit their pay.<\/p>\n

We see it as a public policy success. Phibro is a high-risk, high-reward hedge fund. It has no place on the books of one of the nation\u2019s too-big-to-fail banks. If a policy to cap bankers\u2019 pay forces all banks to get rid of their hedge funds, it will be a winning policy.<\/p><\/blockquote>\n

I’m a simple kind of guy. I figure, if the real problem is highly leveraged hedge funds within banks, then the regulators should concentrate their attention on highly leverage hedge funds within banks. But I guess that kind of fuzzy thinking is getting a little old fashioned in these modern times.<\/p>\n

Investments can be a really dirty business<\/a>:<\/p>\n

A fund associated with TPG is exploiting an unintended wrinkle in the $650 billion market for CDOs by asking holders of the riskiest portions to allow asset sales in exchange for millions of dollars in fees. While equity holders have the right to decide which assets the CDOs sell because they\u2019re first in line for losses, they may no longer have the incentive to ensure that assets are sold at fair value because their investments have been wiped out by the worst financial crisis since the Great Depression.
…<\/b>
TPG Credit, a Minneapolis-based firm founded by former Cargill Inc. executive Rory O\u2019Neill and associated with private equity firm TPG, has offered in the past week to buy $470.8 million of bank trust preferred securities from seven different CDOs for 5 cents on the dollar, according to trustee reports obtained by Bloomberg News. TPG Credit will pay holders of so- called equity portions another $23.5 million in fees to allow the sales, the documents say.<\/p><\/blockquote>\n

The slide continued today, with PerpetualDiscounts down 17bp and FixedResets losing 6bp, on slightly lower volume dominated by FixedResets.<\/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>\n0.5403 %<\/td>\n1,473.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.77 %<\/td>\n3.93 %<\/td>\n44,014<\/td>\n18.95<\/td>\n1<\/td>\n-0.4752 %<\/td>\n2,700.6<\/td>\n<\/tr>\n
Floater<\/td>\n2.64 %<\/td>\n3.09 %<\/td>\n105,538<\/td>\n19.51<\/td>\n3<\/td>\n0.5403 %<\/td>\n1,841.1<\/td>\n<\/tr>\n
OpRet<\/td>\n4.91 %<\/td>\n-3.23 %<\/td>\n117,258<\/td>\n0.12<\/td>\n15<\/td>\n0.0283 %<\/td>\n2,277.4<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.41 %<\/td>\n6.50 %<\/td>\n581,172<\/td>\n3.96<\/td>\n2<\/td>\n0.2439 %<\/td>\n2,061.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0283 %<\/td>\n2,082.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.94 %<\/td>\n5.96 %<\/td>\n145,307<\/td>\n13.88<\/td>\n11<\/td>\n-0.1069 %<\/td>\n1,841.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.95 %<\/td>\n6.03 %<\/td>\n221,657<\/td>\n13.87<\/td>\n63<\/td>\n-0.1668 %<\/td>\n1,739.0<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.52 %<\/td>\n4.21 %<\/td>\n469,007<\/td>\n4.04<\/td>\n41<\/td>\n-0.0573 %<\/td>\n2,104.8<\/td>\n<\/tr>\n<\/table>\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
BNS.PR.Q<\/td>\nFixedReset<\/td>\n-1.98 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-16
\nMaturity Price : 25.26
\nEvaluated at bid price : 25.31
\nBid-YTW : 4.52 %<\/td>\n<\/tr>\n
IAG.PR.E<\/td>\nPerpetual-Discount<\/td>\n-1.77 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-16
\nMaturity Price : 23.66
\nEvaluated at bid price : 23.83
\nBid-YTW : 6.34 %<\/td>\n<\/tr>\n
RY.PR.D<\/td>\nPerpetual-Discount<\/td>\n-1.53 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-16
\nMaturity Price : 20.01
\nEvaluated at bid price : 20.01
\nBid-YTW : 5.72 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.49 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-16
\nMaturity Price : 18.55
\nEvaluated at bid price : 18.55
\nBid-YTW : 6.27 %<\/td>\n<\/tr>\n
ELF.PR.G<\/td>\nPerpetual-Discount<\/td>\n-1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-16
\nMaturity Price : 17.42
\nEvaluated at bid price : 17.42
\nBid-YTW : 6.87 %<\/td>\n<\/tr>\n
PWF.PR.I<\/td>\nPerpetual-Premium<\/td>\n-1.05 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-16
\nMaturity Price : 24.18
\nEvaluated at bid price : 24.50
\nBid-YTW : 6.13 %<\/td>\n<\/tr>\n
RY.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-16
\nMaturity Price : 19.76
\nEvaluated at bid price : 19.76
\nBid-YTW : 5.73 %<\/td>\n<\/tr>\n
PWF.PR.G<\/td>\nPerpetual-Premium<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-16
\nMaturity Price : 23.61
\nEvaluated at bid price : 23.90
\nBid-YTW : 6.19 %<\/td>\n<\/tr>\n
BAM.PR.P<\/td>\nFixedReset<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.20
\nBid-YTW : 5.12 %<\/td>\n<\/tr>\n
TRI.PR.B<\/td>\nFloater<\/td>\n1.86 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-16
\nMaturity Price : 19.20
\nEvaluated at bid price : 19.20
\nBid-YTW : 2.06 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.95 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-16
\nMaturity Price : 19.90
\nEvaluated at bid price : 19.90
\nBid-YTW : 6.71 %<\/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.X<\/td>\nFixedReset<\/td>\n65,695<\/td>\nRBC crossed 35,000 at 27.65.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-23
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.60
\nBid-YTW : 4.18 %<\/td>\n<\/tr>\n
BNS.PR.X<\/td>\nFixedReset<\/td>\n59,595<\/td>\nDesjardins crossed 15,400 at 27.58 and bought 32,000 from National at 27.62.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.42
\nBid-YTW : 3.96 %<\/td>\n<\/tr>\n
BMO.PR.O<\/td>\nFixedReset<\/td>\n53,178<\/td>\nDesjardins crossed 27,400 at 27.90.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.84
\nBid-YTW : 4.11 %<\/td>\n<\/tr>\n
RY.PR.N<\/td>\nFixedReset<\/td>\n48,260<\/td>\nRBC crossed 41,400 at 27.45.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.35
\nBid-YTW : 4.17 %<\/td>\n<\/tr>\n
IAG.PR.E<\/td>\nPerpetual-Discount<\/td>\n48,200<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-10-16
\nMaturity Price : 23.66
\nEvaluated at bid price : 23.83
\nBid-YTW : 6.34 %<\/td>\n<\/tr>\n
RY.PR.T<\/td>\nFixedReset<\/td>\n45,180<\/td>\nRBC crossed 35,000 at 27.70.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-23
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.65
\nBid-YTW : 4.12 %<\/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":"

The New York Times considers the sale of Philbro to be a public policy success: Bankers will surely say \u201cwe told you so.\u201d Citigroup\u2019s sale of its profitable energy trading unit Phibro is exactly 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-8304","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/8304","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=8304"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/8304\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}