{"id":8693,"date":"2009-11-16T19:52:06","date_gmt":"2009-11-16T23:52:06","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=8693"},"modified":"2009-11-16T19:52:06","modified_gmt":"2009-11-16T23:52:06","slug":"november-16-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=8693","title":{"rendered":"November 16, 2009"},"content":{"rendered":"

Take that<\/a>! How long will it be before official Chinese pronouncements include the phrase ‘Helicopter Ben’?<\/p>\n

China\u2019s banking regulation chief joined Hong Kong\u2019s leader in blaming the Federal Reserve\u2019s interest-rate policy for fueling speculative capital flows that may spur asset-price inflation.<\/p>\n

\u201cThe continuous depreciation in the dollar, and the U.S. government\u2019s indication that, in order to resume growth and maintain public confidence, it basically won\u2019t raise interest rates for the coming 12 to 18 months, has led to massive dollar arbitrage speculation,\u201d Liu Mingkang, chairman of the China Banking Regulatory Commission, said in Beijing yesterday.
…<\/b>
\u201cI\u2019m scared and leaders should look out,\u201d [Chief Executive of Hong Kong Donald] Tsang said in Singapore Nov. 13. \u201cAmerica is doing exactly what Japan did last time,\u201d he said, adding that Japan\u2019s zero interest rate policy contributed to the 1997 Asian financial crisis and U.S. mortgage meltdown.<\/p><\/blockquote>\n

Bernanke himself points out that bubbles are a little easier to spot in hindsight<\/a>:<\/p>\n

Federal Reserve Chairman Ben S. Bernanke said it\u2019s \u201cnot obvious\u201d that asset prices in the U.S. are out of line with underlying values after a 64 percent jump in the Standard & Poor\u2019s 500 Index from its March low.<\/p>\n

\u201cIt is inherently extraordinarily difficult to know whether an asset\u2019s price is in line with its fundamental value,\u201d he said today in response to audience questions after a speech in New York. \u201cIt\u2019s not obvious to me in any case that there\u2019s any large misalignments currently in the U.S. financial system.\u201d
…<\/b>
\u201cThe best approach here if at all possible is to use supervisory and regulatory methods to restrain undue risk-taking and to make sure the system is resilient in case an asset-price bubble bursts in the future,\u201d Bernanke said.<\/p><\/blockquote>\n

His prescription is entirely sensible and will therefore be ignored.<\/p>\n

DBRS has published an amusing letter to the SEC<\/a>:<\/p>\n

The Commission initially put these proposals out for comment last year. With very few exceptions, the proposals elicited an overwhelmingly negative response from the public commenters, including DBRS. The Commission recently adopted the few proposed rule changes that the public found unobjectionable. However, instead of heeding the cogent arguments the commenters put forth regarding the rest of the proposals, the Commission has asked for more comments, hoping this time to elicit a different response.
…<\/b>
Footnote: For example, with regard to the proposed elimination of NRSRO references from Regulation M, the Commission says, “In light of the uniform opposition in the comment letters and the Commission’s remaining concern regarding the undue influence of NRSRO ratings, the Commission is seeking additional comment.” Re-proposing Release, at 6, 74 Fed. Reg. at 52375.<\/i><\/p><\/blockquote>\n

No word yet on the DFN \/ DFN.PR.A Rights Issue<\/a>. Maybe tomorrow.<\/p>\n

The preferred share market continued its rally today, with PerpetualDiscounts up 8bp and FixedResets gaining 17bp. Not much price volatility, volume was lukewarm.<\/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>\n0.8437 %<\/td>\n1,498.8<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.97 %<\/td>\n4.09 %<\/td>\n43,737<\/td>\n18.69<\/td>\n1<\/td>\n0.8864 %<\/td>\n2,608.9<\/td>\n<\/tr>\n
Floater<\/td>\n2.60 %<\/td>\n3.05 %<\/td>\n94,019<\/td>\n19.56<\/td>\n3<\/td>\n0.8437 %<\/td>\n1,872.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.81 %<\/td>\n-4.83 %<\/td>\n120,693<\/td>\n0.09<\/td>\n14<\/td>\n-0.0628 %<\/td>\n2,304.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.34 %<\/td>\n6.37 %<\/td>\n340,439<\/td>\n3.88<\/td>\n2<\/td>\n0.0875 %<\/td>\n2,085.8<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0628 %<\/td>\n2,107.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.90 %<\/td>\n5.57 %<\/td>\n126,100<\/td>\n1.14<\/td>\n4<\/td>\n0.2990 %<\/td>\n1,863.0<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.89 %<\/td>\n5.95 %<\/td>\n183,829<\/td>\n13.98<\/td>\n70<\/td>\n0.0769 %<\/td>\n1,762.1<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.48 %<\/td>\n3.97 %<\/td>\n393,460<\/td>\n3.94<\/td>\n41<\/td>\n0.1655 %<\/td>\n2,131.7<\/td>\n<\/tr>\n<\/table>\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
MFC.PR.C<\/td>\nPerpetual-Discount<\/td>\n-1.61 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-11-16
\nMaturity Price : 18.93
\nEvaluated at bid price : 18.93
\nBid-YTW : 5.95 %<\/td>\n<\/tr>\n
IGM.PR.A<\/td>\nOpRet<\/td>\n-1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2009-12-16
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.61
\nBid-YTW : -13.64 %<\/td>\n<\/tr>\n
MFC.PR.E<\/td>\nFixedReset<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-10-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.77
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nPerpetual-Discount<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-11-16
\nMaturity Price : 19.11
\nEvaluated at bid price : 19.11
\nBid-YTW : 5.92 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n1.43 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-11-16
\nMaturity Price : 12.80
\nEvaluated at bid price : 12.80
\nBid-YTW : 3.10 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n1.48 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-11-16
\nMaturity Price : 13.01
\nEvaluated at bid price : 13.01
\nBid-YTW : 3.05 %<\/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
PWF.PR.M<\/td>\nFixedReset<\/td>\n269,711<\/td>\nNesbitt crossed 230,000 at 27.00; RBC crossed 35,800 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-02
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.95
\nBid-YTW : 4.08 %<\/td>\n<\/tr>\n
IGM.PR.A<\/td>\nOpRet<\/td>\n146,619<\/td>\nTD crossed 131,400 at 26.60.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2009-12-16
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.61
\nBid-YTW : -13.64 %<\/td>\n<\/tr>\n
GWO.PR.J<\/td>\nFixedReset<\/td>\n56,250<\/td>\nRBC crossed 50,000 at 27.05.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.99
\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n53,329<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 4.31 %<\/td>\n<\/tr>\n
CM.PR.J<\/td>\nPerpetual-Discount<\/td>\n40,610<\/td>\nRBC crossed 20,000 at 19.15.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-11-16
\nMaturity Price : 19.12
\nEvaluated at bid price : 19.12
\nBid-YTW : 5.94 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n38,858<\/td>\nDesjardins crossed 31,900 at 17.86.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-11-16
\nMaturity Price : 17.77
\nEvaluated at bid price : 17.77
\nBid-YTW : 6.81 %<\/td>\n<\/tr>\n
There were 30 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Take that! How long will it be before official Chinese pronouncements include the phrase ‘Helicopter Ben’? China\u2019s banking regulation chief joined Hong Kong\u2019s leader in blaming the Federal Reserve\u2019s interest-rate policy for fueling speculative capital …<\/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-8693","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/8693","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=8693"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/8693\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}