{"id":8912,"date":"2009-12-04T20:31:51","date_gmt":"2009-12-05T00:31:51","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=8912"},"modified":"2009-12-04T20:31:51","modified_gmt":"2009-12-05T00:31:51","slug":"december-4-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=8912","title":{"rendered":"December 4, 2009"},"content":{"rendered":"

The overhang of Treasury’s Citigroup stake is causing problems<\/a>:<\/p>\n

The U.S. Treasury Department\u2019s refusal to sell its 34 percent stake in Citigroup Inc. is hampering the bank\u2019s plans to repay $20 billion of remaining bailout funds, people familiar with the bank said.<\/p>\n

Executives at the New York-based bank are growing frustrated because they can\u2019t sell stock to raise money for repayment until the Treasury signals when and how it will unload its 7.7 billion shares, said the people, declining to be identified because the matter is under discussion. Investors may be reluctant to buy shares because a Treasury sale could drive down the price.<\/p><\/blockquote>\n

On May 20<\/a> I mentioned the idea that what trading floors need is a little less testosterone and a little more femininity. In what is possibly the most amazing story ever published, Dealbreaker<\/i> documents how this idea was taken seriously at SAC Capital<\/a> … maybe a little too seriously. You’ll laugh! You’ll cry! You’ll send SAC a redemption order! At least it’s more interesting than “boo-hoo-hoo, my boss told a blonde joke<\/a>“.<\/p>\n

Geithner is in a slanging match with Goldman<\/a>:<\/p>\n

In the interview, the Treasury chief also disputed claims made by Goldman Chief Executive Officer Lloyd Blankfein that his firm would have survived last year\u2019s financial crisis without assistance from the federal government.<\/p>\n

\u201cThe entire U.S. financial system and all the major firms in the country, and even small banks across the country, were at that moment at the middle of a classic run, a classic bank run,\u201d Geithner said.<\/p>\n

Of the biggest banks, \u201cnone of them would have survived a situation in which we had let that fire try to burn itself out,\u201d he added.<\/p><\/blockquote>\n

Assiduous Readers will note that the disputants are not talking about the same thing: Blankfein’s talking about the TARP capital injection to his particular firm; Geithner is talking about capital injections and liquidity provision in general.<\/p>\n

A thoroughly boring day on the preferred share market, with low volume and no entries whatsoever on the performance highlights table. However, PerpetualDiscounts eked out a gain of 3bp while FixedResets were up 4bp.<\/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-0.0220 %<\/td>\n1,502.1<\/td>\n<\/tr>\n
FixedFloater<\/td>\n6.05 %<\/td>\n4.16 %<\/td>\n38,693<\/td>\n18.58<\/td>\n1<\/td>\n0.0000 %<\/td>\n2,574.5<\/td>\n<\/tr>\n
Floater<\/td>\n2.60 %<\/td>\n3.05 %<\/td>\n98,057<\/td>\n19.54<\/td>\n3<\/td>\n-0.0220 %<\/td>\n1,876.6<\/td>\n<\/tr>\n
OpRet<\/td>\n4.86 %<\/td>\n-4.77 %<\/td>\n142,843<\/td>\n0.08<\/td>\n15<\/td>\n0.1123 %<\/td>\n2,310.5<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.35 %<\/td>\n-7.56 %<\/td>\n274,999<\/td>\n0.08<\/td>\n2<\/td>\n-0.0219 %<\/td>\n2,114.8<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1123 %<\/td>\n2,112.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.87 %<\/td>\n5.83 %<\/td>\n61,205<\/td>\n6.01<\/td>\n7<\/td>\n-0.1530 %<\/td>\n1,880.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.81 %<\/td>\n5.87 %<\/td>\n183,682<\/td>\n14.06<\/td>\n67<\/td>\n0.0290 %<\/td>\n1,789.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.43 %<\/td>\n3.76 %<\/td>\n370,210<\/td>\n3.91<\/td>\n41<\/td>\n0.0421 %<\/td>\n2,153.4<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
No individual gains or losses exceeding 1%!<\/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
TD.PR.N<\/td>\nOpRet<\/td>\n100,000<\/td>\nDesjardins crossed 100,000 at 26.35.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2010-01-03
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.30
\nBid-YTW : -4.52 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n32,595<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-12-04
\nMaturity Price : 23.39
\nEvaluated at bid price : 25.80
\nBid-YTW : 4.04 %<\/td>\n<\/tr>\n
BMO.PR.O<\/td>\nFixedReset<\/td>\n28,358<\/td>\nDesjardins crossed 18,800 at 28.08.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 28.05
\nBid-YTW : 3.66 %<\/td>\n<\/tr>\n
RY.PR.A<\/td>\nPerpetual-Discount<\/td>\n25,245<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-12-04
\nMaturity Price : 19.96
\nEvaluated at bid price : 19.96
\nBid-YTW : 5.62 %<\/td>\n<\/tr>\n
RY.PR.R<\/td>\nFixedReset<\/td>\n25,000<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.77
\nBid-YTW : 3.55 %<\/td>\n<\/tr>\n
CM.PR.M<\/td>\nFixedReset<\/td>\n23,525<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.83
\nBid-YTW : 4.03 %<\/td>\n<\/tr>\n
There were 24 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The overhang of Treasury’s Citigroup stake is causing problems: The U.S. Treasury Department\u2019s refusal to sell its 34 percent stake in Citigroup Inc. is hampering the bank\u2019s plans to repay $20 billion of remaining bailout …<\/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-8912","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/8912","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=8912"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/8912\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}