{"id":9365,"date":"2010-01-12T21:38:17","date_gmt":"2010-01-13T01:38:17","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=9365"},"modified":"2010-01-12T21:38:17","modified_gmt":"2010-01-13T01:38:17","slug":"january-12-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=9365","title":{"rendered":"January 12, 2010"},"content":{"rendered":"

The Kansas City Financial Stress Index declined in December<\/a> but it still above pre-crisis levels.<\/p>\n

Comrade Peace-Prize’s plans for a punitive bank tax<\/a> are getting clearer:<\/p>\n

The plan is to have revenue from the fee dedicated to deficit reduction and to cover the amount that the Treasury Department estimates it will lose from TARP, which is $120 billion. Details will be contained in the fiscal 2011 budget that Obama will submit to Congress next month, the official said.<\/p>\n

The government\u2019s $700 billion rescue plan contributed to a record $1.4 trillion deficit last year.<\/p>\n

Tax experts, who discussed the possibilities before the president\u2019s plan was disclosed, say all of the administration\u2019s structural options, which include an income surtax, an excise tax, or a fee pegged on the value of assets or some other measure, are likely to be so porous that financial institutions would be able to sidestep most of them.<\/p><\/blockquote>\n

Not to worry! The FDIC is always willing to grandstand<\/a>:<\/p>\n

The Federal Deposit Insurance Corp., in a bid to help align bank pay practices with risk management, is considering whether to link compensation with fees the agency charges lenders to support the fund protecting deposits.<\/p>\n

The FDIC board today voted 3-2 to seek comment for 30 days on the proposal on bank compensation before deciding whether to begin a formal rule-making process, which may take several months.<\/p>\n

\u201cThis is clearly a contributor to the crisis and to the losses we are suffering,\u201d FDIC Chairman Sheila Bair said.<\/p><\/blockquote>\n

With all this micromanagement, soon the financial system will be as well run as, say, Toronto’s water distribution<\/a>!<\/p>\n

Hedge funds are increasingly operating as shadow-banks<\/a>:<\/p>\n

Today, hedge fund firms are loaning a record amount of money to unprofitable and bankrupt companies, according to New York-based HedgeFund.net. As banks that are recovering from the credit crackup avoid financing companies in distress, hedge fund firms are filling the gap, says Sean Egan, president of Haverford, Pennsylvania- based Egan-Jones Ratings Co.<\/p>\n

Some hedge funds and other nonbank lenders charge interest rates as high as 19 percent in this mostly unregulated corner of the debt market, according to a survey by Malibu, California- based Pepperdine University\u2019s Graziadio School of Business and Management. Firms also layer on fees, including costs as high as 12 percent of the loan for monitoring the value of a borrower\u2019s collateral assets, according to the survey. Some lenders demand closing charges of up to 4 percent.<\/p><\/blockquote>\n

The preferred share market backtracked a bit today, with PerpetualDiscounts down 2bp and FixedResets losing 27bp – taking their median weighted average yield all the way up to 3.56%! Perhaps three new issues in two days (AER, 6.50%+375<\/a>, BPO, 6.15%+307<\/a> and FTS, 4.25%+145<\/a>) is just a bit too much, too fast. Volume was heavy.<\/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-0.3886 %<\/td>\n1,702.8<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.63 %<\/td>\n3.79 %<\/td>\n35,109<\/td>\n19.02<\/td>\n1<\/td>\n0.2077 %<\/td>\n2,765.0<\/td>\n<\/tr>\n
Floater<\/td>\n2.30 %<\/td>\n2.64 %<\/td>\n110,760<\/td>\n20.69<\/td>\n3<\/td>\n-0.3886 %<\/td>\n2,127.2<\/td>\n<\/tr>\n
OpRet<\/td>\n4.84 %<\/td>\n-1.96 %<\/td>\n118,014<\/td>\n0.09<\/td>\n13<\/td>\n-0.2148 %<\/td>\n2,321.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.36 %<\/td>\n-1.04 %<\/td>\n190,214<\/td>\n0.08<\/td>\n2<\/td>\n0.0000 %<\/td>\n2,113.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2148 %<\/td>\n2,122.5<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.77 %<\/td>\n5.59 %<\/td>\n145,099<\/td>\n5.87<\/td>\n12<\/td>\n0.0890 %<\/td>\n1,901.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.72 %<\/td>\n5.76 %<\/td>\n184,349<\/td>\n14.26<\/td>\n63<\/td>\n-0.0201 %<\/td>\n1,835.6<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.40 %<\/td>\n3.56 %<\/td>\n325,423<\/td>\n3.86<\/td>\n41<\/td>\n-0.2716 %<\/td>\n2,179.6<\/td>\n<\/tr>\n<\/table>\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
W.PR.J<\/td>\nPerpetual-Discount<\/td>\n-1.82 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-01-12
\nMaturity Price : 23.49
\nEvaluated at bid price : 23.76
\nBid-YTW : 5.92 %<\/td>\n<\/tr>\n
BAM.PR.O<\/td>\nOpRet<\/td>\n-1.72 %<\/td>\nYTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2013-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.75
\nBid-YTW : 4.14 %<\/td>\n<\/tr>\n
TD.PR.G<\/td>\nFixedReset<\/td>\n-1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.77
\nBid-YTW : 3.49 %<\/td>\n<\/tr>\n
TD.PR.A<\/td>\nFixedReset<\/td>\n-1.14 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-02
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.10
\nBid-YTW : 3.77 %<\/td>\n<\/tr>\n
BNS.PR.Q<\/td>\nFixedReset<\/td>\n-1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-11-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.25
\nBid-YTW : 3.52 %<\/td>\n<\/tr>\n
RY.PR.L<\/td>\nFixedReset<\/td>\n-1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.07
\nBid-YTW : 3.65 %<\/td>\n<\/tr>\n
TD.PR.R<\/td>\nPerpetual-Premium<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 5.59 %<\/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
GWO.PR.E<\/td>\nOpRet<\/td>\n202,384<\/td>\nNesbitt crossed 200,000 at 25.85. Nice ticket!
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2010-04-30
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.60
\nBid-YTW : 0.49 %<\/td>\n<\/tr>\n
ACO.PR.A<\/td>\nOpRet<\/td>\n128,426<\/td>\nNesbit crossed two blocks: 50,000 and 75,000 shares, at 26.55.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2010-02-11
\nMaturity Price : 25.50
\nEvaluated at bid price : 26.07
\nBid-YTW : -13.02 %<\/td>\n<\/tr>\n
MFC.PR.D<\/td>\nFixedReset<\/td>\n117,005<\/td>\nDesjardins crossed 100,000 at 28.15.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 28.14
\nBid-YTW : 3.72 %<\/td>\n<\/tr>\n
PWF.PR.D<\/td>\nOpRet<\/td>\n82,100<\/td>\nNesbitt crossed 65,000 at 26.42.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2010-02-11
\nMaturity Price : 25.60
\nEvaluated at bid price : 26.23
\nBid-YTW : -26.05 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n59,070<\/td>\nNesbitt bought one block of 11,400 from HSBC at 26.35, followed by three blocks of 10,000 each at 26.37.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.30
\nBid-YTW : 3.28 %<\/td>\n<\/tr>\n
BMO.PR.P<\/td>\nFixedReset<\/td>\n56,826<\/td>\nTD crossed 22,600 at 27.22.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-03-27
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.21
\nBid-YTW : 3.67 %<\/td>\n<\/tr>\n
There were 52 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The Kansas City Financial Stress Index declined in December but it still above pre-crisis levels. Comrade Peace-Prize’s plans for a punitive bank tax are getting clearer: The plan is to have revenue from the fee …<\/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-9365","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/9365","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=9365"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/9365\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}