{"id":9523,"date":"2010-01-26T22:50:10","date_gmt":"2010-01-27T02:50:10","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=9523"},"modified":"2010-01-26T22:50:10","modified_gmt":"2010-01-27T02:50:10","slug":"january-26-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=9523","title":{"rendered":"January 26, 2010"},"content":{"rendered":"

The International Monetary Fund has released<\/a> the January 2010 Market Update to the Global Financial Stability Report<\/a>, which contained some items of interest:<\/p>\n

Credit losses arising from commercial real estate exposures are expected to increase substantially (Figure 2). The expected writedowns are concentrated in countries that experienced the largest run-ups in prices and subsequent corrections and are in line with our previous estimates.<\/p><\/blockquote>\n

<\/div>\n

And without wishing to become too think-tanky, I interpret the following as a warning shot against Comrade Peace-Prize’s unilateralism<\/a>:<\/p>\n

Policymakers should be mindful of the costs associated with uncertainty about future regulation, as this may hinder financial institutions\u2019 plans regarding their business lines and credit provision. But they should also avoid the risks associated with too rapid deployment of new regulations without proper overall impact studies. It also continues to be vitally important that differences in international implementation of the new regulatory framework are minimized to avoid an uneven playing field and regulatory arbitrage that could compromise financial stability.<\/p><\/blockquote>\n

… but at least one guy thinks that nobody cares anyway<\/a>, not even Comrade PP himself:<\/p>\n

Philip Swagel, a former U.S. Treasury Department official who teaches at Georgetown University in Washington, said G7 officials would be wise not to worry too much about whether Mr. Obama’s boldest proposals will see the light of day, let alone fret about the U.S. gaining – or even seeking – enough global support that other countries end up having to replicate the measures.<\/p>\n

“It’s not that they’re dead on arrival, they were never intended to be initiatives to push forward in the international agenda,” Mr. Swagel said in an interview. “They were aimed at domestic consumption, signalling to the American people that the President is as mad as they are.”<\/p><\/blockquote>\n

YES WE CAN indulge ourselves with cynical grandstanding!<\/p>\n

A mixed day for Canadian preferreds with PerpetualDiscounts up 5bp and FixedResets losing 14bp. The market was well-behaved, with only four issues on the performance highlights list; one of the losers was our old friend POW.PR.C<\/a>, gradually winding down toward normalcy. Volume continued at elevated levels.<\/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>\n0.3490 %<\/td>\n1,718.7<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.62 %<\/td>\n3.71 %<\/td>\n36,038<\/td>\n19.38<\/td>\n1<\/td>\n0.1554 %<\/td>\n2,811.7<\/td>\n<\/tr>\n
Floater<\/td>\n2.28 %<\/td>\n2.65 %<\/td>\n106,680<\/td>\n20.64<\/td>\n3<\/td>\n0.3490 %<\/td>\n2,147.1<\/td>\n<\/tr>\n
OpRet<\/td>\n4.85 %<\/td>\n-3.82 %<\/td>\n116,109<\/td>\n0.09<\/td>\n13<\/td>\n-0.0532 %<\/td>\n2,315.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.35 %<\/td>\n-1.52 %<\/td>\n162,772<\/td>\n0.08<\/td>\n2<\/td>\n0.4176 %<\/td>\n2,116.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0532 %<\/td>\n2,117.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.81 %<\/td>\n5.65 %<\/td>\n151,503<\/td>\n13.76<\/td>\n12<\/td>\n-0.0597 %<\/td>\n1,888.6<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.75 %<\/td>\n5.79 %<\/td>\n180,492<\/td>\n14.20<\/td>\n63<\/td>\n0.0514 %<\/td>\n1,828.3<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.42 %<\/td>\n3.60 %<\/td>\n343,870<\/td>\n3.82<\/td>\n42<\/td>\n-0.1369 %<\/td>\n2,179.6<\/td>\n<\/tr>\n<\/table>\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
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n-1.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-01-26
\nMaturity Price : 21.31
\nEvaluated at bid price : 21.31
\nBid-YTW : 5.92 %<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nPerpetual-Discount<\/td>\n-1.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-01-26
\nMaturity Price : 22.09
\nEvaluated at bid price : 22.23
\nBid-YTW : 5.48 %<\/td>\n<\/tr>\n
POW.PR.C<\/td>\nPerpetual-Discount<\/td>\n-1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-01-26
\nMaturity Price : 24.22
\nEvaluated at bid price : 24.61
\nBid-YTW : 5.93 %<\/td>\n<\/tr>\n
PWF.PR.K<\/td>\nPerpetual-Discount<\/td>\n1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-01-26
\nMaturity Price : 21.51
\nEvaluated at bid price : 21.51
\nBid-YTW : 5.79 %<\/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
CM.PR.L<\/td>\nFixedReset<\/td>\n107,119<\/td>\nNesbitt crossed two blocks of 40,000 each, both at 27.75. CIBC sold 20,000 to RBC at 27.75.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.75
\nBid-YTW : 3.76 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n87,073<\/td>\nNesbitt crossed 11,200 at 26.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.02
\nBid-YTW : 3.78 %<\/td>\n<\/tr>\n
W.PR.J<\/td>\nPerpetual-Discount<\/td>\n51,000<\/td>\nNesbitt crossed 50,000 at 23.04.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-01-26
\nMaturity Price : 22.71
\nEvaluated at bid price : 23.00
\nBid-YTW : 6.13 %<\/td>\n<\/tr>\n
CM.PR.M<\/td>\nFixedReset<\/td>\n47,275<\/td>\nNesbitt crossed 40,000 at 27.87.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.72
\nBid-YTW : 3.91 %<\/td>\n<\/tr>\n
NA.PR.N<\/td>\nFixedReset<\/td>\n43,100<\/td>\nTD crossed 25,000 at 26.45; RBC crossed 16,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-09-14
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.46
\nBid-YTW : 3.53 %<\/td>\n<\/tr>\n
HSB.PR.E<\/td>\nFixedReset<\/td>\n36,520<\/td>\nRBC crossed 10,000 at 28.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 28.00
\nBid-YTW : 3.85 %<\/td>\n<\/tr>\n
There were 42 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The International Monetary Fund has released the January 2010 Market Update to the Global Financial Stability Report, which contained some items of interest: Credit losses arising from commercial real estate exposures are expected to increase …<\/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-9523","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/9523","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=9523"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/9523\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}