{"id":962,"date":"2007-07-10T23:53:40","date_gmt":"2007-07-11T03:53:40","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=962"},"modified":"2007-07-10T23:53:40","modified_gmt":"2007-07-11T03:53:40","slug":"july-10-2007","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=962","title":{"rendered":"July 10, 2007"},"content":{"rendered":"

The Bank of Canada increased the overnight rate by 0.25% to 4.5%<\/a>, as universally expected.\u00a0There is the usual amount of entrail-interpretation going on in the marketplace – for what it’s worth, I consider the tone of the press release to be neutral – and think that the strong CAD is doing a lot of the heavy lifting for the Bank. But there are the usual pseudo-quants from the “Look, Mom, I got a spreadsheet!” school, claiming, f’rinstance, that since increases have previously occurred in clumps, future increases will also occur in clumps. Apparently, most shops are predicting a September hike<\/a>, but the track records of these firms was not disclosed. I’m not disclosing my track record of BOC watching, either, mainly because I haven’t got a clue what it is. So be warned!<\/p>\n

Bonds had a strong day, on the back of\u00a0an apparent flight to quality related to sub-prime mortgages in the US<\/a> and the strength has now spread to Japan<\/a> amidst muttering that maybe Japan holds too many Treasuries<\/a>. What a difference a week makes, eh? It was just last Friday<\/a> I was reporting on the extreme lousiness of the bond market, but Captain Quality has saved the day! I guess a lot of mortgage cheques didn’t arrive in the mail on Monday morning.<\/p>\n

SBN.PR.A has announced<\/a> a normal course issuer bid, less than six weeks after issuing additional shares<\/a> and less than two months after closing the new issue<\/a>. It’s not clear how seriously this press release is meant to be taken … there’s not a lot of discount in market-to-NAV for the units<\/a> … which is why I’m not dignifying the release with its own post.<\/p>\n

CXC.PR.A has announced exercise of the underwriters’ greenshoe<\/a>. This issue is not tracked by HIMIPref\u2122 and I have no plans to do so at this moment – it’s too small. Like many such issues, however, it could make a lot of sense for a small investor planning to buy 100 shares and hold until redemption, given its 5% coupon and discount price<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n
Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version. In this version, index values are based at 1,000.0 on 2006-6-30<\/strong><\/td>\n<\/tr>\n
Index<\/td>\nMean Current Yield (at bid)<\/td>\nMean YTW<\/td>\nMean Average Trading Value<\/td>\nMean Mod Dur (YTW)<\/td>\nIssues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n5.41%<\/td>\n5.41%<\/td>\n28,043<\/td>\n14.83<\/td>\n2<\/td>\n-0.3117%<\/td>\n1,009.6<\/td>\n<\/tr>\n
Fixed-Floater<\/td>\n5.05%<\/td>\n5.35%<\/td>\n140,634<\/td>\n15.01<\/td>\n8<\/td>\n+0.1999%<\/td>\n999.6<\/td>\n<\/tr>\n
Floater<\/td>\n4.67%<\/td>\n0.06%<\/td>\n79,344<\/td>\n4.24<\/td>\n4<\/td>\n-0.0996%<\/td>\n1,047.7<\/td>\n<\/tr>\n
Op. Retract<\/td>\n4.83%<\/td>\n3.95%<\/td>\n86,784<\/td>\n2.97<\/td>\n16<\/td>\n+0.1604%<\/td>\n1,022.0<\/td>\n<\/tr>\n
Split-Share<\/td>\n5.05%<\/td>\n4.65%<\/td>\n124,716<\/td>\n3.99<\/td>\n17<\/td>\n+0.4249%<\/td>\n1,044.7<\/td>\n<\/tr>\n
Interest Bearing<\/td>\n6.19%<\/td>\n6.24%<\/td>\n68,461<\/td>\n4.44<\/td>\n3<\/td>\n-0.2364%<\/td>\n1,039.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.54%<\/td>\n5.17%<\/td>\n120,414<\/td>\n5.81<\/td>\n26<\/td>\n-0.0961%<\/td>\n1,020.0<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.10%<\/td>\n5.13%<\/td>\n377,903<\/td>\n14.88<\/td>\n38<\/td>\n-0.0181%<\/td>\n966.4<\/td>\n<\/tr>\n<\/table>\n<\/div>\n\n\n\n\n\n\n\n\n\n\n
Major Price Changes<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BCE.PR.C<\/td>\nFixFloat<\/td>\n-1.4493%<\/td>\n\u00a0<\/td>\n<\/tr>\n
PWF.PR.D<\/td>\nOpRet<\/td>\n+1.0584%<\/td>\nNow with a pre-tax bid-YTW of 4.49% based on a bid of 25.78 and a softMaturity<\/a> 2012-10-30 at 25.00.<\/td>\n<\/tr>\n
BCE.PR.T<\/td>\nFixFloat<\/td>\n+1.0616%<\/td>\n\u00a0<\/td>\n<\/tr>\n
PWF.PR.L<\/td>\nPerpetualDiscount<\/td>\n+1.0722%<\/td>\nNow with a pre-tax bid-YTW of 5.20% based on a bid of 24.51 and a limitMaturity<\/a>.<\/td>\n<\/tr>\n
BCE.PR.R<\/td>\nFixFloat<\/td>\n+1.1760%<\/td>\n\u00a0<\/td>\n<\/tr>\n
LBS.PR.A<\/td>\nSplitShare<\/td>\n+1.4479%<\/td>\nNow with a pre-tax bid-YTW of 4.34% based on a bid of 10.51 and a hardMaturity<\/a> 2013-11-29 at 10.00.<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n+2.1368%<\/td>\nNow with a pre-tax bid-YTW of 4.92% based on a bid of 23.90 and a hardMaturity 2019-1-10 at 25.00.<\/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>\nVolume<\/td>\nNotes<\/td>\n<\/tr>\n
NTL.PR.G<\/td>\nScraps (would be Ratchet, but there are credit concerns)<\/td>\n263,752<\/td>\n\u00a0<\/td>\n<\/tr>\n
NTL.PR.F<\/td>\nScraps (would be Ratchet, but there are credit concerns)<\/td>\n255,300<\/td>\nScotia crossed 250,000 at 18.15<\/td>\n<\/tr>\n
IGM.PR.A<\/td>\nOpRet<\/td>\n55,224<\/td>\nNow with a pre-tax bid-YTW of 3.96% based on a bid of 26.85 and a call 2009-7-30 at 25.00.<\/td>\n<\/tr>\n
CM.PR.J<\/td>\nPerpetualDiscount<\/td>\n22,540<\/td>\nNow with a pre-tax bid-YTW of 5.11% based on a bid of 22.07 and a limitMaturity.<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n19,290<\/td>\nNow with a pre-tax bid-YTW of 4.93% based on a bid of 23.90 and a hardMaturity 2019-1-10 at 25.00.<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nPerpetualDiscount<\/td>\n18,485<\/td>\nNow with a pre-tax bid-YTW of 5.07% based on a bid of 22.35 and a limitMaturity. We’re still waiting for GWO to drop the other shoe<\/a>.<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nPerpetualDiscount<\/td>\n17,199<\/td>\nNow with a pre-tax bid-YTW of 5.07% based on a bid of 22.10 and a limitMaturity.<\/td>\n<\/tr>\n<\/table>\n

There were nine other $25-equivalent index-included issues trading over 10,000 shares today.\n<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Bank of Canada increased the overnight rate by 0.25% to 4.5%, as universally expected.\u00a0There is the usual amount of entrail-interpretation going on in the marketplace – for what it’s worth, I consider the tone …<\/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-962","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/962","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=962"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/962\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}