{"id":982,"date":"2007-07-18T00:05:28","date_gmt":"2007-07-18T04:05:28","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=982"},"modified":"2007-07-18T00:05:28","modified_gmt":"2007-07-18T04:05:28","slug":"july-17-2007","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=982","title":{"rendered":"July 17, 2007"},"content":{"rendered":"

Treasuries outperformed Canada bonds<\/a> in what is being touted as a continued flight to safety<\/a> in the US market. Or maybe it was the PPI release<\/a>. Who knows? Ask a priest.<\/p>\n

Mind you, a\u00a0little safety could be just what the doctor ordered down south! Bear Stearns has warned that the smaller of its two famous hedge funds is a total write-off<\/a>, and the other one isn’t much better. Take this lesson to heart: just because a firm is good at selling<\/em> investments doesn’t mean that they’re necessarily good at running<\/em> investments.<\/p>\n

In other sub-prime news, Moody’s is expanding its review<\/a> and, presumably, hopes to have the barn door locked within three months of the horse being stolen. Chrysler is being forced to pay up for loans<\/a> (about time), while a couple of brand-name brokerages have been left holding the baby<\/a> as demand for junk declines.<\/p>\n

Interesting times! Particularly if\u00a0you don’t actually have\u00a0an investment in the sector yourself!\u00a0It should be noted that credit spreads in the Canadian preferred market are widening markedly, with Pfd-3 issues getting progressively weaker \u2014 but I’m not holding any of those, either, thank heavens. A graph of the After-Tax Pfd-3 Yield Spread<\/a> for the past\u00a0three-and-a-half months\u00a0has been uploaded.<\/p>\n

Volume picked up a little today, with a few good size blocks being traded.<\/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>\n5.24%<\/td>\n5.26%<\/td>\n25,588<\/td>\n15.06<\/td>\n2<\/td>\n+0.0208%<\/td>\n1,019.5<\/td>\n<\/tr>\n
Fixed-Floater<\/td>\n5.02%<\/td>\n5.31%<\/td>\n140,304<\/td>\n15.09<\/td>\n8<\/td>\n+0.1135%<\/td>\n1,006.7<\/td>\n<\/tr>\n
Floater<\/td>\n4.87%<\/td>\n3.81%<\/td>\n79,572<\/td>\n7.5<\/td>\n4<\/td>\n-0.2904%<\/td>\n1,045.6<\/td>\n<\/tr>\n
Op. Retract<\/td>\n4.83%<\/td>\n4.04%<\/td>\n84,635<\/td>\n2.73<\/td>\n16<\/td>\n+0.0579%<\/td>\n1,021.5<\/td>\n<\/tr>\n
Split-Share<\/td>\n5.06%<\/td>\n4.64%<\/td>\n115,530<\/td>\n3.92<\/td>\n17<\/td>\n-0.1036%<\/td>\n1,045.2<\/td>\n<\/tr>\n
Interest Bearing<\/td>\n6.21%<\/td>\n6.37%<\/td>\n65,491<\/td>\n4.42<\/td>\n3<\/td>\n+0.1024%<\/td>\n1,037.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.53%<\/td>\n5.16%<\/td>\n118,677<\/td>\n5.37<\/td>\n26<\/td>\n+0.0851%<\/td>\n1,022.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.11%<\/td>\n5.15%<\/td>\n355,892<\/td>\n15.24<\/td>\n38<\/td>\n+0.0793%<\/td>\n965.6<\/td>\n<\/tr>\n<\/table>\n<\/div>\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
BAM.PR.G<\/td>\nFixedFloater<\/td>\n-1.4102%<\/td>\n\u00a0<\/td>\n<\/tr>\n
SBN.PR.A<\/td>\nSplitShare<\/td>\n-1.3462%<\/td>\nNow with a pre-tax bid-YTW of 4.92% based on a bid of 10.26 and a hardMaturity<\/a> 2014-12-1 at 10.00.<\/td>\n<\/tr>\n
BCE.PR.A<\/td>\nFixFloat<\/td>\n+1.0700%<\/td>\n\u00a0<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetualDiscount<\/td>\n+1.1255%<\/td>\nNow with a pre-tax bid-YTW of 5.49% based on a bid of 24.26 and a limitMaturity<\/a>.<\/td>\n<\/tr>\n
NA.PR.L<\/td>\nPerpetualDiscount<\/td>\n+1.3080%<\/td>\nNow with a pre-tax bid-YTW of 5.04% based on a bid of 24.01 and a limitMaturity.<\/td>\n<\/tr>\n<\/table>\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
WN.PR.B<\/td>\nScraps (Would be OpRet, but there are credit concerns)<\/td>\n120,060<\/td>\nDesjardins bought 114,600 from CIBC at 25.11. Now with a pre-tax bid-YTW of 4.97% based on a bid of 25.15 and a softMaturity<\/a> 2009-6-30 at 25.00.<\/td>\n<\/tr>\n
GWO.PR.X<\/td>\nSplitShare<\/td>\n103,183<\/td>\nNow with a pre-tax bid-YTW of 3.50% based on a bid of 26.70 and a call 2009-10-30 at 26.00. Still some uncertainty<\/a> with this issue … but at least Great-West is investment grade!<\/td>\n<\/tr>\n
CM.PR.H<\/td>\nPerpetualDiscount<\/td>\n63,600<\/td>\nScotia crossed 48,700 at 23.50. Now with a pre-tax bid-YTW of 5.14% based on a bid of 23.40 and a limitMaturity.<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nPerpetualDiscount<\/td>\n58,875<\/td>\nScotia crossed 46,500 at 22.35. Now with a pre-tax bid-YTW of 5.04% based on a bid of 22.25 and a limitMaturity.<\/td>\n<\/tr>\n
ELF.PR.G<\/td>\nPerpetualDiscount<\/td>\n52,735<\/td>\nScotia crossed 43,800 at 21.70. Now with a pre-tax bid-YTW of 5.56% based on a bid of 21.50 and a limitMaturity.<\/td>\n<\/tr>\n
RY.PR.G<\/td>\nPerpetualDiscount<\/td>\n50,600<\/td>\nNesbitt bought 25,000 at 22.80 from RBC, which sold another 20,000 in five tranches in the three minutes prior to this trade. This issue pays a fat first dividend<\/a>, going ex next week. Well, relatively fat! Dimes are important! Now with a pre-tax bid-YTW of 5.04% based on a bid of 22.76 and a limitMaturity.<\/td>\n<\/tr>\n<\/table>\n

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

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

Treasuries outperformed Canada bonds in what is being touted as a continued flight to safety in the US market. Or maybe it was the PPI release. Who knows? Ask a priest. Mind you, a\u00a0little safety …<\/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-982","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/982","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=982"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/982\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}