They’re playing a sad song in Australia:
Australia’s economy expanded slower than economists forecast in the third quarter, underscoring the central bank’s decision to keep interest rates at a record low. The currency fell to its lowest since July 2010.
Gross domestic product advanced 0.3 percent from the previous three months, when it rose 0.5 percent, a Bureau of Statistics report released in Sydney today showed. The result compared with a median estimate of a 0.7 percent gain from a Bloomberg News survey of 29 economists.
The Reserve Bank of Australia has kept its benchmark rate unchanged at a record low for 16 months as it seeks to encourage spending by consumers and companies to offset falling mining investment. Australian firms, outside of property, have opted to pay dividends or salt away cash rather than invest in new projects as they wait for higher household demand, which has been damped by an 11-year-high unemployment rate.
and there are funding cuts all over:
Funding cuts at Australia’s leading scientific institution CSIRO have led to world-leading researchers seeing their positions abolished. At least one of these, Dr. San Thang, is so committed to his work that he has continued his role unpaid. What makes the story even more poignant is that at the same time Thang was let go, there was speculation he might share a Nobel Prize in Chemistry.
… and the same tune in Russia:
Russia’s economic crisis deepened as the government acknowledged it’s heading for recession and a former central banker spoke of “some panic” in the financial system as oil prices plunged.
Speaking a day after President Vladimir Putin said Russia is scrapping a proposed $45 billion pipeline to Europe, the government predicted the economy will contract next year and canceled a bond auction. It was also forced to pledge 39.95 billion rubles ($740 million) to support OAO Gazprombank, at least the third lender to secure a capital injection since U.S. and European Union sanctions curbed their ability to borrow.
SBN.PR.A was confirmed at Pfd-3 by DBRS:
Based on the most recent dividend paid on the BNS Shares, the dividend income net of management fees and other expenses is expected to cover approximately 47% of the Preferred Share distributions. Holders of the Class A Shares are expected to receive regular monthly cash distributions in an amount targeted to be 6% per annum on the net asset value of the Class A Shares.
On September 5, 2014, DBRS confirmed the ratings of the Preferred Shares at Pfd-3. Since then, the performance of the Company has been volatile, with downside protection decreasing since the last rating action in September 2014 (50.3% as of November 20, 2014). Despite the drop, downside protection remain at levels typically seen at the Pfd-3 level.
It was a mixed day for the Canadian preferred share market, with PerpetualDiscounts down 18bp, FixedResets off 12bp and DeemedRetractibles gaining 7bp. Volatility was average, dominated by FixedReset losers. Volume was above average.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1710 % | 2,522.8 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1710 % | 3,994.1 |
| Floater | 2.99 % | 3.10 % | 62,509 | 19.41 | 4 | 0.1710 % | 2,681.9 |
| OpRet | 4.40 % | -12.64 % | 26,659 | 0.08 | 2 | -0.0391 % | 2,758.5 |
| SplitShare | 4.28 % | 3.85 % | 45,402 | 3.75 | 5 | 0.0820 % | 3,191.4 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0391 % | 2,522.4 |
| Perpetual-Premium | 5.42 % | -7.85 % | 76,863 | 0.09 | 20 | -0.0391 % | 2,482.4 |
| Perpetual-Discount | 5.13 % | 5.06 % | 113,667 | 15.37 | 15 | -0.1807 % | 2,674.1 |
| FixedReset | 4.17 % | 3.55 % | 177,070 | 8.51 | 73 | -0.1158 % | 2,579.6 |
| Deemed-Retractible | 4.97 % | -1.97 % | 98,743 | 0.16 | 40 | 0.0703 % | 2,616.5 |
| FloatingReset | 2.53 % | 1.20 % | 60,844 | 0.16 | 5 | -0.1252 % | 2,551.4 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRP.PR.B | FixedReset | -1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-12-02 Maturity Price : 18.07 Evaluated at bid price : 18.07 Bid-YTW : 3.70 % |
| FTS.PR.K | FixedReset | -1.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-12-02 Maturity Price : 23.14 Evaluated at bid price : 24.77 Bid-YTW : 3.46 % |
| SLF.PR.G | FixedReset | -1.15 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 20.70 Bid-YTW : 5.01 % |
| GWO.PR.Q | Deemed-Retractible | 1.19 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.41 Bid-YTW : 4.92 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| W.PR.J | Perpetual-Premium | 120,100 | Desjardins bought 115,800 from anonymous at 25.18. YTW SCENARIO Maturity Type : Call Maturity Date : 2015-01-01 Maturity Price : 25.00 Evaluated at bid price : 25.24 Bid-YTW : 2.86 % |
| CU.PR.E | Perpetual-Discount | 77,000 | Nesbitt crossed 75,000 at 24.60. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-12-02 Maturity Price : 24.09 Evaluated at bid price : 24.51 Bid-YTW : 5.01 % |
| TRP.PR.A | FixedReset | 41,583 | Will reset 2014-12-31 to 3.266% YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-12-02 Maturity Price : 21.15 Evaluated at bid price : 21.15 Bid-YTW : 3.90 % |
| BMO.PR.S | FixedReset | 40,194 | Nesbitt crossed 36,700 at 25.52. YTW SCENARIO Maturity Type : Call Maturity Date : 2019-05-25 Maturity Price : 25.00 Evaluated at bid price : 25.50 Bid-YTW : 3.55 % |
| TRP.PR.D | FixedReset | 36,067 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-12-02 Maturity Price : 23.31 Evaluated at bid price : 25.30 Bid-YTW : 3.65 % |
| BMO.PR.J | Deemed-Retractible | 30,335 | Nesbitt crossed 25,600 at 25.79. YTW SCENARIO Maturity Type : Call Maturity Date : 2015-01-01 Maturity Price : 25.50 Evaluated at bid price : 25.75 Bid-YTW : -6.35 % |
| There were 36 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| GWO.PR.I | Deemed-Retractible | Quote: 23.20 – 23.68 Spot Rate : 0.4800 Average : 0.3165 YTW SCENARIO |
| NEW.PR.D | SplitShare | Quote: 32.69 – 33.45 Spot Rate : 0.7600 Average : 0.6146 YTW SCENARIO |
| MFC.PR.H | FixedReset | Quote: 26.07 – 26.45 Spot Rate : 0.3800 Average : 0.2395 YTW SCENARIO |
| MFC.PR.C | Deemed-Retractible | Quote: 23.21 – 23.50 Spot Rate : 0.2900 Average : 0.2095 YTW SCENARIO |
| FTS.PR.K | FixedReset | Quote: 24.77 – 25.00 Spot Rate : 0.2300 Average : 0.1686 YTW SCENARIO |
| PWF.PR.L | Perpetual-Premium | Quote: 25.24 – 25.45 Spot Rate : 0.2100 Average : 0.1510 YTW SCENARIO |