January 23, 2020

There is a superb opinion piece in the Globe by Joseph Groia, titled Hey OSC: Can you spare $100-million?:

Do most Ontarians know that there is more than $100-million of public money sitting in a bank account at the Ontario Securities Commission (OSC) just waiting to be spent on health care, education or legal aid? Unfortunately, they may not as the OSC is badly behind on its statutory corporate-governance obligations (ironically for our capital markets regulator). It is also not clear what Queen’s Park plans to do about it.

Where did the $100-million come from? Under the Securities Act, the OSC is required to pay money it receives under certain orders or settlements into Ontario’s consolidated revenue fund for general governmental purposes unless they designate it to be used for third parties or investor education (the 2(b) Fund). The 2(b) Fund now exceeds $100-million, yet the OSC has not said when or how it plans to spend this enormous amount of public money; nor is there clear transparency or accountability about the process they will follow. What is clear is that the Securities Act allows the Ontario government to take surplus money away from the OSC at any time.

This pool of money has been used in the past to fund outfits like “FAIR Canada”, which by some odd coincidence happens to have created jobs for ex-OSC staff. The existence of this pool is a blot on Ontario’s governance. If investor education is important, an allowance for this should be made in the budget. If it’s not important, don’t fund it. But all fines and penalties levied by the OSC should go straight into Ontario general revenues, with no discretion allowed to the OSC to fund their friends.

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 -0.0593 % 2,138.8
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.0593 % 3,924.6
Floater 5.72 % 5.82 % 48,440 14.16 4 -0.0593 % 2,261.8
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0195 % 3,454.5
SplitShare 4.77 % 4.44 % 33,701 4.16 6 -0.0195 % 4,125.4
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0195 % 3,218.8
Perpetual-Premium 5.58 % -0.67 % 60,416 0.09 11 -0.0108 % 3,057.1
Perpetual-Discount 5.24 % 5.32 % 70,338 14.91 24 0.0679 % 3,314.2
FixedReset Disc 5.43 % 5.59 % 195,978 14.52 64 -0.2443 % 2,198.7
Deemed-Retractible 5.14 % 5.23 % 63,394 14.91 27 0.0497 % 3,248.9
FloatingReset 5.97 % 5.94 % 69,550 13.99 3 -0.5054 % 2,561.8
FixedReset Prem 5.09 % 3.70 % 131,168 1.50 22 -0.0107 % 2,644.2
FixedReset Bank Non 1.94 % 3.77 % 69,100 1.96 3 0.0545 % 2,737.8
FixedReset Ins Non 5.27 % 5.58 % 125,843 14.50 22 -0.5657 % 2,224.5
Performance Highlights
Issue Index Change Notes
MFC.PR.J FixedReset Ins Non -1.86 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 19.48
Evaluated at bid price : 19.48
Bid-YTW : 5.59 %
HSE.PR.G FixedReset Disc -1.85 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 18.53
Evaluated at bid price : 18.53
Bid-YTW : 6.97 %
PWF.PR.T FixedReset Disc -1.74 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 18.02
Evaluated at bid price : 18.02
Bid-YTW : 5.61 %
MFC.PR.F FixedReset Ins Non -1.66 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 13.03
Evaluated at bid price : 13.03
Bid-YTW : 5.70 %
IAF.PR.I FixedReset Ins Non -1.47 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 20.05
Evaluated at bid price : 20.05
Bid-YTW : 5.58 %
SLF.PR.J FloatingReset -1.34 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 13.22
Evaluated at bid price : 13.22
Bid-YTW : 5.85 %
TRP.PR.B FixedReset Disc -1.32 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 11.92
Evaluated at bid price : 11.92
Bid-YTW : 6.06 %
BAM.PF.E FixedReset Disc -1.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 17.27
Evaluated at bid price : 17.27
Bid-YTW : 6.07 %
MFC.PR.Q FixedReset Ins Non -1.31 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 19.56
Evaluated at bid price : 19.56
Bid-YTW : 5.51 %
EMA.PR.C FixedReset Disc -1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 18.60
Evaluated at bid price : 18.60
Bid-YTW : 5.97 %
SLF.PR.G FixedReset Ins Non -1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 13.23
Evaluated at bid price : 13.23
Bid-YTW : 5.71 %
TRP.PR.A FixedReset Disc -1.22 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 14.52
Evaluated at bid price : 14.52
Bid-YTW : 6.10 %
EMA.PR.F FixedReset Disc -1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 17.80
Evaluated at bid price : 17.80
Bid-YTW : 6.05 %
MFC.PR.H FixedReset Ins Non -1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 21.20
Evaluated at bid price : 21.20
Bid-YTW : 5.58 %
HSE.PR.E FixedReset Disc -1.16 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 18.70
Evaluated at bid price : 18.70
Bid-YTW : 6.99 %
HSE.PR.C FixedReset Disc -1.07 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 17.51
Evaluated at bid price : 17.51
Bid-YTW : 6.82 %
GWO.PR.N FixedReset Ins Non -1.01 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 13.68
Evaluated at bid price : 13.68
Bid-YTW : 5.27 %
BAM.PR.C Floater 1.27 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 11.95
Evaluated at bid price : 11.95
Bid-YTW : 5.85 %
BAM.PF.B FixedReset Disc 2.74 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 19.10
Evaluated at bid price : 19.10
Bid-YTW : 5.66 %
Volume Highlights
Issue Index Shares
Traded
Notes
TRP.PR.D FixedReset Disc 146,670 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 16.95
Evaluated at bid price : 16.95
Bid-YTW : 5.86 %
BMO.PR.Q FixedReset Bank Non 125,335 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.22
Bid-YTW : 3.81 %
BAM.PF.F FixedReset Disc 117,350 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 18.75
Evaluated at bid price : 18.75
Bid-YTW : 5.84 %
BAM.PF.H FixedReset Prem 69,842 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-12-31
Maturity Price : 25.00
Evaluated at bid price : 25.23
Bid-YTW : 4.35 %
RY.PR.J FixedReset Disc 68,846 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 19.81
Evaluated at bid price : 19.81
Bid-YTW : 5.55 %
W.PR.M FixedReset Prem 68,600 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-15
Maturity Price : 25.00
Evaluated at bid price : 25.74
Bid-YTW : 3.52 %
There were 29 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
ELF.PR.H Perpetual-Premium Quote: 25.04 – 25.52
Spot Rate : 0.4800
Average : 0.2883

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-17
Maturity Price : 25.00
Evaluated at bid price : 25.04
Bid-YTW : 5.47 %

IAF.PR.I FixedReset Ins Non Quote: 20.05 – 20.45
Spot Rate : 0.4000
Average : 0.2756

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 20.05
Evaluated at bid price : 20.05
Bid-YTW : 5.58 %

PWF.PR.T FixedReset Disc Quote: 18.02 – 18.40
Spot Rate : 0.3800
Average : 0.2607

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 18.02
Evaluated at bid price : 18.02
Bid-YTW : 5.61 %

HSE.PR.E FixedReset Disc Quote: 18.70 – 19.24
Spot Rate : 0.5400
Average : 0.4343

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 18.70
Evaluated at bid price : 18.70
Bid-YTW : 6.99 %

TD.PF.B FixedReset Disc Quote: 17.37 – 17.60
Spot Rate : 0.2300
Average : 0.1458

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 17.37
Evaluated at bid price : 17.37
Bid-YTW : 5.52 %

PWF.PR.A Floater Quote: 12.45 – 12.83
Spot Rate : 0.3800
Average : 0.2997

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2050-01-23
Maturity Price : 12.45
Evaluated at bid price : 12.45
Bid-YTW : 5.55 %

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