The What-Debt? government has given more help to its buddies at Air Canada:
The federal government has approved Air Canada’s request for a reprieve from funding its pension deficit, but has imposed a host of conditions – including a freeze on executive pay and a ban on dividends or share repurchases.
The deal requires the airline to make contributions to the plan of at least $150-million a year totalling at least $1.4-billion over seven years. The special contributions would be on top of the current service payments required by the pension plan.
More micro-managing and more interference in labour relations! This follows a suspension of the right to strike and protection from competition.
It was a fine day for the Canadian preferred share market, with PerpetualPremiums up 9bp, FixedResets winning 20bp and DeemedRetractibles gaining 7bp. Volatility was minimal. Volume was high.
| 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 | 0.2523 % | 2,616.1 |
| FixedFloater | 4.09 % | 3.44 % | 28,906 | 18.41 | 1 | -0.4292 % | 3,971.7 |
| Floater | 2.54 % | 2.86 % | 88,982 | 20.01 | 5 | 0.2523 % | 2,824.7 |
| OpRet | 4.80 % | 2.34 % | 51,224 | 0.30 | 5 | -0.0540 % | 2,599.5 |
| SplitShare | 4.29 % | 4.04 % | 727,784 | 4.22 | 4 | -0.0299 % | 2,934.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0540 % | 2,377.0 |
| Perpetual-Premium | 5.20 % | -0.27 % | 90,484 | 0.09 | 31 | 0.0949 % | 2,357.9 |
| Perpetual-Discount | 4.81 % | 4.85 % | 150,511 | 15.63 | 4 | 0.0506 % | 2,659.5 |
| FixedReset | 4.88 % | 2.52 % | 290,115 | 3.31 | 80 | 0.1955 % | 2,515.8 |
| Deemed-Retractible | 4.86 % | 3.31 % | 139,108 | 0.62 | 44 | 0.0679 % | 2,446.4 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRI.PR.B | Floater | 1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-03-12 Maturity Price : 24.10 Evaluated at bid price : 24.36 Bid-YTW : 2.15 % |
| SLF.PR.G | FixedReset | 1.34 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.69 Bid-YTW : 2.78 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TRP.PR.D | FixedReset | 116,365 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-03-12 Maturity Price : 23.25 Evaluated at bid price : 25.47 Bid-YTW : 3.57 % |
| BNS.PR.T | FixedReset | 107,475 | Nesbitt crossed blocks of 50,000 and 35,000, both at 26.40. TD crossed 15,000 at 26.43. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-04-25 Maturity Price : 25.00 Evaluated at bid price : 26.40 Bid-YTW : 1.80 % |
| BNS.PR.Q | FixedReset | 103,475 | Desjardins crossed 45,500 at 25.40. RBC crossed 36,500 at the same price. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.39 Bid-YTW : 3.05 % |
| BNS.PR.P | FixedReset | 94,520 | Desjardins crossed 50,000 at 25.15. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.17 Bid-YTW : 3.38 % |
| ENB.PR.P | FixedReset | 91,085 | TD crossed 10,000 at 25.64; Scotia crossed 50,000 at 25.60. YTW SCENARIO Maturity Type : Call Maturity Date : 2019-03-01 Maturity Price : 25.00 Evaluated at bid price : 25.68 Bid-YTW : 3.53 % |
| HSE.PR.A | FixedReset | 72,085 | Nesbitt crossed blocks of 40,000 and 12,500, both at 26.85. YTW SCENARIO Maturity Type : Call Maturity Date : 2016-03-31 Maturity Price : 25.00 Evaluated at bid price : 26.80 Bid-YTW : 1.94 % |
| There were 47 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| PWF.PR.A | Floater | Quote: 23.66 – 24.50 Spot Rate : 0.8400 Average : 0.7551 YTW SCENARIO |
| BMO.PR.N | FixedReset | Quote: 26.24 – 26.44 Spot Rate : 0.2000 Average : 0.1250 YTW SCENARIO |
| BAM.PR.R | FixedReset | Quote: 27.07 – 27.27 Spot Rate : 0.2000 Average : 0.1268 YTW SCENARIO |
| TCA.PR.X | Perpetual-Premium | Quote: 51.20 – 51.46 Spot Rate : 0.2600 Average : 0.1951 YTW SCENARIO |
| TCA.PR.Y | Perpetual-Premium | Quote: 52.10 – 52.30 Spot Rate : 0.2000 Average : 0.1400 YTW SCENARIO |
| HSB.PR.D | Deemed-Retractible | Quote: 25.89 – 26.47 Spot Rate : 0.5800 Average : 0.5231 YTW SCENARIO |