There are mutterings that maybe London isn’t as bad as all that, taxes and all:
Heavy tax demands on London’s under-fire hedge fund industry are unlikely to spark an exodus of operators to rival financial hubs such as Dublin or Geneva, a survey by property advisor Cushman & Wakefield showed.
The study into the impact of taxation on corporate locations showed only one in 10 UK-based companies considered national tax policy or government incentives as an “absolutely essential” factor when choosing a location for their businesses.
Instead, financial occupiers like hedge funds prize ease of international travel, good internal infrastructure and access to a diverse labour market over fiscal policy, putting London ahead of traditional rival Geneva on all counts, the report showed.
Volume moderated a little on a day enlivened by the ACO.PR.A redemption announcement and a a new FixedReset issue, 5.25%+262, from Brookfield Renewable Power Preferred Equity. PerpetualDiscounts lost 6bp and FixedResets were down 4bp.
| 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 | 2.91 % | 3.48 % | 29,754 | 20.43 | 1 | 2.4211 % | 1,899.6 |
| FixedFloater | 5.71 % | 3.78 % | 40,123 | 19.23 | 1 | 0.0000 % | 2,769.5 |
| Floater | 1.99 % | 1.71 % | 45,044 | 23.28 | 4 | 0.1642 % | 2,314.1 |
| OpRet | 4.85 % | -1.20 % | 106,626 | 0.09 | 13 | -0.2503 % | 2,321.1 |
| SplitShare | 6.35 % | -8.01 % | 131,490 | 0.08 | 2 | 0.7489 % | 2,150.3 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2503 % | 2,122.4 |
| Perpetual-Premium | 5.75 % | 5.34 % | 84,518 | 5.91 | 7 | -0.0790 % | 1,901.2 |
| Perpetual-Discount | 5.83 % | 5.86 % | 168,668 | 14.09 | 69 | -0.0588 % | 1,809.9 |
| FixedReset | 5.41 % | 3.56 % | 304,917 | 3.76 | 42 | -0.0375 % | 2,186.2 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| ACO.PR.A | OpRet | -2.29 % | Called for redemption. YTW SCENARIO Maturity Type : Call Maturity Date : 2010-03-20 Maturity Price : 25.50 Evaluated at bid price : 25.60 Bid-YTW : -1.20 % |
| BAM.PR.J | OpRet | -1.89 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2018-03-30 Maturity Price : 25.00 Evaluated at bid price : 26.00 Bid-YTW : 4.94 % |
| TD.PR.Y | FixedReset | -1.43 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2013-11-30 Maturity Price : 25.00 Evaluated at bid price : 26.23 Bid-YTW : 3.72 % |
| BNS.PR.J | Perpetual-Discount | -1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-18 Maturity Price : 22.49 Evaluated at bid price : 23.23 Bid-YTW : 5.67 % |
| ELF.PR.G | Perpetual-Discount | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-18 Maturity Price : 18.01 Evaluated at bid price : 18.01 Bid-YTW : 6.69 % |
| BNA.PR.C | SplitShare | 1.09 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2019-01-10 Maturity Price : 25.00 Evaluated at bid price : 19.45 Bid-YTW : 7.88 % |
| BAM.PR.E | Ratchet | 2.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-18 Maturity Price : 25.00 Evaluated at bid price : 19.46 Bid-YTW : 3.48 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BNS.PR.L | Perpetual-Discount | 116,389 | Nesbitt crossed 100,000 at 20.26. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-18 Maturity Price : 20.24 Evaluated at bid price : 20.24 Bid-YTW : 5.62 % |
| MFC.PR.D | FixedReset | 114,382 | Desjardins crossed 100,000 at 28.19. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-19 Maturity Price : 25.00 Evaluated at bid price : 28.19 Bid-YTW : 3.76 % |
| RY.PR.W | Perpetual-Discount | 105,620 | Nesbitt crossed two blocks of 50,000 each at 21.80. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-18 Maturity Price : 21.50 Evaluated at bid price : 21.76 Bid-YTW : 5.65 % |
| ACO.PR.A | OpRet | 90,207 | Called for redemption. RBC bought 10,000 from Laurentian at 25.65. Desjardins crossed 41,000 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2010-03-20 Maturity Price : 25.50 Evaluated at bid price : 25.60 Bid-YTW : -1.20 % |
| TD.PR.N | OpRet | 80,100 | RBC crossed 75,000 at 26.21. YTW SCENARIO Maturity Type : Call Maturity Date : 2010-03-20 Maturity Price : 26.00 Evaluated at bid price : 26.18 Bid-YTW : -1.48 % |
| TD.PR.O | Perpetual-Discount | 76,041 | TD crossed 47,300 at 22.00. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-02-18 Maturity Price : 21.60 Evaluated at bid price : 21.94 Bid-YTW : 5.56 % |
| There were 33 other index-included issues trading in excess of 10,000 shares. | |||