Bank of Canada

FixedReset Prospectuses Are Imprecise!

As we all know, FixedResets will reset their dividend every five years based on the Government of Canada Five Year yield (“GOC-5 rate” or “GOC-5 yield”) and therefore the prospectus for each issue needs to include information regarding exactly how that yield is determined. The prospectus fo ...

USD/CAD Canadian Dollar Lower on ECB Topsy Turvy Thursday

The Canadian dollar is lower on Thursday. The loonie is trading at 1.3217 after the European Central Bank (ECB) cut its benchmark rate and announced a relaunch of its QE program. The central bank will buy 20 billion euros a month of bonds in an effort to boost the eurozone economy. The Canadian dol ...

TA.PR.J : Convert or Hold?

It will be recalled that TA.PR.J will reset at 4.988% effective September 30, 2019 TA.PR.J is a FixedReset, 5.30%+380, that commenced trading 2014-8-14 after being announced 2014-8-6. It is tracked by HIMIPref™ and has been assigned to the Scraps index on credit concerns. It was recently downgrad ...

September 10, 2019

Global bonds took a hit today, sending yields up again: Bond yields climbed and a gauge of world stock markets recovered from previous lows to trade flat on Tuesday, as uncertainty grew over the mix of stimulus the European Central Bank will add to boost a slumping economy this week amid fresh sign ...

BAM.PF.F : Convert Or Hold?

It will be recalled that BAM.PF.F will reset at 4.029% effective October 1, 2019 BAM.PF.F is a FixedReset, 4.50%+286, that commenced trading 2014-6-5 after being announced 2014-5-27. It is tracked by HIMIPref™ and is assigned to the FixedReset – Discount subindex. The most logical way to analyz ...

EFN.PR.E : Convert or Hold?

It will be recalled that EFN.PR.E will reset at 5.903% effective September 30, 2019 EFN.PR.E is a FixedReset, 6.40%+472, that was announced 2014-6-2 but not immediately tracked by HIMIPref™ as it was unrated. Coverage commenced in September, 2015 after the company’s preferreds were rated Pfd-3 ...

ALA.PR.G : Convert or Hold

It will be recalled that ALA.PR.G will reset at 4.242% effective September 30, 2019 ALA.PR.G is a FixedReset, 4.75%+306, that commenced trading 2014-7-3 after being announced 2014-6-23. Notice of extension was announced 2019-8-29. The issue is tracked by HIMIPref™ but relegated to the Scraps subi ...

DC.PR.B / DC.PR.D : Convert or Hold?

It will be recalled that DC.PR.B will reset at 5.284% effective September 30, 2019 DC.PR.B is a FixedReset, 5.688%+410, that commenced trading 2009-9-15 with a 6.75% coupon after being announced 2009-8-25. It reset to 5.688% effective 2014-09-30. I made no recommendation regarding conversion. It is ...

USD/CAD Canadian Dollar Flat on Monday But Strong Jobs to Push Loonie Higher

The Canadian dollar started the week on a positive not and was aiming to break below the 1.3140. The loonie is trading at 1.3164 despite a rebound of 2 percent in oil prices as the US dollar advanced later in the session. The Canadian economy impressed last week with a monster jobs reports that bea ...

Employment Bounces Back

Ottawa, September 6, 2019— “This morning’s Labour Force Survey data shows that the domestic economy continues to do well and validates the Bank of Canada’s decision to hold interest rates steady earlier this week.” Alicia Macdonald, The Conference Board of Canada’s Principal Economist, ...