The last column in this series asked the rhetorical question: “Credit Risk—is it time to panic?”(Have you ever noticed that investment columnists rarely answer their own questions?)The header was challenged by a couple of readers, who wondered what would constitute an appropriate level of panic and what, in fact, a plan sponsor who was currently […]
The president of the Canadian Labour Congress wants the federal government to appoint an independent expert monitor to represent the public interest in ongoing discussions to resolve the crisis in the asset-backed commercial paper(ABCP)market. In a letter to Finance Minister Jim Flaherty, Ken Georgetti writes that “some 80% of our 3.2 million members belong to […]
Standard & Poor’s has upheld the Caisse de dépôt et placement du Québec credit ratings despite its exposure to third-party asset-backed commercial paper(ABCP). The credit rating agency arrived at its decision after a study of the commercial paper market and the Caisse’s situation. The pension fund reportedly has exposure of between $13 billion and $20 […]
A committee headed by Imasco’s former chairman and CEO, lawyer Purdy Crawford, has been formed to oversee the restructuring process of about $35 billion in third-party asset-backed commercial paper(ABCP)as a result of the recent disruption in the credit markets. Crawford’s no stranger to dealing with difficult debt situations, having been appointed as a special […]
In early 2008, Alberta Finance will move its investment management operations—approximately $70 billion in assets, including a number of public sector pension plans—to a newly formed provincial corporation. The former head of TD Bank discusses his role as the first chair of Alberta Investment Management Corp.(AIMCo). Tell me more about the new corporation. What was […]
The recent trouble in the third-party asset-backed commercial paper(ABCP)market isn’t due to lax rules sanctioned by the Office of the Superintendent of Financial Institutions, said superintendent Julie Dickson. Speaking in Montreal this morning, she said there are two ABCP markets in Canada: one sponsored by Canadian banks, which OSFI oversees, and one sponsored by unregulated […]
The committee created to help restructure the third-party asset-backed commercial paper(ABCP)market in Canada wants more time to reach an agreement. “Given the highly complex process and the significant number of stakeholders involved, a successful restructuring cannot be completed by mid-October in respect of all the affected conduit trusts,” says Purdy Crawford, chairman of the committee. […]
CI Financial has announced it will make an unsolicited offer to acquire all outstanding common shares of DundeeWealth, and is willing to pay a hefty premium. The bid is $20.25 per share, a premium of 52% over Monday’s closing price of $13.31. “Our offer is 52% above today’s closing price for DundeeWealth and 59% above […]
A subsidiary of The Ontario Teachers’ Pension Plan is selling 16.65 million units of Fording Canadian Coal Trust to Teck Cominco for $599.4 million. That works out to $36 per unit. The transaction is expected to close on Oct. 1. Following the acquisition, Teck Cominco will own approximately 19.95% of Fording. If prior to July […]
BCE’s shareholders have overwhelmingly approved the privatization of the firm by a group led by Ontario Teachers’ Pension Plan. More than 97% of votes cast by holders voted in favour of the deal at a special meeting this morning, greatly exceeding the required 66.7% approval. During the meeting, BCE’s chief executive officer Michael Sabia said […]