February 27, 2012

There is a report that RBC may buy out the rest of RBC-Dexia:

Dexia SA chief executive Pierre Mariani said he hopes to conclude discussions with Royal Bank of Canada “shortly” regarding the sale of Dexia’s stake in joint venture company RBC Dexia Investor Services.

On Thursday Dexia reported a loss of 11.6-billion euros, warning that unless a group of European countries come through with bailout funds that were promised when Dexia became the first victim of the EU debt crisis last year, it could go out of business.

Ranked among the world’s top 10 global custody banks, RBC Dexia has about $2.74-trillion in client assets under administration. The company was formed in 2006, with both parents taking equal stakes.

Meanwhile, the Maple/TMX deal has been extended again:

A group of Canadian banks and pension funds extended their $3.73-billion offer for TMX Group Inc. until March 30, the fifth delay as it pursues regulatory approval for its agreement to purchase the nation’s main equities and derivatives markets.

The Competition Bureau said Nov. 29 that it had “serious concerns” about the plan in connection with equities trading and clearing settlement, and yesterday said in a statement that it has “no new developments to report” on its review.

It looks like the Competition Bureau guys won’t be getting any plum job offers from the banks any time soon! But OMERS has a good idea:

OMERS CEO Michael Nobrega says he hopes the London Stock Exchange would make another play for the TMX Group if the Maple consortium’s bid doesn’t succeed.

OMERS did not join the Maple group, while a number of other major pension plans did.

“We supported the LSE,” Mr. Nobrega said. He didn’t join Maple because he felt it was a highly leveraged bid and was worried about its chances of success.

Everybody is dancing with everybody else!

National Bank of Canada (NA-T76.590.250.33%)is in talks to sell its Natcan asset management arm to Fiera Sceptre Inc. (FSZ-T7.200.304.35%)in return for a stake of approximately 30 per cent in the merged firm, sources said Friday. The deal could be announced as early as Monday.

Fiera Sceptre, a mainly institutional money manager, was formed in 2010 from the merger of Fiera Capital Inc., founded by Jean-Guy Desjardins, and Sceptre Investment Counsel Ltd.

This deal has been confirmed:

Fiera Sceptre Inc. (FSZ-T8.501.3018.06%) has struck a $310-million deal to buy National Bank of Canada’s asset management arm, a move that sets the stage for an ambitious expansion into the United States.

Fiera Capital, the new name for the merged entity, will have $54-billion in assets and overtake AGF Management Ltd. to become the third-largest Canadian publicly traded asset manager after IGM Financial Inc. and CI Financial Corp.

Under the stock-and-cash deal announced on Monday, the bank will get a 35-per-cent stake in Fiera Capital in exchange for giving up Natcan Investment Management.

And meanwhile, in Greek news:

Greece had its long-term sovereign credit ratings cut to selective default from CC by Standard & Poor’s Ratings Services, which cited an action by Greece’s government regarding its sovereign debt that began a “distressed debt restructuring.”

The downgrade was triggered after Greece retroactively inserted collective action clauses in the documentation of certain sovereign debt series last week, according to S&P.

ABK.PR.B was confirmed at Pfd-2(low) by DBRS:

Since the rating was last confirmed by DBRS in March 2011, the net asset value of the Company has remained fairly stable, fluctuating between $57 and $64. The current downside protection (as of February 16, 2012) is approximately 56.6%.

The confirmation of the Pfd-2 (low) rating of the Class B Preferred Shares is based primarily on the downside protection and dividend coverage available, as well as on the strong credit quality and consistency of dividend distributions of the Portfolio holdings.

ALB.PR.B was confirmed at Pfd-2(low) by DBRS:

The current yield on the Portfolio shares fully covers the Class B Preferred Share dividends, providing dividend coverage of approximately 1.76 times. The Class A Capital Shares receive all excess dividend income after the Class B Preferred Share distributions and other expenses of the Company have been paid. Current downside protection available to holders of the Preferred Shares is 52.0% as of February 16, 2012.

The Pfd-2 (low) rating of the Class B Preferred Shares is based primarily on the downside protection and dividend coverage available, as well as on the strong credit quality and consistency of dividend distributions of the Portfolio holdings.

It was a slightly positive day for the Canadian preferred share market, with PerpetualPremiums up 3bp, FixedResets gaining 2bp and DeemedRetractibles winning 4bp. Volatility was quite good, while volume was extremely low.

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 -1.0906 % 2,383.5
FixedFloater 4.50 % 3.84 % 38,277 17.48 1 1.9324 % 3,463.4
Floater 2.80 % 3.05 % 55,805 19.54 3 -1.0906 % 2,573.5
OpRet 4.90 % 3.35 % 58,807 1.29 6 -0.0640 % 2,499.0
SplitShare 5.29 % -1.52 % 83,934 0.79 4 0.0150 % 2,673.6
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0640 % 2,285.1
Perpetual-Premium 5.38 % 2.41 % 111,633 0.17 27 0.0341 % 2,205.8
Perpetual-Discount 5.10 % 4.96 % 198,030 15.45 4 -0.8479 % 2,425.5
FixedReset 5.05 % 2.86 % 206,142 2.27 66 0.0153 % 2,381.1
Deemed-Retractible 4.94 % 3.79 % 241,598 2.84 46 0.0384 % 2,299.6
Performance Highlights
Issue Index Change Notes
FTS.PR.E OpRet -3.00 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2013-06-01
Maturity Price : 25.75
Evaluated at bid price : 26.19
Bid-YTW : 3.35 %
BAM.PR.K Floater -1.61 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-02-27
Maturity Price : 17.12
Evaluated at bid price : 17.12
Bid-YTW : 3.09 %
ELF.PR.F Perpetual-Discount -1.57 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-02-27
Maturity Price : 24.16
Evaluated at bid price : 24.47
Bid-YTW : 5.48 %
PWF.PR.A Floater -1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-02-27
Maturity Price : 21.49
Evaluated at bid price : 21.75
Bid-YTW : 2.40 %
CIU.PR.A Perpetual-Premium 1.17 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-02-27
Maturity Price : 24.71
Evaluated at bid price : 25.00
Bid-YTW : 4.61 %
BAM.PR.O OpRet 1.20 % YTW SCENARIO
Maturity Type : Option Certainty
Maturity Date : 2013-06-30
Maturity Price : 25.00
Evaluated at bid price : 26.10
Bid-YTW : 2.26 %
SLF.PR.G FixedReset 1.39 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.42
Bid-YTW : 4.24 %
GWO.PR.I Deemed-Retractible 1.61 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.99
Bid-YTW : 5.15 %
BAM.PR.G FixedFloater 1.93 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-02-27
Maturity Price : 21.44
Evaluated at bid price : 21.10
Bid-YTW : 3.84 %
Volume Highlights
Issue Index Shares
Traded
Notes
PWF.PR.R Perpetual-Premium 131,606 Recent new issue.
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-30
Maturity Price : 25.00
Evaluated at bid price : 25.45
Bid-YTW : 5.29 %
GWO.PR.P Deemed-Retractible 45,136 Recent new issue.
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 25.52
Bid-YTW : 5.17 %
MFC.PR.H FixedReset 43,315 recent new issue.
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2017-03-19
Maturity Price : 25.00
Evaluated at bid price : 25.15
Bid-YTW : 4.50 %
BNS.PR.T FixedReset 42,701 TD crossed 30,000 at 27.00.
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2014-04-25
Maturity Price : 25.00
Evaluated at bid price : 27.00
Bid-YTW : 2.64 %
CM.PR.E Perpetual-Premium 31,525 Desjardins crossed 30,000 at 26.02.
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2012-03-28
Maturity Price : 25.25
Evaluated at bid price : 25.95
Bid-YTW : -21.72 %
RY.PR.E Deemed-Retractible 30,055 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2016-02-24
Maturity Price : 25.00
Evaluated at bid price : 25.70
Bid-YTW : 3.77 %
There were 15 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
FTS.PR.E OpRet Quote: 26.19 – 27.44
Spot Rate : 1.2500
Average : 0.8154

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2013-06-01
Maturity Price : 25.75
Evaluated at bid price : 26.19
Bid-YTW : 3.35 %

IAG.PR.A Deemed-Retractible Quote: 23.30 – 24.00
Spot Rate : 0.7000
Average : 0.4679

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2022-01-31
Maturity Price : 25.00
Evaluated at bid price : 23.30
Bid-YTW : 5.47 %

ELF.PR.F Perpetual-Discount Quote: 24.47 – 25.00
Spot Rate : 0.5300
Average : 0.3887

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2042-02-27
Maturity Price : 24.16
Evaluated at bid price : 24.47
Bid-YTW : 5.48 %

IAG.PR.F Deemed-Retractible Quote: 26.36 – 26.74
Spot Rate : 0.3800
Average : 0.2432

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2015-03-31
Maturity Price : 26.00
Evaluated at bid price : 26.36
Bid-YTW : 5.03 %

BAM.PR.J OpRet Quote: 27.11 – 27.55
Spot Rate : 0.4400
Average : 0.3046

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2014-03-31
Maturity Price : 26.00
Evaluated at bid price : 27.11
Bid-YTW : 3.48 %

IAG.PR.E Deemed-Retractible Quote: 26.26 – 26.68
Spot Rate : 0.4200
Average : 0.2904

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2014-12-31
Maturity Price : 26.00
Evaluated at bid price : 26.26
Bid-YTW : 5.22 %

One Response to “February 27, 2012”

  1. [...] was last mentioned on PrefBlog on February 27, when DBRS confirmed their credit rating. ABK.PR.B is not tracked by [...]

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