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Canadian Imperial Bank
28 июня, 21:10

Loonie Spikes To 5-Month Highs After Poloz, Patterson Double-Whammy

Following Bank of Canada's Poloz restates his bias for higher rates earlier in Sintra, now BoC deputy Patterson confirmed "the oil shock is largely behind us" and hinted that low rates were no longer needed. This is the biggest spike in the Loonie since March 2016, pushing it back to its strongest against the dollar since early Feb 2017. In a speech on how policy makers gather intelligence to augment its analysis, Bank of Canada Deputy Governor Lynn Patterson outlined how the central bank’s “contacts” in the oil sector helped shape its decision to cut interest rates twice in 2015. “That knowledge fed into our judgment and, ultimately, our decision to lower our policy rate in January and July 2015,” Patterson said in Calgary, according to prepared remarks.    “Two years later, it is our view that these cuts have helped facilitate the economy’s adjustment to the oil price shock and that the economic drag from lower prices is largely behind us.” The comments echo similar language by Governor Stephen Poloz, and are consistent with the central bank’s recent adoption of a tightening bias that has made the Canadian dollar the best performing Group of 10 currency this month. Poloz restating his bias towards higher rates sent CAD surging most since March 15th to its strongest since Feb 2017...  "The Poloz comments buttress the change in tone that we’ve seen from the Bank over the past month,” said Bipan Rai, Toronto-based senior foreign-exchange and macro strategist at Canadian Imperial Bank of Commerce. “There’s still some speculative shorts out there are being squeezed as a result.” The result...   Pushing CAD to its highest since Feb against the dollar...

21 июня, 15:50

Medidata Solutions (MDSO) Set to Join the S&P 400 Index

Medidata Solutions Inc. (MDSO), a leading global provider of clinical development solutions, is scheduled to join the coveted S&P 400 benchmark before the opening bell on Jun 26.

15 июня, 22:03

Canada Rate Hike in the Cards? ETFs in Focus

The Bank of Canada has signaled that the country might be ready to hike rates in the near future.

Выбор редакции
07 июня, 21:30

Federal Reserve Board announces approval of applications by Canadian Imperial Bank of Commerce and CIBC Holdco Inc.

Federal Reserve Board announces approval of applications by Canadian Imperial Bank of Commerce and CIBC Holdco Inc.

Выбор редакции
26 мая, 10:37

Квартальная чистая прибыль CIBC увеличилась на 12% г/г

Канадский кредитор Canadian Imperial Bank of Commerce (CIBC) зафиксировал рост прибыли в минувшем квартале благодаря снижению резервов на покрытие плохих кредитов. Согласно отчету банка, чистая прибыль возросла на 12% г/г и составила 1,05 млрд канадских долларов ($780,8 млн) или 2,59 канадского доллара на одну акцию. Между тем, прибыль за исключением некоторых статей оказалась на уровне 2,64 канадских доллара на бумагу, в то время как аналитики прогнозировали 2,40 канадских доллара на акцию. Выручка, тем временем, поднялась на 1,8% г/г и достигла 3,7 млрд канадских долларов ($2,75 млрд). Заметим, что аналитики ожидали скорректированную прибыль в размере 2,57 канадских доллара на одну акцию, а выручку в размере 3,82 млрд канадских долларов.

Выбор редакции
26 мая, 10:27

Квартальная чистая прибыль CIBC увеличилась на 12% г/г

Канадский кредитор Canadian Imperial Bank of Commerce (CIBC) зафиксировал рост прибыли в минувшем квартале благодаря снижению резервов на покрытие плохих кредитов. Согласно отчету банка, чистая прибыль возросла на 12% г/г и составила 1,05 млрд канадских долларов ($780,8 млн) или 2,59 канадского доллара на одну акцию. Между тем, прибыль за исключением некоторых статей оказалась на уровне 2,64 канадских доллара на бумагу, в то время как аналитики прогнозировали 2,40 канадских доллара на акцию. Выручка, тем временем, поднялась на 1,8% г/г и достигла 3,7 млрд канадских долларов ($2,75 млрд). Заметим, что аналитики ожидали скорректированную прибыль в размере 2,57 канадских доллара на одну акцию, а выручку в размере 3,82 млрд канадских долларов.

Выбор редакции
16 мая, 17:08

PrivateBancorp Shareholders Finally Approve Bid by CIBC

PrivateBancorp, Inc. (PVTB) announced that its shareholders have finally approved its acquisition by Canadian Imperial Bank of Commerce (CM) in the shareholder meeting held on May 12, after two amendments.

13 мая, 23:06

"Canada Hasn't Seen A Bank Run Such As This In Decades" - Finance Minister Says Home Capital Bailout Is Possible

When we first said three weeks ago that the spectacular, sudden implosion of Canada's largest alt-lender Home Capital Group or HCG - whose fate we had followed closely since 2015 - was Canada's own "New Century Moment", the parallels were more than just the obvious: like in the US, it took the market nearly a year to realize the full implications of the subprime collapse which first manifested in the failure of New Century and its subprime lender peers. When all was said and done, the world's central banks had to pump (and still do) trillions into the financial system to stop it from disintegrating. Slowly but surely, Canada is starting to appreciate just how serious the Home Capital failure is, and how the unprecedented bank run that has led to 94% of retail deposits fleeing the troubled lender... ... is just the first step of what will likely be a very painful process, which will likely culminate with either a government bailout, or a financial system on the verge of panic. Today, the Globe and Mail has published an in-depth report putting the HCG pieces together, or as the G&M itself puts it, the "dramatic story of a financial institution’s near-collapse."  How quickly can a financial institution go from seemingly healthy and solvent to being on the verge of liquidation? The answer: hours. Here is the background: It was late in the evening on Sunday, April 30, when lawyers working for Home Capital Group Inc. dialled into a call with lawyers representing the company’s new lending syndicate. The troubled mortgage lender had negotiated a $2-billion credit line just days earlier, emergency money the board felt was needed to survive after a high-profile run on deposits at subsidiary Home Trust. The company planned to draw down the first $1-billion from it the next morning, May 1.   But the deal was getting bogged down in a last-minute dispute over details of the funding, according to two sources familiar with the talks. As the conversation proceeded late on Sunday, it became increasingly evident that the fate of the financing was hanging in the balance. Another call at 2 a.m. on Monday ended badly with no agreement, a source said.   There was no room for error. Home Capital was hours from the start of its business day, and it was critically low on capital. The board had determined the company could not open its doors for business Monday morning without the financing in place, the sources said.   As the dispute continued, officials from Canada’s banking regulator, the Office of the Superintendent of Financial Institutions (OSFI), were on standby to launch a process to take control of the company Monday, a move that would have almost certainly forced some form of wind-up of Home Capital’s business, the sources said.   In the end, some time prior to 7 a.m., the lawyers hammered out a deal on final terms of the loan, allowing the first $1-billion to be transferred Monday. When business started a couple of hours later, only a small circle of exhausted insiders knew how close the company had come to collapse. The collapse started on April 19... ... much of the unrelenting focus on the company is also due to the rarity of a financial institution failing in this country. Canada Deposit Insurance Corp. (CDIC), which insures deposits in the event of a bank failure, hasn’t paid a claim since 1996.   Many commentators have pinpointed April 19 as a pivotal date when the Ontario Securities Commission unveiled an explosive enforcement case against the company and three of its executives, accusing them of making misleading disclosure to investors about mortgage underwriting problems in 2014 and 2015.  But if the OSC announcement sparked a conflagration at Home Capital, it was only because there was so much dry tinder already in place to ignite. The case landed amid a broader backdrop of concern about the company’s financial condition, a loss of faith in senior management and the board, and extreme nervousness about the vulnerability of a non-prime mortgage lender deeply exposed to Toronto’s overheated housing market. ... but the seeds of failure had been planted years ago, roughly around the time we first noticed HCG and accused it of issuing "liar loans." It took regulators two years to catch up. The first alert about the OSC case, for example, emerged late on a Friday afternoon on Feb. 10, when many had already left for the weekend. Home Capital Group issued a two-paragraph release revealing it had received an enforcement notice from the OSC, relating to disclosures in 2014 and 2015 about an internal investigation that found information on some loan applications had been falsified, leading to suspensions of 45 mortgage brokers. The enforcement notice said OSC staff had reached a preliminary conclusion about problems at the company, but Home Capital still had an opportunity to respond before the commission decided whether to launch disciplinary proceedings. Why were regulators confused for so long: the answer is that unlike many comparable companies, the "ponzi scheme" at Home Capital worked at an extremely efficient pace, which created an image of stability as long as the money flowed in. However, once it stopped, all bets were off: This is precisely what emerged in February: Home Capital had no trouble writing a growing number of new mortgages for non-prime borrowers in a hot housing market last year, but it also saw many of those customers leave at the first opportunity when their mortgages came up for renewal. Borrowers at Home Capital typically sign on for one-year or two-year mortgages in the hopes of moving to a mainline bank with a cheaper lending rate once their credit history is established. That leaves Home Capital facing constant churn, analyst Jeff Fenwick of Cormark Securities said, making its retention data one of its most closely watched metrics.   Of the $13.3-billion in residential mortgages on Home Capital’s books at the start of 2016, Mr. Fenwick estimates $6-billion or 45 per cent “rolled off” during the year – a rate of attrition far higher than faced by bank lenders, whose customers tend to opt for five-year mortgages.   “This is one disadvantage for a lender like Home – there is a consistent treadmill of origination activity that needs to happen in order to prevent the mortgage book from shrinking,” he said.   In a statement in February, Mr. Reid said the attrition rate was disappointing, telling analysts that performance in 2016 was “muted” by lower-than-expected renewals. He said improving retention would be a priority in 2017. Then the bank jog started: Canadian Imperial Bank of Commerce made a decision that would prove important, at least in hindsight. The bank issued an internal directive to financial advisers on March 28, telling them to limit their clients’ exposure in Home Trust’s GICs to the $100,000 limit insured by Canada Deposit Insurance Corp. The decision meant financial advisers had to shift assets above that cap to other institutions. Around the same time, Royal Bank of Canada made a similar move for clients of its full-service brokerage division. Bank of Montreal also imposed caps, but will not say when it introduced the limits.   Home Capital would later disclose that savings account withdrawals began to mount at the end of March, around the same time that these policies were implemented. Meanwhile, Home Capital's shares started to plunge, as short sellers pounced: During the same period, short-sellers moved into overdrive to fan fears about Home Capital, while filling social-media sites with speculative claims and half-truths. Short-sellers, who bet that a company’s share price will fall, have targeted Home Capital aggressively since the summer of 2015, making it consistently one of the most-shorted companies in Canada.   “The short-sellers to their credit were enormously successful in raising fear,” said a Toronto-based fund manager who held Home Capital shares. “If the short-seller’s job is to sow fear and confusion, they were very successful in doing it.” But the reak crackdown started on April 19: It was amid this worry, less than a week after the April 13 share price drop, that the OSC unveiled its allegations in the evening of April 19. While many of the main issues laid out in the statement of allegations had been previously disclosed by Home Capital, there were new details about the volume of material the company had collected in an internal investigation into its mortgage loan problems from mid-2014 to early 2015, but had not reported publicly until July, 2015, when pushed by the OSC to provide disclosure to investors. When markets opened the following morning, April 20, Home Capital’s share price began to crater.   A key concern was that the release came just hours before the Ontario government unveiled a series of measures to cool off Toronto’s housing market on the morning of April 20, including imposing a new 15-per-cent tax on foreign buyers. The combination of both was seen as a double-whammy, hitting Home Capital at a vulnerable time in the housing cycle. The bank jog then became a silent bank run, first for the bank's core providers of funding: other banks. On the morning of Friday, April 21, as investors scrambled out of Home Capital shares, a message popped up on financial advisers’ computer screens at Scotiabank. It was an internal notification from ScotiaMcLeod head Rob Djurfeldt, announcing that as part of an “ongoing review of 3rd-party products,” the bank would no longer allow the sale of Home Trust GICs. While some other banks had already limited sales of Home Trust products to the $100,000 CDIC cap, the memo suggested Scotiabank was going even further to cut off sales entirely. It was taken by many – including Home Capital itself – as a signal of a loss of faith in the company.   Over the subsequent weekend, however, Scotia abruptly changed course and put Home Trust back on its platform with a $100,000 limit per client. Some players in the market jumped to their own conclusions that a regulator was involved in the reversal. This was the first regulatory intervention. It wouldn't be the last: “When Scotia dropped Home Trust on a Friday, only to put them back on the following Monday, everyone connected the dots,” that regulators were involved somehow, said Lee Matheson, managing director with Toronto-based hedge fund Broadview Capital Management Inc., which has had a short position in Home Capital for the past 18 months. Alex Besharat, senior vice-president at Scotia Wealth Management Canada, was part of the discussions held internally at Scotia that weekend about whether to put Home Trust’s GICs back on its platform. “There was a lot to that decision – it wasn’t just sort of a one-dimensional decision,” he said in an interview.   OSFI turned down multiple requests for comment, saying it is prohibited from commenting on institutions it supervises or its supervisory work. By this point, retail depositors realized things were going south fast, and proceeds to start pulling their own money out of the bank at an accelerating pace. By Monday morning, April 24, Home Capital was facing a raft of withdrawals from depositors. The public nature of Scotiabank’s move was part of the reason for the rush, with Home Capital itself announcing Monday morning that the bank had put its products back onto its platform. The announcement served to ensure any financial advisers still unaware that other banks had quietly limited client exposure weeks earlier were now fully aware of at least one major bank’s moves to cap deposits at Home Trust. Many brokers and financial advisers quickly moved client funds to other institutions, unwilling to jeopardize their deposits for a slightly higher interest rate offered by Home Trust’s high-interest accounts.   Home Capital officials watched the pace of client withdrawals climb quickly on Monday, and decided they needed to do more to reassure the markets. That same day, the company announced that Mr. Soloway – Home Capital’s founder, who had remained on the board after stepping down as CEO in 2016 – would depart entirely as a director “when a replacement with recognized expertise in financial services is named.” However, the company said Mr. Soloway would still stand for re-election at the annual meeting, which was then scheduled for May 11, but has since been delayed until June 29.   It also announced Mr. Morton would step down as CFO, but only after the first-quarter financial results were filed. He would take on a new role as head of special projects, and would be replaced by Robert Blowes as interim CFO. Board chair Kevin Smith said the changes were aimed at rebuilding market confidence in the company. But the moves were again too little, and too late. The first admission by HCG itself that it was on the verge came on April, duly noted here. On Wednesday, April 26, the company made its first disclosure to alert the markets about the run on Home Trust’s savings accounts, saying deposits in high-interest savings accounts were down by almost $600-million to $1.4-billion from $2-billion at the end of March.   The announcement sparked a far broader panic, and was the first indication that many in the public had of the size of the company’s problems. Savings account withdrawals would accelerate rapidly through the subsequent days, leading to a classic unstoppable run on the bank caused by depositor panic. The company most recently revealed Home Trust has just $125-million left in its high-interest savings accounts, a decline of over 90 per cent since late March. And the punchline of what until now was not known: the regualtor intervention amd the last minute rescue attempt: Canada hasn’t seen a run on a bank such as this in decades, and many in the current crop of regulators have no personal experience dealing with the sort of crisis that unfolded in late April at Canada’s largest alternative mortgage lender. A source said regulators began co-ordinating discussions “early on” in the crisis, before Home Capital was front page news, but no one anticipated the company was so vulnerable. Last summer, OSFI had no concerns with the company’s capital levels, liquidity or stress test results, according to another person familiar with the matter.   But as the week of April 24 progressed, regulators grew worried they may not be able to halt the company’s slide. At one meeting involving officials from OSFI, CDIC and the federal finance department, there was discussion that Home Capital could collapse by early May, based on the pace of withdrawals and its remaining capital, the source said. Participants even discussed a scenario where Home Trust could fail, which would require Finance Minister Bill Morneau to sign an order giving OSFI control of the bank, the source said.   In the first two weeks of the crisis, top leaders and their staff – including OSFI, the Bank of Canada and Canada Deposit Insurance Corp. – were on the phone “every hour” to discuss their response, the first source said. At one point, a meeting at one regulator’s headquarters was interrupted repeatedly as officials left the room in a steady stream to answer urgent calls about Home Capital, the source said.   A focus of regulators has been on ensuring Home Capital remains “orderly,” the two sources said, and especially that there is no contagion to other institutions, including other specialty lenders such as Equitable Bank. Key regulators who monitor system risks in the financial system – including the federal finance department – have also held Sunday morning conference calls to discuss plans for the week ahead, with the heads of the organizations typically on the calls. The rest of the story is mostly known to regular readers: for now it concludes with Brenda Eprile, the company's new Chair and former OSC executive director, trying to instill confidence. Ms. Eprile said a committee of the board is also actively talking to new CEO and CFO candidates as one of the next top priorities. She said she feels “a real sense of optimism” that Home Capital is now stabilizing, especially after strong new directors like Mr. Hibben joined the board last week and immediately rolled up their sleeves to tackle a host of issues.   “There’s a real sense that we can make it,” she said. “We just have to be very hunkered down and do our plan, and the company can be restored to a very positive future.” And if that doesn't work, there are always Canada's taxpayers. In a separate interview, the Globe and Mail spoke to Canada's Finance Minister who said he expects a private solution to the crisis at Home Capital which still has "strong assets", and added that the government is very focused on Home Capital Group, and repeated that he doesn't see Home Capital's problems as being a broader real-estate market problem. The punchline: while he believes a bailout is "unlikely to be necessary", he won't rule out a bailout of Home Capital Group. For the full Home Capital sage, there is much more in the full Globe and Mail article.

12 мая, 19:30

Moody's Lowers Debt Ratings of Six Canadian Banks

Moody's Investors Service, the ratings service arm of Moody's Corporation (MCO) has lowered the long-term debt and deposit ratings of six Canadian banks.

09 мая, 21:33

British Columbia Elections Bring These Canada ETFs in Focus

British Columbia general elections are to be held on May 9, 2017. Polls predict a tie between the Liberals and NDP.

29 апреля, 23:33

Panic Bank Run Leaves Canada's Largest Alternative Mortgage Lender On Edge Of Collapse

After two years of recurring warnings (both on this website and elsewhere) that Canada's largest alternative (i.e., non-bank) mortgage lender is fundamentally insolvent, kept alive only courtesy of the Canadian housing bubble which until last week had managed to lift all boats, Home Capital Group suffered a spectacular spectacular implosion last week when its stock price crashed by the most on record after HCG revealed that it had taken out an emergency $2 billion line of credit from an unnamed counterparty with an effective rate as high as 22.5%, indicative of a business model on the verge of collapse . Or, as we put it, Canada just experienced its very own "New Century" moment. One day later, it emerged that the lender behind HCG's (pre-petition) rescue loan was none other than the Healthcare of Ontario Pension Plan (HOOPP). As Bloomberg reported, the Toronto-based pension plan - which represented more than 321,000 healthcare workers in Ontario - gave the struggling Canadian mortgage lender the loan to shore up liquidity as it faces a run on deposits amid a probe by the provincial securities regulator. Home Capital had also retained RBC Capital Markets and BMO Capital Markets to advise on “strategic options” after it secured the loan. Why did HOOPP put itself, or rather its constituents in the precarious position of funding what is a very rapidly melting ice cube? The answer to that emerged when we learned that HOOPP President and CEO Jim Keohane also sits on Home Capital’s board and is also a shareholder. But how did regulators allow such a glaring conflict of interest? According to the Canadian press, Keohane had been a director of Home Capital until Thursday, but said he stepped away from the boardroom on Tuesday to remove the conflict of interest when it became clear HOOPP might step in as a lender. Keohane further clarified on Friday that he doesn’t view the Home Capital investment as risky because the pension plan will be provided with $2 worth of mortgages as collateral for every $1 it lends to Home Capital. “We take comfort from the underlying asset portfolio, so we are not looking at Home Capital as a credit,” said Mr. Keohane in an interview with Business News Network television. He added that a correction in the housing market is not of great concern, since the values of homes would need to plummet by more than 65 per cent for the fund to make no return beyond the value of its principal commitment. Furthermore, it appears that Canada's pensioners are priming all other company lenders: Keohane also said that the funding syndicate would rank above Home Capital’s other lenders. “We have security interest in the collateral we’ve received, so we have the right to sell that collateral if we don’t get paid. And then the balance that’s left over would go to recovery for other creditors.” The implication is that as long as HCG's mortgages dont suffer greater than 50% losses, HOOPP's pensioners should be money good. Of course, if this is indeed Canada's "subprime moment", any outcome is possible. As for other lenders, or the prepetition (because there will be a petition here, the only question is when and in what form) equity, that's some $4 billion in assets that was just stripped from existing collateral. "The Best Price May Come From Breaking Up The Company" In any case, the company's frenzied, emergency measures to stabilize the near-insolvent mortgage lender were not nearly enough, and despite HCG stock posting a modest rebound on Friday between hopes of a rumored sale and a short squeeze, those hopes may be dashed soon because as the Globe and Mail reports, the depositor bank run that gripped Home Capital Group in the past week, only got worse after the company revealed just how precarious its funding situation had become. First, any hope the company, or rather its investors may have held of a sale, appear dashed. Investment banking sources cited by the G&M said "the best possible price may come from breaking up the company and selling portions of its mortgage portfolio to regional financial institutions." Which also implies that aside from a few select assets, there is no equity value left, or in other words, any potential buyer is now motivated to wait until HCG liquidates, and then picks off the various assets in bankruptcy court. There are structural limitations as well: Home Capital currently holds $18-billion in home loans outstanding, "a portfolio that would be difficult to swallow for rivals in the alternative mortgage sector, such as credit unions, small mortgage lenders, Montreal-based Laurentian Bank and Edmonton-based Canadian Western Bank." These institutions, along with private equity firms, could still bid for pieces of Home Capital, the G&M admits. The only question is why they would do so before a bankruptcy filing. While one prominent name features on the list of potential buyers, that of PE giant J.C. Flowers whose CEO J. Christopher Flowers earlier this year said he expected to expand the company’s Canadian real estate lending business, Canada’s six big banks are notable for their absence on a list of bidders. The reason is that Home Capital lends money to home buyers who have been turned down by the major banks and none of these institutions is expected to enter the alternative mortgage sector by acquiring the company. National Bank of Canada proactively called the equity analysts who follow the company this week to say it would not bid on Home Capital after being asked if it was a potential buyer. Needless to say, the big banks would be quite delighted if one of their "bottom picking" competitors would suddenly go bankrupt. "When you have a bank run people get spooked" Which brings us to the most imminent risk facing Home Capital Group, and its subsidiary, Home Trust. Recall, that on Thursday we observed that as concerns about HCG's viability mounted, depositors were quietly pulling their funding from from savings accounts at subsidiary Home Trust. By Wednesday, when Home Capital revealed it was seeking a $2-billion loan to backstop its sinking savings deposits, shareholders ran for the exits, driving down the company’s share price by 65 per cent on Wednesday alone, and heightening the sense of panic. On Friday, the company revealed that high-interest savings account balances fell another 36% to $521-million by Friday morning, down by a whopping $293 million from $814-million Thursday and more than $2-billion a month ago. In other words, had it not been for the emergency HOOPP loan, the company would likely be insolvent as of this moment following what may be the biggest bank run in recent Canadian history; which also explains why the interest rate on the loan is above 20%. “When you have a run on the bank, people get spooked and they sell and ask questions later,” said a Bay Street investment banker. “It’s investor psychology that takes over.” As is usually the case, regulator appeared on the scene.... just one day too late. Canada’s banking industry regulator, the Office of the Superintendent of Financial Institutions (OSFI), has gathered data from other financial institutions this week, both to monitor for signs of a broader depositor panic and to track where funds are moving as they leave Home Trust.   OSFI sent an urgent request Wednesday to several smaller and mid-sized financial institutions and credit unions to provide the regulator with up-to-date information about their savings accounts, according to a source. Specifically, OSFI wanted to know the institutions’ most recent account totals for high-interest savings accounts, as well as data on recent redemptions and current levels of high-quality liquid assets. The request, which the OFSI said had to be fulfilled "as soon as institutions are able", is seen as an attempt to take the pulse of the market by tracking where deposits flowing out of Home Capital may be going, and to gauge whether there is any contagion among other institutions. In recent days, some smaller and mid-sized institutions have also struck up early-stage discussions about whether multiple institutions could join together to explore a deal to buy some of Home Capital’s assets. As for Canada's big banks, they have already decided that HCG won't survive. Several months ago, Canaccord Genuity Group Inc. told its financial advisers they could no longer steer investors to high-interest savings accounts at Home Capital or rival alternative mortgage lender Equitable Bank. Client money already placed with either bank had to be moved within 60 days. Then, after Home Capital revealed in March it was under investigation by the Ontario Securities Commission over its disclosure practices, Canadian Imperial Bank of Commerce introduced a cap of $100,000 per client for purchases of Home Capital guaranteed investment certificates (GICs), which is the maximum level covered by Canada’s deposit insurer. A spokesperson from Royal Bank of Canada said that, “several weeks ago” the bank introduced a $100,000 cap on Home Capital GICs bought through a full-service broker, although there were no limits for purchases through the firm’s discount brokerage. On Thursday, RBC also released the following entertaining price target scenario: it still has a price target of $8 but fear not, even if RBC is wrong, it promises at least $4/share in residual value. We are not quite as optimistic. Additionally, late last week, Bank of Nova Scotia said it would stop selling all GICs sold by Home Trust, but said Monday that policy was amended to a limit of $100,000. Bank of Montreal’s brokerage unit also confirmed it has a $100,000 limit on Home Trust GICs but would not say when it went into force. As G&M adds, the OSC news shook investors, but the panic was heightened as news of the banks' moves to cap investor deposits slowly seeped through Bay Street in subsequent days, raising concerns that major financial institutions were pulling away from Home Capital. "We Are Out Of The Position" When asked if Home Capital could survive this run on its deposits, Keohane - formerly at HOOPP, and the company's last remaining source of funding - said it was possible. “I think it’s a viable business,” he said. “Their cost of funding is going to go up, which may impact earnings… it’s always a possibility that some other institution may have an interest in taking the entity over. If you can have access to a lower funding cost, I mean, it’s quite an attractive purchase.” Most disagree, and it is safe to assume that the depositor run won't stop until every last dollar held at HCG has been withdrawn. Meanwhile, late on Friday, Home Capital’s second biggest shareholder, Calgary-based QV Investors disclosed that it liquidated its position, selling 8.4 million shares. QV Investors previously held a 12.8% stake in Home Capital. Toronto-based Turtle Creek Asset Management is Home Capital’s biggest shareholder with 13.6% stake. On Saturday another prominent investor bailed, when Calgary-based Mawer Investment Management sold 2.75 million shares of the alternative lender, CIO Jim Hall said told Bloomberg in a phone interview. “We are out of the position,” Hall said.  Mawer also has reduced holdings in Canadian alternative- lender Equitable Group. All these investors will now be forced to explain to their LPs how they missed a ticking timebomb which so many, this website included, had warned about for year. Home Without The Capital Group As for Home Capital Group, or more aptly Home Without The Capital Group, the future is bleak, and a bankruptcy liquidation appears the most likely outcome. What impact such an event will have on the broader Canadian housing market remains to be seen. Last week, shortly after HCG's rescue loan announcement stunned the otherwise sleep Toronto tape, the Canadian housing regulator warned of "strong evidence of housing-market problems." Looking back in a few months, that may prove to be a vast understatement.

07 апреля, 17:26

Should Investors Run from Canadian Bank Stocks?

An important economic data related to financial stability (revealed earlier this week) should be taken into account, before betting on Canadian bank stocks.

02 апреля, 18:00

Полный обзор преступлений Горбачева и его окружения

Серия публикаций из доклада «Рабочей группы по борьбе с коррупцией в высших эшелонах власти» предоставляет Вам новую информацию о преступной деятельности организованной преступной группировки первой волны, совершившей в конце прошлого века Государственную измену Родине, развалившей могучее государство - СССР, и положившей начало крупнейшему в новейшей истории разграблению собственного государства в угоду интересам зарубежных руководителей и […]

31 марта, 16:24

PrivateBancorp (PVTB) Receives Revised Bid Offer from CIBC

PrivateBancorp, Inc. (PVTB) received a revised offer price by Canadian Imperial Bank of Commerce (CM) as the latter will take over the former, as announced in Jun 2016. The new deal price has been increased by 20% to $4.9 billion.

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31 марта, 14:48

Банк CIBC увеличил сумму предложения по приобретению PrivateBancorp

Канадский кредитор Canadian Imperial Bank of Commerce (CIBC) сообщил об увеличении суммы предложения по приобретению американского банкаPrivateBancorp. Сообщается, что сумма предложения была повышена на 20% и составляет теперь почти $4,9 млрд после того, как акционеры PrivateBancorp отвергли первоначальное предложение канадского банка. Стоит отметить, что голосование акционеров PrivateBancorp по обновленному предложению должно состояться в середине мая, при этом стороны надеются закрыть сделку уже во втором квартале текущего года. Напомним, что сумма первого предложения CIBC составляла $3,8 млрд наличными и акциями.

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31 марта, 11:28

Банк CIBC увеличил сумму предложения по приобретению PrivateBancorp

Канадский кредитор Canadian Imperial Bank of Commerce (CIBC) сообщил об увеличении суммы предложения по приобретению американского банкаPrivateBancorp. Сообщается, что сумма предложения была повышена на 20% и составляет теперь почти $4,9 млрд после того, как акционеры PrivateBancorp отвергли первоначальное предложение канадского банка. Стоит отметить, что голосование акционеров PrivateBancorp по обновленному предложению должно состояться в середине мая, при этом стороны надеются закрыть сделку уже во втором квартале текущего года. Напомним, что сумма первого предложения CIBC составляла $3,8 млрд наличными и акциями.

17 марта, 15:53

Canadian Imperial Bank (CM): Strong Industry, Solid Earnings Estimate Revisions

Canadian Imperial Bank (CM) is seeing solid earnings estimate revision activity, and is a great company from a Zacks Industry Rank perspective.

15 марта, 17:07

Lazard Riding High on Strong Fundamentals: Time to Buy?

On Mar 15, we issued an updated research report on Lazard Ltd. (LAZ). The company has shown decent progress in terms of inorganic expansion and cost containment in 2016. However, its significant dependence on global markets remains a headwind.

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15 марта, 11:07

CIBC: евро остается наиболее недооцененной валютой

"Пришло время для инвесторов начать думать о длинных стратегиях по евро (EUR)", говорит Бипан Рай, старший аналитик FX в Canadian Imperial Bank of Commerce. Риски со стороны европейских выборов завышены. Длинные позиции в евро были бы привлекательными … читать далее…