Friday, Dec. 06, 2013 7:42AM EST
There is no sector much hotter than the technology sector, and with interest on the rise, Canaccord Genuity is adding to its mergers team.
The investment banking firm said it hired David Istock as a managing director specializing in mergers and acquisitions. He will work out of San Francisco and focus on technology, the firm said in an internal announcement.More »
Thursday, Dec. 05, 2013 3:16PM EST
Alberta Investment Management Corp. CEO Leo de Bever once bristled at accusations that the public sector pension fund’s investment in Precision Drilling Corp. was a politically motivated bailout.
On Thursday, Mr. de Bever showed he was in it for the reason he said at the time – to make money by rescuing an important market player that had wound up in a financial jam.More »
Thursday, Dec. 05, 2013 7:23AM EST
In the leadership shift at Royal Bank of Canada, there’s a signal that the bank is looking at its trading businesses in capital markets very differently these days.
RBC’s big news is the retirement of Gord Nixon as chief executive officer, and the appointment of Dave McKay. Mr. McKay, who comes mostly from a retail banking background, takes over next year.More »
Thursday, Dec. 05, 2013 5:00AM EST
Desjardins Group’s new building in Toronto’s financial core has thrown down the gauntlet to the surrounding financial services firms.
The country’s largest co-operative institution has opened a new building on King Street West, which will house almost all of the company’s offerings, from banking to insurance, under one roof. The ribbon was cut Wednesday in a ceremony intended to mark the company’s place among the major Canadian financial institutions.More »
Wednesday, Dec. 04, 2013 8:14AM EST
In normal times, putting Ned Goodman on the Barrick Gold Corp. board would not stand out. He’s a supporter of the company, a shareholder, a charter member of the Toronto gold bug crowd, and a backer of co-chairman John Thornton’s pay package.
Those, and more, are all reasons that putting Mr. Goodman on the Barrick board now is curious. Barrick is under fire for having a board that is too cozy and some shareholders were very upset that the board allowed Mr. Thornton’s pay to go through (the proof is in a sound defeat for the company on a say on pay vote this past spring.) So when Mr. Goodman says Mr. Thornton “got paid what he deserves” that’s going to rankle some of the shareholder base that he is now charged with representing.More »
Wednesday, Dec. 04, 2013 5:00AM EST
Companies with no women on their boards may be overpaying for acquisitions.
A study by researchers at the University of British Columbia’s Sauder School of Business shows that the cost of deals done by firms with at least one woman at the boardroom table is reduced by 15.4 per cent. Having additional women on the board reduced the costs even further, the study found.More »
Tuesday, Dec. 03, 2013 5:00PM EST
Investors are looking at Talisman Energy Inc. with caution, wagering that despite Carl Icahn’s success at influencing its direction, the company’s turnaround will still take time.
On Monday, the big-name activist investor gave the stock a second bump in as many months when Talisman disclosed that two of his nominees were being welcomed onto the Calgary-based oil producer’s board.More »
Tuesday, Dec. 03, 2013 1:10PM EST
For a quarter that capped off a record year, Bank of Montreal’s investors sure aren’t showing much enthusiasm. By midday the bank’s shares dropped nearly 5 per cent.
Despite encouraging Canadian loan growth and solid results from wealth management, BMO can’t seem to convince investors that it is capable of churning out solid earnings growth.More »
Tuesday, Dec. 03, 2013 11:53AM EST
The brokerage unit of Canadian Imperial Bank of Commerce yesterday cleaned up a messy stock sale undertaken for the Caisse de dépôt et placement du Québec, unloading at a discount a big block of CGI Group Inc. shares that had gone unsold for a week.
On Nov. 26, the Caisse sold 9.96 million CGI shares. A quarter of those, worth $100-million, went to CGI as a buyback. The other 75 per cent, worth $300-million, went to CIBC’s wholesale unit to be resold to investors. The net price paid by CIBC was $40.15, a discount of just 1.4 per cent from the closing price the previous day.More »
Tuesday, Dec. 03, 2013 5:00AM EST
When it comes to bringing Canada’s mortgage insurance behemoth down to size, Jim Flaherty gets all the headlines. The Finance Minister has made a series of big changes – effectively killing the 30-year insured mortgage, among others – all to keep the country’s housing market from overinflating.
Inside Canada Mortgage & Housing Corp., however, there are more subtle signs that changes in the boardroom are leading to a more conservative culture.More »
Monday, Dec. 02, 2013 6:53PM EST
JACQUELINE NELSON and JORDAN FLETCHER
Manulife Financial Corp.’s court battle with former insurance policy holders in the Caribbean is heating up again.
Canada’s largest insurer by market cap is in the Ontario Court of Appeal this week to respond to arguments made in a class action lawsuit brought on behalf of 8,000 Barbadians, demanding $81-million plus interest. A lower court ruled in favour of Manulife in the summer of 2012.More »
Monday, Dec. 02, 2013 6:40PM EST
Rogers Communications Inc.’s new chief executive officer is hoping to get an earful from some of the company’s more than 20,000 employees.
Guy Laurence, the British telecom executive who took the helm on Monday, plans to spend his first few months on the job travelling across Canada meeting with employees to hear their suggestions on improving the company. And he’ll do more than passively listen – Rogers insiders say he’ll use those ideas to build his plan.More »
Monday, Dec. 02, 2013 2:07PM EST
The amount of debt on Canadian bank balance sheets tied to residential housing is staggering. Combine residential mortgages with home equity lines of credit, and the Big Six banks have just under $1-trillion worth of exposure to the housing market.
To the untrained eye, that sum can seem terrifying. Add the speculation about a housing bubble to the mix and you have to wonder: should we be worried?More »
Monday, Dec. 02, 2013 10:41AM EST
Sun Life Financial Inc. is welcoming a new board memeber with experience in insurance deal making, from mergers to demutualizations.
The company said M. Marianne Harris joined the board Monday. She was most recently the president of corporate and investment banking at Merrill Lynch Canada Inc.
In that role, Ms. Harris worked on a variety of deals in the financial services sector, including some major insurance transactions. She advised on two major purchases by Great-West Lifeco Inc., including the $7.3-billion merger with Canada Life, and the $1.75-billion deal for Irish Life in February.More »
Monday, Dec. 02, 2013 5:00AM EST
Canada might soon have its first publicly-traded real estate investment trust specializing in student housing.
Last week a capital pool company called CHC Realty Capital Corp. completed an initial public offering and said it is looking to buy properties that cater to students and reorganize into a real estate investment trust.More »
Friday, Nov. 29, 2013 4:54PM EST
Canaccord Genuity Corp., Canada’s largest independent brokerage firm, will pay $1.1-million to settle claims by regulators that the firm was lax in oversight of investment advisers.
Canaccord admitted in the settlement with the Investment Industry Regulatory Organization of Canada (IIROC) to failing to “adequately supervise retail client account activity.” The issues in contention included not doing enough to ensure clients that said they qualified as “accredited investors” really did, and allowing numerous incidents of inappropriate trading in client accounts. The activity in question stretched over a six-year period from 2005 to 2011.More »
Friday, Nov. 29, 2013 4:35PM EST
One thing that jumps out in Canada Mortgage and Housing Corp.’s third quarter results is the much bigger capital cushion the home loan insurer is holding.
By one measure, the level of capital held is up about 50 per cent from 2008 and 2009, when there was less scrutiny of CMHC’s stability. And that capital figure has been steadily climbing.More »
Friday, Nov. 29, 2013 1:22PM EST
Every day ROB Insight delivers exclusive analysis on breaking business news and market-moving events. Streetwise offers news and analysis on Bay Street and the world of finance. Insight the Market delivers up-to-the-minute insights on developing market news.
Here are our editors’ picks of some of the best reads available to Globe Unlimited subscribers this week.More »
Friday, Nov. 29, 2013 12:37PM EST
After a tough start to 2013 for the securities business, I bravely predicted back in July that the second half would get better.
I gave five reasons. In the interests of accountability, let’s take a look back and see how I did in my predictions.
1. “Commodity deals may rebound.”
There were reasons for optimism. There was the Rio Tinto PLC iron ore sale in the pipeline, and the likely prospect that energy and mineral producers would start to buy and sell as stress on balance sheets forced weak hands to let go.More »
Friday, Nov. 29, 2013 12:13PM EST
Fiera Capital Corp. rang in its 10th anniversary this week, but the next few decades will require the asset manager to develop a new range of strategies and skills.
Companies in the investment industry will need to have North American scale to be competitive in the investment industry 15 to 20 years from now, according to the firm’s founder and chief executive officer, Jean-Guy Desjardins. For Fiera, that means shifting the firm’s asset mix and, more importantly, becoming a significant player in the U.S. market.More »
Friday, Nov. 29, 2013 5:00AM EST
Canada’s banks must adhere to a new set of rules designed to better protect them during a crisis.
In January the Basel Committee released guidelines on what is known as the liquidity coverage ratio, a measure that ensures they hold high-quality, liquid assets in order to fund their daily operations during a crisis.More »
Thursday, Nov. 28, 2013 7:01PM EST
Institutional investors have shown an appetite for Australian infrastructure investments in recent years and La Caisse de dépôt et placement du Québec’s latest purchase shows the hunger hasn’t yet abated.
The pension fund portfolio manager said Thursday that it would take on a 26.7-per-cent stake in the Port of Brisbane, the largest general cargo port in Australia’s Queensland area, and the third-largest container port in the country. The investment is reportedly worth about $1-billion.More »
Thursday, Nov. 28, 2013 2:24PM EST
Big-name energy companies operating in Canada have billions of dollars of assets up for sale as they refocus their businesses, but one tiny asset offering may be immune to the worst effects of a buyers’ market.
Over the past three decades, oil patch investors have donated oil and gas interests to the Canadian Cancer Society, which has decided it is time to cash out.More »
Thursday, Nov. 28, 2013 12:44PM EST
Bank of Nova Scotia is reportedly eyeing a stake in a mid-size Hong Kong bank, a deal that would boost its presence in Asia after being rebuffed by the Chinese government in a recent acquisition.
The target, Wing Hang Bank Ltd., disclosed in September that two shareholders that collectively own 45 per cent, the Fung family and Bank of New York Mellon Corp., had been approached about selling their positions. Speculation quickly emerged that the likes of Australia and New Zealand Banking Group were potential buyers.More »
Wednesday, Nov. 27, 2013 5:04PM EST
Mention the words leveraged super senior tranche to most people and their eyes will glaze over. But to anyone who was involved in the messy Canadian asset-backed commercial paper (ABCP) crisis, the derivatives are the last thing they ever want to see again.
Yet here they are, as Euromoney reports that Citigroup Inc. is trying to sell the first leveraged super senior (LSS) tranche of a synthetic collateralized default obligation (CDO) since the crisis. Just reading that sentence should give an inkling of the complexity of the product, and in the wake of the crisis, investors shunned such credit derivatives.More »
Wednesday, Nov. 27, 2013 4:23PM EST
Halifax-based investment firm Clarke Inc. and its leader George Armoyan aren’t afraid of friction with investors.
Mr. Armoyan roused supporters in the early 2000s as an activist investor who had success turning around troubled income trusts and other struggling companies. One analyst called the tendency for investors to follow him the “Armoyan effect.” After the financial crisis took the wind out of his sails Mr. Armoyan took some time away from the company, but he’s since returned and the business is preparing to make new investments in undervalued firms.More »
Wednesday, Nov. 27, 2013 1:05PM EST
Pay is always a flashpoint at public pension plans. That’s taxpayers’ money, after all, going to compensate the people looking after our pensions – and cash that is paid to pension managers isn’t there for pensioners.
It is a lot of money, by any measure. Pension plans compete for talent with private equity firms, mutual funds, endowments, family offices, investment banks and numerous other places where people with good financial brains can find work. So setting compensation at something close to market rates is going to lead to paycheques that would be largely unimaginable for most of us, never mind the people actually receiving a monthly pension cheque.More »
Wednesday, Nov. 27, 2013 10:40AM EST
Gary Perron, one of Canada’s most prominent investment advisers, is starting his own wealth management firm.
For the past three decades Mr. Perron worked at BMO Nesbitt Burns in Calgary and ultimately became a branch manager. The “Perron Branch,” as it was known, employed over 40 investment advisers and managed more than $7.5-billion in assets.More »
Tuesday, Nov. 26, 2013 5:36PM EST
U.S. private equity behemoth Carlyle Group LP is buying a Toronto-based asset manager that specializes in picking hedge funds for huge institutional investors, yet another sign of Canada’s growing influence in the business of running alternative assets.
Carlyle said Tuesday that it has agreed to buy Diversified Global Asset Management Corp., an employee owned firm that oversees assets of $6.7-billion (U.S.), for about $103-million. About a third of that will be paid up front, with the rest spread out over subsequent years.More »
Tuesday, Nov. 26, 2013 5:28PM EST
U.S. private equity firm Warburg Pincus LLC’s move to sell down its stake in MEG Energy Corp. is unexpected given the oil sands developer’s outlook for some improvement in the coming months and suggests repositioning within its own investment portfolio.
The $157-million sale, through a secondary offering, will cut Warburg Pincus’s stake to 17 per cent, down from around 19 per cent, just as the company is nearing startup of a new phase of its Christina Lake oil sands project in Alberta that will almost double output. It will remain MEG’s largest shareholder, however.More »
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Tim Kiladze is a business reporter with The Globe and Mail. Before crossing over to journalism, he worked in equity capital markets at National Bank Financial
Jacqueline Nelson is a financial services reporter at the Report on Business.
Grant Robertson is an award-winning journalist who has been recognized for investigative journalism, business reporting and profile writing. He joined the Globe and Mail in 2005, after five years as a business writer at the Calgary Herald.
Joanna Slater is the Globe's New York Bureau Chief. Prior to joining the Globe in 2010, she worked for The Wall Street Journal, where her assignments included reporting on the financial crisis out of New York and covering South Asian business and politics from Mumbai.
Follow Joanna on Twitter @jslaternyc