A real estate developer who raised tens of millions of dollars from dozens of individual investors bundled into syndicated mortgages to fund Toronto-area condominium buildings is facing an investor revolt on one project and insolvency on another.
Dimitrios (Jim) Neilas, chief executive officer of Storey Living Inc., is facing legal fights on two fronts as projects he has pushed – known as the Adelaide Lofts in downtown Toronto and the OpArt condos in Oakville – are now subject to court actions from creditors seeking to sell land parcels that he had hoped to make into condominium or rental properties. At stake are millions of dollars for small investors whose loans are not registered and not protected in an insolvency process, or in the settlement deals proposed by the debtors.
…
Noor Al-Awqati, the chief operating officer of Hi-Rise Capital Ltd. and principal mortgage broker for the company, denied some of [Ontario’s Superintendent of Financial Services’] claims in an April 3, 2019 affidavit, saying Hi-Rise has received no fees from the Adelaide project since at least September, 2017. He admits to the 14 per cent commission paid on the initial investments, but said Hi-Rise transferred 10 or 12 per cent of each commission to third-parties who referred the investors.
What a great business, eh? 14% commission!
The Ontario Ministry of Finance has announced:
As dividends are paid out of after‐tax corporate earnings, individual shareholders receive dividend tax credits, the rate of which approximates the CIT rate paid by the corporation. Corresponding to the reduction in the small business CIT rate, Ontario’s small business (non‐eligible) dividend tax credit rate would be reduced from 3.2863 per cent to 2.9863 per cent, effective January 1, 2020. As a result, recipients of non‐eligible dividends would receive reduced dividend tax credits.
Apparently (see the Annex) this will raise 55-million annually once it’s running, about 60% of the cost of reducing the small business CIT rate.
PerpetualDiscounts now yield 5.44%, equivalent to 7.07% interest at the standard equivalency factor of 1.3x. Long corporates now yield 3.34%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) has widened sharply to 375bp from the 355bp reported October 30.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| 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 | -0.1327 % | 1,974.1 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1327 % | 3,622.4 |
| Floater | 6.12 % | 6.26 % | 48,406 | 13.48 | 4 | -0.1327 % | 2,087.6 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1689 % | 3,392.7 |
| SplitShare | 4.64 % | 4.64 % | 51,675 | 3.89 | 7 | 0.1689 % | 4,051.6 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1689 % | 3,161.2 |
| Perpetual-Premium | 5.56 % | -18.68 % | 52,086 | 0.09 | 10 | 0.2045 % | 3,033.5 |
| Perpetual-Discount | 5.32 % | 5.44 % | 67,719 | 14.74 | 25 | 0.0727 % | 3,244.7 |
| FixedReset Disc | 5.62 % | 5.76 % | 173,571 | 14.24 | 66 | -0.2244 % | 2,091.6 |
| Deemed-Retractible | 5.18 % | 5.64 % | 64,089 | 7.81 | 27 | 0.0626 % | 3,188.4 |
| FloatingReset | 6.21 % | 6.78 % | 94,392 | 12.78 | 2 | -0.2216 % | 2,470.0 |
| FixedReset Prem | 5.12 % | 3.75 % | 152,371 | 1.63 | 20 | -0.0407 % | 2,619.1 |
| FixedReset Bank Non | 1.96 % | 3.94 % | 90,929 | 2.16 | 3 | -0.2064 % | 2,695.7 |
| FixedReset Ins Non | 5.43 % | 8.21 % | 111,656 | 7.80 | 22 | -0.0966 % | 2,133.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRP.PR.C | FixedReset Disc | -3.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 11.71 Evaluated at bid price : 11.71 Bid-YTW : 6.51 % |
| BAM.PR.K | Floater | -2.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 10.92 Evaluated at bid price : 10.92 Bid-YTW : 6.42 % |
| TRP.PR.E | FixedReset Disc | -2.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 15.62 Evaluated at bid price : 15.62 Bid-YTW : 6.22 % |
| IFC.PR.A | FixedReset Ins Non | -1.95 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.56 Bid-YTW : 10.03 % |
| TD.PF.I | FixedReset Disc | -1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 20.68 Evaluated at bid price : 20.68 Bid-YTW : 5.53 % |
| MFC.PR.R | FixedReset Ins Non | -1.26 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.31 Bid-YTW : 5.71 % |
| PWF.PR.P | FixedReset Disc | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 13.03 Evaluated at bid price : 13.03 Bid-YTW : 5.96 % |
| NA.PR.S | FixedReset Disc | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 17.14 Evaluated at bid price : 17.14 Bid-YTW : 5.81 % |
| TD.PF.E | FixedReset Disc | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 18.87 Evaluated at bid price : 18.87 Bid-YTW : 5.84 % |
| TRP.PR.D | FixedReset Disc | -1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 16.04 Evaluated at bid price : 16.04 Bid-YTW : 6.16 % |
| BAM.PR.B | Floater | 1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 11.20 Evaluated at bid price : 11.20 Bid-YTW : 6.26 % |
| IFC.PR.E | Deemed-Retractible | 1.12 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.40 Bid-YTW : 5.62 % |
| NA.PR.G | FixedReset Disc | 1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 19.35 Evaluated at bid price : 19.35 Bid-YTW : 5.80 % |
| BMO.PR.Y | FixedReset Disc | 1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 18.80 Evaluated at bid price : 18.80 Bid-YTW : 5.65 % |
| CU.PR.C | FixedReset Disc | 1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 16.80 Evaluated at bid price : 16.80 Bid-YTW : 5.76 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| CU.PR.E | Perpetual-Discount | 330,524 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 22.62 Evaluated at bid price : 22.90 Bid-YTW : 5.34 % |
| BAM.PR.X | FixedReset Disc | 223,100 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 13.46 Evaluated at bid price : 13.46 Bid-YTW : 6.10 % |
| SLF.PR.D | Deemed-Retractible | 53,386 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.10 Bid-YTW : 6.68 % |
| IFC.PR.G | FixedReset Ins Non | 53,200 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.43 Bid-YTW : 8.45 % |
| EMA.PR.H | FixedReset Disc | 42,420 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-11-06 Maturity Price : 23.26 Evaluated at bid price : 24.95 Bid-YTW : 4.83 % |
| GWO.PR.S | Deemed-Retractible | 39,920 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.55 Bid-YTW : 5.59 % |
| There were 31 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| GWO.PR.I | Deemed-Retractible | Quote: 21.23 – 21.65 Spot Rate : 0.4200 Average : 0.2829 YTW SCENARIO |
| CCS.PR.C | Deemed-Retractible | Quote: 23.91 – 24.58 Spot Rate : 0.6700 Average : 0.5369 YTW SCENARIO |
| TRP.PR.E | FixedReset Disc | Quote: 15.62 – 16.11 Spot Rate : 0.4900 Average : 0.3624 YTW SCENARIO |
| PWF.PR.L | Perpetual-Discount | Quote: 23.42 – 23.83 Spot Rate : 0.4100 Average : 0.3007 YTW SCENARIO |
| TRP.PR.F | FloatingReset | Quote: 13.52 – 13.95 Spot Rate : 0.4300 Average : 0.3245 YTW SCENARIO |
| BIP.PR.E | FixedReset Disc | Quote: 22.66 – 22.94 Spot Rate : 0.2800 Average : 0.1805 YTW SCENARIO |