PrefBlog

So – are the politicians and bureaucrats fanning fear regarding financial stability so they can increase revenue?

The U.S. Securities and Exchange Commission said on Tuesday it levied a record $3.4-billion (U.S.) in sanctions in enforcement cases in the latest fiscal year, up 10 per cent from the previous year.
…
Fiscal 2013’s total sanctions were 22 per cent higher than those obtained in the 2011 fiscal year, the agency said.

DBRS confirmed GWO:

The Minimum Continuing Capital and Surplus Requirement ratio of the Company’s major regulated operating subsidiary, The Great-West Life Assurance Company, is strong at 221%. GWO has traditionally operated with higher financial leverage than most of its Canadian peers, a reflection of its debt-financed mergers and acquisitions activity. The debt and preferred share-to-total capital leverage ratio was 32.7% as at September 30, 2013, which is higher than its Canadian peers, and higher than the 25% level for a AA rating category. Fixed-charge coverage ratios at GWO nevertheless remain healthier, with less volatile earnings than those of its peers. DBRS considers the Company’s financial leverage and fixed-charge ratios acceptable for the current rating category with expectations of reduced leverage over time and views the Company as conservatively managed with a track record of consistent profitability.

It was a poor day for the Canadian preferred share market, with PerpetualDiscounts losing 22bp, FixedResets off 18bp and DeemedRetractibles down 21bp. Low-spread FixedResets were again prominent on the wrong side of the Performance Highlights table. Volume was extremely heavy.

This entry was posted on Wednesday, December 18th, 2013 at 12:47 am and is filed under Market Action. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.