DBRS has downgraded CI Financial Corp.; there are no preferreds outstanding, but I thought it was interesting:
DBRS Limited (Morningstar DBRS) downgraded the credit ratings of CI Financial Corp.’s (CI or the Company) Senior Unsecured Debentures and the Issuer Rating of CI’s principal subsidiary, CI Investments Inc. (CII), to BBB (low) from BBB. The trends on the credit ratings remain Negative.
KEY CREDIT RATING CONSIDERATIONS
The credit rating downgrades reflect the persistently high debt-to-EBITDA ratio and deteriorating fixed-charge coverage ratio, as the Company continues to prioritize buying back shares over deleveraging, a strategy that is expected to continue. The Negative trends also reflect deteriorating credit fundamentals, including weakened earnings with the revenue from the asset management business continuing to decline relative to prior years. Moreover, wealth management earnings growth has not been able to offset the very high level of expenses, including those related to deferred acquisition costs. Moreover, the planned structural debt reduction financed by U.S. dollars-denominated debt is considered in the context of future acquisition-related expenses, higher technology investments, and integration-related costs together with the shortened debt maturity profile.
| 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 | 0.5013 % | 2,297.4 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.5013 % | 4,406.4 |
| Floater | 10.47 % | 10.80 % | 65,456 | 8.84 | 1 | 0.5013 % | 2,539.5 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3669 % | 3,449.3 |
| SplitShare | 4.88 % | 6.41 % | 29,869 | 1.36 | 8 | -0.3669 % | 4,119.3 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3669 % | 3,214.0 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3344 % | 2,705.0 |
| Perpetual-Discount | 6.34 % | 6.54 % | 50,124 | 13.11 | 27 | -0.3344 % | 2,949.6 |
| FixedReset Disc | 5.23 % | 7.09 % | 122,441 | 12.06 | 54 | -0.1256 % | 2,607.3 |
| Insurance Straight | 6.22 % | 6.42 % | 59,560 | 13.23 | 21 | -0.1632 % | 2,918.0 |
| FloatingReset | 8.92 % | 9.12 % | 29,888 | 10.18 | 2 | -0.2224 % | 2,838.9 |
| FixedReset Prem | 6.91 % | 6.43 % | 202,446 | 3.05 | 2 | 0.1179 % | 2,537.7 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1256 % | 2,665.2 |
| FixedReset Ins Non | 5.10 % | 6.86 % | 104,749 | 12.94 | 14 | -2.2430 % | 2,785.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IFC.PR.C | FixedReset Ins Non | -27.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 15.87 Evaluated at bid price : 15.87 Bid-YTW : 9.32 % |
| PVS.PR.K | SplitShare | -2.84 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2029-05-31 Maturity Price : 25.00 Evaluated at bid price : 22.20 Bid-YTW : 7.17 % |
| IFC.PR.E | Insurance Straight | -1.90 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 20.60 Evaluated at bid price : 20.60 Bid-YTW : 6.44 % |
| PWF.PR.S | Perpetual-Discount | -1.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 18.44 Evaluated at bid price : 18.44 Bid-YTW : 6.60 % |
| MFC.PR.J | FixedReset Ins Non | -1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 22.88 Evaluated at bid price : 24.00 Bid-YTW : 6.54 % |
| POW.PR.D | Perpetual-Discount | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 19.47 Evaluated at bid price : 19.47 Bid-YTW : 6.53 % |
| FFH.PR.C | FixedReset Disc | -1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 21.89 Evaluated at bid price : 22.40 Bid-YTW : 7.70 % |
| BN.PR.M | Perpetual-Discount | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 18.18 Evaluated at bid price : 18.18 Bid-YTW : 6.67 % |
| RY.PR.N | Perpetual-Discount | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 22.89 Evaluated at bid price : 23.15 Bid-YTW : 5.32 % |
| MFC.PR.F | FixedReset Ins Non | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 17.16 Evaluated at bid price : 17.16 Bid-YTW : 6.93 % |
| MFC.PR.B | Insurance Straight | 1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 19.36 Evaluated at bid price : 19.36 Bid-YTW : 6.03 % |
| BN.PF.J | FixedReset Disc | 1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 22.38 Evaluated at bid price : 23.00 Bid-YTW : 7.40 % |
| BIP.PR.A | FixedReset Disc | 1.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 21.47 Evaluated at bid price : 21.80 Bid-YTW : 8.16 % |
| BIK.PR.A | FixedReset Disc | 2.07 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-04-01 Maturity Price : 25.00 Evaluated at bid price : 25.05 Bid-YTW : 7.33 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| RY.PR.J | FixedReset Disc | 217,750 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 23.04 Evaluated at bid price : 23.60 Bid-YTW : 6.64 % |
| RY.PR.S | FixedReset Disc | 84,368 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 23.15 Evaluated at bid price : 24.90 Bid-YTW : 6.04 % |
| TD.PF.B | FixedReset Disc | 73,950 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 23.35 Evaluated at bid price : 24.42 Bid-YTW : 6.14 % |
| MFC.PR.I | FixedReset Ins Non | 45,600 | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-09-19 Maturity Price : 25.00 Evaluated at bid price : 24.60 Bid-YTW : 6.46 % |
| BMO.PR.W | FixedReset Disc | 37,270 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 23.02 Evaluated at bid price : 23.80 Bid-YTW : 6.20 % |
| FFH.PR.K | FixedReset Disc | 33,400 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-05-30 Maturity Price : 21.44 Evaluated at bid price : 21.78 Bid-YTW : 7.91 % |
| There were 9 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| IFC.PR.C | FixedReset Ins Non | Quote: 15.87 – 21.85 Spot Rate : 5.9800 Average : 3.3189 YTW SCENARIO |
| POW.PR.B | Perpetual-Discount | Quote: 20.66 – 21.70 Spot Rate : 1.0400 Average : 0.6276 YTW SCENARIO |
| PVS.PR.K | SplitShare | Quote: 22.20 – 23.30 Spot Rate : 1.1000 Average : 0.7560 YTW SCENARIO |
| MFC.PR.J | FixedReset Ins Non | Quote: 24.00 – 24.73 Spot Rate : 0.7300 Average : 0.4690 YTW SCENARIO |
| MFC.PR.N | FixedReset Ins Non | Quote: 20.12 – 21.38 Spot Rate : 1.2600 Average : 1.0440 YTW SCENARIO |
| BIP.PR.F | FixedReset Disc | Quote: 21.12 – 21.70 Spot Rate : 0.5800 Average : 0.3674 YTW SCENARIO |
https://www.bnnbloomberg.ca/private-credit-firm-ninepoint-halts-cash-payouts-on-three-funds-1.2079658
[…] Holy Smokes. Cutting off redemptions is bad enough, but they’ve cut off distributions too, which sounds much more serious. I’d like to get a look at their books … are they carrying a big proportion of defaulting bonds? Or a big proportion of Pay-In-Kind bonds, which are really zero-coupon bonds dressed up? Or do they, for some reason, sincerely believe that stopping distributions in order to fund redemptions is a good idea? Stay tuned! Thanks to Assiduous Reader pugwash for the heads-up! […]