There are fears of a new wave of bank failures triggered by commercial real estate loans:
Capmark Financial Group Inc.’s possible collapse may signal a new wave of real estate losses for banks — this one tied to business property — that could push the year’s tally of failures past 100.
Capmark, ranked among the largest U.S. commercial real estate lenders by Moody’s Investors Service, posted a $1.6 billion quarterly loss on Sept. 2 and said it might go bankrupt.
…
Assets originated by Capmark that are no longer collecting interest more than doubled to 7.6 percent of total assets as of June 30 from the end of 2008, after accounting for reserves, the company said. Capmark posted losses in North America, Asia and European units during the quarter and raised the provision for bad loans to $345.8 million from $10.4 million.
…
The company struck a deal with Warren Buffett’s Berkshire Hathaway Inc. and Leucadia National Corp. to sell its loan servicing and mortgage units for as much as $490 million.Capmark today had its debt rating cut by Moody’s to C because the asset sale and declining value of its remaining units increase the odds that creditors won’t get paid.
However, to make us all feel better about the long weekend, three banks were closed today: one tiny one:
As of June 30, 2009, First Bank of Kansas City had total assets of $16 million and total deposits of approximately $15 million.
…
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6 million.
… a larger one:
As of August 3, 2009, InBank had total assets of $212 million and total deposits of approximately $199 million.
…
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $66 million.
… and a larger one still:
As of August 28, 2009, Vantus Bank had total assets of $458 million and total deposits of approximately $368 million.
…
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $168 million.
Update: Another one just trickled in:
Platinum Community Bank, as of August 29, 2009, had total assets of $345.6 million and total deposits of $305.0 million.
…
Platinum Community Bank is the 88th FDIC-insured institution to fail this year and the 15th in Illinois. The last bank to be closed in the state was Inbank, Oak Forest, earlier today. The FDIC estimates the cost of the failure to its Deposit Insurance Fund to be approximately $114.3 million.
Update: Holy smokes, long weekend and the FDIC’s working overtime!
As of July 24, 2009, First State Bank had total assets of $105 million and total deposits of approximately $95 million.
…
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $47 million.
Even better, the recent slide in the preferred share market took a break today, with PerpetualDiscounts up 7bp and FixedResets gaining 5bp … little movement on little volume.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| 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 | 0.0324 % | 1,431.5 |
| FixedFloater | 5.78 % | 4.04 % | 59,425 | 18.54 | 1 | 1.0747 % | 2,656.3 |
| Floater | 2.55 % | 2.14 % | 31,649 | 22.02 | 4 | 0.0324 % | 1,788.4 |
| OpRet | 4.86 % | -11.90 % | 126,021 | 0.09 | 15 | 0.0230 % | 2,279.3 |
| SplitShare | 6.46 % | 6.56 % | 1,122,419 | 4.08 | 2 | 0.4701 % | 2,046.6 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0230 % | 2,084.2 |
| Perpetual-Premium | 5.75 % | 5.61 % | 150,680 | 2.58 | 12 | 0.1648 % | 1,883.6 |
| Perpetual-Discount | 5.70 % | 5.76 % | 198,355 | 14.25 | 59 | 0.0697 % | 1,801.8 |
| FixedReset | 5.50 % | 4.08 % | 476,122 | 4.11 | 40 | 0.0471 % | 2,105.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| GWO.PR.I | Perpetual-Discount | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-04 Maturity Price : 19.51 Evaluated at bid price : 19.51 Bid-YTW : 5.78 % |
| SLF.PR.A | Perpetual-Discount | -1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-04 Maturity Price : 20.36 Evaluated at bid price : 20.36 Bid-YTW : 5.85 % |
| BAM.PR.G | FixedFloater | 1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-04 Maturity Price : 25.00 Evaluated at bid price : 18.81 Bid-YTW : 4.04 % |
| POW.PR.D | Perpetual-Discount | 1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-04 Maturity Price : 21.91 Evaluated at bid price : 22.03 Bid-YTW : 5.76 % |
| ENB.PR.A | Perpetual-Premium | 2.06 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2009-10-04 Maturity Price : 25.00 Evaluated at bid price : 25.77 Bid-YTW : -28.63 % |
| ELF.PR.G | Perpetual-Discount | 4.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-04 Maturity Price : 19.51 Evaluated at bid price : 19.51 Bid-YTW : 6.19 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BMO.PR.O | FixedReset | 216,070 | RBC crossed 100,000 at 28.00; National crossed 50,000 and sold 40,000 to Nesbitt at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-06-24 Maturity Price : 25.00 Evaluated at bid price : 27.92 Bid-YTW : 3.91 % |
| BNS.PR.O | Perpetual-Premium | 119,255 | RBC crossed 65,000 at 25.20; Desjardins crossed 50,000 at the same price. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-04 Maturity Price : 24.82 Evaluated at bid price : 25.05 Bid-YTW : 5.66 % |
| RY.PR.N | FixedReset | 44,750 | RBC crossed 38,700 at 27.65. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-03-26 Maturity Price : 25.00 Evaluated at bid price : 27.55 Bid-YTW : 3.86 % |
| HSB.PR.E | FixedReset | 36,600 | RBC crossed 25,000 at 27.90. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-07-30 Maturity Price : 25.00 Evaluated at bid price : 27.85 Bid-YTW : 4.34 % |
| SLF.PR.B | Perpetual-Discount | 34,062 | RBC bought 10,000 from TD at 20.74. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-09-04 Maturity Price : 20.66 Evaluated at bid price : 20.66 Bid-YTW : 5.82 % |
| CM.PR.M | FixedReset | 30,555 | Nesbitt bought 16,300 from National at 27.84. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-08-30 Maturity Price : 25.00 Evaluated at bid price : 27.82 Bid-YTW : 4.16 % |
| There were 27 other index-included issues trading in excess of 10,000 shares. | |||