The Bank for International Settlements has announced: the oversight body of the Basel Committee on Banking Supervision, met on 26 July 2010 to review the Basel Committee’s capital and liquidity reform package. Governors and Heads …
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TXPR: S&P Announces Major Methodological Change
Standard & Poor’s has announced: the following modifications to the methodology of the S&P/TSX Preferred Share Index, which will become effective after the close of trading on Friday, July 16, 2010, with the second semi-annual …
New Issue: Subsidiary of NPI, FixedReset 5.25%+280
Northland Power Income Fund has announced: that Northland Power Preferred Equity Inc. (the “Corporation”), an indirect wholly-owned subsidiary of the Fund, will issue in Canada a total of 4 million Cumulative Rate Reset Preferred Shares, …
June 30, 2010
Corporations are well placed to weather the next crisis: Companies from the U.S. to Europe and Asia are selling the fewest bonds since 2004, as rising cash levels allow borrowers to weather a slowing economy. …
G-20: Better Living Through Increased Regulation
The G-20 Statement We are taking strong steps toward increasing the stability and strength of our financial systems. Significantly increased resources for international financial institutions are helping stabilise and address the impact of the crisis …
Carney: Ban the Bond!
Mark Carney, Governor of the Bank of Canada, gave a speech to the International Organization of Securities Commissions (IOSCO) meeting, Montreal, 10 June 2010. I was stunned by suggestion regarding contingent capital: One promising avenue …
June 14, 2010
I have long taken the view that if sub-debt becomes contingent capital, then so will preferred shares; otherwise, issues’ seniority could leapfrog when an institution gets into trouble and that makes no sense. So I …
Contingent Capital Canadian Commentary
Today’s Globe & Mail had a story titled Bankers cast doubt on tax alternative: Some Canadian bankers are skeptical about the feasibility of Ottawa’s proposal for a new type of security that would enable banks …
Hedging a McDonald CoCo
In the first update to the post A Structural Model of Contingent Bank Capital, when responding to Prof. Pennacchi’s commentary (then anonymous, then later quoted in full with permission), I said: As an unconstrained bond …
Pennacchi Discusses CoCo Structural Model
After posting my review of his paper, A Structural Model of Contingent Bank Capital, I eMailed Prof. Pennacchi asking him about the political, regulatory and academic response to his paper and inviting him to comment …