{"id":20365,"date":"2012-11-22T23:50:40","date_gmt":"2012-11-23T03:50:40","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=20365"},"modified":"2012-11-22T23:50:40","modified_gmt":"2012-11-23T03:50:40","slug":"november-22-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=20365","title":{"rendered":"November 22, 2012"},"content":{"rendered":"

The intermediators are being disintermediated<\/a>!<\/p>\n

When PPR SA, the French owner of Gucci, sold a stake in its African distributor CFAO in August, it didn\u2019t use an investment bank to handle the transaction.<\/p>\n

Instead, the company turned to an in-house mergers and acquisitions team led by Charles de Fleurieu, 39, a former France Telecom SA M&A executive. \u201cWhen we can, we do it on our own,\u201d said group managing director Jean-Francois Palus, 51.
…<\/b>
Almost a third of completed European and U.S. M&A transactions this year were done in-house, according to data provided by Freeman Consulting, a New York-based research firm. For the U.S., that represents the largest adviser-free proportion of deals since 2003; for Europe, it\u2019s the most since 2004.
…<\/b>
Big global investment banks have seen their revenue from advisory work fall 48 percent, to $6.48 billion, in the first nine months of 2012, compared with the same period in 2007, according to data compiled by Bloomberg.<\/p>\n

Distrust may be a factor as companies grow increasingly skeptical about banks, said John Longworth, director general of the British Chambers of Commerce, which in an October report found that half of U.K. companies are leery of doing business with financial institutions.
…<\/b><\/br>Siemens, Germany\u2019s most acquisitive company during the past decade, used its own M&A staff for an agreement in July 2011 to acquire NEM and Nem Energy Services, Dutch makers of gas and steam power-plant parts, for 170 million euros ($218 million).<\/p>\n

Banks might have earned almost 3 million euros in fees to advise Siemens on the deal, estimates Freeman based on transactions roughly that size. They may have missed out on as much as $55.5 million when BP, Europe\u2019s second-largest oil company, used its 30-member in-house advisory team to sell Gulf of Mexico oil and gas properties to Plains Exploration & Production for $5.55 billion, announced in September.<\/p><\/blockquote>\n

DBRS confirmed BRN.PR.A at Pfd-2(low)<\/a> – an issue which is not followed by HIMIPref™:<\/p>\n

DBRS has today confirmed the rating of Pfd-2 (low) with a Stable trend for the Senior Preferred Shares of Brookfield Investments Corporation (Brookfield Investments or the Company).
…<\/b>
As a result of higher market values and the aforementioned new investments, the Company\u2019s exposure to real estate investments decreased to 69.6% (on a market value basis as at September 30, 2012) from 83.5% in Q1 2011. Specifically, Brookfield Office Properties Inc. represents 41% of the Company\u2019s investment portfolio on a market value basis.
…<\/b>
The rating also continues to be supported by the fact that: (1) Brookfield Investments\u2019 senior debt does not exceed 10% of the market value of its portfolio, and (2) no dividends are paid to Brookfield Investments common shareholders, unless, after giving effect to such dividend, the asset coverage for the Brookfield Investments Senior Preferred Shares would be at least three times. Excess cash flows beyond the Senior Preferred Shares are available to Brookfield Investments as sole holder of the Junior Preferred Shares and as sole common shareholder. The Junior Preferred Shares rank subordinate to the Senior Preferred Shares with respect to the payment of dividends.<\/p>\n

The rating also reflects the following challenges: (a) The principal amount of the Senior Preferred Shares may be repaid by liquidating the assets upon retraction by the holder. Since 29.9% of investments are in shares that are not publicly listed, the illiquidity of such investments could have negative implications for the value realized by the preferred shareholders. (b) As there are no restrictions on the contents of the underlying portfolio, volatile market conditions could cause significant reductions in the net asset value of the Portfolio Shares (especially common shares).<\/p><\/blockquote>\n

DBRS confirmed TRP and TCA at Pfd-2(low)<\/a>:<\/p>\n

DBRS has today confirmed the ratings of TransCanada PipeLines Limited (TCPL or the Company) as listed below. DBRS has also confirmed the rating of the Preferred Shares of TransCanada Corporation (TCC) at Pfd-2 (low). The rating of TCC, which owns 100% of TCPL and holds no other material assets, is based on the credit strength of TCPL.
…<\/b>
The ratings and trends reflect the following DBRS expectations: (1) The decision with respect to the Company\u2019s Canadian Mainline 2012 Tolls Application and Restructuring Proposal (the Restructuring Proposal) that is currently before the National Energy Board (NEB) will be such that the Company is allowed to continue to recover, and earn a reasonable rate of return on, all of the costs that were incurred in the construction of the Canadian Mainline. A decision is currently expected in late Q1 2013. (2) The Keystone XL Pipeline, approval of which has been repeatedly delayed, is approved by the United States Department of State in 2013 and construction is allowed to proceed, with an expected in-service date in late 2014 or early 2015. A decision is currently expected in Q1 2013. Should a negative decision result, DBRS expects TCC to mitigate the result with incremental projects of similar quality to support its overall business risk profile. (3) Despite an expected moderate weakening in 2013, TCPL maintains reasonably strong credit metrics in line with its targeted cash flow-to-debt ratio of at least 15% and cash flow-to-interest of at least three times (15.8% and 3.6 times on a DBRS-adjusted basis at September 30, 2012). DBRS expects increased diversification and reduced proportional exposure to the currently challenging natural gas pipeline segment, with major capital projects placed in service by 2015 as expected. <\/p><\/blockquote>\n

It was another day of gains for the Canadian preferred share market, with PerpetualPremiums and DeemedRetractibles both up 6bp, with FixedResets winning 15bp. Volatility was minimal, with two IAG issues bouncing back after going ex-dividend yesterday. Volume was low.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3479 %<\/td>\n2,466.8<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.19 %<\/td>\n3.53 %<\/td>\n28,637<\/td>\n18.25<\/td>\n1<\/td>\n-0.2636 %<\/td>\n3,844.9<\/td>\n<\/tr>\n
Floater<\/td>\n2.80 %<\/td>\n3.01 %<\/td>\n57,770<\/td>\n19.65<\/td>\n4<\/td>\n0.3479 %<\/td>\n2,663.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.60 %<\/td>\n1.24 %<\/td>\n36,352<\/td>\n0.59<\/td>\n4<\/td>\n-0.0095 %<\/td>\n2,593.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.43 %<\/td>\n4.78 %<\/td>\n59,804<\/td>\n4.46<\/td>\n3<\/td>\n0.3579 %<\/td>\n2,863.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0095 %<\/td>\n2,371.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.26 %<\/td>\n2.19 %<\/td>\n73,024<\/td>\n0.87<\/td>\n30<\/td>\n0.0556 %<\/td>\n2,316.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.85 %<\/td>\n4.89 %<\/td>\n97,292<\/td>\n15.59<\/td>\n3<\/td>\n0.0953 %<\/td>\n2,625.6<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.98 %<\/td>\n3.00 %<\/td>\n199,225<\/td>\n4.19<\/td>\n75<\/td>\n0.1514 %<\/td>\n2,451.1<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.90 %<\/td>\n3.07 %<\/td>\n125,346<\/td>\n0.50<\/td>\n46<\/td>\n0.0642 %<\/td>\n2,405.9<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nDeemed-Retractible<\/td>\n1.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.85
\nBid-YTW : 4.64 %<\/td>\n<\/tr>\n
IAG.PR.C<\/td>\nFixedReset<\/td>\n1.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 1.94 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
GWO.PR.R<\/td>\nDeemed-Retractible<\/td>\n107,505<\/td>\nScotia crossed 100,000 at 25.10.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.13
\nBid-YTW : 4.83 %<\/td>\n<\/tr>\n
SLF.PR.C<\/td>\nDeemed-Retractible<\/td>\n103,675<\/td>\nDesjardins crossed 100,000 at 24.35.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.31
\nBid-YTW : 4.94 %<\/td>\n<\/tr>\n
NA.PR.Q<\/td>\nFixedReset<\/td>\n58,580<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-11-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.65
\nBid-YTW : 3.28 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n51,540<\/td>\nNational crossed 40,000 at 26.02.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.02
\nBid-YTW : 3.02 %<\/td>\n<\/tr>\n
FTS.PR.J<\/td>\nPerpetual-Premium<\/td>\n48,045<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-12-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.25
\nBid-YTW : 4.65 %<\/td>\n<\/tr>\n
TD.PR.S<\/td>\nFixedReset<\/td>\n47,010<\/td>\nRBC bought 10,000 from Scotia at 24.90; National bought 16,700 from Nesbitt at 24.94.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.94
\nBid-YTW : 3.12 %<\/td>\n<\/tr>\n
There were 24 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
ELF.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.46 – 24.74
\nSpot Rate : 0.2800
\nAverage : 0.1915<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-11-22
\nMaturity Price : 23.99
\nEvaluated at bid price : 24.46
\nBid-YTW : 4.89 %<\/td>\n<\/tr>\n

HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.11 – 26.49
\nSpot Rate : 0.3800
\nAverage : 0.2983<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-31
\nMaturity Price : 25.50
\nEvaluated at bid price : 26.11
\nBid-YTW : -10.34 %<\/td>\n<\/tr>\n

PWF.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.38 – 25.60
\nSpot Rate : 0.2200
\nAverage : 0.1391<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-22
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.38
\nBid-YTW : -8.27 %<\/td>\n<\/tr>\n

BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.50 – 24.72
\nSpot Rate : 0.2200
\nAverage : 0.1502<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-11-22
\nMaturity Price : 24.21
\nEvaluated at bid price : 24.50
\nBid-YTW : 4.90 %<\/td>\n<\/tr>\n

BNA.PR.D<\/td>\nSplitShare<\/td>\nQuote: 26.40 – 26.64
\nSpot Rate : 0.2400
\nAverage : 0.1880<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-12-22
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.40
\nBid-YTW : -14.55 %<\/td>\n<\/tr>\n

ELF.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.61 – 25.90
\nSpot Rate : 0.2900
\nAverage : 0.2382<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-17
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.61
\nBid-YTW : 5.25 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The intermediators are being disintermediated! When PPR SA, the French owner of Gucci, sold a stake in its African distributor CFAO in August, it didn\u2019t use an investment bank to handle the transaction. Instead, the …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-20365","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20365"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20365\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}