Tausi Insider

Canada’s banking regulator has raised the ceiling on bank capital levels and ramped up the reserves the country’s largest banks must hold, citing rising risks posed by inflation, interest-rate hikes and household debt as reasons to expand a financial safety net designed to guard against economic shocks. The Office of the Superintendent of Financial Institutions (OSFI) increased the maximum level of the domestic stability buffer Thursday. The DSB, which will now range from 0 to 4 per cent of a bank’s risk-weighted assets, is a store of capital built up in good times to be used to soften the blow when conditions turn sour. OSFI also announced that it will set the buffer higher on Feb. 1, 2023, raising it to 3 per cent from its current level of 2.5 per cent, which had been the top end of the DSB’s range since it was formally created in 2018. By requiring banks to hold more capital when business is good and credit losses are low, OSFI is building a surplus that it can then release when b...

To steal a phrase from supermodel Linda Evangelista, who wouldn’t wake up for photo shoots that paid less than $10,000 a day, investment bankers at global platforms such as RBC Capital Markets and Goldman Sachs Group Inc. don’t typically get out of bed to split a $1-million fee. Yet RBC RY-T and Goldman GS-N – firms built for billion-dollar financings – put their muscle and brands behind a $23-million stock sale last month for junior miner Frontier Lithium Inc FL-X. The bought deal, initially pitched as a $20-million offering then upsized because of investor demand, earned the two lead dealers and four other banks just $1.1-million. The Frontier financing highlights how the biggest banks are jockeying for position in critical minerals and the emerging supply chain for electric vehicle batteries. RBC and Goldman won lead roles last month raising money for a company that previously worked with small-cap mining specialists Canaccord Genuity Group Inc. and BMO Capital Markets, which co-l...

A group led by the management of Canaccord Genuity Group Inc CF-T said on Monday it would launch a takeover bid for the Canadian financial services company, valuing the firm at nearly $1.13-billion. The offer price of $11.25 per share marks a 31 per cent premium to the stock’s last close. In June, Canaccord’s largest shareholder had expressed concerns that the public markets were undervaluing the company, Canaccord said. After discussion with the company’s chief executive officer Daniel Daviau, the shareholder said it would support a go-private deal. https://www.tausiinsider.com/canaccord-genuitys-management-seeks-to-acquire-firm-in-nearly-1-13-billion-deal/?feed_id=325642&_unique_id=63f8ed3f2934a

Canaccord Capital has proposed a massive buyout and the key lies overseas. Lyle Stafford/Tausi Insider To understand why Canaccord Genuity Group Inc.’s CF-T executives would pony up $1.1-billion for a management buyout during a brutal market for investment banks, ignore everything the company used to stand for. The answer, very likely, lies across the Atlantic Ocean. Historically, Canaccord Genuity chief executive Dan Daviau had a reputation for being obsessed with deals. The same goes for the company’s chairman, David Kassie. They are investment bankers to the bone, which means they love advising clients who are buying and selling companies. The adrenaline – and the fees – get them going. For years this obsession explained why Canaccord Genuity would make so much money during bull markets, because deal volume would soar. But it is also the reason the investment bank’s shares have suffered during downturns. Advisory fees would dry up, and there wasn’t much else to cushion the blow. T...