Here are the top reads on deals and financial services over the last week,
FINANCIAL SERVICES NEWS
Why Wealthsimple and robo-advisers aren’t scaring Bay Street anymore: The harsh reality is that the company simply isn’t growing fast enough. Even more sobering, the whole sector is facing a reckoning. (Tim Kiladze and Clare O’Hara)
Alternative mortgage companies increasingly providing riskier loans: Among large mortgage investment corporations and mortgage investment entities, the percentage of first mortgages in their portfolios fell from 88 per cent in 2017 to 77 per cent in 2018 (Rachelle Younglai)
Private equity fund targets Toronto rental apartments, fuelling new $500-million fund: Following its billion-dollar sale of 44 rental apartment buildings in the Greater Toronto Area, private equity firm Q Management LP is fundraising for a $500-million war chest to do it all over again. (Tim Kiladze)
Ontario launches task force to modernize securities law, review how it polices the industry: Ontario’s Progressive Conservative government has launched a full-scale review of how it polices the securities industry, appointing a high-profile task force with a mission of creating a “more flexible regulatory approach.” The government unveiled its Capital Markets Modernization Taskforce on Thursday, naming five Bay Street insiders with backgrounds in finance, law, institutional trading and corporate governance. (Greg McArthur)
Mortgage rates fall amid sharp drop in bond yields: Toronto-Dominion Bank is the first major lender to lower its posted rate for five-year fixed rate mortgages as bond yields fall. (James Bradshaw and Matt Lundy)
New Caisse boss is François Legault’s man: The search for a new boss to lead Caisse de dépôt et placement du Québec through what promises to be a challenging five years ended up pretty much where it began with the appointment last week of Charles Émond to take over from Michael Sabia. (Konrad Yakabuski)
B.C. Finance Minister lobbies Ottawa for amendment to Bankruptcy and Insolvency Act: British Columbia is urging the federal government to amend Canada’s bankruptcy law so that people guilty of misconduct in the capital markets aren’t able to dodge penalties by declaring themselves insolvent. (Greg McArthur)
Securities commissions should take over stock market trading supervision in Canada, report says: Oversight of stock market trading in Canada should become the responsibility of the country’s provincial securities commissions, while supervision of investment advisers and portfolio managers should be merged under one roof, a new report recommends. (Clare O’Hara and Greg McArthur)
DEALS NEWS: MERGERS, ACQUISITIONS, IPOs and FINANCINGS
Influential proxy-adviser recommends Power Financial shareholders reject privatization bid: Institutional Shareholder Services Inc. (ISS) said Power Financial stockholders would receive Power Corp. subordinate voting shares with inferior rights and without the same “coattail” protections that are afforded shareholders in other Toronto Stock Exchange-listed companies. (David Milstead)
Brookfield raises US$20-billion for its infrastructure investing fund: The Toronto-based company initially set a US$17-billion target for Brookfield Infrastructure Fund IV when it was announced in late 2018. (David Milstead)
Casper Sleep shares jump in New York IPO: Casper Sleep Inc’s shares jumped as much as 30 per cent in their debut on Thursday, partially making up for the haircut the online mattress retailer took on its valuation after its offering was priced at the lower end of its expectations. The stock opened at $14.5, giving the company a valuation of $574.6 million, which is still a far cry from the $1.1 billion Casper had commanded in a private fundraising round last March. The loss-making company had cut its IPO target range to $12-$13 per share from $17-$19 per share. (Reuters)
Eddyfi Technologies buys pipeline inspection company NDT Global: Eddyfi Technologies, a Quebec-based developer of high-tech equipment that detects damage and defects in metals, has bought a global pipeline inspection company in a deal that will see it become a direct service provider to energy transporters. (Jeffrey Jones)
FAX Capital takes a contrarian bet on investing in small publicly listed companies: Two years after exiting the mutual funds business, the family that founded Sentry Investments Corp. is making a $120-million bet on small, publicly traded Canadian companies through its new asset management company, FAX Capital Corp. (Mark Rendell)
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