Here are the top reads on deals and financial services over the last week
FINANCIAL SERVICES NEWS
Big banks brace for higher loan losses in energy sector amid oil slump: Canada’s large banks are bracing for major losses on energy-sector loans over the coming quarters, as producers and oil field service companies continue to struggle with low oil prices. (Mark Rendell)
Paramount investors faced big losses after being promised money was secure, OSC hears: A few months after the Ontario Securities Commission ordered a receiver to take control of Paramount Equity Financial Corp., which sold pooled mortgage products, the company’s chief executive officer, Marc Ruttenberg, asked one of his largest investors for an unsettling favour. (Greg McArthur)
AIMCo’s risky strategy led to higher losses than most pension plans: Alberta’s government-owned fund manager confirmed significant investment losses on Wednesday, adding fuel to a heated debate over Premier Jason Kenney’s plan to shift more of the province’s retirement savings into its care. (Andrew Willis and Jeffrey Jones)
Insolvencies fell as government programs propped up companies, but weak firms are still filing for bankruptcy: The number of corporate failures fell sharply in Canada as the COVID-19 crisis took hold, but insolvencies are expected to jump as multibillion-dollar government support programs lapse in the coming months. (Jeffrey Jones and Christine Dobby)
St. Michael’s Hospital says Zurich Insurance is obligated to pay to finish work on Bondfield project: St. Michael’s Hospital says the insurance company liable for construction work on its redevelopment project cannot use the recent discovery of e-mails that the insurer alleges are proof of collusion in the bidding process to avoid its obligations. (Karen Howlett)
Investment bank Canaccord records growth in quarter but warns of challenges ahead: Canaccord Genuity Group Inc. increased profits in a volatile fiscal fourth quarter, as strong results from the investment bank’s U.S. capital markets division and its British and European wealth management business offset significant declines from Canadian operations. (Mark Rendell)
Scotiabank names Sumit Malhotra as new CFO of Canadian banking: The retail banking arm of Bank of Nova Scotia has promoted equity research analyst Sumit Malhotra to be its new chief financial officer. (James Bradshaw)
Canadian regulators ease rules, make it easier for companies to issue shares and raise new capital: Canadian regulators are making it easier for public companies to raise money by selling shares directly into the market on a continuing basis, a move that could help firms struggling to raise capital amid the current market upheaval. (Mark Rendell)
Reopening companies face growing liability insurance premiums due to coronavirus risk: Companies beginning to reopen across the country may face premium rate hikes for third-party liability insurance as Canadian insurers weigh the risks of novel coronavirus contagion in industries with higher levels of personal contact. (Clare O’Hara and Christine Dobby)
DEALS NEWS: MERGERS, ACQUISITIONS, IPOs and FINANCINGS
BCE Inc. sells 25 of its data-centre facilities to U.S.-based Equinix Inc. for $1.04-billion: BCE Inc. is selling 25 of its data-centre facilities to U.S.-based Equinix Inc. for $1.04-billion, joining an industry-wide exodus from the data-hosting business in a move that analysts say will help the company amass a war chest ahead of a key wireless spectrum auction. (Alexandra Posadzki)
Vancouver kidney drug developer Chinook Therapeutics seeks Nasdaq listing through merger with U.S. biotech company: For the second time in a week a Canadian drug developer has unveiled plans to list publicly on Nasdaq, the bellwether exchange for biotech companies. (Sean Silcoff)
Onex and investment partners sell $765-million stake in analytics firm, resuming selling trend: Alternative asset manager Onex Corp. raised US$765-million on Thursday from a share sale in data business Clarivate PLC, taking advantage of an ongoing equity market rally. (Andrew Willis)
Quebec provides more funding for surging Canadian biotech sector: The Quebec government is committing $75-million to fund early stage life-sciences companies in a partnership with the Fonds de solidarité FTQ, one of Canada’s top backers of the booming sector. (Sean Silcoff)
IN CASE YOU MISSED IT
Endorsing Beijing’s Hong Kong security law was necessary business for HSBC: Embracing commerce turned an unremarkable fishing port into a global financial centre. Against that backdrop, it’s no surprise that Hong Kong’s two major homegrown banks – HSBC Holdings PLC and Standard Chartered PLC – endorsed new security laws imposed by China last week, ending a tradition of neutrality on Hong Kong politics. Canadian corporate clients who look to HSBC because of its deep roots in China (Standard Chartered exited the Canadian market in the 1990s) wouldn’t want the bank to play this any other way. (Andrew Willis)
Why it’s time for Canada’s CEOs to take real action on discrimination: Canadian chief executives are not often portrayed as a diverse bunch, so it was heartening when many spoke out against racism this week. But while those CEO statements were nice gestures of support, we need business leaders to do more than timely public relations. We need more than empty talk. (Rita Trichur)
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