By Staff | April 17, 2008 | Last updated on April 17, 2008
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(April 17, 2008) Canaccord Capital announced Thursday that its asset-backed commercial paper relief program is now in place. The company lodged $138.3 million worth of letters of credit, issued by Canadian chartered banks, with the Royal Bank of Canada. For details and to read other financial services industry updates, click the “full story” button below.

In a release, the firm says that the letters of credit “secure payment of the purchase price for the restructured ABCP notes to be acquired by Canaccord from participating clients under the Canaccord Relief Program.”

The letters of credit can be drawn upon following the closing of restructuring proposed by the Pan-Canadian Investor Committee.

Noteholders will vote on the restructuring proposal on April 25, with the implementation of the plan expected at the end of May.

“Canaccord is pleased that the funding for the Canaccord Relief Program has been secured,” says Mark Maybank, CEO of Canaccord Capital. “The documents providing the details of the Canaccord Relief Program are also completed and are now available to our clients.”

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Investor sentiment index down

(April 17, 2008) Even though most economists say Canada has nothing to worry about despite America’s slowdown, investors aren’t so sure. According to the Manulife Investor Sentiment Index, one-third of Canucks have changed their investment style due to turmoil south of the border.

The index shows that while the number is still in positive territory, it did decline five points to plus 22 in March. That follows a gain of seven points in the last quarterly poll in December.

“For the past two years, the overall index has remained above plus 20,” says Paul Rooney, president and CEO of Manulife Canada. “In our latest poll we’re seeing some signs of investors adjusting to the current economic climate, in particular away from equities. Yet they’re showing strong interest in real estate and specific funds.”

The survey found just four of 10 investment categories and vehicles gaining ground from the last index. Still, Rooney says, Canadians appear “generally positive about investing and remain focused on their long-term goals. Depending on their own personal goals, some Canadian investors will naturally adjust to protect or continue to grow their investments.”

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Canadian output rebounded in January

(April 17, 2008) StatsCan revealed on Thursday that output for January rebounded significantly from December’s sharp decline.

In the most recent Canadian Economic Observer report, StatsCan says that the upward bounce was due to the “transitory nature of the factors that depressed gross domestic product in December.”

A big part of the drop was related to the auto industry’s sharp December slowdown. In January, auto output recouped nearly half of the losses, and the numbers remained strong in February.

The recovering transportation sector and increased housing starts in January also helped output.

Most of the recent decline was attributed to “heavy snow in December and the impending cut in the goods and services tax rate as factors that shifted a significant amount of activity from December to January.”

A survey of investment intentions found every province can expect to see higher business investment this year. “The pervasiveness of the increase reflects the boom in energy investment in Western Canada and Newfoundland and Labrador, a surge for mining in Quebec and British Columbia, and a rebound in manufacturing in Central Canada,” says the report.

(04/17/08) staff


The staff of have been covering news for financial advisors since 1998.