September 04, 2014
With spring 2014 having ushered in offerings of NVCC preferred shares by Canadian banks, the first issue of NVCC subordinated debt in July has raised questions about what approaches may be applied to subsequent subordinated debt offerings. The Financial Post comments on this developing issue, referencing insights from our Capital Markets Mid-Year Report article, “The Preferred Share Market Finally Re-Opens For Canadian Banks.”
Below is an excerpt of the article.
DBRS's concerns are similar to those expressed by Torys. In a midyear bulletin, the law firm said it expects "subordinated debt will be eliminated from the capital structure of many smaller institutions - and will form a significantly smaller portion of the capital structure of larger institutions than it has historically."
To read the full article, click here.