Daily Wrap-Up: Another day, another Home Capital development

Daily Wrap-Up: Another day, another Home Capital development

Daily Wrap-Up: Another day, another Home Capital development Another day, another Home Capital development
The continuing story of Home Capital Group’s Home Trust subsidiary continued Tuesday as it announced that it has found an un-named third party that wishes to purchase funded mortgages or accept mortgage commitments and renewals up to a total of $1.5 billion.

The agreement is non-binding but could mean the buyer acquiring up to $1 billion of quality uninsured mortgages for half that amount and up to $500 million in insured mortgages. There would be an option for expansion of the deal later.

The company’s stock jumped around 30 per cent and was closely followed by a 24 per cent jump for Valeant Pharmaceuticals which announced an increase in its EBITDA forecast among some otherwise disappointing quarterly results.

Healthcare saw a 5 per cent jump in the main TSX index but with smaller gains for just three of the other sectors, the overall index closed lower.

Wall Street also closed lower while European indexes were broadly higher and Asian bourses were mixed.

The S&P/TSX Index closed down 82.88 (0.53 per cent)
The Dow Jones closed down 36.50 (0.17 per cent)
Oil is trending lower (Brent $48.96, WTI $46.16 at 4.55pm)
Gold is trending lower (1220.30 at 4.55pm)
The loonie is valued at U$0.7283

Ontario Teachers also opposed to Bombardier board appointment
The Ontario Teachers’ Pension Plan has joined the Caisse de dépôt et placement du Québec in opposing the re-election of Pierre Beaudoin as chair of Bombardier.

Ontario Teachers said that it has assessed recent events and concluded that the board needs independent leadership.

With Beaudoin connected to the family who hold the majority of shares in Bombardier, the large shareholders are concerned about compensation plans for executives among other issues.

 

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