ABCP AND US!

Todays Globe and Mail had a front page story on ABCP . ABCP is of course Asset Backed Commercial Paper . The article centered around COVENTREE CAPITAL, who were apparently a major player in the market .

The company is accused of making misleading statements , according to the Globe, to investors who bought these securities . When the ABCP market froze a domino effect happend in the Canadian commerical paper market . I vividly recall meeting with Coventree in the 2004-2005 timeframe and asking them to securitze a transaction which for 20 Million dollars, which I ultimately completed with other parties . The demise of Coventree during last years debt crisis still has an affect on my firm today, as many of our lending partners rely on this type of financing to provide liquidty to the market . Ultimately key players disappeared , rates rose, and credit quality became ' job one '
Stan
http://www.7parkavenuefinancial.com/Home_page.html

SUBPRIME ,, CANADA , AND THE GOVT!

Very interesting article on Subprime today in the Globe and MAIL - See REPORT ON BUSINESS, GLOBE AND MAIL, PAGE 1 - ' LENDERS WANT OTTAWA TO BACK 1 BILLION FUND '

We have all read and heard that Canada for the most part escaped the sub-prime meltdown in the U.S. that appears to have led in large part to the Global financial crisis . Canada does have some sub-prime lenders who for the most part appear to be very well mangaged, two names that come to mind are HOME TRUST and XCEED mtge . The story in the Globe today revolved around a single mothers attempts to save her house, as well as comments from industry players around how these types of mortgages are handled and financed and originated .

The thrust of the article is that lenders want Ottawa to back these type of facilities with a govt sponsored fund, one assumes less people would lose their homes . I continually blog about how the govt should consider backing similar funds for small business financing access . Lets keep the faith .

Stan
http://www.7parkavenuefinancial.com/Home_page.html

CANADIAN SECURED CREDIT FACILITY

I read with amazement yesterday in the Post and Globe that the Govt and BDC had completed the first deal, 300m, under the CSCF as referenced in our title post .

While I applaud the deal Imust say that this is the ultimate 'too little, too late ' - To have completed only one transaction , and that one being to finance the captive arm of a foreign farm and construction company is surely a slap in the face for the thousands of small and medium firms who are hanging in through the current Canadian credit crunch .

At 7 Park Avenue Financial we continue to work hard everyday focusing on financing solutions for the little guy ( we finance the big guy also ) but we sure could you some help from Ottawa and Queens Park.
Stan
http://www.7parkavenuefinancial.com

My name is Stan Prokop - this will be my blog on Business Financing In Canada . My website is www.7parkavenuefinancial.com and our firm originates Business Financing for Canadian firms . We finance the little guy, and P.S. - We finance the big guy also!

I have written an article currently posted at http://www.ezinearticles.com which highlights the challenges in Business Financing for Canadian firms.