Corporate Finance in Atlantic Canada

Commentary on corporate finance issues for small- & mid-market private companies in Atlantic Canada

Archive for January 2012

US Fed postpones rate increase

leave a comment »

http://thechronicleherald.ca/business/55756-fed-postpones-interest-rate-hike-2014

The US Federal Reserve yesterday pushed back any likely increase in its benchmark interest rate until late 2014 at the earliest.

Good news that rates are likely to stay low for the medium term, assuming there is no calamitous shock to the markets.  Good time to be on variable rates, and not much reason to lock in rates long-term just yet.  Although the Province of NS just did that with 100 year bonds at practically unheard of low yields, but 100 year rates aren’t an option for most businesses.

Written by Dan Jennings

January 26, 2012 at 2:26 pm

Posted in CF Musings

BoC to keep interest rates low

leave a comment »

http://thechronicleherald.ca/business/52962-boc-says-borrowing-costs-stay-low

The Bank of Canada is keeping its trend-setting rate low “until at least March”, which has fueled a decline in mortgage rates to unheard of levels.

In addition, commercial lending is at very low rates (for the foreseeable future?) while lenders are still hungry for business … the ease to which a successful business can borrow debt capital today is in many sectors as “frothy” as it was pre-bust in 2007.  Great time if you’re borrowing!

Written by Dan Jennings

January 17, 2012 at 12:56 pm

Posted in CF Musings

Restaurant consolidator in Halifax

leave a comment »

http://thechronicleherald.ca/business/48414-burger-battle-heats-bedford-diner-acquisition

Halifax’s Grafton-Connor Group has acquired the True North Diner in Bedford, NS, adding to its stable of 16 bar/restaurant operations throughout the Halifax area (including the iconic ‘The Dome’ in downtown Halifax).  True North Diner is a 50s-style diner with a working jukebox, if you’re looking for some nostalgia.

Written by Dan Jennings

January 4, 2012 at 9:23 am