Saturday, April 19, 2008

Credential Securities offers buyout over asset-backed commercial paper

VANCOUVER - Credential Securities Inc., one of the remaining investment dealers with retail clients in asset-backed commercial paper, has stepped up to the plate and offered a buyout.

Under the deal, announced this morning, clients who have invested up to $1 million will receive par value for their notes and be entitled to share in any interest that has accumulated since the paper was frozen last August.

The money will come from an unnamed third party, with Credential and other credit union partners, making up the difference. Credential, the investment dealer for Canadian credit unions, has about 335 clients with $48 million tied up in ABCPs.

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