Issuers Quotes

Card issuers are getting a lot more sophisticated at targeting the good guys,

Card issuers are getting a lot more sophisticated at targeting the good guys.

With our significant presence already in the region, and the fact that California is one of the largest issuers of municipal bonds in the country, it just made sense for us to have a trading desk in the state. We have a total of 68 branch offices in California, Nevada and Hawaii, and we also run a public finance office in Los Angeles, so we know these markets well.

Issuers are looking to Canada to get international bond deals done. Until last year, many Canadian investors were severely restricted in their ability to buy bonds issued by U.S. and European issuers, and thus, severely constrained in their search for diversification. For the first time in more than thirty years, large pools of domestic funds can look offshore for investment opportunities. And this is a very healthy turn of events for issuers.

The factors cited by card issuers are very broad. It appears that anyone - not just people in financial difficulties - could be subjected to a much higher rate for very insignificant reasons.

With such a low premium of 4 percent to the prior day`s close and the fact that there is a significant breakup fee of $225 million, it doesn`t give us much comfort that investors are being protected, ... There has been a huge turnaround among the credit card issuers over the past three years, and with MBNA being acquired, there`s some scarcity value for Providian. But their shareholders are not getting it.

With such a low premium of 4 percent to the prior day`s close and the fact that there is a significant breakup fee of $225 million, it doesn`t give us much comfort that investors are being protected. There has been a huge turnaround among the credit card issuers over the past three years, and with MBNA being acquired, there`s some scarcity value for Providian. But their shareholders are not getting it.

The new issue calendar had dried up for all kinds of issuers. But now, the corporate calendar is building again.