Dundee Bank of Canada

Dundee Bank of Canada

August 16, 2007 09:28 ET

Dundee Bank of Canada Reacts to Asset-Backed Commercial Paper

TORONTO, ONTARIO--(Marketwire - Aug. 16, 2007) - Dundee Bank of Canada, part of the $64 billion DundeeWealth Inc. organization, announces that its asset base is amply capitalized, both directly and with contingent reserves from its parent shareholder, to dispel concerns over potential fallout from the market volatility caused by the current credit liquidity crisis.

The structure of the Bank's portfolio is well positioned and remains highly liquid with approximately 40% - 50% in short-term assets. The balance of the Bank's asset mix is invested in Canadian residential mortgages, RSP loans, high-quality corporate debt, and collateralized corporate loan obligations - portfolios of senior secured corporate loans advanced to a diversified group of borrowers.

A central aspect of the arrangements finalized with DundeeWealth Inc. enables the Bank to immunize itself against risks associated with certain asset-backed commercial paper that has been the focus of market attention in recent days.

The Bank has no exposure to the CDO sub-prime mortgage market in the United States and neither DundeeWealth Inc. nor any of its affiliates, including the Bank, provide any backstop liquidity to any commercial paper conduit.

DundeeWealth Inc. has chosen to underpin the Bank's balance sheet, proactively adding new capital. Additional credit facilities are also in place should they be required through this period of general market disruption.

Dundee Bank is a Schedule I Canadian Chartered Bank, providing Canadians with an alternative source of banking services offered through financial and investment advisors. Products include C$ and US$ investment savings accounts, GICs and mortgages. Dundee Bank is a subsidiary of DundeeWealth. Eligible deposits are insured by CDIC.

DundeeWealth is a Canadian owned, diversified wealth management company. Through its various subsidiaries, including Dundee Bank of Canada, a Schedule I chartered bank, DundeeWealth creates innovative asset management, alternative investments and provides investment solutions. In addition, DundeeWealth provides capital markets and advisory services to financial advisors, institutions, corporations and foundations, and provides retail banking services through financial advisors. DundeeWealth oversees $63.9 billion in assets under management and administration through independent financial advisors across Canada. It is listed on the Toronto Stock Exchange (TSX:DW).

Contact Information

  • DundeeWealth Inc.
    Joanne Ferstman
    Chief Financial Officer
    (416) 365-5010
    DundeeWealth Inc.
    Robert Pattillo
    Chief Brand and Communications Officer
    (416) 365-6466