Four days back, the Royal Bank of Canada received the $1-billion in gross proceeds from the country’s first offering of Basel-111 compliant subordinated notes.
Known as non-viable contingent capital (or NVCC) the notes will pay a fixed rate of 3.04% for the first five years; after that the notes will pay a floating rate of interest — though the expectation is that the notes will be called by RBC after five years.
Paul Krugman: Correlation, Causality, and Casuistry: "One last thing: even if you take Dube’s forward-looking regression as a causal relationship, which you shouldn’t, notice how weak that relationship is in the relevant range. It looks as if raising debt from 50 to 150 percent of GDP, other things equal, reduces growth by around 0.1 percentage point over the next three years.
The amusing story of a letter from the CEO of Titan, regarding the unproductive nature of French workers, continues.
For background please see Incredible Letter from CEO of Titan to France Minister of Industrial Renewal, Blasting French Unions and USA: "How Stupid Do You Think We Are?"