Third Eye Capital
Tel: (416) 601-2270
Fax: (416) 981-3393
Email Third Eye Capital
Brookfield Place
Bay Wellington Tower
181 Bay Street, Suite 2830
Toronto, Ontario, M5J 2T3
Every era of markets finds its defining narrative, and this one belongs to artificial intelligence (AI). Since the public release of ChatGPT in late 2022, AI has moved from curiosity to conviction. It is hailed as the engine of a new industrial revolution that will...
The divide between corporate giants and the rest of the economy has been widening for years, but what is striking now is how structural and self-reinforcing it has become. In boardrooms and bank workout departments alike, the same imbalance plays out: large, well-capitalized companies dictate...
While artificial intelligence is undeniably reshaping large portions of the financial landscape, especially in areas where data is abundant and decisions can be modeled with high frequency and consistency, it is important to draw a sharp distinction between those segments of the market and the...
Speculative enthusiasm is as old as markets themselves. Each generation of investors convinces itself that it is witnessing something unprecedented – a technological breakthrough or economic transformation so profound that old rules no longer apply. Today, amid untethered excitement about artificial intelligence, the belief that...
Valuation has become a major area of concern for investors in private debt due to the asset class's opacity, illiquidity, and susceptibility to economic and market uncertainties. Stale valuations, conflicts of interest, and the lack of standardized practices further amplify these concerns, particularly as the...
In asset-based lending, underwriting paramountcy is given to the value of the underlying collateral. The fundamental premise is that the loan is secured against assets, providing a cushion in the event of default. This approach prioritizes the realizable value of inventory, equipment, real estate, or...
A Time for Turn-Arounds (Q1-24) The rise in financing costs over the past two years combined with slowing economic growth have posed severe challenges for many businesses. Since 2022, the debt-servicing costs for publicly listed businesses headquartered in Canada have surged dramatically, following a period of...
The present economic cycle distinguishes itself from previous credit crises due to the influence of unforeseeable elements that are driving inflationary pressures. Consequently, lenders find themselves navigating an extended period of ambiguity. Instead of encountering a swift surge of defaults, we anticipate a turbulent environment...
The current macroeconomic environment has undergone a significant transformation, shifting from a prolonged period of historically low interest rates and robust growth to a new phase characterized by rapid interest rate hikes, sustained inflation, geopolitical tensions, supply chain disruptions, and volatile energy prices. These complex...
The U.S. Federal Reserve (“Fed”) is belatedly correcting its mistaken narrative of transitory inflation. Despite their antipathy to inflation and the powerful tools available to wield against it, central bankers around the world missed the runaway inflation they helped create. We have been here before....
