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
The U.S. Federal Reserve’s surprise decision at the last FOMC meeting to delay reduction of its program of quantitative easing (QE) has, at least for now, left room for interest rates to fall or remain at historically low levels. The Fed has repeatedly stressed that...
Credit analysis is a dynamic process that involves quantitative and qualitative factors that are fundamentally concerned about underlying asset value. The ability of a borrower to repay its debt is dependent upon the future market value of its assets. If the assets of the borrower...
Our belief that the U.S. economy will outperform Canada’s through 2013 and into 2014 is playing out in the stock market. The S&P TSX Index has lagged the S&P500 by over 15% since the beginning of the year, mostly due to weakness in commodity sector...
Business schools and popular theory have inculcated managers to believe that all companies, like living organisms, have a life cycle that is very predictable. They grow, mature, decline, and eventually die. Living organisms can be described in biological terms, through physics and chemistry, but companies...
Edward Francis Hutton, the American financier who founded the eponymous brokerage firm E.F. Hutton in 1906, was revered for his ability to consistently buy assets on the cheap. On one occasion, while searching for land in the south to hunt on, he found a plantation...
Global central banks have reinforced market expectations that interest rates will stay lower longer than previously anticipated. The US Federal Reserve has indicated a conditional commitment to keep the fed funds target at 0.25% at least through late 2014, and each of the US Fed,...
It is no surprise that the word “promise” features prominently within loan documentation. A borrower’s willingness and intent to repay a loan is just as important as his ability, and perhaps more so when conditions become stressful. Cash flows and the value of good collateral...
The roots of lending can be traced back to the roots of civilization itself. Written loan contracts from Mesopotamia that are more than 3,000 years old showed the development of a credit system that included the concept of interest. Loans are very simple contracts with...
Private lending as an investable asset class has been historically classified as niche and been reserved for large institutional investors within closed-end investment vehicles. In Canada, we were one of the first managers to launch a pure direct lending fund for institutional investors. However, investor...
“Blessed are the young, for they shall inherit the national debt.” - Herbert Hoover, 31st President of the United States The Great Depression brought the orthodoxy of government involvement in smoothing out business cycles. Policies of easy money, a weaker dollar, and fiscal deficits became accepted tools...
