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
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....
“Zombie companies”, a term we first coined at an investment conference in Toronto in October 2008, are companies unable to cover debt servicing costs from earnings and have assets with realizable values less than their debts outstanding but remain in the market rather than exiting...
The sharp rise in interest rates since the start of the year has meant that all holders of fixed-rate securities, including banks, have had to write down these assets in their portfolios. The large magnitude of the write downs by banks has been exacerbated by...
