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
On November 1, 2017, an accounting asteroid hit the balance sheets of Canadian banks. Although markets have known about this momentous event for years, the reaction has been muted because most participants are underestimating its impact. The metaphorical asteroid, called IFRS9, is a new accounting...
The macroeconomic backdrop of steady, synchronized global growth, low inflation, and ongoing corporate profitability has kept investor optimism high and blue skies for riskier assets like credit. We are in the eighth year of the post-GFC economic recovery, one of the longest expansions on record,...
Ten percent of loans issued in the first half of 2017 to finance M&A transactions had EBITDA multiples of seven times, according to S&P LCD. However, this is understated by the aggressive practice by so many lenders to add-back savings and synergies based on future...
Better fundamentals in the U.S. have helped improve Canada’s economy from a weak first half in 2016. The merchandise trade balance in Canada posted its first surplus in November 2016 since September 2014. The gain in exports was volume-drive and broad-based with ten of eleven...
Investors will need to become more discerning as the bull market rally in stocks and bonds matures. Broad allocations to indices was a winning strategy for the past seven years but investors have reason to be cautious since the policies that drove asset prices higher...
We cannot blame borrowers for wanting the lowest cost of financing – this is the easiest way for management and owners to increase the value of its company’s future cash flows, all other things being equal. Sometimes, however, borrowers are faced with imminent liquidity issues...
