Once a year, Toronto's top bond bankers leave their luxury office in the financial district and are beaten up by Nerf ball in Dodge in the suburbs --The game.
In addition to raising funds for charities, the event is also one of the rare events for bankers to chat with host Canso Investment Consultants Ltd.
One of China's largest independent bond fund managers.
Canso avoids the free lunch and hockey tickets that Bay Street usually offers, and is known for investing in companies that others have given up, including BlackBerry Ltd.
Canada Post Media Network
Huang Media Co. , Ltd.
"If there is a problem with a company, someone often calls and says, 'Are you interested? '?
Canso's founder and president, John Cargill, said on a squeaky wooden chair at his Richmond Hill headquarters.
"People can't sell things. they need someone to take a look. let's take a look.
"The counter-trend strategy implemented from 26 kilometers in the city center has been successful.
The average return on Canso is 7.
Investment of 5% per year-
Its Grade bonds of 17-
Year history, comparison 6.
The benchmark interest rate is 3%, according to the company.
Under the strategy of allowing Canso to invest in risky debt such as junk bonds or bad debt, the company's average return since 2000 is.
It shares with a doctor's office and a fruit and operates on a stubby tower block
According to research firm Investor Economics, the company's assets have grown to $14 billion, becoming one of the top five independent players in the Canadian corporate bond market.
"They develop their own perspective and then compare it to the market," said Gene Hochachka, chief investment strategist at the investment arm of the Alberta Treasury Branch, a financial services company owned by the province.
"Their advantage is that their own view is from some very sound, underlying
Only a small number of people in the market are doing analysis.
This includes a lot of boring reading that is painful, but they are good at reading.
"Post-Media is an investment to attract interest in Canso.
Earlier this year, Toronto-
Newspaper publishers based on the 12 th
The key to this year's earnings decision to turn things around was the purchase of 175 newspapers.
Canso provided Sun Media Corp. with all $0. 14 billion in debt financing. papers.
Caswell, 58, said he believes the company can make money in the digital age, but he also noted that the company needs to pay some principle fees every year to ensure repayment before any income drops.
Last year, the troubled smartphone maker couldn't find anyone willing to privatize it.
Start piecing together $1.
25 billion of the cash injection gives the company time to reinvent itself.
Canso invested $0. 3 billion.
Caswell declined to comment on the BlackBerry, saying only that he had bought his passport.
A regulatory document from Canso select opportunity fund in June pointed out that the proceeds of BlackBerry convertible bonds are one of the reasons for the fund's performance.
Caswell emphasizes these Heightsprofile long-
Shooting is only a small part of his company.
Still, even when investing heavily
Grade companies from the United StatesS.
2008 the banks in the financial crisis against Telus Corp.
After the downgrade, Canso always tries to buy when it thinks there is something wrong with the rest of the market.
Another with phone
The Yellow Media, a book publisher, has surged about 173 in the past two years since Canso became one of its largest shareholders.
After serving as a pilot of the Canadian Air Force, Caswell began investing in the industry in Canada co-life in 1985, helping to invest the company's cash in privately negotiated corporate bonds, known as private placement.
Because these deals are private, it is impossible to sell them if it looks like the company will default.
Before investing, Caswell must have full confidence in the company and the terms of the loan.
When he joined the public market three years later, the experience proved valuable.
"I don't think anyone knows any of their bonds," he said . ".
"They just continue their credit rating.
When Cargill founded his company, there was a simple assumption: through his own analysis, he sometimes came to different conclusions about the quality of the company's credit.
"The efficiency of this market is too low," he said . "
"So we did a lot of research on individual companies and individual bonds and said, 'What is the value of this? '?
To answer this question, about half of Canso's 46 employees spent their time in the company's documents and combed the loan agreement from their compartment partition Warren.
It is well known that they will send the documents back to the bankers who marked them in red ink, Cargill said.
He recalled that there was a loan agreement that mistakenly reversed the key debt ratio, so that the company had gone bankrupt under the terms of the agreement.
Once in a while, a young analyst at Canso may venture to a bank --
Kaswell said lunch was held at an upscale restaurant in the city center to promote upcoming bond sales.
Most of the time, he said, they went back to the suburbs and thought it was a waste of time.
"We don't care what the market is doing because it doesn't matter to us," he said . ".
"When we have something, we never think we can sell it when we want.
"When a troubled company called, it was so many analysts who allowed Canso to use the money," he said.
Even if companies like BlackBerry don't have a credit rating, Canso can quickly assign a team to make their own investment decisions.
One of the latest targets of Canso analysis is the Canadian housing market.
Homeowners in this country may not like the result.
Last year, Canso released an 18-
A page on its website says the market will collapse.
Meanwhile, regulatory documents show that the company's credit revenue fund has stepped up its bets on Genworth MI Canada Inc.
The largest private mortgage insurance company in the United States.
Canso's research paper tells anecdotes about taxi drivers turning over the house, as well as empty apartments on the entire floor owned by speculative Realtors.
Its core conclusion is that years of government
Mortgage insurance pushes home prices to levels that people can't afford.
A real estate scene like this has ended badly elsewhere in the world.
Although he won't say whether his company has maintained a short position in Genworth or why it was launched in the first place, he does say that Canso insists on its view of the real estate market
Not as high as it is
Personal data bet on BlackBerry, Yellow Media and post-Media, housing diagnosis is not good.
"You don't know when it's going to happen, you just know it's going to happen," Caswell said . " He added that he did not expect his house in Richmond Hill to be immune.
He was not particularly worried, though.
"For me, my house is a shelter," he said . "
"My investment is in the market.