By Tim Shufelt for Globe & Mail – December 4, 2016
As with many great investments, one of the best bond trades in recent Canadian history
emerged through a haze of fear.
As the worst crude oil bust in decades was unfolding, reams of high-yield Canadian oil and
gas bonds sank to distressed prices as the market began to expect a wave of
Few at the time saw the sell-off as a rare and extraordinary opportunity, and most that
did were unable to capitalize.
“Market makers were telling me, ‘Hanif, you’re the only buyer in town,’ which was a little
unnerving,” said Hanif Mamdani, head of alternative investments for RBC Global Asset
He and his team scooped up more than $2-billion worth of higher-quality issues
discounted by as much as 40 per cent from face value. Now, with the Canadian oil patch
having rallied after a painful restructuring…
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