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  "documentTitle": "Canadian Tire Corporation (CTC.A)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-12-05 00:00:00",
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  "pageNumber": 69,
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  "slideType": "preempt_rebuttal",
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  "notes": "Uses a precedent (Home Capital Group) to argue that CDIC insurance does not prevent bank runs.",
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      "kind": "callout",
      "text": "Brokered Deposits Add Risk",
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      "text": "It is likely customer deposits will decline in the case CT Bank is downgraded to junk status.",
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      "text": "Wall Street Journal article snippet regarding Home Capital Group",
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      "kind": "paragraph",
      "text": "Canadian Tire's total exposure should include CT Bank. While rating agencies exclude the financial services segment for rating purposes, we believe it is important to consider when analyzing CTC's exposure. Canadian Tire Bank is heavily funded with high cost, non-sticky broker deposits. This reflects the poor quality and lack of strong customer relationships. In 2017, Canadian Bank Home Capital Group (TSE: HCG) experienced a run on its deposits despite being CDIC (Canada Deposit Insurance Corporation) insured. We believe the fear or questionability of a bank's liquidity given a downgrade could create a similar event at Canadian Tire Bank.",
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      "text": "It is likely customer deposits will decline in the case CT Bank is downgraded to junk status. Why would depositors take the risk of waiting for a government run insurance program to kick into effect?",
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      "text": "Canadian Lender Draws on Emergency Line as Deposits Flow Out — The Wall Street Journal",
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      "text": "Despite being CDIC insured, customers rushed to withdraw their deposits from Home Capital amid fraud allegations",
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      "kind": "title",
      "text": "Lost Deposits Requires Increased Borrowings",
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