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  "documentTitle": "Canadian Tire Corporation (CTC.A)",
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      "kind": "callout",
      "text": "We believe the rise in CTC’s “seasoned” charge-off rate is worrying and is a leading indicator of future credit problems, especially given the fact the CTC’s newer credits are higher risk",
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      "text": "Net Impairment Loss As A % Of \"Seasoned\" Credit Card Loans",
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      "text": "Net Impairment Loss: 6.63%",
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      "text": "While the overall charge-off rate is in-line with past peaks, this is misleading because of high loan growth. Using a “seasoned” (loans over 1 year old) charge-off rate allows for consistency, accounts for the 180 days required for a loan to be delinquent, and factors in no defaults within the first year (1). Canadian Tire has been experiencing an increase in losses on its “seasoned” loans.",
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      "text": "\"what you will see is anytime there is a new vintage of cards out there, the first year, there are no losses. And then what happens is it spikes up to 10% or 12%. And then it cleans out the junk. And it comes back down to your 6.5%. That's called a vintage.\" — Alliance Data Systems (Bank of America Conference transcript; September 17, 2008)",
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      "text": "1) Alliance Data Systems... 2) We calculated this metric... Source: Company Financial Reports",
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      "text": "\"Seasoned\" Losses Show Deterioration In Credit Quality",
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