Canadian Buffett's Tembec Wager Shadowed by Bond Default Bets

  • Bonds plunge as earnings shortfall may trigger cash crunch
  • `Oracle of Ontario' Watsa is blindsided by a commodities rout

Soon after Prem Watsa-- the investor known as Canada’s Warren Buffett -- became the largest shareholder of Tembec Inc., the bond market started betting creditors may be taking over instead.

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