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Most people wouldn't think of launching a bought deal the morning after the Toronto Stock Exchange closed 223 points lower. But that didn't deter RBC Dominion Securities from getting behind a $40-million offering for Killam Properties Inc. on Thursday.

And you know what? The bet paid off, because the deal got sold.

How can that happen in a market in which everyone appears to be selling? Just look at Killam's industry for the first clue. The company isn't a miner or an oil and gas producer. It's a residential real estate play, and Canadian investors love their real estate.

Then there's the type of security offered. Killam sold convertible debentures, which directly targets retail buyers. Given the slower deal flow in the past few weeks, these investors are probably willing to jump at anything that they deem to be safe.

Killam sold $40-million of 7-year converts that pay 5.45 per cent annually. The securities can be converted into common shares at a price of $14.60. Proceeds will be used for future acquisitions.

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