Toronto Escorts

Home Trust

oakvilleguy

Well-known member
Nov 30, 2005
1,175
847
113
At a SP near me
Once their source of funding dries up (deposits) they have no choice but to seek a different avenue for liquidity.

This is where the vultures smell blood and swoop in:As part of the agreement, Home Trust would be required to pay a non-refundable commitment fee of $100 million and make an initial draw of $1 billion. The interest rate on outstanding balances would be 10 per cent, and the standby fee on undrawn funds would be 2.5 per cent, Home Capital added.
Gloyn said this translates to an effective interest rate of 22.5 per cent on the first $1 billion, declining to 15 per cent if fully utilized.
 

malata

RockStar
Jan 16, 2004
3,829
172
63
Paradise by the dashboard light.
That's a nasty dip. Wonder if Warren Buffett loss on HCG, like he did with UA?
HCG $ 5.99 real time data Change Down Change:-11.10 (-64.95%) Volume:
14,374,837

 

explorerzip

Well-known member
Jul 27, 2006
7,990
1,180
113
Sad thing is nothing will happen to these execs based on prior cases involving the ex-CEO of Nortel.
 

SkyRider

Banned
Mar 31, 2009
17,572
2
0
When you rely on the public for your funding it is open komodo 24/7. Home was accused by the OSC of being coy. This create mistrust in the minds of the public and they withdrew their money.

Who is the mystery vulture funder? Fairfax? Onex? Brookfield?
 

SkyRider

Banned
Mar 31, 2009
17,572
2
0
http://www.bnn.ca/home-capital-shares-plummet-osfi-monitoring-situation-closely-1.735043

Really interesting interview with an independent analyst who basically thinks it's all over. I can see the logic their funding costs have gone from 2% to 15%+. Just not a viable business going forward.
The vulture funder will probably take over the company for free. The mystery funder could be a hedge fund (or maybe the mafia?). $2B to some of these hedge funds is pocket money.

Wonder if Home (like Bombardier) approached Queen's Park and/or Trudeau for help/

I've seen this movie before back in the 1990's when the big banks took over all the major trust companies.
 

babyfinsta

Well-known member
Jul 2, 2005
2,372
31
48
On top of yo mama!
i wish this stock and Effort trust both had options available. I would have picked up puts all day...
 

onceaday

New member
Sep 28, 2015
348
0
0
@malata re: HC that was by far my best trade of the year. 30% gain in six hours today. @babyfinsta you got pretty lucky missing that bear position!
 

SkyRider

Banned
Mar 31, 2009
17,572
2
0
Now we know who the "vulture" is .... your friendly neighbourhood pension plan.
Not the mafia, not bikers, not the payday loan folks, not a hedge fund, etc. but a government pension fund.

This is what happens when you mess with the regulators. It all started because OSC wanted some answers about inadequate documentation on mortgage applications. The OSC never said that the business stinks. Now the business stinks and its the fault of the OSC.

Question: Why couldn't Home get a normal line of credit from the big banks, or Fairfax, or Brookfield or Kevin O'Leary?
 

rafterman

A sadder and a wiser man
Feb 15, 2004
3,422
77
48
www.google.ca/amp/s/sec.theglobeand...elf-on-the-block/article34827321/?service=amp

Hmmm interesting connections between Home Capital and HOOPP executive ranks.

The report of HOOPP’s involvement raises some questions about how potential conflicts of interest would be managed. The pension plan’s chief executive officer Jim Keohane became a director of Home Capital about one year ago and sits on Home Capital’s risk and capital committee.

At the same time, Home Capital’s board chair Kevin Smith, who also works as CEO of St. Joseph’s Health System and Niagara Health System, sits on HOOPP’s board.
And in actuality if the deposit run off continues apace as Home Capital's GICs mature then the lifeline will only last a couple of months max. The chances of the Company surviving as an independent going concern are pretty remote IMHO.
 

malata

RockStar
Jan 16, 2004
3,829
172
63
Paradise by the dashboard light.
@malata re: HC that was by far my best trade of the year. 30% gain in six hours today. @babyfinsta you got pretty lucky missing that bear position!
Sweeeeet! Making that execution short position near or mid top of dip took balls of steel my friend....and cover near to reverse near the bottom, another story. Overall, good month for volatility and day trading. Cheers and happy Trading!

 

SkyRider

Banned
Mar 31, 2009
17,572
2
0
Interesting opinion in today's NP. Home Capital didn't fall it was pushed by the OSC.
Here is a quote from my April 27th post.

"It all started because OSC wanted some answers about inadequate documentation on mortgage applications. The OSC never said that the business stinks. Now the business stinks and its the fault of the OSC."

I don't know if the shareholders can legally sue the OSC but they should if they can. OSC yelled "fire" when there was no fire and started a stampede of depositors. Fcuking regulators!
 

benstt

Well-known member
Jan 20, 2004
1,527
399
83
Toronto Escorts