Home Trust
- Thread starter SkyRider
- Start date
These guys? Yep pretty nasty! http://www.theglobeandmail.com/feed...al-for-2-billion-credit-line/article34817028/
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.
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.
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
HCG $ 5.99 real time data Change Down Change:-11.10 (-64.95%) Volume:
14,374,837
Sad thing is nothing will happen to these execs based on prior cases involving the ex-CEO of Nortel.
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.
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.
i wish this stock and Effort trust both had options available. I would have picked up puts all day...
Now we know who the "vulture" is .... your friendly neighbourhood pension plan.
https://www.bloomberg.com/news/arti...res-loan-and-hires-rbc-bmo-for-strategic-plan
https://www.bloomberg.com/news/arti...res-loan-and-hires-rbc-bmo-for-strategic-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?
www.google.ca/amp/s/sec.theglobeand...elf-on-the-block/article34827321/?service=amp
Hmmm interesting connections between Home Capital and HOOPP executive ranks.
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.
Hmmm interesting connections between Home Capital and HOOPP executive ranks.
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.
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!
www.financialpost.com/m/wp/fp-comme...t-fall-from-the-edge-of-a-cliff-it-was-pushed
Interesting opinion in today's NP. Home Capital didn't fall it was pushed by the OSC.
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!
It's kind of contradictory to say that the shareholders and investors were all fine with how the 2015 disclosures took place, but when the OSC raises concerns, a bunch of execs resign and the investors flee. And that is somehow the OSC's fault.
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