RE:RE:RE:Bounce Most financials run with a lot of leverage, that is the basic business model. Finding the cheapest funding, then lending that out, earning a spread and if underwriting and risk practices are solid, build the equity base over time. Equity is currently one of the most expensive sources of funding, with many financials trading at or below book.
If chw sees stability in its customer base as the world emerges to whatever this new normal looks like, then the task for the new team is to find alternative sources of funding, as there is no lack of opportunities to pursue.
the capital returned to shareholders over the past decade from this biz model (about $7.35 per share in dividends) shows that the model isn't a bad one. Just needs to be refined.