RE:Home Bank Capital Ratio Common sense would tell you that if all is well at Home Capital they wouldn't have agreed to such toxic financing and the degree of resignations by upper management.
Delayed earnings...toxic financing...delayed AGM....insider deals (HOOPP)...rating agency downgrades...fraud claims....competitors and Canadian banks no interest
This thing stinks and I have no idea why anybody would go long here.
TheRock077 wrote: Home Banks CET1 capital ratio which is a measure of its common equity relative to its risked liabilities ( basically, liquid assets relative to liability ) was 16.55 % before these recent events .
This is quite high relative to the requirement of 10%.
The Big 6 Banks CET1 ratios are in the 10-11 % range.
Basically, Home Capital could stand a run on its deposits much longer than any Canadian Bank and well above that of US banks as well.
Another robust figure.
The average loan to value for new uninsured mortgages in 2016 was 64% in Canada.
In Toronto and Vancouver, it was 62% and 57% .
Home Capital's maximum was 70% .
These LVRs are below those of the US and incomparably lower that those of the US subprime ( 90-95 % of house value ).
In essence, there is no bubble in Canadian housing .
Home Capital financial ratios were first class and its mortgage loans were very risk averse relative to value.
So, the short and distort misinformation by the US hedge funds have no basis in fact .
The hysteria they have caused is unfounded .
Home Capital will survive and prosper, if it chooses to rebrand..