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Home Capital Group Inc T.HCG

Home Capital Group Inc. is a Canada-based holding company that operates through its principal subsidiary, Home Trust Company (Home Trust). Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending and credit card services. In addition, Home Trust and its wholly owned subsidiary, Home Bank offer deposits through brokers and financial planners, and through a direct-to-consumer brand, Oaken Financial. Its mortgage lending includes classic single-family residential lending, insured residential lending, residential commercial lending, and non-residential commercial lending. Its consumer lending loan portfolio comprises credit cards, lines of credit and other consumer retail loans. In addition, the Company manages a treasury portfolio to support liquidity requirements and invest excess capital.


TSX:HCG - Post by User

Bullboard Posts
Comment by sim_1on May 08, 2017 10:37am
106 Views
Post# 26215962

RE:looking like a trend reversal this morning.

RE:looking like a trend reversal this morning.Having cut the divident, HCG can now live on cash flow alone.

High interest savings accounts are almost depleted so that's no longer a concern. Or at least it won't make headlines anymore.

GICs are pretty much like mortgages in the sense that there is a significant penalty for early redemption in both cases, they fund one another - in both directions!
Yes HCG needs to issue new GICs to issue new mortages, but guess what, if people don't renew their mortgages HCG gets the money... to reimburse GICs. 

Once lower cost sustainable funding is found we'll have a stabilized, profitable business. 

Markets overreaction forced HCG to make moves that will make it a much better business in the end. I don't think it will be liquidated at all. Rebranded maybe. we'll see...
Bullboard Posts