Canada, debt, economy, equity, mortgage

Home Capital Plunges 41%

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94 Comments

You’d think that lending out money for real estate in Canada would be a no-lose deal, but Home Capital Groups shares collapsed 41% at open today:

The embattled lender announced early Wednesday Home Trust has a non-binding agreement in principle with an unnamed institutional investor for a $2-billion line of credit to be secured against mortgages. The agreement is expected to be finalized later in the day. Home Trust will have to pay the investor $100 million to tap the line of credit and interest will be charged at 10 per cent on outstanding balances.

Read the full article at BNN.

 

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[…] Home Capital isn’t the only lender that’s worried about liquidity,  southseacompany points out that EQ Bank has secured a 2 billion line of credit from the big banks “just in case”. […]

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ostritch

The fentanyl crisis keeps on going and going. I have a question for you data and stats guys, what happens with this crisis? Does the heroin use peak as people who overdose drop off? Or could the drug attract more new users than the rate PFM death knocks them off. Have studies been done on this or is fentanyl mixed with heroin somewhat new? Surely it peaks and then trails off?

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Combat roach

Fentanyl is sent from the motherland to clean up the “western garbage” and provide clean and healthy environment for the new settlers and land owners. The next thing they will deal with transgenders, gays and everyone else who doesn’t fit the model. Similar what chickenpox did to natives.

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The Man

Today, it’s the straight white man who doesn’t fit the model.

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Fomo

You have seen the studies in the US wrt the lower and middle classes life spans shortening. With no economic hope, this continues.

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Diadora

BC is home to 5 of the 22 most wanted Chinese suspects.
http://www.scmp.com/news/world/united-states-canada/article/2091356/china-reveals-foreign-addresses-corruption-suspects?utm_source=Direct
Only 5! I want a recount.

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Just me

And they all support the BC Libs.

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Combat roach

Genetics, fucking pocket connections.

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Best place on meth

Support them?

They run the party.

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Combat roach

Lol… former MP Garth Turner has suggested that Home Capital’s decline may be a sign Canada’s overheated housing markets are headed “over the cliff.”

http://www.huffingtonpost.ca/2017/04/27/home-capital-stock-price-collapse-mortgage-canada_n_16293104.html

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BubbleTea

Breaking!: “Rumors circulate of Chinese government detaining Anbang chief Wu Xiaohui”
Chinese social media platform WeChat erupted Wednesday with reports that Wu Xiaohui, chairman of Anbang Insurance Group, has been detained by authorities in Beijing.
Chinese authorities have also halted all of the insurance giant’s overseas investment, according to reports early on Wednesday.
https://therealdeal.com/2017/04/26/rumors-circulate-of-chinese-government-detaining-anbang-chief-wu-xiaohui/#.WQIfI7ccfR8.facebook

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Diadora

Chinese authorities have also halted all of the insurance company’s overseas investment deals, according to the reports
The investigation centers around loans worth around hundreds of billions of RMB that the Anbang chairman has allegedly obtained illegally. He may have also used the illegal loans to invest in the stock market, as well as to transfer assets overseas in a questionable manner.
https://www.chinamoneynetwork.com/2017/04/27/anbang-chief-wu-xiaohui-rumored-to-be-detained-for-illegal-loans
In Canada, we welcome all corrupt and illegal money, doesn’t matter whose blood is on it.

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bullwhip29

Home Capital didn’t identify the lender in a statement Thursday, though people familiar with the process said the Healthcare of Ontario Pension Plan is backing the loan. The Healthcare of Ontario Pension Plan (HOOPP) is a Toronto-based plan, which represents more than 321,000 health care workers in Ontario, with assets of about $70 billion. HOOPP president and chief executive officer Jim Keohane sits on Home Capital’s board and is a shareholder of the mortgage lender.

>>> surely no shenanigans whatsoever going one here…

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bullwhip29

Home Capital didn’t identify the lender in a statement Thursday, though people familiar with the process said the Healthcare of Ontario Pension Plan is backing the loan. The Healthcare of Ontario Pension Plan (HOOPP) is a Toronto-based plan, which represents more than 321,000 health care workers in Ontario, with assets of about $70 billion. HOOPP president and chief executive officer Jim Keohane sits on Home Capital’s board and is a shareholder of the mortgage lender.

>>> surely no shenanigans whatsoever going one here…

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bullwhip29

no idea why posts are being duplicated…

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Abdul Lahazi

http://www.cknw.com/2017/04/27/vancouver-housing-advocacy-group-alleges-person-trying-to-circumvent-foreign-buyers-tax/
Mr. Zhao will create a partnership with a foreigner for the price of 3 per cent of the property, and $1000 per year.

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bullwhip29

once the election is over krusty will sweep stuff like this under the rug. besides she will further ease the rules by adopting the toronto fbt framework. the student loophole busts the whole thing wide open making the need to pursue schemes like this pointless

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Combat roach

Those fucks don’t know different. For them, it is all about scam creativity, lovely Norwegians…

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Yellow Beaver

“Liberal candidate Andrew Wilkinson says anyone who tries these kinds of tricks is subject to prosecution with heavy penalties.”

Does anyone really believe that?

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Oracle

I’m helping out the Green campaign in a swing riding. Also driving people who need a ride to the polling station.

Educating the people about the first past the post voting system. End result is hopefully they vote NDP.

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Dave

So why don’t you volunteer for the NDP?

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Shut It Down Already

Lock him up! Lock him up!

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bullwhip29

HQ Vancouver’s ‘success stories’ suspect as Asian companies sputter or fall under scrutiny
http://business.financialpost.com/news/vancouver-outreach-success-stories-suspect-as-asian-companies-sputter-or-fall-under-scrutiny

>>> possible repost…nevertheless an example of the widespread corruption in this flea market of a city

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Abdul Lahazi

“Many Chinese companies are “immature” first-generation outfits with “murky” ownership structures”.
Where have we head this before? These companies are mostly frauds and fronts for illegal activities to launder cash out of China, or are simply fake fronts for any number of reasons. The issue with China is they simply cannot move beyond their communist roots into a free enterprise economy. They are always looking for an “angle” to cheat their system because that’s all they know.

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Best place on meth

“International students, in particular those from China, are more than five times as likely to cheat at U.S. colleges compared to domestic students, according to a new analysis by The Wall Street Journal.”

http://dailycaller.com/2016/06/05/students-from-china-are-cheating-like-crazy-in-college/

Canada will suffer greatly from the mass importation of this plague.

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Combat roach

No, all is well. It is a part of the national culture and Canada embraces multiculturalism.

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bullwhip29

China exposes whereabouts of corruption fugitives
http://www.china.org.cn/china/2017-04/27/content_40707772.htm

Chinese authorities Thursday released information on 22 corruption suspects who have fled overseas, including their possible current whereabouts…

Cheng Muyang, former chairman of Hong Kong Jiadali Investment Co., Ltd. and former manager of the Beijing subsidiary of Beifang International Advertisement Company, was suspected of embezzlement and concealment of illegal gains. He is believed to be living in “Oakridge Community, Vancouver, Canada,” according to the notice

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bullwhip29

the public can report relevant information to the Chinese authorities via the website http://www.12388.gov.cn/ztzz

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Funkey Monkey

He is old news. Last I heard he was fighting deportation.

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Best place on meth

“Whistleblowers are accountable for the authenticity of their reporting. Those who deliberately invent stories against others or make trouble and interfere with the functioning of discipline inspection and supervision agencies will be seriously handled according to relevant regulations.”

Oooh, that sounds terrifying.

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history

The very top of the Chinese food chain needs a good shit kicking. Same with Europe and North America.

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Funkey Monkey

I live in that neighborhood. I will keep watch I hope there is a reward.

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Doomcouver

Extradition treaty please. Trudeau is always going on about how great China is. If they’re so great let’s send them some scalps and really buddy up to them. Canadians don’t want these criminal scum here anyways.

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history

Careful what you wish for. The Japanese during the 1930s comes to mind. But dont expect the same results.

The essence of our times is one of Financial War, Trade War, and Currency War. Global ashats want to move here for the freeride,to get a slice… not actually want to integrate into the Canadian matrix. They are petrifried to actually work and add value. Sadly i see the day when their uselessness is laid bare. They are really only good at consuming Free Social Capital built on the backs of the Canadians born here, despite what the historical record suggests about immigrants. They add little, except more debt for the UN deep state pigs and their plans.. which you dont wanna know. More debt, and More debt… thanks morons.

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Kim

https://beta.theglobeandmail.com/globe-investor/investment-ideas/us-hedge-funds-make-bets-against-canadas-home-capital-group/article33438764/?ref=http://www.theglobeandmail.com&

Dug up this article from December. Lol at the author. Sounds like the typical ignorant and arrogant Canadian. “It can’t happen here ” because we are too prudent and don’t take risks and don’t do shady things. Never the case when the “market” or more aptly put Ponzi scheme is driven by 3rd world locusts.

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Abdul Lahazi

Bank stocks still trending down today….

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bullwhip29

on the debate, it was clear weaver stole the show while horgan and krusty did little to convince any fence sitters. unfortunately, this also plays into the premiers hands. i suspect once the election is over (and according to horgan, it is) christy the crook will wipe the silly smile off her face and move ahead with all the plans (both announced and ones deliberately kept under wraps) she is itching to unleash on the public. once all is said and done, the next 4 yrs will be her last term and final opportunity to make hay, so to speak. first move will be to harmonize bc’s FBT rules and conditions with those of toronto. should the HCG situation result in a meaningful shock to the credit markets and RE prices in Cda, expect both wynne and clark to water… Read more »

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history

Christy reminds me of Neville Chamberlain, working the appeasement routine. Try and spot WinstonChurchill. He’s out there, in many a blackbook, meddling in the clusterfck abdication.

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history

https://canadianmortgagetrends.com/canadian_mortgage_trends/2017/04/home-capital-stares-into-the-abyss.html

Here’s what’s not going for Home Capital

A reputation-crushing OSC investigation (the company maintains its innocence; the first hearing is May 4)
A run on deposits
A cost of funds that just hit double-digits (at least for the short-term)
Broker perception (a material percentage of brokers may no longer refer it business)

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bullwhip29

co clearly had its head in the clouds for too long and/or thought they could weasel their way out of the clusterf&%k they created without anyone noticing. now out of total desperation they do deal with the devil and are now bringing on advisors to explore “strategic options”. the big 5 banks turned their heads on HCG 18-24 months ago and will most certainly not be interested in buying them complete with all their baggage. perhaps someone will kick the tires and possibly cherry pick the carcass (leaving the toxic mess for the likes of you and i to choke on). hopeful longs should take the opportunity to cash out of the shares while they are up somewhat this morning on relief rally, bottom fishing and short covering.

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history

http://macro-man.blogspot.in/2017/04/im-yelling-timber-cads-going-down_27.html

‘Focusing back on the USDCAD cross. This whole time, current account in Canada has shrunk versus that of the US while unemployment has risen relative to that of the US. Normally, I would try to be a contrarian and look for reasons to fade those fundamental changes.

‘But in this situation, the housing bubble has gotten me thinking that things can actually continue to worsen.’

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bullwhip29

Micro suites in Vancouver renting for $1,700 a month
http://globalnews.ca/news/3408585/micro-suites-in-vancouver-renting-for-1700-a-month/

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southseacompany

“Mortgage rates continue to defy expectations as Trump sunup fizzles”, Globe & Mail

http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/mortgage-rates-continue-to-defy-predictions/article34817515/

“Here’s the least surprising news you’ll hear all day: Interest rates are not doing what most experts predicted.”

“Mortgage rates blasted off after Donald Trump’s presidential win last November. The narrative back then was that he’d trigger higher inflation and borrowing demand and potentially exacerbate credit risk – all of which are rocket fuel for interest rates.”

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southseacompany

“Is Home Capital’s crisis the pin that pops the housing bubble?”, Globe & Mail

http://www.theglobeandmail.com/report-on-business/economy/economic-insight/is-home-capitals-crisis-the-pin-that-pops-the-housing-bubble/article34824837/

“Right now, this is a meltdown at a scandal-plagued company that just fired its CEO amidst a regulatory investigation. But in Canada’s overheated residential real estate market, there are analysts predicting Home Capital’s woes could be the pin that pops a housing bubble.”

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southseacompany

“The path to real estate bubble panic”, Maclean’s

http://www.macleans.ca/economy/realestateeconomy/the-path-to-real-estate-bubble-panic/

“We trace the growing concern over Canada’s housing market—particularly Toronto’s—as shown by quotes from policymakers, economists and analysts”

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bullwhip29

Pricey catering at Vancouver housing affordability talks raise eyebrows
http://vancouversun.com/news/local-news/city-catering

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ostritch

Sounds like Home Capital is soon a buy. Government will back it.

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Hyper-mega-Bull

Guys, how r house prices? Anyone look at stats anymore?

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Confucius

Peaking out along with your recently posted space shuttle launch pic, same as last year. Prices will fall from now throughout summer.

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ostritch

Ask them again after the election.

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Best place on meth

Pre-debate photo from L-R

https://i.cbc.ca/1.4087769.1493256086!/fileImage/httpImage/image.jpg_gen/derivatives/original_620/christy-clark-andrew-weaver-john-horgan.jpg

Fake smile….taking a shit…..let’s get to work.

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Just me

Weaver is really pushing for this one. Might get a hernia.

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