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Email this9:46 am
December 17, 2016
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Brimleychen said
The real test is 325,000,000 CAD bond matured at 24may2017. That's the squeeze that the shorters are betting on.
From the G&M
Also Monday, the bond trading desk at Canadian Imperial Bank of Commerce notified customers it has an offer to purchase up to $100-million of the $325-million of Home Capital debt coming due May 24.
The offer comes from an unnamed Canadian institutional investor, who is willing to pay 92.5 cents on the dollar for the deposit notes, which have a coupon rate of 2.35 per cent. The offer will be open until Tuesday at 5 p.m., CIBC said.
9:59 am
September 5, 2013
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Top It Up said
From the G&M
Also Monday, the bond trading desk at Canadian Imperial Bank of Commerce notified customers it has an offer to purchase up to $100-million of the $325-million of Home Capital debt coming due May 24.
The offer comes from an unnamed Canadian institutional investor, who is willing to pay 92.5 cents on the dollar for the deposit notes, which have a coupon rate of 2.35 per cent. The offer will be open until Tuesday at 5 p.m., CIBC said.
Look like this institutional investor bet on HCG will survive on May 24, and will get back $1 + interests for today 92.5 cents.
And I don't believe anyone will sell the bond at 92.5 cents today.
11:05 am
October 21, 2013
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Wouldn't the maturing mortgages and the maturing GICs sort of cancel each other out, leaving a net result of simply a smaller business?(maybe too small to survive). I must admit that most of this discussion is over my head.
And today, I read in the paper, there is a question of new board member Hibben having a conflict of interest - which he has addressed, but the question is not resolved yet.
Seems to me that the lawyers for HCG and the three guys would simply be unable to move this case forward quickly without an army of lawyers to draw on. If what needs to happen is for the OSC thing to get out of the way quickly, this is impossible.
I remain stunned at how a molehill became a mountain.
11:19 am
August 4, 2010
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They could reduce the balance sheet that way, or even wind down the company, although exactly how the cashflows would match up is anyone's guess. But even if they do that, remember, if Home doesn't renew the mortgage, the homeowner is going to have to find new financing for the balance of the mortgage, or be forced to sell the property, or get foreclosed. Home might not get their principal repaid immediately on every expiring mortgage.
11:24 am
April 22, 2017
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Loonie said
Wouldn't the maturing mortgages and the maturing GICs sort of cancel each other out, leaving a net result of simply a smaller business?(maybe too small to survive). I must admit that most of this discussion is over my head.
And today, I read in the paper, there is a question of new board member Hibben having a conflict of interest - which he has addressed, but the question is not resolved yet.Seems to me that the lawyers for HCG and the three guys would simply be unable to move this case forward quickly without an army of lawyers to draw on. If what needs to happen is for the OSC thing to get out of the way quickly, this is impossible.
I remain stunned at how a molehill became a mountain.
I wouldn't be surprised if the OSC is feeling some heat from this. I don't think they anticipated the market reaction that followed from their actions.
11:44 am
April 7, 2017
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Correct the OSC should take some responsibility. Make a statement or get the hearing over with quickly. Really, how serious was the situation and what has been corrected since?
6:54 pm
October 21, 2013
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But the OSC can't get it over with quickly because of the mountain of paper they have on the table, which the opposite lawyers have to wade through first. the only way they could shorten it, that I could see, is to make a deal (I don't know if they ever do that sort of thing) or withdraw some of their evidence (which would make them look like they weren't doing their job).
I'm not sure the OSC can do anything at this point, given what they've already done.
My question is whether anybody else can do anything - except for those who are extending lifelines to HCG - but they too will have their limits once it looks like a sinking ship.
7:12 pm
April 22, 2017
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Loonie said
But the OSC can't get it over with quickly because of the mountain of paper they have on the table, which the opposite lawyers have to wade through first. the only way they could shorten it, that I could see, is to make a deal (I don't know if they ever do that sort of thing) or withdraw some of their evidence (which would make them look like they weren't doing their job).
I'm not sure the OSC can do anything at this point, given what they've already done.
My question is whether anybody else can do anything - except for those who are extending lifelines to HCG - but they too will have their limits once it looks like a sinking ship.
Confidence can be regained if it's made clear that the company is viable and the shroud of the OSC thing goes away. People do have short memories.
9:30 pm
October 21, 2013
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I don't think it's a secret that it's viable (if everyone doesn't remove their business). The new board member said so publicly in the newspaper recently.
I do think the media have tended to sensationalize this, with the exception of Corcoran - and I am not always opposed to media. The emphasis has been on the dramatic. Business-as-usual is not dramatic.
5:22 am
December 17, 2016
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This morning's update in the ongoing HCG saga - from the National Post
Home Capital Group Inc said a third party intends to buy up to $1.5 billion in mortgages, at a time when Canada’s biggest non-bank lender is attempting to stem the flow of customer withdrawals.
The third party has indicated its non-binding intention to buy as much as $1 billion in uninsured mortgages and to buy or accept commitments for up to $500 million in insured mortgages.
EDIT: Given HCGs dire need for cash, I wonder if this pending sale includes a discount to the buyer? Anything has to be cheaper than that initial bridge financing deal with HOOPP.
6:00 am
September 5, 2013
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Top It Up said
This morning's update in the ongoing HCG saga - from the National PostHome Capital Group Inc said a third party intends to buy up to $1.5 billion in mortgages, at a time when Canada’s biggest non-bank lender is attempting to stem the flow of customer withdrawals.
The third party has indicated its non-binding intention to buy as much as $1 billion in uninsured mortgages and to buy or accept commitments for up to $500 million in insured mortgages.
https://web.tmxmoney.com/article.php?newsid=7430689701937308&qm_symbol=HCG
...
The Company also announced its intention to pay back 100% or $325 million of the outstanding aggregate principal amount of the Company's 2.35% Notes at the scheduled maturity date, May 24, 2017.
...
So whoever sold the bond @92.5 cents to CIBC yesterday would be forever regretted.
10:11 am
December 17, 2016
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The latest on HCG, from the National Post . more fingernail scratching on the chalkboard?
11:03 am
December 17, 2016
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HCG unable to stop the HISA withdrawals - from today's G&M -
Home Capital Group Inc. says it saw another drawdown on its on-demand deposits over the past 24 hours, giving the company a little less financial flexibility as it continues to grapple with a funding crisis.
In a release on Wednesday, the alternative mortgage lender said its high interest savings account (HISA) balances at Home Trust likely fell to $134-million as of this morning, versus $146-million on Tuesday – a decline of 8 per cent.
Meantime deposits at the company’s retail savings bank Oaken fell to $159-million as of Monday, compared to $165-million on Sunday.
12:18 pm
September 5, 2013
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CIBC become one of biggest shareholder of home trust. 15% of share!
CIBC Triples Home Capital Stake to Be Among Largest Holders
12:24 pm
December 17, 2016
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CIBC are certainly not shy when it comes to risk and loosing their shirts - recall their investments in the US sub-prime mortgage market and Enron. They used to be the # 1 bank in Canada, they now sit in 5th.
1:15 pm
April 22, 2017
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Top It Up said
CIBC are certainly not shy when it comes to risk and loosing their shirts - recall their investments in the US sub-prime mortgage market and Enron. They used to be the # 1 bank in Canada, they now sit in 5th.
Who cares really? Their position amounts to ~$80 million. They have $183 billion in AUM. Even if the $80 million is spread across a few funds, it's an immaterial weight.
1:23 pm
December 17, 2016
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frank87 said
Who cares really? ... it's an immaterial weight.
It's all about corporate mindset.
1:41 pm
April 22, 2017
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Top It Up said
It's all about corporate mindset.
Lol.
2:12 pm
December 17, 2016
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frank87 said
Lol.
I'd rather it not be CIBC throwing money after the hapless / doomed Home Capital Group - a company most assuredly in a death-spiral.
Does anyone know if MCAP paid full price for those mortgages they purchased from HCG? or did they get a discounted price?
8:18 pm
April 7, 2017
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Hasn't Home Capital just sold off some of their mortgages to allow their ratio of deposits to loans to be correct? Apparently their price of shares went up today due to the sale which tells me the financial sector supports their credibility?
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