One Of The World’s Biggest Oil Hedge Funds Just Liquidated All Its Longs

That didn’t last long.
Just one week after Canada’s largest alt-mortgage lender Home Capital Group sent shockwaves across the Canadian financial system, when it confirmed that long-running allegations about its liar-loan business were true, and suffered a spectacular bank run necessitating emergency loans which yield a stunning 22.5%, the company is now “actively seeking expanded sources of funding” having drawn half of its C$2b rescue loan, according to an email sent to mortgage brokers seen by Bloomberg News.
‘This is a fluid situation, and we are optimistic our challenges are temporary,’ Pino Decina, executive vice president of residential mortgage lending, said in the email.
He further said that despite what’s “written in media” the company continues to experience demand for financing from brokers. He did not deny, however, the rest of what is written in the media, namely that as the company’s GICS’s mature, it risks running out of liquidity in the coming weeks even with the full C$2bn facility fully drawn, especially since by now it is almost certain that its retail deposits have all been redeemed.

This post was published at Zero Hedge on May 4, 2017.