Home Capital Group Inc. has witnessed a precipitous decline (of around 25%) in high interest savings account deposits over the past four weeks--underscoring, we believe, diminished confidence on the part of depositors. Yesterday, in an attempt to stabilize its funding position, Home Capital agreed to enter into a credit line of C$2 billion with an institutional investor on extremely onerous terms. Over the past few weeks, Home Capital has seen successive executive and board turnover following the Ontario Securities Commission's allegations against former and current senior staff and an outstanding class action lawsuit, leading to increased concerns about the stability of its business franchise and the new management's ability to execute operational and strategic plans. We expect the above developments,
