zerohedge.com / by Tyler Durden / Apr 30, 2017 9:48 PM
With the bank run at Home Capital Group hitting a crescendo on Friday, when in one day 36% of the liquidity at Canada’s largest non-bank lender escaped through the front door, and only an emergency rescue loan yielding over 20% has prevent a liquidation at HCG so far, suddenly some are wondering if the dreaded “C” word is applicable to what Bloomberg has dubbed “one of the world’s strongest financial systems.”
The word in question is contagion, and the party casually bringing it up is Mawer Investment Management, one of HCG’s largest former investors. Jim Hall recalculating the odds of a contagion widening across one of the world’s strongest financial systems.
According to Bloomberg, Mawer CIO Jim Hall is recalculating the odds of a contagion widening across the Canadian financial system.
“The probability has gone from infinitesimal to possible — unlikely, but possible,” said Hall, chief investment officer of the Calgary-based money manager, in an interview Saturday. “If depositors or bondholders start to lose faith in their banks, well then that becomes systemic.”
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