Bearish Bets on Home Capital Have Dropped to 20%

  • Some 20% of lender’s free float shorted, least in two years
  • Shares up seventh straight day, longest streak in six months

Short sellers are easing pressure on Home Capital Group Inc. as speculation builds that Canada’s embattled alternative mortgage lender may be closer to a takeover of the company or refinancing its costly rescue loan.

Short positions on the shares dropped to 20 percent, the least since July 2015, according to Markit data on Monday. The stock has also more than doubled from its low hit last month after Ontario’s securities regulator accused the company of misleading investors about mortgage fraud. It was trading up about 2 percent to C$11.97 as of 10:03 a.m. in Toronto on Monday, the seventh straight day of gains and the longest advance this year…

Bearish Bets on Home Capital Have Dropped to 20%

Categories : Finance, Real Estate

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