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Home Capital Drop Has Former Investor Mulling Contagion Odds

  • Chances of spreading through Canada small, Mawer’s Hall says
  • Banking system well capitalized with lots of ‘firefighters’
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Home Capital Sale May Be Next After Pension Fund Loan

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The escalation of Home Capital Group Inc.’s distress last week has led one of its largest former investors to rethink -- if only slightly -- the prospects of troubles spreading through the rest of Canada.

After the alternative-mortgage lender set up a C$2 billion ($1.5 billion) credit line to offset a run on deposits, Mawer Investment Management Ltd.’s Jim Hall is recalculating the odds of a contagion widening across one of the world’s strongest financial systems.