Bert, you are absolutely right about the size of their loan book...

Bert, you are absolutely right about the size of their loan book v deposits. They are no doubt getting the significant additional funding from institutions - and those instos would definitely be running the ruler over things to make sure everything is OK. If any of the debt is short-term, or due soon, City Pac is more dead in the water than I thought!

With regards to redemptions, there is absolutely no doubt that they would be suffering. I doubt that any MFS money is flowing through to City Pac - I understand that MFS has frozen redemptions for 180 days. After Fincorp, Bridgecorp, and now MFS, mum and pop super money is going back to the bank - rather than a mortgage lending trust!

Also, at the very least, City Pac are going to have to significantly increase their rates if they are going to either keep or attract further funds. This is going to have a direct impact on their bottom line. At the moment, they only offer investors between 8.2% through to 2 year term deposit rates of only 9.95%. City Pac investors are not being adequately compensated for the significant risk that they are taking on. Surely people would rather their money in the bank (at only a couple of %/year less) than in non-bank lender.

City Pacific is the largest (ie most exposed) in Australia. You would have to rate their demise as 'highly likely' given all the circumstances.

As for me holding, sorry, this was a mistake. I am short.