quote:Originally posted by stormrose

Indicators don't look so great for the NBFIs. They need capital to ride out a downturn - and many are too highly geared to do this.
Even though SCF may have the size a general downturn in the FinServ sector will cause capital flight to something else.
Wait for the crash, buy when the survivors are recovering.
Agree with that and if there are defaults in the industry then it will probably hurt SCF as far as inflows go. Longer term however it will ensure that the sector is better regulated which will only help a company like SCF. Because of its capital base it could well be in a good position to pick up the pieces from other finance companies which are higher geared.