The Financial Post reports in its Thursday edition that Home Capital Group (HCG) is fighting to find the funds it needs to survive as deposits decline. The Post's Allison McNeely writes that HCG has lost more than $3.5-billion of deposits since the end of March. HCG has started to make arrangements for an expensive $2-billion loan that it already wants to refinance, and a sale of up to $1.5-billion of assets. Once HCG has properly replaced the funding lost from fleeing depositors, it faces its next big hurdle: figuring out how to finance new loans so it can stay in business. HCG used to hold onto just about every mortgage it makes, but the bank will probably now have to sell them to investors at least for the near term. The problem is, Canadian money managers do not tend to buy the kind of mortgages that HCG offers, says Kilgour Williams Capital partner Colin Kilgour. HCG's loans are usually made to borrowers that big banks shy away from. These loans tend not to be insured by the government, and there really is not a market for them in Canada now whether they are sold outright or packaged into bonds, says Mr. Kilgour. "They're coming at it from a position of urgency and weakness," says Mr. Kilgour.