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  5. GSY: Does the companies business model change in a rising interest-rate environment? [goeasy Ltd.]
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Q: Does the companies business model change in a rising interest-rate environment?
I am down 15% in a 5% position thinking that the acquisition of Lendcare would help offset loan defaults plus the terms of their revolving credit were expanded and improved. Does this remain a good 3-5 year hold
Thank you. I appreciate your comments.

Asked by Brad on October 13, 2021
5i Research Answer:

We remain very comfortable. The company has diverse funding sources, and we would not expect significant issues in a rising rate environment. The rates it charges can also be adjusted. In past recessions, it has not experienced additional credit losses. The stock is still up huge in the past year and profit-taking looks to be the main reason for weakness (there has been no negative news). We still consider it one of our favourites.