No smoke without fire
The worsening situation in the US subprime mortgage market has spread to Asia, with several financial firms exposed via mortgage-backed securities or collateralised debt obligations. Is this a temporary technical dislocation in the credit markets or the start of something more serious? Rob Davies investigates
Thousands of miles removed from the US, share prices of Asian financial institutions have tumbled. Firms such as Taiwan's Shin Kong Financial Holdings have seen a 20% share price drop in the past two months, while Australian non-conforming mortgage lender RAMS Home Loans saw a 19% drop in a single day. And several Japanese firms, including Mitsubishi UFJ and Mizuho Financial Group, in August reported combined losses of Yen18.7 billion ($161 million) linked to investments backed by subprime
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Economics
Webinar – Nowcasting the US economy
Join CME Group Chief Economist, Blu Putnam, as he shares insights using alternative data and nowcasting to monitor developments in the US economy.
Fed Funds Futures in a Post-ZIRP World
As the FOMC returns to more active management of its key target rate, Federal Funds futures have experienced dramatic growth.
Challenging economic pessimism: an optimistic note
A contrarian, upbeat view of the long-term economic outlook
Economists, like hedge fund traders, need open minds
Economists, risk managers and traders must learn the lessons of crisis, says Kaminski
Fed wrong not to start QE tapering, says UBS economist
The surprise decision by the Federal Reserve last month not to scale back its quantitative easing programme will create more volatility, says economist
IMF's Blanchard warns Europe could drag world economy down
IMF chief economist says ‘three-speed’ global economy could be dangerous
Most read
- Top 10 operational risks for 2024
- Japanese megabanks shun internal models as FRTB bites
- Filling gaps in market data with optimal transport