Does this leave the Big Four exposed to just one incredibly important asset class? Well at least two of the Big Four might lose some sleep over it at night. Commonwealth Bank has 65% of its loan book tied up in household mortgages, according to Eric Johnston in the Age.
April 12th, 2010 | Dan Denning | 85 comments | ContinuedAll Posts Tagged With: "gse"
For the GSEs the Rest Has Been History
Even though the GSEs enjoyed lower borrowing costs than other corporate borrowers because of their implied U.S. government guarantee, he said, they would face higher borrowing costs if interest rates spiked. If that were to happen, the GSEs would likely be unable to grow their balance sheets or earnings.
May 14th, 2009 | Dan Denning | 1 comment | Continued
Policy Makers and the Depression
The upside of a severe and painful depression is that the much needed adjust in the economy would finally happen. The flow of credit to productive enterprise and real risk-taking (value creating) activities could resume.
April 23rd, 2009 | Dan Denning | 25 comments | Continued
Government Sponsored Enterprise Debt and Australian Banks, a Ticking Time Bomb?
How much Government Sponsored Enterprise debt do Australian banks own? We began our day with this question and did not get very far in answering it. But the answer would be worth knowing. Why? There are two major Government Sponsored Enterprises (GSE) in the U.S. They go by the name of Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE). They buy the mortgages from other lenders.
July 9th, 2008 | Dan Denning | 2 comments | Continued
