Next time around, though, we reckon the losses – when they come – will be on domestic real estate assets. And with so much exposure to domestic real estate (mortgage loans), the assets could face a world of hurt. But even if bank asset quality doesn’t crash (housing prices don’t crash), an external shock affects Aussie bank liabilities.
October 28th, 2009 | Dan Denning | 2 comments | ContinuedAll Posts Tagged With: "mortgage loans"
Bankruptcy Filings Rose 18%
Bankruptcy filings rose 18% in February. One of the big mortgage lenders, Thornburg, of Santa Fe, New Mexico, defaulted on a $320 million loan. Investors sold the stock. Just a week ago, it was a $12 stock. Now it’s a $3 stock.
March 7th, 2008 | Bill Bonner | 0 comments | Continued