Alt-A: next to wobble?
Bloomberg’s Mark Gilbert has written an interesting piece (read here) about the recent turbulence in credit markets. In particular it’s worth noting Moody’s comment that the next level of loans up in quality from sub-prime, the "Alt-A" mortgages, look to be showing the same level of distress as the supposedly weaker loans. Loose lending standards, and falling house prices are a toxic mix for US mortgage backed credit.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.
16 years of comment
Discover historical blogs from our extensive archive with our Blast from the past feature. View the most popular blogs posted this month - 5, 10 or 15 years ago!
Get Bond Vigilantes updates straight to your inbox