Will subprime spread to commercial real estate?

There were some big winners when the subprime market went into the tank, and many believe we should watch those winners for future indicators. These people are not singing the mortage blues, and in fact made plenty of money by correctly seeing the future. Here is what they see now: Traders who bet against the …

Subprime impact on China reported

We finally got some news from China regarding the spreading subprime issue. The sub-prime crisis hit China’s flagship lender yesterday as Bank of China wrote down $322m (£156m) for its holdings of US sub-prime mortgage securities. The state-run bank has the biggest exposure to the US sub-prime meltdown, with about $7.9bn of asset-backed bonds and …

Subprime – poor credit or poor employment standards?

News shouts headlines and tag lines such as “Lenders were giving out loans like candy at this time last year. As a result, this Halloween will be no treat for anyone whose fortune is tied to the housing market” and “Lenders, investors, builders and borrowers have lost billions of dollars from spiking foreclosures of loans …

Japan subprime exposure less than others

In keeping with the old idea of how to win friends and influence enemies, subprime issues in the United States continue to effect other countries. We must remember that some of the biggest U.S. subprime lenders were not American banks. Consider HSBC, with losses in excess of $10 billion (USD). Granted, HSBC bought predatory lender …