U.S. subprime issues were again felt in Germany as British investors pulled back. A rippling wave might build to tsunami proportions in weeks to come as more companies are singing the mortgage blues. As the ripple moves from subprime to Alt-A, and to credit card asset-backed securities, caution is the mode of the day as investors open their eyes to what their holdings are really worth. By Thursday morning, reports were coming in from Holland, France, Germany, Australia and England. Here is an example:
Ruecker Immobilien will not be able to implement a capital increase as planned because of the subprime mortgage crisis, the German real estate group said on Tuesday. A British institutional investor has dropped its plans to buy all the new shares not taken up by existing shareholders, Ruecker said in a statement, blaming reduced market appetite for real estate financing investments.