Hints and tips:
...rates....
...There are so few homes for sale because the US practice of taking 30-year fixed-rate mortgages means that three-quarters of all homeowners hold mortgages charging 4 per cent or less, according to JPMorgan...
...A nurse who owns 1,000 rental properties may remind you of a scene in The Big Short where a stripper admits to taking out multiple adjustable-rate mortgages on her five homes and a condo, and one wonders...
...Credit is trust given financial form. Economic life depends on creditors believing that borrowers will pay interest on loans and return principal when it is due....
...The sharp rise in interest rates has taken some of the shine off the stocks. Most self-storage companies are structured as real estate investment trusts (Reits)....
...According to the Mortgage Bankers Association, less than 10 per cent of new mortgages are adjustable rate mortgages....
...This was the largest fixed-rate securitisation of a single building....
...Azalea told the FT that it structured transactions with “downside risk mitigation in mind”, using “conservative” loan-to-value ratios and putting “various structural safeguards” in place to protect investors...
...“Remember that problem of the rating agencies in 2007?”...
...Blackstone agreed to house the new venture in its offices and bankroll it with a $5m loan, in return for a 50 per cent stake....
...Compare that to 2007, when the yield was 4.4 per cent and duration was 4.4 years....
...Bronwyn Curtis, chair at JPMorgan Asian Investment Trust: No....
...By 2007, Deutsche had fallen to ninth, with $1.6bn of fees versus JPMorgan’s $4.4bn....
...A further decline in interest payments, thanks to the sharp fall in mortgage rates over the past six months, also will help to boost disposable incomes....
...It’s likely that they were completely unaware that their customers would default on their mortgages once adjustable rates rose in 2007, as they were blinded by greed....
...It was a variable-rate mortgage, with a promotional rate and no repayments of principal for the first three years....
...Much of that is in home loans. Bank of Canada’s official numbers show that non-banks — trusts, credit unions and other financial institutions — held C$313bn of residential mortgage credit in December....
...“With today’s low mortgage rates, this may be a cheaper option than getting a loan.”...
...A borrower with a £200,000 25-year term mortgage paying a standard variable rate of 4.5 per cent would see their annual repayments rise by £330 a year if the rate rose to 4.75 per cent....
...Ten years ago, in October 2007, the average investment trust discount was 9 per cent according to AIC data. In the aftermath of the financial crisis, the average discount increased to 17 per cent....
...One warning sign was a $100m working-capital loan from Bankers Trust: Mr Trump was using it to service mortgages and pay debt, rather than fund day-to-day operations, according to a person familiar with...
...Bronwyn Curtis, chairman, JPMorgan Asian Investment Trust My guess is that they won’t raise rates at all. I would like to see the bank rate raised by 0.25 per cent at least once in 2018....
...The financial crisis that took hold in the second half of 2007 and accelerated through 2008 left no global bank untouched....
...There is no proper discussion of new macroprudential policies such as caps on loan-to-value ratios in mortgage lending and countercyclical capital requirements — changes that could pose a threat to the Bank...
...According to Moneyfacts, the average rate on a three-year £5,000 car loan has fallen from 8.6 per cent to 8.4 per cent over the past month – and could potentially fall further before next year’s anticipated...
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