As you know, the banks have lent money out on 85-90% of properties valuations SUBJECT to said loans being insured my a "mortgage insurer". The problem arises if the real estate market drops 20% or more (which it will in all probability) and mortgagors get into difficulties with their repayments - suddenly quality loan books will look subprime. Quack Quack! The insurers could fail (Yes - even over a weekend as in the case of Bear Stearns) The banks are left holding the mortgage can - which can not be on-sold on a fearful market and Voila!
I hope it doesn't happen but don't be fooled into thinking it cannot happen.
IMO -DYOR
As you know, the banks have lent money out on 85-90% of...
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Last
$133.14 |
Change
0.540(0.41%) |
Mkt cap ! $222.8B | |||
| Open | High | Low | Value | Volume |
| $133.36 | $133.46 | $132.53 | $250.6M | 1.901M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 90 | $132.75 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $133.17 | 2118 | 1 |
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| Last trade - 16.10pm 26/07/2024 (20 minute delay) ? |
| CBA (ASX) Chart |