Friday, Nov 30, 2007
Mortgage market closed for business, Come back in 2011?
Firstrung: The residential mortgage backed securities (RMBS) market remains closed - CML
The residential mortgage backed securities (RMBS) market remains effectively closed, with no imminent sign of re-opening. In the wake of the US sub-prime mortgage crisis, many investors are showing an aversion to RMBS markets globally. While some larger firms have been able to obtain funds via private placements and the covered bonds market, this latter option remains an uncertain one. Responding to deteriorating market liquidity, the European Covered Bond Council recently had to recommend a temporary suspension of covered bond inter-bank market-making. While market making has since restarted, bid offer spreads are much higher than normal.
Posted by converted lurker @ 07:53 AM (238 views) Add Comment
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