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Big Financial Institutions Betting On Hpc

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Index taps into fears of a house price crash
By Josephine Moulds (Filed: 24/01/2006)
More investors are expected to start betting on a slump in the US housing market after the launch of a new index.
ABX.HE is an index of securities that are basically insurance contracts against defaults on packaged pools of mortgages.
Primary lenders in the US have been using the instruments, known as credit default swaps of asset-backed securities (CDS of ABS), to buy protection against people not paying their mortgages, while fund managers use them to hedge their exposure to specific pools of mortgages.

With big money betting on a crash it seems that 2006 may be the year we have all be waiting for. But lets hope we do not get all that we pray for because the prospects for a recession of considerable magnitude looms given the reliance on high house prices to keep the economy going. And remember that the US and UK markets have always moved in tandem during the house price crashes of the past 50 years.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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