Jump to content
House Price Crash Forum
Sign in to follow this  

Another Lender To Reign In Lending ?

Recommended Posts


London shares were on the fall again following a sell off on Wall Street on Friday after grim economic news and poor figures from insurer AIG.

HBOS was leading the London index down after UBS added its voice to those analysts downgrading the bank - formed form the merger of Halifax and Bank of Scotland - following results last week.

UBS said HBOS was "exposed to many areas of market concern" including, the "quality of treasury assets". The bank revealed last week it had £7 billion exposure to Alt A mortgages - a notch higher quality than subprime.

"With a retail loan to deposit ratio of 160 per cent HBOS remains heavily dependent on wholesale funding. With term funding markets still difficult we believe the group is currently funding its loan growth much more short-term than it would like. We suspect that if funding markets do not normalise in the third quarter then volume growth will be pulled back aggressively," said UBS.

It put a 650p price on the bank with a neutral rating. Bear Stearns also downgraded the bank over its £42 billion exposure to asset backed securities.

HBOS lost 5 per cent to 574.5p.

Another lender to reign in lending ?

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 293 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%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.