Tuesday, December 8, 2009
There may be trouble ahead……….
A double dip in the property market runs the risk of forcing banks to pump extra cash into their residential mortgage-backed securities (RMBS) portfolios to ensure investors in the asset class get paid on time. Many banksâ€™ RMBSâ€™s were trading as low as 20p in the pound at the height of the credit crisis, prompting a wave of opportunistic buying that has made many funds a lot of money in the subsequent recovery. However, there are fears that the residential property market could face a double dip in 2010, which would spark a fresh wave of concern among banks and investors.