My job has gotten a little more interesting nowadays, especially since I have requested for research to be incorporated into my job scope. I spend a good part of my morning reading news articles on Bloomberg, Reuters, BBC, Financial Times etc to produce a mid-day daily commentary about the significant events and their financial impact. This goes out to my colleagues and enable them to know (a little) about the reasons driving the numbers that they are seeing.
I thought I should share some interesting articles or knowledge about what you commonly see on the newspapers but have too little time to find out. The main issue hogging the financial headlines recently (other than TH14's £16m transfer to Backside Loner) has been the sub-prime mortgage crisis in the U.S. and, in particular, the fiasco at investment bank Bear Stearns.
Sub-prime mortgages are, simplistically, loans made to borrowers who do not qualify for loans from mainstream lenders. Sub-prime business has exploded in the last few years as investors consider the high returns to be an adequate cover for the underlying risks. Unfortunately with recent interest rate increases, borrowers have been unable to repay their mortgages which impacted the flow of funds to the investors. And if you are still interested, you might want to visit FT's website, which carries an in-depth analysis of the sub-prime lending crisis.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment