We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Official: BASEL 3 liquidity rules eased

13567

Comments

  • sabretoothtigger
    sabretoothtigger Posts: 10,036 Forumite
    Part of the Furniture 10,000 Posts Photogenic Combo Breaker
    edited 8 January 2013 at 7:35PM
    All the bank shares love this. Barc back to 400 hopefully, been waiting 4 years
    Thrugelmir wrote: »
    From who though, on a large scale?


    From everyone who is buying bonds with rubbish yields. Trillions wasting away
    MBS is superior to gilts seems to me so long as it includes the land absolutely
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    sabretoothtigger wrote: »
    From everyone who is buying bonds with rubbish yields. Trillions wasting away
    MBS is superior to gilts seems to me so long as it includes the land absolutely

    Are net MBS yields going to be much better?
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    sabretoothtigger wrote: »
    All the bank shares love this. Barc back to 400 hopefully, been waiting 4 years




    /QUOTE]

    Just 400:)? What about the rest and a 34p divi.?
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • sabretoothtigger
    sabretoothtigger Posts: 10,036 Forumite
    Part of the Furniture 10,000 Posts Photogenic Combo Breaker
    edited 8 January 2013 at 9:47PM
    The problem is these banks hold as security large amounts of bonds. Just like they used to have CDO sub prime I guess it could be similar

    MBS yields are ironically higher because they are useful and subject to risk where as an artificial market lending to people who print money is safe and lower yield apparently. If it made sense, it'd be the other way round
    MBS is secured debt and gilts are IOU tickets. The OWS protestors were buying defaulted MBS then using it to access the land deeds and releasing it back to the owners. Can gilts do that, paying tax thats all the security its tied to?

    As Hollande is finding, that avenue for forcing tax as a requirement is quite limited. Can we vote to default instead?
  • Conrad
    Conrad Posts: 33,137 Forumite
    10,000 Posts Combo Breaker
    Thrugelmir wrote: »
    From who though, on a large scale?



    I've always argued are housing our retail mortgage markets have been pretty well ordered.
    I sometimes think us Britishers don't step back and see the picture from foreign eyes. Many around the world consider the UK one of the places to be investing so there will be no shortage of takers wanting a piece of the mortgage market.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Conrad wrote: »
    there will be no shortage of takers wanting a piece of the mortgage market.

    Indeed.

    Particularly as it has now been established that 97% of UK bank mortgage losses were not on UK mortgages at all, but on overseas ones.

    The UK mortgage market remains one of the healthiest and most profitable in the world.

    Eventually a tsunami of global liquidity will come crashing down on these shores. The mortgage famine is a temporary phenomenon, but it's seriously hurting the UK in the short term.

    Hence why the BOE and policymakers will continue to act in repairing the damage being cause by lending shortfalls now.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Conrad wrote: »
    I sometimes think us Britishers don't step back and see the picture from foreign eyes. Many around the world consider the UK one of the places to be investing so there will be no shortage of takers wanting a piece of the mortgage market.

    Totally the reserve. As focus tends to be on the micro not the macro.

    JP Morgan has bought around 90% of all issued securitised mortgage debt since 2008. Sums up the reality.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Thrugelmir wrote: »
    From who though, on a large scale?

    Other banks mostly.

    There is a huge demand for yield at the moment as a result of QE. RMBS can provide that.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Generali wrote: »

    There is a huge demand for yield at the moment as a result of QE. RMBS can provide that.

    The reality is that UK RMBS are a relatively safe asset class with healthy yields. All RMBS currently suffer a bit of a PR problem after being tarred with the same brush as the American sub prime ones, but that wont last much longer.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • sabretoothtigger
    sabretoothtigger Posts: 10,036 Forumite
    Part of the Furniture 10,000 Posts Photogenic Combo Breaker
    edited 10 January 2013 at 9:47AM
    A high income bond fund that could float out of trouble

    Bond specialist Twenty Four Asset Management is launching an investment company focused on floating rate, mortgage-backed securities. In a special report we explain why this is significant.

    by Gavin Lumsden on Jan 08, 2013 at 08:00

    http://citywire.co.uk/money/a-high-income-bond-fund-that-could-float-out-of-trouble/a649194
    ‘Until unemployment comes down to below 6.5% there is no chance of rates going up in Bernanke’s term,’ he said.

    http://citywire.co.uk/money/bond-bubble-dismissed-as-fears-turn-to-emerging-markets/a649675?ref=citywire-money-latest-news-list
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.8K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.2K Spending & Discounts
  • 246.9K Work, Benefits & Business
  • 603.4K Mortgages, Homes & Bills
  • 178.2K Life & Family
  • 260.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture