Australian banks are vulnerable to a collapse in the local housing market due to an overexposure to high-rise developments, interest-only loans and high loan-to-value ratios. The main uncertainty is the timing.
Tag Archives | debt
Hedge funds have been short selling Australian banks for a while now, mainly due to perceptions about the property market. However, it is not house prices but unemployment that matters most for bank prosperity.
The debt picture in China is complicated by the many layers of property development, shadow banking and local government, and it poses a risk to China’s economic stability.
Global debt levels have increased significantly over the last decade, but not to fund new businesses or productive assets. When debt funds growth and growth fuels debt, can we continue to push the problem into the future?
Mortgage funds still suffer from the poor reputation earned during the GFC, and are not well supported by investors. When the asset is a first registered mortgage over real property, some structures are worth a look.
Findings from three recent seminal papers highlight the rapidly growing levels of debt across the world, which at some time is likely to impact future investment returns and economic growth. Are you prepared?
The deep financial, economic and political crises came to a head at the end of the 1970s when the US Government defaulted on its debt. It became the dawn of a brand new era of growth and prosperity for Americans.
Warren Buffet on competitive advantage, philanthropy,debt and wealth disparities.