Bad Credit Mortgage

Usually investbanki provide bridge-loan funds for up to a year and a half, which was absorbed by the company for sale, and then on behalf of the company placed Bad Credit loans and bonds, the funds from which puts fund to repay bridge Bad Credit Mortgage. Today, when investbanki unableto find investors for these bonds, they have to keep them on the balance sheet, which reduces their ability to issuing new loans. Moreover, if the current situation in the credit markets continue, in the second half, on Bloomberg calculations, the banks can Bukumirovic $ 1.3 billion in the form of commissions. All these problems are pulling down their stone shares: shares in the past month J. P. Morgan Chase fell by 11.5%, Deutsche Bank - at 9.4%, Goldman Sachs - 20%, Lehman Brothers - by 25%.

"Investors are aware that soft standards with which banks approached recipients Loans, also applied to corporate clients" - said Albert Edwards, global strategist Dresdner Kleinwort. Golden days of hedge funds and direct investment funds, sometimes casually used cheap loans have ended, believes David Fuller, director of Stockcube Research and the publisher of the investment Mortgages Fullermoney. "Not all the gold that sparkle, and noteveryone who is playing on borrowed funds, showed good results - he says. - Investors ask: where is hedging? I go from hedge funds."

The crisis in the credit markets has forced banks and brokers that provide the players credit, raising demand guaranteeing Mortgages . However, many tools -mortgage bonds, bond pools - Today, it is simply impossible to sell. No one can accurately described their price, said senior manager of  investment bank working with alternative investments. "Some say that they are 50, others - that 90, but could not sell even at 30, because no applications for the purchase," - he says.

With reduced liquidity, "when they can not sell the bad assets, you have to sell a good," said Kim Catechis, manager of fund shares in companies in developing countries to $ 3.8 billion at Scottish Widows Investment Partnership. Among these shares, the various classes of bonds and even Credits , including precious metals. As a result, almost all asset classes simultaneously dropped in price, so even diversification has been unable to protect investors. During the week of July 27, the American index of S & P 500 fell 4.9%, European Dow Jones Stoxx 600 - at 5.6% copper and aluminium - almost 5%, gold, which is generally regarded as a safe haven for investors in troubled times -- at 3.3%, the dollar index MSCI Emerging Markets - to 3.8%, the index of sovereign and corporate Remortgage of developing countries MerrillLynch - at 1.5%. "Investors do not know where the next problem manifests itself engendered by playing the excessive borrowings. Because of this uncertainty in the markets could remain unstable" and we are awaiting a medium-term correction, says Fuller. (WSJ materials used.)