The urgency for the trade came from US executives, according to the media.
In my experience in bond markets over the years, you just need to be carefull of deals that are been rushed. And yes this stuff has been going on for a long time.
The usual thing to do in the market when a bank rings you with a deal is look at the other side and take the opposite view. They would not sell it if it was a good deal. How our hedge funds got suckered into these deals is beyond me. When an overseas bank rings Australia to peddle securities...
Every bubble in history has always ended in a crash. This property market will be no different. Trees don't grow to the sky. Every debt fueled rally always ends in a crisis. You cannot continually value property prices by similar sales in the same area in a bull market.
A property investor said that investment property loans are similar to margin loans on shares. If the value of the property falls under the loan value by x amount, the bank wants the difference. If the investor cant pay, this property and other assets may be liquidated to cover the shortfall...
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