Additional figures required settling on effects of sub-prime
An analysis brought forward by Alliance Trust has just shown
the credit status for sub prime products. Witnessing figures
revealed by the institutions, it has indicated that it will be
impossible to decide precisely how severe it will affect the
Head of Alliance Trust Research Centre, Shona Dobbie commented, “Before this summer’s credit crisis, it seemed to be the economy that was driving markets forward, and now it is the markets, and how well they can weather this crisis, that appear to hold the key to the future direction of the economy.
We have uncovered a lot of astonishing facts and figures in our research into the causes of the credit crisis, but what is most surprising is how little we can unravel about where these enormous liabilities have ended up. It is now up to institutions to untangle this web because trust among them can only be rebuilt when we get more clarity.”
Lending products such as ‘sub-prime’ to borrowers with inconsistent credit background has conventionally accounted for less than a tenth of the US mortgage market, through 2006, sub-prime set for a fifth of new mortgages in the US.