Australian sub prime mortgage market.

Gee,
I've got all those (308 not 328)
If you don't like 'em, proves I must have good taste !

M

 

Happened today, MQG had big slide, hit a low today of $41.62, CBA $41.84 currently.
BTW, this is a new low for MQG, having broken through the previous low of $42.95 on 17/3.

M

 

Will be interesting to see what happens to MQG

Babcock & Brown (ASX= BBI) are based on MQG's business model, and they are down 70% from the peak last November

M

 

you guys are ridiculous! they're a $100 share any day of the week!! this is super bargain buying.....they'll be $100 soon...you just wait and see.

one day, i'll be right...and i'll be here to remind you all how clever i am! did i mention how much i made out of RIO?

lol

 

Could happen, it's just a matter of timing







But I'm afraid to say, at your age.....................








Not likely you'll see it.

LOL
M

 

Are you shure they are all ladies ?
How do you know ?


M

 

Yep,
Why are you in town?

M

 

RR/Bentley Rally?

 

Likely OHOS rally:
Sep 12th-14th, 2008 - National BDC rally in Canberra


M

 

so i can turn up in a Tuna Can on wheels with the lid half open, and still look very very cool ?

 

Concours ?
Open to the public ?

M

 

Having unraveled Band B not beyond the realms of expectations that the short sellers now have MQG in their sights!

Whilst I would hesitate to take advice from any US finance expert at the moment,

this is interesting:

Originally Posted by AFR's George Liondis
The world's biggest bond manager has urged investors to buy securities linked to Australian mortgages, arguing Australia's home owners were less likely to default on laons than counterparts in the US.

US-based Pacific Investment Management (pimco), which manages $US829.5 billion ($958 billion) in bonds worldwide, said Australian mortgage debt offered compelling value, despite lingering fears about assets tied to home loans.

The crisis on credit markets, sparked by defaults on US sub-prime home loans, sent investors rushing out of securities linked to mortgage-backed debt his year.

But Rob Mead, head of Asia-Pacific credit at Pimco, said investors were missing out on strong returns by shunning bonds associated with Australian mortgages, which he said were of a higher quality and less likely to default.

The return on Australian home loan bonds increased 10-fold over the past year to more than 2 percentage points over the benchmark bank bill swap rate as issuers offered added inducement in an atempt to attract a dwindling number of buyers.

"The fundamentals of the Australian mortgage market are decidedly different to the mortgage market in the US," Mr Mead said.

"The sub-prime component of the Australian market would be less than 1 per cent of the market, whereas in the US it would be 15 per cent of the market."

Other analysts agreed that Australian mortgage bonds were appealing.

"The fundamentals of the property market in Australia are much better than the US", said Glenn Feben, managing director of Perennial Fixed Interest.

"There is a huge oversupply of housing in the US, whereas there is an undersupply in Australia.

"They [AAA-rated Australian mortgage bonds] are very high quality assets and from the perspective of the risk they present, you are getting paid an attractive margin."

Mr Feben however bemoaned the lack of new supply of mortgage-backed debt in Australia.

The sale of securities backed by home mortgages has shrivelled by about 90 per cent this year as the squeeze on credit markets took hold.

"The banks are not issuing them and non-bank issuance of mortgage-backed securities is non-existant," Mr Feben said.

Mr Mead said he was buying AAA-rated US dollar and euro-denominated bonds backed by Australian home loans from struggling overseas investment banks and structured investment vehicles.

 

yeah, it must be a real worry for guys over 50 with their super accounts.

gen x has another 30 odd years for the good times to roll again before worrying about super, so no issues.

 

i'm not worried about it at all....but thanks for your concern.

i feel more for any young kids that might have taken the advice and put their recently hard earned money into it based on the say so of a self proclaimed expert.

but what do i know?

 

Would suggest hard work not luck was involved.

 

pp's dad was involved