.png){kind=logo}
GC Asia
Second lien losses point to more severe stress levels in the future
So, after the stress tests, $74.6bn equals a clean bill of health for the US financial system? Not so fast. Some initial analyses show that the loss estimates for various asset classes considerably understate likely outcomes.
The "more adverse" figures for second lien residential mortgages — an average loss of 13.8% — seem to highlight the questionable stringency of the tests, given the extremely high loss severities experienced so far in the sector. The indicative figures provided for the tests were 22% to 25%
...
Already a subscriber? Login
-
Latest news from People & Markets
-
Reacting to Wirecard, EM outlook is marred, climate risk is hard
03 Jul 2020 -
ECM are all going on a summer holiday
03 Jul 2020 -
Film director Richard Curtis: ‘the time for tinkering is coming to an end’
03 Jul 2020 -
China markets round-up: Local governments asked to recapitalise smaller banks, Bond Connect celebrates three-year anniversary, Luckin fails to ouster chairman
03 Jul 2020 -
Luckin Coffee chairman survives ouster vote
03 Jul 2020
-
-
Latest news from People & Markets
-
Reacting to Wirecard, EM outlook is marred, climate risk is hard
03 Jul 2020 -
ECM are all going on a summer holiday
03 Jul 2020 -
Film director Richard Curtis: ‘the time for tinkering is coming to an end’
03 Jul 2020 -
China markets round-up: Local governments asked to recapitalise smaller banks, Bond Connect celebrates three-year anniversary, Luckin fails to ouster chairman
03 Jul 2020 -
Luckin Coffee chairman survives ouster vote
03 Jul 2020
-
Further Reading
-
Comment
Reacting to Wirecard, EM outlook is marred, climate risk is hard
-
Equity
ECM are all going on a summer holiday
-
Crisis Talk
Film director Richard Curtis: ‘the time for tinkering is coming to an end’
-
People & Markets
China markets round-up: Local governments asked to recapitalise smaller banks, Bond Connect celebrates three-year anniversary, Luckin fails to ouster chairman
