Game changer? Quicken Loans takes mortgage lending fully digital

Google launches mortgage comparison tool with Zillow

LendingTree will also bring mortgages to Google

Fannie Mae continues shifting credit risk to insurers

Completes fifth and sixth Credit Insurance Risk Transfer deals
Real Estate / The Ticker

China real estate crisis threatens investors

/ Print / Reprints /
| Share More
/ Text Size+

During the housing crisis in America, investors lost billions of dollars via complex derivatives supported by subprime mortgages. In China, however, trusts are the real threat to investors, Bloomberg reported.

Trusts are the fastest-growing portion of China’s shadow banking, which covers all financial activity that takes place outside of the formal banking system.

“Trusts have flourished because more than 90 percent of China’s 42 million small companies don’t have access to bank loans. At the same time, most of the nation’s savers are starved for yield (interest rates on bank deposits are often negative once inflation is factored in) and are attracted to the double-digit returns the trusts advertise,” the Bloomberg article stated.

According to a UBS report, trusts now account for more than a quarter of China’s estimated $3.35 trillion in nonbank lending.

Read the full article by clicking here.

Source: Bloomberg
Read full story

Recent Articles by HousingWire Staff

Comments powered by Disqus