Markets were remarkably unmoved by Washington’s political theater over the debt ceiling. The fall in stocks was limited. Any bounce from this weekend’s deal was quickly overshadowed Monday by more bad news on the U.S. economy. But, in an obscure corner of the stock market, investors did get a reminder of the risks still lurking in the system—in particular, Wall Street’s popular practice of depending heavily on short-term funding to finance long-term investments. At the height of the debt-ceiling uncertainty on Friday, a handful of mortgage real-estate investment trusts suffered a mini flash crash.
Debt ceiling’s overlooked flash crash
Most Popular Articles
Latest Articles
Major homebuilder objects to proposed NAR settlement
PulteGroup, one of the largest U.S. homebuilders, says it requires more information before deciding to remain in the class.
-
How AI will transform the mortgage and appraisal industries
-
First Federal Bank to acquire Watson Mortgage Corp.
-
Elevated mortgage rates, home prices harm affordability: Redfin
-
FHFA annual report highlights GSE actions on affordable housing
-
G-Rate sued for gender discrimination, sexual harassment, unpaid comp