Juan Toro

RBS recently released an interesting plot that shows the percentage of delinquencies in the prime and sub prime market in the US (see attached picture). This is the origin of the current fears. Those mortgages that already have the status of delinquency will not be under the umbrella of the plan pushed by the secretary of the Treasury and released by Bush yesterday. Hence the plan will not alter the current trend. It might curb it if the plan is successful and future delinquencies are stopped. But a new trend is appearing in prime loans and for this one there is no freeze of rates.

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Posted on 7 Diciembre 2007 in Financial Markets

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