Could the 2008 Crunch have been a dress rehearsal? The Daily Telegraph’s Katherine Rushton
reports America 's
sub-prime mortgage market is beginning to reheat, leading investors to warn of
the possibility of a renewed financial crisis.
Demand for sub-prime mortgage bonds, which are not backed by
US government-controlled mortgage lenders Freddie Mac and Fannie Mae, has
surged since the start of last year, as yields on treasury bonds remain low. Returns
jumped 41pc last year, and have climbed a further 12.7pc this year, according
to data from Barclays. The demand has led to fears that investors could be
taking risks so big that they will pave the way for a repeat of the financial collapse…..
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