Financial Times (August 22)
“China has slashed its mortgage lending rate for the second time this year as the country’s central bank seeks to limit the fallout from a liquidity crisis in the property sector.” While this may “reduce borrowing costs on new mortgages nationwide and provide a boost to the country’s debt-laden real estate sector,” it is unlikely to fix the “crisis of confidence faced by Chinese developers.”
Tags: Borrowing costs, Central bank, China, Crisis of confidence, Debt-laden, Fallout, Lending rate, Liquidity crisis, Mortgage, Property sector, Real estate, Slashed
Reuters (June 26)
“World stocks have been on a rollercoaster ride in the first half of 2020. Having slumped 35% from Feb. 20 to March 23, they are now within 10% of February’s record highs thanks to lashings of fiscal stimulus, interest rates slashed to 0% or below in most major economies, and massive amounts of QE. Borrowing costs for high-grade U.S. companies have in fact fallen below January levels.” The rest of the year could bring more roller coaster. “Much depends on whether another coronavirus wave comes crashing down,”
Tags: Borrowing costs, Fiscal stimulus, High-grade, Interest rates, QE, Rollercoaster, Slashed, Slumped, Stocks, U.S.
