Surreal Estate: How far will house prices fall?
Many Happy Returns
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The Cost of Mortgages
The way these mortgages are structured is usually based on swap rates. So if you have a kind of securitized derivative, which nullifies your interest rate risk then that's called an interest rate swap. The banks are probably pretty worried at the moment that there is going to be a big correction. Because if there is, then suddenly they're running a bigger risk in terms of their counterparty risk.
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