Borrowing Costs

Mortgage Rates Tumble To 6-Month Lows

After a week of dismal housing data, a silver lining perhaps. The spike in U.S. mortgage rates since the November presidential election has been cut in half.

ECB Warns Of "Excessive Exuberance" In House Prices; Sees Financial Instability Due To Higher Yields

In an unexpected two-part warning from the ECB, the European Central Bank warned of “excessive exuberance” in some European housing markets, driven by offshore buyers, that could spread to other areas in a “ripple effect.” Separately, the ECB also said "debt-sustainability concerns" have risen in the past six months amid a potential increase in yields and political uncertainty in some countries.

Asia Jumps, Europe Stutters As Political Rumblings Return; Oil Nears $51

Global stocks were mixed to start the week, with Asian stocks higher, European stocks initially advancing then fading gains, while S&P futures are little changed after the biggest weekly drop since April (which for those keeping record was -0.4%). European shares, the euro and the pound all stumbled on Monday as rumblings in Spain, Britain and Brussels reminded investors that the region still has plenty of political uncertainty left in the tank.

What's The Worst That Could Happen?

The last time the stock/bond ratio was this elevated, it didn’t work out well for investors as volatility spiked, equity prices plunged and the “sprint for safety” send bond prices surging.

Oil Fireworks Unsettle Global Markets Ahead Of Payrolls Report

With all eyes on crude, following last night's mini flash crash which sent WTI lower by 3% from just above $45 to under $43 in under 10 minutes, equity markets, generally quiet overnight, have taken on a secondary importance ahead of today's key risk event, the April payrolls report. In global equities, Asian and European stocks are lower, while S&P futures are little changed.

Home Capital Uses Up $1 Billion "Lifeline", Seeks Additional Funding

Home Capital Group is "actively seeking expanded sources of funding" as it has drawn half of its C$2b rescue loan. “This is a fluid situation, and we are optimistic our challenges are temporary,” said Pino Decina, executive vice president of residential mortgage lending.

The Least Explicable Bubble Of All

Of all the mini-bubbles now inflating out there, maybe the least explicable is the race among emerging market companies to borrow dollars. This has gotten them – and their governments — in huge trouble so many times in the past that you’d think dollar debt would be kind of a hot stove thing for Brazilians and Mexicans.