Quick Links
Authorised and regulated by the Financial Services Authority
Sub-prime concerns give markets the jitters
29.06.07
A very exciting week in the markets saw the usual M&A stories overshadowed by profits warnings, mixed economic news and overall high volume as traders considered the potential fallout from sub-prime problems in the US.
In the late 1990s Northern Rock was seen as a low quality bank, languishing below 400p, were long forgotten as the group chased market share and successfully cut costs in recent years to be a star of the sector. But good things cannot last, and in the desire to keep growing, its high exposure to the UK mortgage market has now left it vulnerable to rising interest rates with it likely to undershoot previous forecasts.
Member Login
