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According to a half-yearly review by the Reserve Bank of Australia (RBA), the majority of Australian borrowers are still able to manage their debts, with only a small share experiencing severe financial stress. The RBA warned of potential risks to the banking system, including excessive debt if households respond to improved financial conditions. The RBA also highlighted the potential dangers of boom-bust asset price cycles, particularly in the residential property market. While Australian households are under pressure due to floating-rate mortgages, the RBA stated that Australian banks are resilient and well-prepared for potential increases in loan arrears. The review also identified other areas of risk, such as the digitization of the financial system, low risk premia in global credit and equity markets, and imbalances in China's financial sector. [Extracted from the article]

Prime Minister Justin Trudeau's government in Canada is implementing new mortgage rules in an effort to appeal to younger voters. The changes will make 30-year mortgages available to all first-time buyers and buyers of newly built homes. The government will also increase the cap on mortgage default insurance to C$1.5 million, allowing buyers to bid on more expensive homes with less than a 20% down payment. These reforms aim to increase homeownership for younger Canadians. However, there are concerns that these changes may inflate housing prices and increase debt burdens for households. [Extracted from the article]

Prime Minister Justin Trudeau's government in Canada is implementing new mortgage rules in an effort to appeal to younger voters. The changes include making 30-year mortgages available to first-time buyers and buyers of newly built homes, as well as increasing the cap on mortgage default insurance to homes valued up to C$1.5 million. These reforms aim to increase homeownership for younger Canadians. The move comes as Trudeau and Finance Minister Chrystia Freeland focus on housing as a key economic issue, but their efforts have not yet improved Trudeau's standing in public opinion polls. [Extracted from the article]

Prime Minister Justin Trudeau's government in Canada is implementing new mortgage rules in an effort to appeal to younger voters. The changes include making 30-year mortgages available to first-time buyers and buyers of newly built homes, as well as increasing the cap on mortgage default insurance to homes valued up to C$1.5 million. These reforms aim to increase homeownership for younger Canadians. Trudeau's popularity has declined among various age groups, and the high cost of housing is believed to be a significant factor. Despite previous efforts to address housing issues, Trudeau's position in public opinion polls has not improved. [Extracted from the article]

UK banks are preparing for a potential increase in mortgage defaults as homeowners are forced to refinance at high borrowing costs. Default rates rose in the second quarter and could see the largest increase in a year, according to the Bank of England's credit conditions survey. While the survey suggests that demand for mortgages is recovering, it also highlights the strain caused by 14 consecutive interest rate hikes. Lenders anticipate a slight increase in mortgage supply in the third quarter and have observed rising demand for home loans despite high mortgage rates. The Bank of England may begin cutting rates in August or September, but a cautious approach is expected due to ongoing price and wage pressures. Mortgage rates have risen since the beginning of the year, with the average 2-year fixed mortgage rate currently at 5.92%. The survey also revealed a slight increase in defaults on credit cards in the second quarter, with no change expected in the third quarter. Demand for credit card borrowing has risen recently but is predicted to decline as household finances improve. [Extracted from the article]

Canada is changing its regulations on mortgages to allow first-time homebuyers to take out 30-year loans for newly built homes. The change, which will come into effect on August 1, is aimed at addressing the housing shortage and making homeownership more affordable for younger Canadians. The current 25-year limit on amortizations will be extended to 30 years, resulting in lower monthly payments. However, economists warn that without addressing the supply issues, this change may drive prices upward in the long run. Additionally, existing homeowners who have stretched their mortgage amortizations due to financial hardship may be able to keep those longer repayment periods without fees or penalties. [Extracted from the article]

Canada will allow first-time homebuyers to take out 30-year mortgages for newly built homes, starting from August 1. The change is aimed at younger voters who have been struggling with high housing prices and interest rates. Canada is facing a significant shortage of homes to accommodate its growing population, and the government hopes that this move will help boost development. The current 25-year limit on amortizations for insured mortgages has been in place since 2012. Additionally, existing homeowners who have extended their amortization periods due to financial hardship may be able to keep those longer repayment periods without fees or penalties. First-time homebuyers will also be able to withdraw more money from their registered retirement savings plans for a downpayment, with the legal limit being raised to C$60,000 from C$35,000. [Extracted from the article]

Canada will be allowing first-time homebuyers to take out 30-year mortgages for newly-built homes starting from August 1. This change is aimed at younger voters who have been struggling with high housing prices and interest rates. Currently, the limit for insured mortgages is 25 years, but this will be extended to 30 years to lower monthly payments and make homeownership more affordable for younger Canadians. The decision to increase the mortgage term comes after Canada previously experimented with 40-year mortgages but reversed course due to the global financial crisis in 2008. [Extracted from the article]

According to a survey by the Bank of England, UK lenders anticipate an increase in demand for mortgages in the coming months, despite a rise in defaults on home loans and credit cards due to high interest rates. The survey also revealed that there was a decrease in demand for secured lending in the last quarter of 2023, but lenders expect a rebound in the first quarter of 2024. The housing market is showing signs of stabilization as mortgage rates have fallen, attracting more buyers. However, the survey also highlighted the impact of 14 consecutive interest rate hikes by the Bank of England on households, with default rates on mortgages and unsecured lending increasing and expected to rise further in the first quarter of 2024. [Extracted from the article]

The article discusses the impact of the debt bubble burst on China's real estate market and the broader economy. It highlights how the Chinese government's crackdown on property speculation has led to defaults on debt, unfinished projects, and protests by homeowners. The article also explores President Xi Jinping's goal of creating a more sustainable housing market and reducing speculation. However, the campaign to clean up real estate risk has left people feeling poorer and has undermined consumer spending and investment. The article concludes by mentioning the challenges faced by the government in balancing the need for people to spend while addressing oversupply in the market. [Extracted from the article]

China South City Holdings Ltd., a company partially owned by the city of Shenzhen, has received a reprieve from creditors after they agreed to extend the maturity date and lower the coupon on one of its dollar bonds. This agreement has helped the company avoid default for now, but it still faces challenges as it seeks to negotiate with bondholders on four other dollar bonds. The company's next payment test is scheduled for December 26, and it will have a 30-day grace period before a potential default. Despite these difficulties, recent developments in China's property industry, such as Country Garden Holdings Co.'s early bond payoff, suggest that the sector may be able to avoid further defaults in the near future. China South City had previously indicated that it did not have enough resources to make the interest payment, and it had requested that creditors vote to extend maturity and lower interest on all five dollar bonds. However, the consent solicitation for the other four notes has lapsed, and the agreement to delay the maturity date on the 2027 note is separate from the negotiations on the other bonds. The company has not yet acquired enough votes from bondholders for the four other notes. China South City was one of the first companies in China's property sector to receive a state bailout. Country Garden, another major developer, also paid off a bond ahead of schedule to prevent its own debt crisis from worsening. A senior Chinese housing official has pledged to help developers avoid debt defaults. [Extracted from the article]

China South City Holdings Ltd., a state-backed property developer, has avoided defaulting on a dollar bond interest payment. Creditors agreed to extend the maturity of the bond and lower its coupon, providing relief to China's struggling property sector. The bond, with $235 million of principal outstanding, has a grace period for the interest payment that ends on Wednesday. This development comes after a senior Chinese housing official pledged to prevent a cascade of debt defaults by developers. [Extracted from the article]

Chinese developer Country Garden Holdings Co. has taken steps to prevent its debt crisis from worsening by paying off a yuan note ahead of schedule and selling a stake in a mall operator. The company's onshore unit, Country Garden Real Estate Group Co., repaid an 800 million yuan bond and sold an investment in Zhuhai Wanda Commercial Management Group Co. to raise cash for offshore debt restructuring. These moves have provided relief to investors following a previous bond default and have come after a commitment from a top housing official to avoid further debt defaults by developers. However, challenges remain in resolving offshore debt and reviving property sales. [Extracted from the article]

Chinese Vice Minister of Housing and Urban-Rural Development, Dong Jianguo, has vowed to prevent a wave of debt defaults by property developers in order to address the escalating real estate liquidity crisis. Dong stated that China will take measures to ensure that developers do not default on their debts all at once, and regulators will assist builders in meeting their financing needs and resolving short-term cash problems. This statement is significant as Chinese authorities have typically avoided directly commenting on developer defaults. The government has implemented various measures to support the property market, but these efforts have largely failed, with home sales declining and buyers remaining cautious. Dong also emphasized that financially sound developers will be eligible for government support, while those that violate regulations and lose operating capabilities should be liquidated under the rule of law. [Extracted from the article]

Canada's banking regulator, the Office of the Superintendent of Financial Institutions, has decided to maintain the stress test it imposes on mortgage borrowers. The stress test for uninsured mortgages, known as the minimum qualifying rate, will remain at 5.25% or the bank's contract rate plus 2 percentage points. The regulator believes that this test has contributed to a resilient residential mortgage financing system with low default and delinquency rates. While some in the real estate industry have called for an end to the stress test to improve housing affordability, the Finance Minister supports it as a buffer for home buyers and protection against changing economic circumstances. [Extracted from the article]

Latvia's parliament is considering legislation that would reduce mortgage interest rates for one year, potentially impacting Nordic lenders in the Baltic region. The proposed cuts come after the European Central Bank raised rates, leading to demands for relief for households. However, the financial sector has criticized the proposal for not being targeted and raising legal risks. [Extracted from the article]

(Bloomberg) -- Bank of England Chief Economist Huw Pill said interest-rate decisions are becoming "finely balanced", hours after new growth figures highlighted the toll taken by the battle against inflation. UK Interest Rates "Finely Balanced" as BOE Inflation Fight Bites The BOE kept rates unchanged at 5.25% last month amid signs that inflation is coming under control. [Extracted from the article]

The Bank of England's quarterly credit conditions survey found that lenders decreased the supply of mortgages in the third quarter and will restrict availability further in the coming months. (Bloomberg) -- UK banks expect to tighten a squeeze on the mortgage market in the coming months as high interest rates stretch affordability and loan defaults pick up. [Extracted from the article]

The article looks at rental housing in the U.S., focusing on the problems for small landlords caused by tenants unable to pay rent due to the job loss associated with the COVID-19 pandemic. Topics include the moratorium on evictions enacted by some states, the share of rental apartments in the U.S. owned by small landlords, and the likelihood of a wave of mortgage defaults and foreclosures among them.

(Bloomberg) -- Lenders to one of India's hottest tech startups, Byju's, created bogus default claims tied to $1.2 billion in loans as part of a scheme to gain control of the education-technology provider, the firm's lawyer told a judge. An attorney for the lenders Friday waved away Korpus's claims, noting Byju's had repeatedly violated the loan agreement's terms and acknowledged the defaults. [Extracted from the article]

In many cases, the interest rates on those loans have already risen so much that the borrowers' set payments are no longer enough to cover even the monthly interest, causing the size of the loan to increase. (Bloomberg) -- Canadian banks need to take steps to assist mortgage holders who are struggling to stay above water after a rapid spike in interest rates, according to new guidelines issued Wednesday. [Extracted from the article]

Brookfield and MetLife Inc. recently worked out a modification to the loan on a Denver office building called Republic Plaza that went into special servicing, according to a spokesperson. (Bloomberg) -- Brookfield Asset Management Ltd. is seeking to kick off talks with lenders on debt for a downtown Brooklyn office tower ahead of the loan's maturity. [Extracted from the article]

The White House has argued House Republicans would have won spending curbs in any budget agreement and the debt-limit deal also left untouched Biden's legislative achievements. (Bloomberg) -- President Joe Biden signed legislation averting a US debt default, sidestepping a catastrophic blow to the economy with a bipartisan victory that defied Washington expectations. [Extracted from the article]

A White House statement announcing the signing thanked congressional leaders, including McCarthy and Senate Republican leader Mitch McConnell, "for their partnership." (Bloomberg) -- President Joe Biden signed legislation averting a US debt default, sidestepping a catastrophic blow to the economy with a bipartisan victory that defied Washington expectations. [Extracted from the article]

Read more: CDS Panel Says Credit Suisse AT1 Wipeout Won't Prompt Payout The cost of insuring against Credit Suisse Group's subordinated bonds had been rising in the past few weeks. (Bloomberg) -- Credit default swaps tied to Credit Suisse Group AG subordinated debt are tumbling after a panel ruled that the wipe-out of the Additional Tier 1 notes won't trigger a payout. [Extracted from the article]

(Bloomberg) -- Credit default swaps tied to Credit Suisse Group AG subordinated debt are tumbling after a panel ruled that the wipe-out of the Additional Tier 1 notes won't trigger a payout. Read more: CDS Panel Says Credit Suisse AT1 Wipeout Won't Prompt Payout The cost of insuring against Credit Suisse Group's subordinated bonds had been rising in the past few weeks. [Extracted from the article]

(Bloomberg) -- After riding the relentless credit boom of the past decade, some of the biggest players in the $1.4 trillion private credit market are now amping up hiring of restructuring pros as they brace for an uptick in defaults. "With such a high demand for restructuring experts, no one will move for a 10% bump in salary", said Todd Downing, managing partner at recruitment firm Best Human Capital & Advisory Group. [Extracted from the article]

BOE rate-setters have warned that the UK economy will be dampened if lenders respond by curbing credit. (Bloomberg) -- British banks expect to put the squeeze on the mortgage market in the coming months after signs emerged of business and household loan defaults picking up. [Extracted from the article]

BOE rate-setters have warned that the UK economy will be dampened if lenders respond by curbing credit. (Bloomberg) -- British banks expect to put the squeeze on the mortgage market in the coming months after signs emerged of business and household loan defaults picking up. [Extracted from the article]

Lenders said that default rates on mortgages, unsecured credit to households and loans to small and medium-sized businesses all rose in the first quarter and are expected to increase further. (Bloomberg) -- British banks expect to put the squeeze on the mortgage market in the coming months after signs emerged of business and household loan defaults picking up. [Extracted from the article]

(Bloomberg) -- Hospitals have hit another unfortunate milestone. It was the highest first-quarter count of hospital borrowers disclosing a default since 2011, according to MMA's Matt Fabian and Lisa Washburn. [Extracted from the article]

(Bloomberg) -- The prospectus for Blackstone Inc.'s now-defaulted commercial mortgage-backed security extolled the central location and tenants of its top holdings. Blackstone Inc. defaulted on a €531 million bond backed by a portfolio of Finnish offices that it put together when it acquired landlord Sponda Oy in 2018. The loan was originated by Citigroup Inc. and Morgan Stanley and, at the time of the downgrade, was secured against 45 properties in Finland, according to Fitch, which added that €297.1 million of the senior loan remained outstanding. [Extracted from the article]

(Bloomberg) -- The prospectus for Blackstone Inc.'s now-defaulted commercial mortgage-backed security extolled the central location and tenants of its top holdings. Blackstone defaulted on a €531 million bond backed by a portfolio of Finnish offices that it put together when it acquired landlord Sponda Oy in 2018. Read more: Blackstone Defaults on Nordic CMBS as Property Values Wobble The loan underlying the notes has now matured and has not been repaid, prompting loan servicer Mount Street to determine a default, according to a statement Thursday. [Extracted from the article]

(Bloomberg) -- Mortgage lending is expected to grow at its slowest rate in more than a decade amid Britain's rising interest rates and falling house prices, according to a report published Monday. That's due to a toxic mix of rising borrowing costs, inflation-squeezed incomes and house prices that are falling but still very high by historical standards. [Extracted from the article]

(Bloomberg) -- New York Digital Investment Group, one of the largest crypto lenders, is repossessing 27,403 machines from bankrupt miner Core Scientific Inc. as the company seeks to extinguish a loan. The mining company received a court approval to ship those machines to NYDIG in the coming months, eliminating a $38.6 million machine-backed loan. [Extracted from the article]

(Bloomberg) -- New York Digital Investment Group, one of the largest crypto lenders, is repossessing 27,403 machines from bankrupt miner Core Scientific Inc. as the company seeks to extinguish a loan. The mining company received a court approval to ship those machines to NYDIG in the coming months, eliminating a $38.6 million machine-backed loan. [Extracted from the article]

Though not exactly a household name, Shenzhen-based Ratingdog has slowly been carving out a name for itself within China's corporate-bond community by flagging risks well before defaults occur. The new rules also encourage unsolicited ratings from agencies and investor-paid services, which is Ratingdog's business model. (Bloomberg) -- A spate of defaults by Chinese borrowers with seemingly impeccable onshore ratings has left antsy investors in the world's second-largest credit market craving credible research to distinguish good debt from bad. [Extracted from the article]

Though not exactly a household name, Shenzhen-based Ratingdog has slowly been carving out a name for itself within China's corporate-bond community by flagging risks well before defaults occur. The new rules also encourage unsolicited ratings from agencies and investor-paid services, which is Ratingdog's business model. (Bloomberg) -- A spate of defaults by Chinese borrowers with seemingly impeccable onshore ratings has left antsy investors in the world's second-largest credit market craving credible research to distinguish good debt from bad. [Extracted from the article]

The new rules also encourage unsolicited ratings from agencies and investor-paid services, which is Ratingdog's business model. Though not exactly a household name, Shenzhen-based Ratingdog has slowly been carving out a name for itself within China's corporate-bond community by flagging risks well before defaults occur. (Bloomberg) -- A spate of defaults by Chinese borrowers with seemingly impeccable onshore ratings has left antsy investors in the world's second-largest credit market craving credible research to distinguish good debt from bad. [Extracted from the article]

Smaller rival Bank of Communications Ltd. last week reported bad loans to real estate jumped 79%, while China Merchants Bank Co. has reported a doubling of its ratio of non-performing real estate loans. (Bloomberg) -- Agricultural Bank of China Ltd., the nation's third-largest bank by assets, said it's facing 1.23 billion yuan ($178 million) in overdue loans, nearly double a previous estimate, from a mortgage boycott on unfinished projects that has swept the country. [Extracted from the article]

(Bloomberg) -- Shares of Chinese developers jumped by the most in nearly a month following a report that the nation's banking regulator urged lenders to support the sector amid a growing mortgage boycott. Investors got some relief after local media reported the China Banking and Insurance Regulatory Commission has asked lenders to provide credit to eligible developers so they can complete halted projects. [Extracted from the article]

Investors got some relief after local media reported the China Banking and Insurance Regulatory Commission has asked lenders to provide credit to eligible developers so they can complete halted projects. (Bloomberg) -- Shares of Chinese developers jumped by the most in nearly a month following a report that the nation's banking regulator urged lenders to support the sector amid a growing mortgage boycott. [Extracted from the article]

(Bloomberg) -- China may allow homeowners to temporarily halt mortgage payments on stalled property projects without incurring penalties, people familiar with the matter said, as authorities race to prevent a crisis of confidence in the housing market from upending the world's second-largest economy. Under a yet-to-be-finalized proposal from financial regulators, hundreds of thousands of buyers of stalled homes would be allowed to pause mortgage payments with no impact on their credit scores, the people said, asking not to be identified discussing a private matter. [Extracted from the article]

Voyager said it has accessed $75 million of the credit line from Alameda and it may further dip into the funds as needed to facilitate customer orders and withdrawals. (Bloomberg) -- Crypto broker Voyager Digital Ltd. said it has issued a notice of default to Three Arrows Capital, the troubled crypto hedge fund, on a loan worth roughly $675 million based on Bitcoin's price on Monday. [Extracted from the article]

(Bloomberg) -- Sri Lanka was sued in the US by a bondholder after the South Asian nation defaulted on its debt for the first time in history while struggling to stop an economic meltdown. Hamilton Reserve Bank Ltd., which holds more than $250 million of Sri Lanka's 5.875% International Sovereign Bonds due July 25, filed the suit Tuesday in a New York federal court seeking full payment of principal and interest. [Extracted from the article]

(Bloomberg) -- Sri Lanka was sued in the US by a bondholder after the South Asian nation defaulted on its debt for the first time in history while struggling to stop an economic meltdown. Hamilton Reserve Bank Ltd., which holds more than $250 million of Sri Lanka's 5.875% International Sovereign Bonds due July 25, filed the suit Tuesday in a New York federal court seeking full payment of principal and interest. [Extracted from the article]

"Whichever bank provides a lifeline to a developer will have to shoulderthe risk, and why would a developer take on more debt without seeingbetter sales prospects?" (Bloomberg) -- Chinese banks are facing growing pressure to supportcash-strapped developers after months of pleas by regulators failed toboost lending to the industry. [Extracted from the article]

May 20 KEY RATE CUT: Chinese banks cut a key interest rate for long-term loans by a record amount, a move that would reduce mortgage costs and may help counter weak loan demand. (Bloomberg) -- China is stepping up efforts to salvage the residential property market as consumer and business confidence has been battered by lockdowns. April 20 HOMEBUYER HELP: Financial institutions should improve loan policies and flexibly adjust home-mortgage payments for individuals that are affected by Covid outbreaks, according to China's central bank. [Extracted from the article]