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Crosby could be catalyst for recovery, claims Knight

Checkmate Mortgages executive chairman Stephen Knight believes that pension funds will be quick to buy up mortgage-backed securities and reinvigorate the market if the Crosby report is implemented.

Knight says the report could be the catalyst to bring in new mortgage investment in 2009.

He says: “If you tell the investor that the Government will step in, they will see Government-backed bonds with excellent yields and that might attract new types of investor. Pension funds and life insurance funds might be interested, with high returns and a liquid market. It will certainly attract previous buyers of mortgage-backed assets. By next summer, the idea of buying post-crunch assets at a return of 10 times what they enjoyed pre-crunch will be very enticing.”

But Knight says there are several hurdles to overcome if the plan is to succeed, such as getting the support of the Bank of England and European Commission approval.


Knight rdr

Leaving last week’s FSA conference on the retail distribution review, it was very obvious to me who was the clear winner of the contest – Stephen Hadrill of the Association of British Insurers.

The Rubik’s Cube: China’s policy trilemma

By Douglas Turnbull, Investment Director, Head of Chinese Equities China faces a ‘Rubik’s Cube’ policy trilemma, whereby it needs to sustain a minimum acceptable level of growth, deal with issues such as overcapacity and reform the financial system to make it a far more efficient allocator of capital. Given the contradictory nature of these objectives, […]


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