Quote:
Originally Posted by JMBroad
Unfortunately I doubt that the mortgage situation in Germany for foreigners will improve very quickly in the short term future.
With regards to Subprime ripple effects in Germany, there are some pretty impressive ripples.
Just recently Bayern LB announced a write down of 4.3 bn Euros, West LB revealed a net loss of 1.6 billion euros in 2007, Deutsche Bank AG expects write-downs of around 2.5 billion euros in the first quarter of 2008 and UBS projected around 7 billion euros (12.5 bn CHF) in write downs.
IKB of course was the first to announce expected losses back in 2007 however the expected 800m loss was recently announced to be "only" 200m.
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You are right, but although writedowns and credit situation is not really improving, German banks I am in touch with did tell me that they are still willing to finance some acquisitions. Spreads vs swaps will undoutedly be wider but I am told that max LTV has not changed if rental yield and location is correct.