Bank of Ireland - UK Mortgage Quality

Merrion Capital report

Don’t look too bad, although it does say it’s too early to tell.
How does this compare to the Yanks’ Banks?
Where could one find details of their Irish mortgage book?

Such nice numbers are fairly meaningless for the future. While things are booming and house prices are going up, the few people who do find themselves unable to pay the mortgage just sell up and clear it (and if they don’t the bank ‘suggests’ it). As such, there’s no real reason for bad debts to occur or to hang around long - the sale will probably go through before the mortgage even gets to bad debt status.

Of course, this wonderful state of affairs is why really dodfy CDOs etc were rated so highly - there was almost no bad debts systemwide, what little there was was non-correlated, so CDOs were a no-brainer profit machine.

The US is further along the line now, house prices have peaked, bad debts are happening and sticking around due to negative equity and inability to sell - i.e reality strikes back.