Permo under most pressure to move on mortgage rates - Davy

None of the domestic banks have followed Ulster or Bank of Scotland with their recent big tracker hikes. Davys think IL&P are under the most pressure.

5 year CDS spreads for IL&P currently about 220 bps

From Goodbody

Confirmation from RTE:

This is going to start getting painful for those who bought in the last 3 or 4 years. Lots of people are coming to their end of their introductory rates. This is going to hurt.

We have been watching the US as a lead. But this is going the opposite direction to the US. Action by the Fed has all but averted the reset problem there. Here one is on the rise.


I though 2Pack was loosing the plot when he said last week (or was it the week before) that 80% LTV’s were on the way, the accuracy of pinsters on all matters housing is so far ahead of the mainstream media it amazing sometimes.

Correct me if I am wrong, but I thought that all the Toxic mortgages in the
US were tied to the Libor Rate

Well, LIBOR is down from around 5% at the start of the year to 2.7% now. Remeber the Fed has been slashing rates.

RTE radio were all over this on drivetime. The head of marketing in the TSB sounded a bit gloomy, must be hard to put a positive spin on this for his bank. RTE were going on about .5% increases which while it affects only a few products must sound like a massive hike to any punters sitting in their cars as they embark on their commute. Hopefully some of them will remember those who told them rates would be falling this year.

Mike Shedlock has something to say about this:
globaleconomicanalysis.blogspot. … oblem.html

One year LIBOR table (more up to date than Mish’s):
(Note LIBOR down to about 2.4% - but that could just be short-term comfort lending, or as seen in the UK, banks lying about how much they are paying for loans!).

mortgage rate resets

Well said. My thoughts precisely.

You’d think a few Journo’s should notice … :cry:

But people on the pin have been wrong on so many times…

prices will not go up forever…
rent is dead money…
Tom Parlon has a red telephone to the desk of Trichet…

sure what self respecting journo would take info from this site???

That would require a bit of imagination as well as the ability to do more than just regurgitate press releases and attend free booze luncheons. My (limited) experience of Celtic Tiger media types is that they believe the hype to an unbelievable degree.

The industry is no more than a glorified PR vehicle for a particular lifestyle and it has been utterly complicit in the madness of the past few years, and is therefore blameworthy for whats coming next. Remember the constant headlines along the lines of “We’ve never had it so good”, “2nd Richest Country in the World” etc ad infinitum.

Most people are still blissfully unaware of whats just around the corner for many of them. This, despite solid evidence of what was coming having been available to the media for well over a year. GB, 2Pack and the rest have been consistently highlighting this stuff for that lenght of time (and longer). Where were most of their sources? The internet. In other words it was available to journos at their desks if they bothered looking for it!

Journalists are wordsmiths first and foremost. Their job should be to identify the facts and present them in a concise manner using the tools at their diposal ie their command of language. Most in Ireland seem to enter the industry with a view to becoming social commentators or columnists.

Of course its possibly understandable considering that one person controls practically all the media outlets. Celtic Tiger Ireland’s Department of misinformation?

It really does amaze me that the media coverage into Irish companies (particularly plcs), is just a regurgitation of the press release info (based on the directors report). No analysis goes into the actual figures (ie your press release might say one thing but your p&l and bs say another). There is a particular business journalist on the radio in the mornings who just tells us if the ISAQ is up or down and gets his business news from

Do the US and the UK use the same LIBOR?

LIBOR stand for London Interbank Offered Rate. It simply means it is the rate quoted in London money markets. There is also Euribor quoted in Frankfurt money markets.

LIBOR and Euribor come in lots of flavours, €US, Sterling, Yen etc. etc. You can borrow and lend in what ever currency you want.