Global Subprime: Eye On UK [Housing Tracker]

Seeking Alpha's Housing Tracker is a collection of housing-related excerpts from various sources, grouped by topic. Feel free to post any interesting links on the subject in the comments section below.

Global Subprime

UBS Has `Small' Profit, Reduces Mortgage Holdings. “UBS AG, the European bank with the biggest losses from the global credit crisis, had its first profit in more than a year in the third quarter after reducing holdings of mortgage-related securities… The company, which “substantially reduced its U.S. commercial and residential mortgage-related positions,” forecast 2009 will be a profitable year. CEO Marcel Rohner and Chairman Peter Kurer, under pressure to halt redemptions by wealthy clients and record share price declines, will brief shareholders today on plans to overhaul the board after abandoning predecessor Marcel Ospel's decade-long expansion into investment banking.” (Bloomberg, Oct. 2)

Sigma's Fall Could Worsen Market's Pain.  “The latest wave of financial turmoil has crippled $27 billion London-based investment fund Sigma Finance Corp… Sigma faced imminent liquidation Wednesday after a drop in the value of its investments, which included Lehman debt, forced it to default on its borrowing agreements. The default will likely leave investors in some $6B of Sigma's own debt holding paper worth as little as $0.15 on the dollar, and allows banks that lent to Sigma to sell some $25B in collateral, consisting largely of bank-issued bonds. If the banks sell, they could worsen the pain in credit markets.” (WSJ, Oct. 2)

U.K. House Prices Fall Most on Year Since 1991, Nationwide Says. “U.K. house prices had the biggest annual drop since at least 1991 in September as the financial crisis intensified, Nationwide Building Society said. The average cost of a home plunged 12.4% from a year earlier to £161,797 ($287,658), the largest decline since the survey started 17 years ago, the mortgage lender said. Prices fell 1.7% from August, the 11th monthly drop.” (Bloomberg, Oct. 2)

Hedge Funds Blocks Client Withdrawals. “Guy Wyser-Pratte has blocked withdrawals from his hedge fund after the veteran New York arbitrageur and activist warned that the “calamitous” market conditions were the worst since he started trading in the 1960s. Wyser-Pratte Eurovalue, a $500m fund campaigning for change at mid-sized companies across Europe, suspended withdrawals on Tuesday after some clients asked for their money back. The fund is the latest to be hit by withdrawals amid a wave of redemptions that many in the industry are warning could prompt further sales of assets to raise cash to meet redemptions.” (Financial Times, Oct. 1)

                                           

Get Seeking Alpha's housing market coverage by email -- it's free and takes only seconds to sign up.