US mortgage market

US mortgage market-Global banking giant HSBC Holdings plc on pessimistic view for the U.S. mortgage market.they prospects that the situation for default rate of loans slowed down slightly may not be lasting.

The issue of sub-loan triggered the current financial crisis, while HSBC is the first one of showing  problem banks. HSBC said  its U.S. consumer finance business of mortgage loans and other secured loans default in the first quarter slowed slightly,  this change should be attributed in part to the United States tax rebate, as well as HSBC lending contraction in these areas.

Geoghegan, Chief Executive Officer HSBC said in a latest report, the slowdown in loan defaults, coupled with sharp increase in trading income, the strong performance of Asian operations, as well as the bank’s own debt decrease to increase  6.6 billion U.S. dollars, HSBC achieved pre-tax profits much higher than the same period last year.

HSBC executives said that the U.S. loan default would normally  seasonally decline in the first quarter  , and the end of the year may increase again.

HSBC also pointed out that if not for its own debt decrease to achieve a significant in profits, its first-quarter pre-tax profit would have been lower than the same period last year since global rising credit losses.

HSBC Holdings Group Chairman Stephen Green (Stephen Green) said monday in an interview, we do not know whether we have been at or near the bottom of this point,which aslo can not be known in a few months.He stressed that the global economic climate is complex.

HSBC are better than many peers to withstand the test of the financial crisis, which to a large extent thanks to its Asian operations, in recent years, Asian operations contributed to almost one-third of HSBC’s profits, and to help offset the the United States and other parts of the credit losses.  which slowdown in growth in Asia in recent time, but not slowdown serious as in the United Kingdom and the United States and other markets.

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