Debt markets: The American dream turns into a nightmare

After every great party comes a reckoning. Because they overindulged sub-prime borrowers with unprecedented excess credit, US financial markets are facing a long and severe hangover. The American dream of homeownership for all has turned sour, while cleaning up the mess will be painful. Amid the finger-pointing, dislocation and illiquidity, though, fortunes will be made. Alex Chambers reports.

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JEFFREY KIRSCH, CEO of American Residential Equities (ARE), is an extremely busy man. Not that he has ever been a slacker; it is just that his line of work is booming – his company liquidates underperforming mortgage loans. In the past 10 years, Kirsch has bought and liquidated something like $1 billion of loans. However, now he envisages liquidating a much larger amount over a much shorter time horizon.

Debt markets: The American dream turns into a nightmare

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Debt markets: The American dream turns into a nightmare

Thanks for your interest in Euromoney!To unlock this article:

Awards for Excellence 2025 winners celebrate in London

Future capital markets infrastructure: Fungible, fractionalised and fused

Eastward bound: Why Gulf banks are tapping Asia’s capital markets

Islamic Finance Innovation 2025

Thanks for your interest in Euromoney!
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