Finance
Mortgage Bonds Rattle Wall Street Anew With Invesco Joining Pain
- Invesco Mortgage Capital says it can’t meet margin calls
- Funds raced over the weekend to offer billions in assets
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The $16 trillion U.S. mortgage market -- epicenter of the last global financial crisis -- is suddenly experiencing its worst turmoil in more than a decade, setting off alarms across the financial industry and prompting the Federal Reserve to intervene.
Unlike last time, risky mortgages aren’t the cause. Instead, the coronavirus pandemic is threatening to make good loans go bad -- and simultaneously sapping the market’s funding. There are fears that government efforts to shore up borrowers and financing won’t be enough and that mortgage and property investors again face massive losses.