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F&C: All asset classes hit by crisis in US
Thu, 06 Sep 2007
The sub-prime crisis in the US has hit every asset class, according to one expert in the financial services industry.

However, F&C Asset Management state investor confidence has not been affected as retail sales and investment funds rose in July.

Director of Jason Hollands commented that the big increase recorded in investment funds in July could be accounted by two reasons.

Mr Hollands stated that investors could either be seeing this opportunity as a chance to shake-up or secondly it could mean investors are working on valuations .

"Two is that other investors do tend to respond not so much to day-to-day headlines but more to valuations and valuations come out every six months on Isas [individual savings accounts] and Peps [personal equity plans]," he said.

Institution investors are still cautious in the current climate, Mr Hollands noted.

Many Americans are in danger of losing, or have already lost, their houses after taking out a sub-prime mortgage . A sub-prime mortgage compensates for the low credit rating of the borrower by agreeing a mortgage that starts on low interest rates and then gradually rising them.

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