Financial Times FT.com

Monolines

Subprime saga packs a global punch

By Gillian Tett in London

Published: March 25 2008 22:01 | Last updated: March 25 2008 22:01

As the subprime saga has unfolded in recent months, it has packed a powerful – and somewhat unexpected – ­globalisation punch.

For while subprime loans are rooted in the heart of the US, the credit risk from mortgage-backed securities based on such loans has been scattered all over the world – and losses have ­consequently cropped up in institutions ranging from Australia to Norway.

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