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The proportion of loans going into shares is hotly debated (see article).
The ONS data showed the proportion of loans being turned down with no reason given doubled between 2007 and 2010, from 8%to15%5%.
In the commercial world, a bank would be on its knees if such a high proportion of loans, carrying an interest rate of 6%, failed.
The proportion of loans allocated to first-timers has remained steady throughout the crisis as parents have stumped up down-payments for their offspring.
The price paid by Erudio reflects the consortium's assessment of the proportion of loans likely to be paid back in full or in part, with the majority of the book in arrears or deferred.
And the proportion of loans in default is still rising in Portugal, Italy and Greece, he says.On October 26th the results of the ECB's review of the books of big euro-zone banks will be released.
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"For the first time, a net balance of lenders reported that the proportion of loan applications being approved had increased," the survey said.
The proportion of loan portfolio book value that a hedging portfolio requires ranges from 0.03% to 0.89%.
This March, the proportions of loans taken by finance and property slumped all the way to a trifling 74.7%, while non-financial firms took a whopping 25.3%.
Between 2007 and 2009 the proportion of their loans with a loan-to-value ratio of 70% or less rose from 31% to 49%, while the share with a loan-to-value ratio above 95% fell from 10% to 1%, according to the Federal Housing Finance Agency, their regulator.
To measure the probability of default we use the Altman's Z-Score (Altman 2000).26 As the Orbis database does not contain specific information on mortgage loans, we need to construct a proxy for the proportion of those loans on total debt.
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