From: "Doug Ramage" 
Newsgroups: uk.finance
Subject: Re: Mortgages based on LIBOR rate
Date: Sat, 15 May 2004 13:06:02 +0100


"john boyle"  wrote in message
news:raMqQFtmIfpAFwGO@johnboyle1.demon.co.uk...
> In message <2gm73oF4b2apU1@uni-berlin.de>, Doug Ramage
>  writes
> >
> >Have you considered that if the £ to US$ forex rate moved against you by,
> >say, 10%, then your £200K loan has just increased by £20,000? :(
> >
> >There might even be a compulsory conversion & lock-in clause which means
the
> >losses are permanent.
>
> If its the deal I think it may be, then it isnt denominated in US
> Dollars despite tracking their interest rate.
> --
> John Boyle


You could well be right, John. I have not looked  at the T&Cs. But if you
are, someone must be taking the capital forex risk? No doubt with some
highly complex derivatives structure?
--
Doug Ramage