Genworth deflated by investor bubble

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Lenders mortgage insurer Genworth has just released its Q3 update and boy is its business shrinking:

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To be clear, that’s a 17% year on year fall in new business. This would be great news for systemic financial stability were it not for the fact that much the business being displaced by even more risky zero interest loans to investors.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.