It also stands in sharp contrast to the speculation, in the years leading up to the euro’s debut, that there might be a massive and rapid reallocation of investor portfolios out of dollars and into Europe’s new currency. Some experts estimated that such a reallocation of official and private portfolios could total in the range of $ billion to $ trillion.
More of these are being taken out by highly indebted households, and a growing share of borrowers is choosing an amortization period longer than 25 years. Last month, the Office of the Superintendent of Financial Institutions announced enhanced guidelines for low-ratio mortgages that are similar to the changes announced for mortgage insurance last autumn.