Another important feature of this offshore funding, as I will address in detail in a moment, is that the banks are not exposed to exchange rate risks as they hedge their borrowings denominated in foreign currencies.
A recently released study by the Federal Reserve Bank of  1  Reuters/University of Michigan Survey of Consumers, November 2007. BIS Review 146/2007  1  Boston attributes most of the recent rise in foreclosures in Massachusetts to declining house prices. 2 Borrowers who have lost their jobs, not surprisingly, may have difficulty meeting their mortgage payments.