The severe lack of credit around the globe and the unwillingness of banks to lend capital to their clients as well as each other have been dubbed the “credit crunch” by the media.
The securitisation of sub-prime US mortgages and their subsequent re-sale and collateralisation has led to far reaching problems for the vast majority of businesses and investors around the world.
Investors have been taking cover from risk and volatility in stock, bond, property and credit markets by holding cash in preference to other assets.
