laitimes

"Fire-sale" Fire selling, selling fire?

author:Imprint of Learning

Take a look at "Residential property" in The Economist January 8th 2022 Finance & Economics

One of the passages in this article is a look..

"Fire-sale" Fire selling, selling fire?

The Economist January 8th 2022 Finance & economics

Fire-sale sale of damaged items in a fire-sale; sale of the company (or part of the business) at a low price (due to bankruptcy or urgent need for funds)

As appropriate, it is translated as "big sale", "big hemorrhage", "jump price", "selling" and so on.

"Fire-sale" Fire selling, selling fire?
"Fire-sale" Fire selling, selling fire?
"Fire-sale" Fire selling, selling fire?

Try translating this passage:

People are also less vulnerable to rising interest rates—and thus less likely to be foreclosed on, which often leads to fire-sales and drags down prices—than you might think. In part this is because rates are rising from a low base. In America mortgage-debt-service payments take up about 3.7% of disposable income, the lowest figure on record. But it is also because other countries are following America down the fixed-rate-mortgage path, which in the short term protects people against increases in borrowing costs. In Germany long-term fixed products are twice as popular as they were a decade ago. In Britain almost all new mortgages are fixed-rate, with five-year deals now more common. According to UK Finance, a trade body, nearly three-quarters of all mortgage borrowers will in the near term be unaffected by the Bank of England’s recent rate rise.

Unlike you might think, people are also very vulnerable to rising interest rates – so they are less likely to be foreclosed, which often leads to low-price sales and drags down prices. In part, this is because interest rates are rising on a low base. In the United States, mortgage debt service payments accounted for about 3.7 percent of disposable income, the lowest figure on record. But it's also because other countries are following the U.S. in the footsteps of fixed-rate mortgages, which can protect people from rising borrowing costs in the short term. In Germany, long-term fixed products are twice as popular as they were a decade ago. In the UK, almost all new mortgages are fixed rates, and five-year deals are now more common. According to trading arm UK Finance, nearly three-quarters of mortgage borrowers will not be affected by the Bank of England's recent rate hikes in the near future.

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