The precipitous decline in the value of structured investment funds that buy risky loans used in buy-out deals has been driven by the poor performance of the loans themselves rather than by a flight from complex investments, analysts increasingly believe.

Pre-budget report: Housing and families
A £1.8bn package to help the housing sector was unveiled by the chancellor, including extra cash for social housing and improved support for people struggling to meet their mortgage bills. At the same time, the government's "mortgage tsar" warned that unless ministers use an extra £100bn of taxpayers' money to guarantee the home loans market, it could dry up completely next year. Many …