Australian RMBS Arrears Remain Low Amid Sound Housing Market And Economic Outlook

While the losses on various RMBS vintages continue to rise, they still remain low in absolute levels, as shown in the latest issue of the Australian RMBS Performance Watch. Loans that are in arrears by more-than-30 days were 1.80% in May 2011, as measured by the Standard & Poor’s Australian prime mortgage performance index (SPIN). We consider that the outlook for the Australian housing market will remain broadly sound for 2011. Nationwide measures of housing prices have been modestly weaker since mid-2010. We expect that Australia’s sound economic outlook, featuring continued strong labor market support for household debt serviceability, will underpin the stable performance of mortgage portfolios backing Australian RMBS. To see the latest report, Australian Arrears Statistics Australia and Australian RMBS Performance Watch, click here http://www.standardandpoors.com/ratings/sf-rmbs/en/au

 

 

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