In Australia, Standard & Poor’s Ratings Services is now providing more features in its quarterly RMBS Performance Watch report. The latest edition includes a state-by-state breakdown of low-documentation (low-doc) loans underlying Australian RMBS, the arrears performance over time of investment loans compared with owner-occupied loans, the arrears performance of loans in metropolitan versus nonmetropolitan areas, and a list of the 10 worst-performing postcodes.
According to Standard & Poor’s director Narelle Coneybeare, these features have been added to provide the market with greater transparency and show the trends of different performance attributes over time across the entire prime RMBS portfolio.
Among the findings in the latest report, the state of Western Australia recorded the nation’s highest level of arrears in the second quarter (1.87%), followed by Queensland (1.82%), and New South Wales (1.77%). In addition, half of the 10 worst-performing postcodes in Q2 were in coastal areas, with a majority in New South Wales. Meantime, investment loans exhibited marginally better arrears performance in the quarter.
The full overview, “Australian RMBS Performance Watch,” for the quarter ended June 30, 2012, can be found here:
Standard & Poor’s will continue to separately publish its Australian RMBS Arrears Statistics and the Standard & Poor’s Mortgage Performance Index (SPIN) data on a monthly basis. SPIN is a measure of arrears on residential mortgage loans underlying RMBS transactions, both publicly and privately rated by Standard & Poor’s.