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Arrears on loans underlying Australian prime residential mortgage-backed securities (RMBSs) decreased by two basis points to 1.31 per cent in May 2013.
According to a recent report by Standard & Poor’s Ratings Services, the total prime RMBS outstanding declined to $108 billion.
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Subprime RMBS arrears fell 16 bps to 5.57 per cent in May.
Low doc loans decreased by four basis points to 5.40 per cent during the same month.
"This is the second month to record declines across both prime and sub-prime sectors," Standard & Poor’s credit analyst Narelle Coneybeare said.
"The decrease in arrears in both the sub-prime and low doc sectors was small; however, we are seeing declines in the proportion of arrears greater than 90 days, indicating that the proportion of borrowers facing severe arrears is easing."
