Login
ISCOVER
Prime and subprime arrears have fallen yet again, according to new research.
Data from Standard & Poor’s show that arrears on loans underlying Australian prime residential mortgage-backed securities (RMBSs) decreased by two basis points to 1.29 per cent in June 2013.
Total prime RMBSs outstanding now comprise $111.1 billion.
Subprime RMBS arrears also declined in June, falling by 49 basis points to 5.08 per cent.
"This is the third month to record declines across both prime and subprime sectors," Standard & Poor’s credit analyst Narelle Coneybeare said.
"Since March we have seen a decline of 13 basis points for prime RMBS, which equates to an overall reduction in arrears of $142 million. Subprime arrears continue to show improvement, with the overall level of arrears moving down to the lowest level recorded in 13 years. In particular, the level of severe arrears has declined significantly over the past 12 months."
JOIN THE DISCUSSION