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ISCOVER
Staff Reporter
Moody's Investors Service says delinquencies across all Australian asset-backed security programs have increased over the last quarter.
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"At the end of March 2013, for instance, the 30-plus delinquencies were at 0.46 per cent for SMART ABS deals, and 3.14 per cent for Bella ABS deals, compared with 0.42 per cent and 2.39 per cent respectively at the end of December 2012," Moody's analyst Alena Chen said.
"Nonetheless, net losses are stable, as can be seen by motor vehicle recovery rates. ABS portfolios predominantly comprise motor vehicles and they have stable recovery rates. As a result, we expect net losses in Australian ABS transactions to remain low.”
The most seasoned outstanding pools were of the 2009 vintage. Cumulative defaults stayed the same, at 1.5 per cent in both the first quarter of 2013 and the fourth quarter of 2012.
Net losses were also unchanged at 0.7 per cent. Other outstanding vintages are less seasoned and have incurred fewer losses.
"Overall, our stable outlook for Australian ABS in 2013 reflects our expectation of stable delinquencies and limited losses given our expectations,” Alena Chen said.
