Moody’s: Arrears improve in August

Advertisement
ScreenHunter_01 Mar. 17 23.04

Fresh from the CRA:

Sydney, November 05, 2013 — Moody’s Investors Service says that delinquencies in excess of 30 days in the Australian prime residential mortgage market measured 1.35% in August, down from 1.39% in July, and an improvement from 1.24% in August last year.

“Looking ahead, we expect the performance trends witnessed to date in 2013 to continue with stable delinquencies, underpinned by expected GDP growth of 2.0% to 3.0%, the current low interest rate environment, and a steady unemployment rate of 5.0% to 6.0%” says Jennifer Wu, a Moody’s Vice President and Senior Credit Officer.

Wu was speaking on a just-released Moody’s report, titled “Global Structured Finance Collateral Performance Review.”

Moody’s report says Australian prime 60-day-plus arrears in August, of 0.76% also compare favorably to all economies covered in the report, except for Japan’s 0.29%.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.