From Moody’s:
Moody’s Investors Service says that delinquencies for Australian auto loan asset-backed securities (ABS) and residential mortgage-backed securities (RMBS) increased in January 2017 when compared with December 2016. Delinquencies for the month of January 2017 also rose year-over-year.
Specifically, 30+ day delinquencies for Australian auto loan ABS transactions rose to 1.80% in January 2017 from 1.54% in December 2016 and 1.35% in January 2016.
Delinquencies for prime RMBS transactions also rose to 1.61% in January 2017 from 1.57% in December 2016 and 1.35% in January 2016.
“Looking ahead, we expect that delinquencies for Australian auto loan ABS and prime RMBS will continue to rise in 2017,” says Alena Chen, a Moody’s Vice President and Senior Analyst.
“Weaker economic conditions in states reliant on the mining industry, rising underemployment, weak wage growth and less favorable housing market conditions will drive delinquencies higher,” adds Chen.
Check out that mining bust in 2013 vintage. Now imagine what it will look like when the east coast pops!