Via Fitch:
Fitch Ratings-Sydney-05 March 2020: Australia’s 30+ days mortgage arrears were down 1bp to 1.06% in 4Q19 from the previous quarter, and 1bp higher from the year earlier; 30+ days arrears have now been below 1.2% for the past two and a half years, says Fitch Ratings in a new report.
The recent bushfires and COVID-19 coronavirus outbreak in China and elsewhere are likely to have only minimal impact on Australian RMBS portfolios. The bushfires occurred in remote or regional areas with low population levels, while the mortgage portfolios typically securing RMBS notes are concentrated in densely populated areas that were not directly affected by the bushfires. The COVID-19 outbreak could indirectly affect arrears performance due to lower incomes stemming from a fall in tourist numbers following the implementation of travel restrictions, but Fitch expects the impact to be negligible.
