» The 30+ days delinquency rate for prime Australian residential mortgage-backed securities (RMBS) increased to 1.79% in March 2020 from 1.55% in December 2019 and 1.57% in March 2019.
» Delinquencies will continue to increase in 2020 because of the economic disruptions caused by the coronavirus outbreak.
Australian prime RMBS delinquency rates, which increased over the three months to March 2020, will continue to increase over the rest of the year, because of the economic disruptions caused by the coronavirus (COVID-19) outbreak.
The 30+ days delinquency rate for prime Australian RMBS was 1.79% in March 2020, compared with 1.55% in December 2019 and 1.57% in March 2019, as Exhibit 1 shows. The 30+ days delinquency rates increased across the different issuer types in the March quarter, as Exhibit 2 shows.
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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.
