Aussie Overdues Exceed 6%

Average nonconforming securitized residential mortgage delinquencies in Australia rose above 6.0% in the second quarter, continuing an upward trend that Moody's Investors Service said is "distinct" from the climb that preceded the subprime mortgage woes in the United States.During the second quarter, average nonconforming residential mortgage-backed security delinquencies greater than 90 days past due jumped to approximately 6.50%, compared with 5.97% and 4.63% for the same periods in 2006 and 2005, respectively, according to the rating agency. "While nonconforming loans are the nearest thing in Australia to subprime loans, it is evident that Australian borrowers are not experiencing the stress seen in the U.S.," said Ilya Serov, a Moody's analyst and author of a second-quarter review on the topic, who added that, "Historically loans to borrowers with ... track records ... comparable to those of U.S. subprime borrowers have formed a relatively smaller segment" of the Australian nonconforming market. Moody's can be found online at http://www.moodys.com.