The Australian ABS market remains stabile.
Losses for all vintages “are expected to stabilize” during the second half of this year despite a slight increase in delinquencies and losses for Australian ABS in 1Q 2012, according to Moody's Investors Service.
Single-digit increases in the ABS market delinquency rate were present “across most programs,” analysts said.
More specifically, the cumulative defaults for the 2007, 2008 and 2009 vintages ranged from 1.3% to 1.9%, while 2007 defaults remained stable at 1.7%.
In her comments about the "Australian ABS Performance Review: 1Q 2012" report, Moody's analyst Alena Chen noted that because the increase was minor and the recovery rates remain stable, “there will be no major impact on either defaults or losses.”
Due to macro-economic conditions in Australia, “there have been no upgrades or downgrades of Australian ABS notes since October 2011,” Moody’s said.
The overall stability of the ABS market is expected to persist. Furthermore for the rest of the year “losses will be stable for all vintages” as the growth rate of losses for the 2010 vintage is likely to slow down.
“Steady recovery rates” are another factor expected to impact the continuous stable performance of most Australian ABS transactions.
