The default rate on subprime mortgage loan rose 19 basis points in the month of March to 11.44%, the highest level in nearly 10 years, according to a Friedman Billings Ramsey report.Defaults on securitized subprime loans have risen from 6.52% in March 2006. In November, defaults surged by 101 bps to 10.1%. Since November, the default rate has risen by 136 bps. Researchers at the investment banking firm based in Arlington, Va., also reported that the default rate on alt-A loans rose to 2.26% in March from 0.90% in March of the previous year. The alt-A default rate is the highest since January 2004. (Default rates include loans that are 90 days or more past due, in foreclosure and real estate owned.)
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