CDR rates were relatively flat in July, with only one index posting a decrease of 1.2 points, while loss severities rose by an average of 1.5 points across all indices, according to a recent report by Bank of America Merrill Lynch.

The 06-1 to 07-2 indices showed overall changes of +0.8, -1.2, +0.6, and +.04 points, respectively, bringing rates to 9.9, 11.2, 11.2, and 10.7%. Default rates have been relatively flat since October, which BofA Merrill analysts attributed to the emergence of foreclosure issues. They also believe CDR volatility to be when liquidation volumes are higher.

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