Irish RMBS Continues to Struggle

Moody's Investors Service just published a report that gives an update on Irish RMBS performance. The ratings agency is maintaining a negative outlook on Irish RMBS citing expectations of increased delinquencies and defaults in these deals.
 
The report also stated that Irish RMBS performance continues to weaken. From April 2010 to April 2011, 90+ days’ delinquencies in outstanding portfolios increased slowly to 7.62% from 4.08%. Additionally, 360+ days’ delinquent loans have reached 2.38% from 1.00%.
 
All Irish RMBS deals have experienced credit deterioration since 2008, according to the report. Originator First Active's Celtic offerings 9, 10, 12, and 14 all recording 90+ days’ delinquencies above 10% and 360+ days’ delinquent loans higher than 3.5% of the current balance.
 
Moody’s analysts expect that a struggling national economy, highlighted by rising unemployment, falling house prices, and contracting GDP, will also continue to hurt the performance of Irish RMBS.