Standard & Poor's last week released research on Australian low-documentation (lo-docs) mortgage loans, which revealed they are twice as likely to be in arrears than conventional mortgages. Despite the disparity, S&P said lo-doc performance was in line with its expectations.

The study covered 720,000 mortgages, worth A$120 billion ($89.3 billion), currently outstanding under rated Aussie RMBS deals. Lo-docs represent 12.3% of the total.

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