S&P: Rare Drop in Portuguese RMBS Delinquencies
Total delinquencies in the Standard & Poor's Portuguese RMBS index decreased slightly in the second quarter of 2013, for the first time in 2 years.
Total delinquencies fell to 5.91% from 5.94% of delinquencies in the previous quarter.
Low interest rates and increased forbearance measures from originators/servicers have softened the pace of the rise since Q2 2012, according to an S&P report
But S&P said the results are dulled by the still struggling economy which could constrain performance of these deals.
S&P forecasts that Portugal's real GDP will contract by 2.1% in 2013, with persistently high unemployment, a weak housing market, and low consumer demand. “As households continue to struggle, it remains to be seen whether the slight improvement in collateral performance will continue over the rest of the year,” said analysts in the report.