U.K. nonconforming residential mortgage-backed securities are expected to continue deteriorating into 2011, according to a recent Moody's Investors Service forecast for asset classes in Europe, the Middle East and Africa.

The report said that while gross domestic product growth is expected to turn positive in many countries in EMEA later this year or in early 2010, employment and home prices will continue to deteriorate well into 2010, which will lead to securitized loan losses remaining at elevated levels into 2011 and 2012.

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