insto - Australian financial markets

Moody's said that mortgage borrowers' ability to repay their mortgages -- as measured by delinquencies rates -- continues to improve for both prime and non-conforming RMBS transactions despite a backdrop of increasing interest rates.

“This is because the overall rate reductions since September 2008 mean borrowers are still enjoying significantly lower repayments, and unemployment is still relatively low and is expected to peak at levels much lower than forecast at the start of the global credit crisis,” said Arthur Karabatsos, Moody's senior analyst.