Default rates among Portuguese residential mortgage-backed securities (RMBS) increased to 1% in Q209, from 0.5% just one year earlier.
The weighted-average 60-plus-day delinquency rate was up to 2.1%, from 1.9% in Q109, according to an index report by Moody’s Investors Service. At the same time, prepayment rates declined to 4.6%.
Moody’s, however, expects the Portuguese RMBS sector to improve.
“House prices increased by 1.7% compared to Q109, although they are still 1.5% lower than a year ago,” Nitesh Shah, a Moody's Economist said in a statement.