Moody's Investors Service says that delinquencies for Australian auto loan asset-backed securities (ABS) and prime residential mortgage-backed securities (RMBS) rose in January 2016 from December 2015.
"We expect delinquencies for Australian auto loan ABS and prime RMBS will continue to rise in 2016 on below-trend GDP growth, although overall delinquencies will remain at low levels," says Alena Chen, a Moody's Vice President and Senior Analyst.
Chen was speaking on the latest edition of Moody's monthly Global Structured Finance Collateral Performance Review report.
According to Moody's report, Australian auto loan ABS delinquencies in excess of 30 days rose to 1.53% in January 2016 from 1.30% in December 2015 and 1.09% in January 2015.
At the same time, Australian prime RMBS delinquencies in excess of 30 days rose to 1.37% in January 2016 from 1.30% in December 2015 and 1.28% in January 2015.
Looking ahead, Moody's expects delinquencies will continue to rise, as its forecast of 2% GDP growth in Australia in 2016 remains below the long-term average of 3.5%.
In addition, Moody's expects the pace of house price growth to slow in 2016, particularly in Sydney and Melbourne where prices increased significantly from 2014 to 2015.
In the three months to February 2016, house prices rose by a weighted average of 1.38% across Australian capital cities. Home prices rose in all capital cities except for Sydney, which registered a slight decline of 0.22%.


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