Seems you’ve missed the message that this mortgage backed...

Seems you’ve missed the message that this mortgage backed securities default is sending... it’s telling you that there is indeed mortgage stress rising to a point that people can’t cope with and at a time of record low rates / record high debts with more and more people every week falling into negative equity it is set to get worse.

The fact that in order to trigger a default in this particular bond means arrears greater than 3%, which Is a lot higher than the industry average making it a considerable event.

This is a global slowdown happening as we see economies in Europe falling into recession already, AUS in a GDP per capita recession, talk of China growth slowing to 2% in years to come and the US halting rate rises / talk of stopping quantitative tightening as well as bond yields inverting so no one will be sparred or is being sparred.



Article here - https://www.google.com.au/amp/s/mobile.reuters.com/article/amp/idUSL3N20S1EI