NEW YORK--(BUSINESS WIRE)--Link to Fitch Ratings' Report: Falling Personal Bankruptcies to Boost U.S. Consumer ABS Performance in 2011
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=607925
Fitch Ratings-New York-09 March 2011: The major segments of U.S. consumer ABS are due to receive some good news that will boost collateral performance over the course of the year, according to Fitch Ratings in a new report released today.
Fitch projects personal bankruptcy filings to reverse a five-year trend and fall 3-5% in 2011, which would make it the first such decline since the Bankruptcy Abuse Prevention and Consumer Protection Act was passed in 2005.
Bankruptcy filings have risen incrementally since 2005 and put a strain on ABS collateral, though senior ratings have by and large have remained well-insulated. Now with the trend likely to reverse course this year, 'consumer ABS collateral performance is likely to build on recent improvements throughout the year as the economic recovery solidifies and filings slow,' said Managing Director Michael Dean.
That being the case, Fitch expects the ongoing softness in the labor and real estate markets to temper the positive upside for the foreseeable future. As such, 'lower default rates for most consumer related asset classes will still remain above historical norms throughout 2011,' said Dean.
'Falling Personal Bankruptcies to Boost U.S. Consumer ABS Performance in 2011' is available by clicking on the above link or visiting 'www.fitchratings.com' under 'Latest Research'.
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