Delinquencies are substantially higher on post-reset Partial IOs
, which is not unexpected, but still nice to see in a graph.
They also point out a few other facts, some of which may be obvious, but nonetheless:
- Virtually all Partial IOs remaining are 2005 - 2008 vintage loans.
- About 25-30bln partial IOs per year over the next 3 years. $80 bln total
- 2012 will likely be the hardest - virtually all of these are 5-year partial IOs from 2007 - yuck.
- Average increase - 21% (to my, roughly 20%)
- They counted 350 loans worth $5.3 billion that will reset with a <1x>
- $1.7 billion this year, $1.5 billion in 2011, and $2 billion in 2012