EUROPEAN structured credit performance has received a boost after figures showed the default rate for notes issued in mid-2007 is just 1.43 per cent, Standard & Poor’s said yesterday.
It means just €39.8bn of the €2.8 trillion issued has been unable to pay over the five and half years since the onset of the financial crisis. S&P credit analyst Arnaud Checconi said: “These findings are against a backdrop of continued economic deterioration, with Europe’s unemployment rate reaching 12.2 per cent in April.”
Structured credit is a form of debt payment backed by underlying payments like mortgages. Consumer-type securitisation had a default rate of just 0.04 per cent.