Deutsche Bank

Deutsche Bank Sees Delinquencies Spike with Unemployment 

A July securitization report out of Deutsche Bank draws an important link between spiking unemployment, rising delinquencies and plunging home prices. Deutsche researchers note June’s 9.5% unemployment rate is well above the 5.6% level seen a year ago and marks the highest rate since the early 1980s. Much has changed since the ’80s, including the extent of the asset-backed securities (ABS) market. As the ABS market expanded, the report notes, performance of consumer-related ABS and national employment trends became inextricably linked.