The three scenarios Fitch tested are mild stress, with mortgage defaults of 2.5 percent and a 20 percent drop in home prices; medium stress with 6 percent defaults and 30 percent decline in prices; and severe stress with 8 percent defaults and a 40 percent price slump.
The final results will be released before Christmas, Fitch spokeswoman Iselle Gonzales said.
Stress tests have lost their market luster in the wake of Ireland's meaning nothing.
No comments:
Post a Comment