Subprime Delinquencies Drop Again as CDS Prices Return to 2008 Levels

Delinquencies in subprime residential mortgage-backed securities (RMBS) fell in the third straight month as Alt-A RMBS delinquencies fell in the second consecutive month, according to the latest data from Fitch Ratings.

Subprime RMBS delinquencies fell to 44.8% in May, from 45.2% in April. The rate is still up from 28.3% the same time last year.