Talking Points …
- According to the latest report from Morningstar Credit Ratings, distressed inventory is on the decline, but the number of months it takes to clear distressed inventory from the market is on the rise.
- The time to clear this inventory has increased by five months from the second quarter of this year and 11 months from September 2012, according to Morningstar’s analysis. According to its forecasts, it will take 49 months to work through the private-label RMBS sector’s distressed inventory.
- Judicial states hold about 61 months of distressed inventory, while non-judicial states hold about 32 months’ worth. Short sales made up 49 percent of distressed sales in the third quarter of this year, up from 45 percent a year ago.