Delinquencies Down

U.S. timeshare ABS delinquencies and defaults are down for the second straight quarter, though the trend will not last if seasonal patterns take hold, according to the latest timeshare ABS index from Fitch Ratings.

The decline in delinquencies in second-quarter 2010 (2Q’10) reflects both seasonal and year-over-year improvement. Defaults, while lagging delinquencies have begun to show a similar trend in 2Q’10. ‘The seasonal effect will fade in the latter half of the year, leading to modest increases in delinquencies,’ said Director Brad Sohl. ‘Nonetheless, year-over-year improvements will continue to hold.

Full report here