Harmoney

[Cool Bear]

Good to have that gem of information

Here goes. Shows a not insignificant difference in default between frequency between max and non max loans. There is a slight mitigant, that max loans (particularly at the mid grade) stay current longer. Potential for more interest payments needs to be weighed up against default frequency.



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Thanks Leesal

From your chart, it does looks like the default rates of the max loans are twice the non max loans (except for F). So it is significant indeed.

As for the max loans being more current, that would be because the non max loans may be paid off early to rewrite as max loans.

Thanks again (and for the colours too