Seems you’ve missed the message that this mortgage backed securities default is sending... it’s telling you that there is indeed mortgage stress rising to a point that people can’t cope with and at a time of record low rates / record high debts with more and more people every week falling into negative equity it is set to get worse.
The fact that in order to trigger a default in this particular bond means arrears greater than 3%, which Is a lot higher than the industry average making it a considerable event.
This is a global slowdown happening as we see economies in Europe falling into recession already, AUS in a GDP per capita recession, talk of China growth slowing to 2% in years to come and the US halting rate rises / talk of stopping quantitative tightening as well as bond yields inverting so no one will be sparred or is being sparred.
Article here - https://www.google.com.au/amp/s/mobile.reuters.com/article/amp/idUSL3N20S1EI
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