every credit lender will be feeling credit stress and higher...

every credit lender will be feeling credit stress and higher losses during this recession.

it's inevitable.

but I would argue credit lenders with greater share of lower income borrowers will feel less pain as

a) their drop in net income (salary income minus unemployment benefits) will not be as great as higher income borrowers

b) their loan obligations relative to their new downgraded income will not be as great as higher income borrowers.

for this reason, I'd be more worried about behemoths like cba...they have lions share of mortgage market and have been riding the wave for past 30 yrs in home price appreciation ... this will turn in 6-8 months as unemployment remains high, unemployment benefits clawed back, higher rate of rental vacancies remain......so....which will see their sp drop to levels enjoyed by their nab, wbc cousins.