PT - JOURNAL ARTICLE AU - Laurie S Goodman AU - Roger Ashworth AU - Brian Landy AU - Ke Yin TI - Negative Equity Trumps Unemployment in Predicting Defaults AID - 10.3905/JFI.2010.19.4.067 DP - 2010 Mar 31 TA - The Journal of Fixed Income PG - 67--72 VI - 19 IP - 4 4099 - https://pm-research.com/content/19/4/67.short 4100 - https://pm-research.com/content/19/4/67.full AB - In this article, the authors show that negative equity alone is a more important predictor of defaults than unemployment. They also establish that when the borrower is significantly underwater, high unemployment can act as a trigger, amplifying the level of defaults.TOPICS: MBS and residential mortgage loans, legal/regulatory/public policy, big data/machine learning