TY - JOUR T1 - Negative Equity Trumps Unemployment in Predicting Defaults JF - The Journal of Fixed Income SP - 67 LP - 72 DO - 10.3905/JFI.2010.19.4.067 VL - 19 IS - 4 AU - Laurie S Goodman AU - Roger Ashworth AU - Brian Landy AU - Ke Yin Y1 - 2010/03/31 UR - https://pm-research.com/content/19/4/67.abstract N2 - 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 ER -