The number of mortgages across Europe in arrears continues to increase, indicating more looming defaults, according to data from Fitch Ratings on transactions of residential mortgage-backed securities. Rising defaults are resulting in deterioration in the RMBS market right as European governments are striving to revive it. According to the European Securitisation Forum, an affiliate of SIFMA, outstanding RMBS in Europe reached €1 trillion in the first quarter of 2009. The Fitch report indicates that the RMBS market started to deteriorate in the next quarter.

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