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Quality of mortgage-backed securities in Ireland to fall

The asset quality of residential mortgage-backed securities in Ireland is set to weaken in 2020, credit reference agency Moody’s has predicted.

This is due to the inclusion of buy-to-let loans, higher loan-to-value reperforming loans and fixed-rate mortgages, though underwriting standards and transaction structures will remain strong.

Irish GDP growth is expected to fall from 5.2% in 2019 to 3.2% in 2020.

Brexit is said to be the largest single risk to Ireland’s economic outlook, seeing as the UK is its main recipient of exports, while supply chains are deeply integrated.