A steady rise in the number of lower-rated, non-agency MBS deals combined with the development of riskier mortgage products – such as interest-only loans – means that market observers should expect to see the number of defaults continue to increase. That’s the conclusion of researchers at rating agency Standard & Poor’s, who provided investors with a teleconference presentation about the agency’s default history this week. According to S&P, only .93 percent of the agency’s 20,207…