Personal bankruptcy filings are expected to reverse a five-year upward trend and drop between 3% and 5% this year, which could boost collateral performance in consumer asset-backed securities, according to Fitch Ratings. In a new report, Fitch warns, however, that continued weakness in the labor and real estate markets could temper the optimism “for the foreseeable future,” and that “lower default rates for most consumer-related assets classes will still remain above historical norms throughout 2011.”

Click here to read the release from Fitch.