Will borrowers and banks cope with rising interest rates?

The RBA says 15 per cent of variable rate owner-occupiers will see negative spare cash should official interest rates hit 3.6 per cent, meaning they'd have to dip into their savings to meet financial obligations. SBS Finance Editor Ricardo Gonçalves speaks with Erin Kitson, Structured Finance, Sector Specialist Research at S&P Global Ratings to see what rising rates means for arrears, and explores what it means for the banks with Opal Capital Management.