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Italian RMBS Index Report Q2 2009?Performance Deteriorates Slightly While Average Prepayments Dip Down Into High Single Digits Aug 09
Standard & Poors, Aug 2009
Abstract
Standard & Poor's Ratings Services' Q2 data for delinquencies and defaults show a further slight deterioration of the performance in Italian residential mortgage-backed securities (RMBS) transactions. The performance metrics we use in this index are starting to show the effects of lower short-term interest rates on affordability. Floating-rate mortgage loans included in Italian RMBS transactions typically reset every three months, so most of the reduction in short-term interest rates is likely to have already fed through to lower mortgage loans installments. In our view, Italian RMBS could benefit from the improved affordability conditions in H2 2009. However, the marked slowdown in economic activity and the rise in unemployment levels could negatively affect performance. Whereas overall performance has leveled off, some...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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