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Italian RMBS Index Report Q3 2009?Performance Metrics Begin To Diverge While Cash Reserve Draws Increase Nov 09
Standard & Poors, Nov 2009
Abstract
Standard & Poor's Ratings Services' Q3 performance metrics for Italian residential mortgage-backed securities (RMBS) show the emergence of a dichotomy between a reduction of shorter term arrears, and longer term arrears and defaults remaining steady. In our opinion, improved affordability conditions (due the low interest rate environment), and adverse wage and unemployment dynamics, explain this performance split. Some transactions backed by riskier portfolios (as measured by leverage, underwriting standards, mortgage loan products, etc.) continue to underperform the rest of the Italian RMBS market. Overall, the current macroeconomic environment continues to be consistent with structurally lower short-term arrears and higher default levels, in our view. We believe that the challenging economic conditions pose more problems for riskier portfolios. This could lead...
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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