- Language: English
- Published: October 2012
Criteria | Structured Finance | RMBS: Rating Assumptions For U.S. First-Lien High Loan-To-Value RMBS Transactions Mar 09
- Published: March 2009
- Standard & Poors
Standard & Poor's Ratings Services is publishing its criteria for reviewing U.S. residential mortgage-backed securities (RMBS) transactions backed by first-lien high loan-to-value (HLTV) mortgage collateral. The characteristics of first-lien HLTV RMBS transactions are similar to those of conventional securitized RMBS, except the collateral has higher loan-to-value (LTV) ratios. First-lien HLTV transactions are typically backed by mortgage pools with an average LTV of more than 95%. We use our subprime and Alternative-A (Alt-A) default curve methodology to project defaults over the life of the transactions; and We use the loss severities provided in the table below to account for the higher LTV ratios, the increasing trend in reported loss severities, and the persisting negative outlook for the U.S. housing market. This...
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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