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U.K. Nonconforming RMBS Index Report Q1 2011?Arrears Hold Steady, But For How Long? Jun 11
Standard & Poors, June 2011
Abstract
Standard & Poor's Ratings Services' delinquency index for U.K. nonconforming residential mortgage-backed securities (RMBS) remained flat over the first quarter of 2011, continuing a trend that has lasted for more than a year, and mirroring the stabilization of the wider U.K. economy since mid-2009. Meanwhile, our prepayment rate index fell for the 15th consecutive quarter. This largely reflects the dearth of mortgage products available to borrowers with an adverse credit history, along with the competitive reversionary interest rates on nonconforming mortgages, which make refinancing less attractive to borrowers, in our view. However, given the looming economic risks facing the U.K., we believe that collateral credit performance could deteriorate in the rest of 2011. High and rising inflation, softening house prices,...
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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