|
|
 |
|
Viewing report
|
|
|
|
ARCHIVE | Criteria | Structured Finance | ABS: TAX LIENS REVISITED Oct 96
Standard & Poors, Oct 1996
Abstract
Tax liens are imposed by municipalities on real estate for the nonpayment of property taxes. Historically, tax liens have been sold individually, and their attraction to investors is an above average yield, secured by an eventual right to foreclose upon the underlying property that in most cases is senior to other claims (with the exception of previously imposed federal tax liens). Since the late 1980s, an institutional tax lien market has developed, leading to the first tax lien securitizations beginning in 1993. To date, credit enhancement protecting rated tax lien-backed securities has primarily been in the form of overcollateralization. Transactions also have included cash accounts to fund servicer working capital requirements and liquidity reserves to cover bond interest in case...
Companies mentioned in this report are: New York City,New Jersey,California,District of Columbia
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.
|
|
|
|
