Structured Finance

Highlights

• 17 May 2013
  • Resi Landscape: Capacity constraints for homebuilders a risk to construction and jobs
    The capacity constraints currently facing US homebuilders pose downside risk to construction and jobs but upside risk to prices, our newsletter says. Also discussed: falling LTVs will result in higher advancement rates if servicers re-evaluate delinquent subprime loans, unreimbursed losses on aged delinquent loans in FHA/VA transactions will increase overall losses, rising home prices and active servicing lower risk in RMBS pools... Full Report
• 15 May 2013
  • Credit Insight: May edition highlights positive impact of new FCA initiative
    AThe May edition of Credit Insight discusses the credit positive impact for UK RMBS and covered bonds of the UK’s Financial Conduct Authority’s (FCA) initiative to reduce interest-only mortgage borrower risk. The FCA’s initiative, which requires lenders to prompt borrowers with interest-only mortgages maturing before 2020 to check their repayment plans, will reduce default risk. We also discuss the mixed credit implications for Spanish SME transactions of the Spanish government’s new National Housing Plan for 2013-2016 and the credit negative impact for Spanish ABS of continued regulatory uncertainty in the Spanish electricity sector on the back of high tariff deficits... Full Report
  • Moody's/RCA CPPI: Major market & CBD office prices continued to set record highs
    Apartment prices nationally increased by 1.5% in March while core commercial prices were unchanged. The national all-property composite index increased by 0.4%. The report also highlights the fact that the recovery rate for loans resolved with a loss greater than 2% during the first quarter was up approximately 25 percentage points from the recovery rate near the January 2010 trough… Press Release l Full Report