Items Tagged with 'Credit Rating'

ARTICLES

  • AAA ratings return for non-prime mortgage bonds. Crisis redux? Maybe not

    Feature of new RMBS deal builds in greater protections for bond buyers
    The world of post-crisis mortgage bond trading is about to change, as a new mortgage bond is set to hit the market that features loans that would be considered non-prime, and also carries AAA ratings – a post-crisis first. Both Fitch Ratings and DBRS handed the deal AAA ratings on the largest tranche of the deal, but the deal is not a return to the pre-crisis world of credit ratings, at least not yet.
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  • KBRA unveils new mortgage default and loss model

    Reduces default expectations on purchase loans
    Citing ongoing analysis of mortgage performance and evolving origination trends, Kroll Bond Rating Agency released an update to its residential mortgage default and loss model, including revising the timeline and expenses associated with liquidated loans and adjusting the penalty for high debt-to-income ratio loans.
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  • Moody’s proposes changes to RMBS rating system

    Would incorporate global ratings model into U.S. methodology
    Moody’s said that the new quantitative model will be the starting point for its analysis of the loan pool and that the new model was developed after an “extensive” analysis of the performance of 800,000 fixed-rate and 600,000 adjustable-rate mortgages issued since 1998.
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  • S&P fights case against credit ratings

    Standard & Poor's told a judge that the firm's credit ratings are opinions protected by state law and should obtain the same protections as newspaper editorials. This is the firm's defense as it fights government claims over pre-housing crisis mortgage-backed securities ratings.
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