RRMMBBSS ppeer­rf­foor­rm­maan­nc­cee rreem­maai­in­needd sst­taab­bllee iinn JJu­ul­lyy

Financial Mirror (Cyprus) - - FRONT PAGE -

The per­for­mance of the Greek res­i­den­tial mort­gage-backed se­cu­ri­ties (RMBS) mar­ket re­mained sta­ble in three months ended July, ac­cord­ing to the lat­est in­dices pub­lished by Moody’s.

The 90+ day delin­quen­cies of Greek RMBS trans­ac­tions rose to 5.9% of the cur­rent bal­ance in July from 5.6% in July 2013. The high­est pro­por­tion of over­all delin­quen­cies came from Es­tia Mort­gage Fi­nance II PLC, with 11.1% delin­quen­cies of the cur­rent bal­ance in July, an in­crease from 8.8% in July 2013. For the re­main­ing deals, delin­quen­cies con­tin­ued to show sta­ble per­for­mance.

Cu­mu­la­tive de­faults slightly in­creased to 2% in July from 1.9% in the pre­vi­ous quar­ter. The cu­mu­la­tive de­fault rate of Es­tia Mort­gage Fi­nance II PLC con­trib­uted the high­est por­tion of the over­all de­fault in­dex, with de­faults at 7.0% of the orig­i­nal bal­ance in July com­pared with 5.4% in July 2013.

On Au­gust 1, Moody’s up­graded Greece’s gov­ern­ment bond rat­ing by two notches to Caa1 from Caa3 re­flect­ing the rat­ing agency’s ex­pec­ta­tion of an im­prove­ment in eco­nomic out­look, the sig­nif­i­cant im­prove­ment in Greece’s fis­cal po­si­tion over the past year and the gov­ern­ment’s re­duced in­ter­est bur­den and length­ened ma­tu­ri­ties of debt. In ad­di­tion, Moody’s raised Greece’s lo­cal- and for­eign-cur­rency bond and de­posit ceil­ings to Ba3 from B3 to re­flect the coun­try’s re­duced eco­nomic, le­gal and po­lit­i­cal risks.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.