Dutch delin­quen­cies con­tinue to de­crease

Financial Mirror (Cyprus) - - FRONT PAGE -

Delin­quen­cies of the Dutch residential mort­gage-backed se­cu­ri­ties (RMBS) mar­ket de­creased and cu­mu­la­tive de­faults in­creased mod­estly dur­ing the three­month pe­riod ended June, ac­cord­ing to the latest in­dices pub­lished by Moody’s In­vestors Ser­vice.

The 60+ day delin­quen­cies of Dutch RMBS, in­clud­ing Dutch mort­gage loans ben­e­fit­ting from a Na­tionale Hy­potheek Garantie (na­tional de­posit guar­an­tee), con­tin­ued to de­crease to 0.81% in June from 0.85% in March. The 90+ day delin­quen­cies also con­tin­ued to de­crease to 0.62% in June from 0.66% in March.

Nev­er­the­less, cu­mu­la­tive de­faults in­creased to 0.76% of the orig­i­nal bal­ance, plus ad­di­tions (in the case of master is­suers) and re­plen­ish­ments, in June from 0.65% in March. This com­pares to cu­mu­la­tive de­faults of 0.43% in June 2014. Cu­mu­la­tive losses in­creased slightly to 0.15% in June from 0.13% in March.

Moody’s has as­signed de­fin­i­tive credit rat­ings to two new trans­ac­tions since the last pub­li­ca­tion of the In­dex on May 20, in­clud­ing one class of notes is­sued by Or­ange Lion 2015-11 RMBS B.V. and one class of notes is­sued by Or­ange Lion XII RMBS B.V.

Moody’s has also up­graded the rat­ings on five classes of notes and af­firmed the rat­ings on five classes of notes is­sued by two Dutch RMBS trans­ac­tions; Low­land Mort­gage Backed Se­cu­ri­ties 1 B.V. and Green Lion I B.V.

The rat­ing agency ob­served an in­crease in hous­ing mar­ket ac­tiv­ity that will boost the Dutch hous­ing mar­ket’s re­cov­ery and raise re­cov­ery prospects in RMBS deals.

As of June, the 113 Moody’s-rated Dutch RMBS trans­ac­tions had an out­stand­ing pool bal­ance of EUR 218.9 bln, rep­re­sent­ing a year-over-year de­crease of 5.3%.

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