UK non-con­form­ing RMBS 90+ day delin­quen­cies im­proved by Fe­bru­ary

Financial Mirror (Cyprus) - - FRONT PAGE -

The 90+ day delin­quen­cies of the UK non­con­form­ing (NC) res­i­den­tial mort­gage-backed se­cu­ri­ties (RMBS) mar­ket im­proved to 13.31% in Fe­bru­ary from 13.74% in Novem­ber 2015, ac­cord­ing to the lat­est indices pub­lished by Moody’s In­vestors Ser­vice.

The rate of cu­mu­la­tive losses in­creased slightly to 2.73% in Fe­bru­ary from 2.71% in Novem­ber 2015. The trans­ac­tions in group­ings “Money Part­ners Se­cu­ri­ties” and “Other trans­ac­tions closed pre 2012” are the worst per­form­ers among the indices dur­ing this quar­ter, with re­spec­tive cu­mu­la­tive losses rates of 6.45% and 4.03% in Fe­bru­ary, up from 6.43% and 4.00% in Novem­ber 2015. The weighted-av­er­age loss sever­ity de­creased to 20.17% in Fe­bru­ary from 21.93% in Novem­ber 2015.

Moody’s an­nu­alised to­tal re­demp­tion rate trend de­creased to 9.20% in Fe­bru­ary from 9.52% in the previous quar­ter.

As of Fe­bru­ary, Moody’s rated 83 trans­ac­tions in the UK NC RMBS mar­ket, with an out­stand­ing pool bal­ance of EUR18.25 bil­lion, a 1.70% de­crease from EUR18.56 mil­lion in Novem­ber 2015.

In 2016, Moody’s said note per­for­mance trends in the UK NC RMBS sec­tor will re­main pos­i­tive. Favourable eco­nomic con­di­tions — low in­ter­est rates, higher GDP growth and low un­em­ploy­ment — and the strong UK hous­ing mar­ket will keep sup­port­ing NC RMBS per­for­mance.

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