CoreLogic today unveiled its bond assessment service for non-agency residential mortgage-backed securities (RMBS).
The service will provide credit ratings of non-agency RMBS across product type, vintage and tranche position, with credit grades ranging in descending order from ‘AAA’ through ‘D’. The ratings will not be regulated by the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization instead CoreLogic said that their ratings are designed to add another layer of transparency for bond investors.
“Today, investors are looking for greater transparency into the quality and risks of the collateral backing non-agency bonds, and issuers are looking for new ways to rebuild investor confidence. We believe CoreLogic Bond Tracker will appeal to both groups,” said Ben Graboske, senior vice president, real estate and financial services for CoreLogic.
The CoreLogic ratings provide a sensitivity measure on the credit ratings agency rating. It gives investors a better indication on whether the bond is closer to being upgraded or downgraded or pretty solid where it is.
Unlike a traditional ratings agency perspective, the CoreLogic ratings will be purely data driven.” It basically takes out the presentation and personality, the art that the ratings agencies take into consideration when rating RMBS bonds,” said a spokesperson for the company. “It presents a more objective, data driven way of looking at the bond.”