Fitch Ratings today said that European structured finance upgrades outnumbered downgrades by three to one in 1Q05, continuing the trend the sector has witnessed since 2003. European RMBS, which experienced positive performance in 2004 with 84 tranches upgraded and just seven downgraded, started off the year with six downgrades and no upgrades in 1Q05. All six downgrades were on a single deal (Provide Gems 2002-1 Plc). Fitch said that these actions came in response to a rise in delinquencies, credit events, increased losses, low recoveries and challenging economic conditions in the former East Germany. CMBS emerged as a "bright spot," said analysts at the agency, with no downgrades in either 4Q04 or 1Q05. In Europe CDOs have seen the most activity in 1Q05 with 16 rating actions including 14 upgrades. Globally CDOs also showed strong performance during 1Q05 with over twice as many upgrades than downgrades. The number of upgrades was consistent with 2004 averages while the number of downgrades dropped substantially.
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Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
April 25 -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
April 24 -
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
April 24 -
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
April 24 -
The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.
April 24