Servicers have increasingly opted to stop advancing principal and interest payments on delinquent subprime loans. This trend can have broad implications for bond values, FTN Financial analysts said in a report.

For the overall subprime universe, analysts estimated that the advance rates are now at 47%versus 60% a year ago. These lowered advance rates mean a decrease in the cash flows available to the securitization trusts and an increase in the bond's average life.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.