Over one-third of outstanding U.S. prime and Alt-A credit RMBS may have bankruptcy carveouts, Fitch Ratings found as part of its review of the cramdown legislation's potential effects on current RMBS transactions.

Deals with carveouts allocate certain bankruptcy losses in atypical ways that tend to vary. Fitch found about 29% of prime deals and 46% of Alt-A transactions have bankruptcy carveouts.

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