Moody's changes CDO collateral classification

Published May 19, 2005, 12:00 a.m. EDT

|

Updated May 19, 2005, 12:00 a.m. EDT

1 Min Read

In an effort to clarify and standardize the categories used in its CDO methodology Moody's Investors Service is considering changing its system of classifying home-equity collateral backing both cashflow and synthetic CDO deals. From now on, a home-equity loan will either fall under the prime or subprime category based on the borrower's FICO score. A loan with a FICO score above 650 will be classified as prime while a below 650 FICO score will be classified as subprime. For cashflow CDOs, there had been three categories of analysis.

For reprint and licensing requests for this article, click here.

TRENDING

Minimum capital requirements

Fed Basel rules offer upside for banks, but impact unclear

Early industry reaction to the Federal Reserve's Basel III proposals points to potential capital relief for banks, though stakeholders say the complexity of the changes makes their overall impact unclear.

By Maria Volkova

March 20
RMBS

SAGE Residential's third CES securitization raises $247.8 million

The loans were underwritten primarily to full documentation standards, including one to two years of W-2 verification, or two years of personal and business tax returns for self-employed borrowers.

By Donna M. Mitchell

March 20
Treasurys

Treasuries slide as elevated oil prices fuel inflation fears

The Fed, European Central Bank and the Bank of England all held rates this week as policymakers grapple with the uncertain outlook for inflation and growth arising from the conflict in the Middle East.

March 20

MORE FROM ASSET SECURITIZATION REPORT

Minimum capital requirements

Fed Basel rules offer upside for banks, but impact unclear

Early industry reaction to the Federal Reserve's Basel III proposals points to potential capital relief for banks, though stakeholders say the complexity of the changes makes their overall impact unclear.

By Maria Volkova
Reporter

March 20
RMBS

SAGE Residential's third CES securitization raises $247.8 million

The loans were underwritten primarily to full documentation standards, including one to two years of W-2 verification, or two years of personal and business tax returns for self-employed borrowers.

By Donna M. Mitchell
Editor

March 20
Securitization

Credit9's $122.4 million issuance is backed by debt settlement loans

The deal has a three-month prefunding period, which begins on its expected April 2 closing date, and assets transferred into the pool will be subject to concentration limits.

By Donna M. Mitchell
Editor

March 19
Politics and policy

Basel reproposal's impact on non-bank mortgage lenders

A first look at the capital plan suggests it moves the real estate finance industry closer to changes it lobbied for, but the devil may be in the details.

By Bonnie Sinnock
Capital Markets Editor

March 19
RMBS

Santander's mortgage pool to back $337.6 million in RMBS

Regardless of whether a trigger is in place, A-1FCF will always receive principal first until that balance is reduced to zero, and then to A-1LCF until it is fully paid off.

By Donna M. Mitchell
Editor

March 19
Mortgage rates

Inflation drives mortgage rates to 2026 high point

For the second week in a row, the 30-year fixed increased by 11 basis points, Freddie Mac found, a result of reaction to oil price hikes from the Iran conflict.

By Brad Finkelstein
Originations Editor

March 19