Moody’s Investors Service does not see a precedent being set by a provincial court in Spain that ruled that a bank’s repossession of a property effectively wiped out the borrower’s debt. The decision, handing down by a court of appeal in the northern Spanish region of Navarre, has ignited fears among RMBS players that loan defaults will jump and recovery rates drop as borrowers would have more incentive to default if their property prices are in the tank. In a report on the matter, Moody’s dismissed its potential to set precedent for other cases in the country, pointing out that “under article 105 of the Spanish Mortgage Act, a borrower is personally liable for all outstanding debt to the bank.” The full report is linked. For an article (in Spanish) on the court decision published in the daily El Pais on Jan. 26,
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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