...Given the combination of low GDP growth in Italy, the rapid increase in Euribor and surging prices for basic goods, petrol and food, low-to-medium-income Italian borrowers with floating-rate mortgages have found it increasingly difficult to afford their mortgage payments. Under a new agreement enshrined in law, some Italian mortgage borrowers will, for a limited period, have the option of converting their floating-rate instalments into more affordable fixed instalments. Each bank and financial intermediary (including SPVs) may decide whether or not to participate in the scheme. Moody s has been analysing the impact the law may have on new and existing RMBS transactions backed by Italian mortgage loans. This impact will clearly depend on whether or not individual banks or SPVs decide to participate in the scheme. Additionally, it remains unclear how the scheme will be implemented from an operational point of view given the link that it will create between the SPVs and the lender....

Report Type: Special Report
Free Sample: Click Here to Download

Enter the keyword(s) which you would like to search for within this document and click "Search"

 

 Moody's Global Credit Research
Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.