Abstract: Looking ahead into 2008, we consider that there is an increasing risk that collateral performance in a number of European structured finance asset classes will worsen. The recent period of low loss rates could not last indefinitely, and current capital market disruption could now act as a catalyst for some deterioration. It remains to be seen whether collateral risks will rise sufficiently to turn the overall European structured finance rating performance onto a more negative path, or whether we will simply see a moderation in the number of upgrades, especially in European residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS). In our opinion, collateral performance issues over 2008 are most likely to affect speculative-grade or low investment-grade ratings, with

Brief Excerpt: RESEARCH Ratings Definitions European Structured Finance Performance Outlook 2008aÇöEconomic Weakening And Credit Squeeze Could Hurt Asset Performance Publication date: 25-Jan-2008 Surveillance Credit Analysts: Andrew South, London...

Report Type: Commentary
Sector: Asset-Backed Commercial Paper, Asset-Backed Securities, Collateralized Debt Obligations, Commercial MBS, Corporations, Financial Institutions, Global Issuers, Insurance, International Public Finance, Public Finance, Real Estate Companies, Residential MBS, Servicer Evaluations, Sovereigns, Structured Finance, Utilities
Free Sample: Click Here to Download

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

 

 S&P Credit Research
S&P Credit Research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.