New Fitch Rating Scheme Gauges Chances of Recovery For ‘Distressed’ ABS, MBS Securitization Classes
May 12, 2006
Investors who hold performance-plagued classes of asset- and mortgage-backed securities have gotten a new tool for gauging the chances that they will recover some principal and interest in case of default. In an audio conference last week, Fitch Ratings took the wraps off a new rating system for distressed securities that aims to estimate recoveries on a forward-looking basis. The new rating scheme is part of an effort to provide “enhanced analytics” for structured finance…