Re-REMICs Designed to Avoid Ratings Downgrades May Actually Perform Worse
November 21, 2008
Despite bleak investor appetite in recent months, re-securitization of existing MBS has been one of the brighter spots of the non-agency MBS market in 2008. But a new analysis by Fitch Ratings raises concerns about the performance of these deals. Many re-securitizations are designed to provide additional credit support for an existing senior bond to avoid a potential downgrade...