Non-Agency MBS Performance Strong at End Of 3Q13, Liquidation Timelines a Concern
November 1, 2013
Performance of vintage non-agency MBS continued to improve at the end of the third quarter of 2013, with delinquencies on nonprime securities at levels last seen five years ago. However, Fitch Ratings warns that liquidation timelines are extending, limiting improvements to loss severities. Performance of vintage non-agency MBS continues to improve due to home-price appreciation and steady employment growth, making the securities strong targets for investors. However, there are some concerns as unscheduled prepayments increased on Alt A MBS and jumbo MBS even as interest rates increased in the third quarter. Fitch said...