According to two independent reports of the rating agency DBRS will be another very difficult year for structured finance. In the two reports are analyzed the many critical Rigu 
rdanti returns and new issues of structured bonds and comes out a framework for all reassuring for the coming years. The first report is devoted to bonds linked to residential mortgages, the fund that has most affected by the distortions of past years. In 2008 this market has virtually stopped and the new Mandatory emissions fell by 93.5% over 2007. To weigh in the future but will be mainly bonds issued in the last two years, which saw property values \u200b\u200bfall relentlessly, and in particular those who have adjustable-rate mortgages as collateral related to options (option ARMs), or loans for which the initial rate, usually in the first and second year, are much lower than those to be paid later. Clearly, much will depend on real estate prices that, in case of further write-downs could trigger new sales so-called "short sales" and new foreclosures.
In the second report are analyzed three other types of structured bonds, particularly those related to student loans, credit cards and loans in the automotive sector. In this case the element will have the greatest weight to the rate of unemployment. In the event continues to increase is not difficult to envisage a consequent increase in the rate of non-payment by debtors.
searches can be downloaded at this link:
RMBS: 2008 year in review and outlook for 2009
ABS: 2008 year in review and outlook for 2009
see also:
The sad end of the structured finance
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