Italian RMBS to overcome all-time low prepayment rates, says Fitch

By Joseph McDevitt
30 Jul 2013

Italian mortgage prepayment rates hit an all-time low at the end of 2012, Fitch Ratings said this week. Deleveraging in Italian RMBS should, however, be enough to negate any negative carry that may occur as a result.

The weighted average prepayment rate of Fitch-rated transactions reached 1.7% in the fourth quarter of 2012, down from 3.8% in the same quarter of 2011, Fitch said. Historically the minimum level of voluntary prepayments in Italian RMBS has tended to be around 4%.

The rating agency expects ...

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