Global bond losses improve with US housing

By Matthew Scully
29 May 2014

Improvements in the US housing market that have been better than expected have helped push loss rates lower on mortgage bonds issued prior to the financial crisis, but they still contribute to over half of losses in structured bonds worldwide, according to Fitch Ratings.

US residential mortgage backed securities issued between 2000 and 2008 have shown improved performance after a housing market recovery, with loss rates falling to 8.7% from 9.6% last year, analysts wrote in a new report.

US RMBS still contribute to more than half of all structured bond losses ...

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