House prices present risk to Spanish RMBS, SME ABS

By Tom Porter
16 Sep 2014

A gradually improving Spanish economy will not stop the house price decline continuing over at least the next year, according to Moody’s, which increases the potential severity of defaults within RMBS and SME ABS pools.

The Spanish economy has shown signs of improvement in recent months, such as a 1.58% reduction in the unemployment rate and 1.2% GDP growth in the second quarter of this year.

“We expect to see occasional improvements in the housing market, but believe such movements will be temporary ...

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